capturing new opportunities

This article originally appeared in the Lamp, 2008 — Number 2

Exploration Company President Tim Cejka believes ExxonMobil is uniquely positioned to capture maximum benefit through the value chain in both the upstream and the downstream segments of the company’s business.

“The corporation has numerous opportunities across a broad spectrum of resource types and asset life cycles,” Tim Cejka says, “and is well-positioned to continue a high level of exploration activities in the future. We look at long-term, not short-term business variations, and we consistently capture new opportunities in all business environments.”

ExxonMobil has a “distinct competitive advantage” in global exploration, which Cejka attributes to the corporation’s size, financial strength, technical expertise and broad understanding of what he calls “the entire hydrocarbon opportunity spectrum.”

This across-the-board advantage allows the company to move quickly, flexibly and profitably as promising high-quality exploration opportunities arise — despite technological hurdles and changing business conditions. This provides investors with maximum value.

“We have seen our resource base grow from 55 billion oil-equivalent barrels in 1990 to 72 billion barrels in 2007,” Cejka says. “That’s a 31 percent growth in quality resources. This is after we have removed resources associated with production and portfolio high-grading.”

ExxonMobil’s oil and gas exploration strategy starts with identifying and prioritizing opportunities, continues with pursuit and capture, and ends with efficient evaluation and analysis of the resource.

Technology spurs success

Technology is a huge part of a successful program. “When the technology to effectively develop a high-quality resource does not exist, our industry-leading research and development teams are eager to build the necessary expertise,” Cejka says.

ExxonMobil’s success in locating, extracting and bringing oil and gas supplies to world markets depends upon the corporation’s investment in technological innovation, he says. For example, the company’s proprietary technologies such as Remote Reservoir Resistivity Mapping (R3M), extended-reach drilling, multi-zone stimulation technologies and increased liquid natural gas train and transportation capacities are all proving essential in unlocking additional energy reservoirs.

“A good example is the Piceance Basin gas reserve in northwest Colorado,” says Cejka. “Discovered in 1929, the Piceance’s potential as a source of hydrocarbons remained largely unexploited until the development of multi-zone stimulation technology helped unlock its tightly held gas reserves.”

In conclusion, Cejka says, “In 2007 this disciplined approach resulted in the capture of 14 conventional and unconventional opportunities in new, unproven locations as well as in established hydrocarbon provinces.”