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Abundant U.S. shale gas supplies revitalizing chemical manufacturing

Abundant U.S. shale gas supplies revitalizing chemical manufacturing. National Lieutenant Governors Association July 19, 2013 Dwight Tozer Vice President, ExxonMobil Chemical Company. Chemical Industry Vital to U.S. Economy. 25. $39 billion. 800,000. $770 billion. 12.

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Abundant U.S. shale gas supplies revitalizing chemical manufacturing

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  1. Abundant U.S. shale gas supplies revitalizing chemical manufacturing • National Lieutenant Governors Association • July 19, 2013 • Dwight Tozer • Vice President, ExxonMobil Chemical Company

  2. Chemical Industry Vital to U.S. Economy 25 $39 billion 800,000 $770 billion 12 Annual sales – one of America’s largest industries Percent of U.S. exports Annual capital investment Industry employees Percent of U.S. GDP supported Source: American Chemistry Council, June 2013

  3. Chemicals Demand Sees Significant Growth Energy Demand by Industrial Sector Quadrillion BTUs 250 Chemicals 200 150 Heavy Industry 100 50 Energy Industry Other 0 2013 2000 2020 2040 ExxonMobil 2013 Outlook for Energy

  4. 6.6 Global Natural Gas Resource Natural Gas Abundant, Widespread Unconventional Thousand trillion cubic feet Conventional 4.0 4.8 4.8 1.6 Europe Europe Europe 3.1 North America North America North America Russia / Caspian Russia / Caspian Russia / Caspian 2.8 Middle East Middle East Asia Pacific Asia Pacific Middle East Asia Pacific World Total - 27.9 Africa Africa Africa Latin America Latin America Latin America Conventional Unconventional Source: IEA Source: IEA Source: IEA ExxonMobil 2013 Outlook for Energy ExxonMobil 2013 Outlook for Energy

  5. Major Change in U.S. Feedstocks Gas/Crude BTU Ratio Crude Oil / Gas Pricing $/bbl • Major shift in energy market in mid-2000s • Crude driven by emerging market growth / global events • Shale gas supply drives the shift in relative economics US Gas:Crude $/T Brent Crude Oil Increased gas production provides advantaged ethylene feedstocks Source: ExxonMobil Estimates

  6. Shale Gas Fuels Manufacturing Expansion

  7. Economic, Jobs Growth from Shale ExxonMobil TX Project 10,000 construction jobs 3,800 other jobs $870 million annually to regional economy $90 million annual added tax revenues • 100 U.S. Industry Projects • $72 billion investment • 1.2 million construction jobs • 540,000 other jobs • $14 billion added annual tax revenue Texas Project Estimates: ExxonMobil Industry Project Estimates: American Chemistry Council

  8. Opportunities to Realize Potential • Objective: Balanced approach to support economic & job growth • Policies to facilitate development: • Access: gas reserves on state and private land • State Regulations: Fit for purpose environmental framework • Permitting: Streamlined and consistent for investments • Trade: Support free markets for U.S. goods An energy revolution at the doorstep

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