Saudi Arabian ventures

40 Pages·2013·8.92 MB·English

New campus update
Saudi Arabian ventures
An ExxonMobil publication
Rosneft and ExxonMobil
advance global partnership
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Focus on safety
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Upfront
Rex W. Tillerson “A commitment to safety is a On page 38, a story highlights the production, and a photo feature
Chairman and CEO value that shapes all decisions achievement of 7 million work hours (page 19) describes what life is
Mark W. Albers
Senior Vice President at every level.” during the construction of the new like at Kearl through the eyes of
Michael J. Dolan That statement by Mr. Tillerson Houston campus without a single several employees.
Senior Vice President
underscores his belief that safety employee or contractor lost-time A new ExxonMobil Chemical
Andrew P. Swiger
Senior Vice President is more than simply a priority. It’s injury. These articles are indicative and Saudi facility to make synthetic
Kenneth P. Cohen a standard of conduct within an of the value ExxonMobil places on rubber for growing markets is
Vice President-Public and Government Affairs
organization and a fundamental safety throughout the company. highlighted in a story beginning
David S. Rosenthal
Vice President-Investor Relations and Secretary basis of business excellence. In June, ExxonMobil and on page 9. Plus, a unique water
Bob Davis In this issue we have a number Rosneft signed additional management program by XTO
Editor
of articles on safety, beginning agreements expanding the Energy (page 5) and a president’s
Pat Gabriel
GCG Marketing with an in-depth interview on companies’ cooperative initiatives. award for ExxonMobil volunteers
Art Director
the following page with Mr. Our cover story on page 29 (page 37).
Len Shelton
Photography Coordinator Tillerson by the National Safety outlines this strategic partnership. We hope you enjoy this issue
Cynthia Solomon Council. On page 12, an article And beginning on page 13, a of The Lamp.
Production and Distribution Coordinator
describes two outstanding companion article describes an
safety milestones at the Saudi extraordinary exhibit of Russian
Aramco Mobil Refinery achieved art sponsored by ExxonMobil and
in conjunction with the startup of Rosneft. Bob Davis
a clean fuels project and a major The Kearl oil sands project Editor
Please address all Lamp correspondence,
including requests to reproduce any portion refinery upgrade. in western Canada has started
of the magazine, to the editor at Exxon Mobil
Corporation, 5959 Las Colinas Blvd., Irving,
TX 75039-2298.
In this issue
3 1 2 1 9 3 3
Culture of safety Outstanding achievements Kearl oil sands Focused on the future
The chairman’s perspective on Remarkable year at Saudi Aramco The project seen through the eyes Defining long-term research
operational excellence Mobil Refinery of employees opportunities
5 1 3 2 5 3 7
Welcome relief Melding art and music Houston campus update Panorama
A novel water program in An incredible exhibit opens in Phased move-in begins next year Business highlights
the Colorado mountains Washington, D.C. from around the world
2 9
9 1 7
Partnership advances
New Chemical facility Recruiting engineers The ExxonMobil-Rosneft strategic
Meeting growing demand with new A message to top-caliber graduates relationship
products
2
National Safety Council
honors ExxonMobil
Editor’s note:
The National Safety Council has awarded ExxonMobil its prestigious Green Cross for Safety medal
“…in recognition of leadership and commitment to corporate and social responsibility efforts in safety.”
The following is an interview with Exxon Mobil Corporation Chairman and CEO Rex W. Tillerson that
appeared in a recent issue of the Council’s Safety + Health magazine.
Why is safety a core value meeting safety requirements How do you view safety’s regard, our analysis indicates
at Exxon Mobil Corporation? and, just as importantly, also relationship to quality, pro- that human factors continue to
challenging them so they can duction and profitability? be primary contributors to inci-
I’ve heard people say they’ve be improved where needed. dents. We have learned that this,
made safety a “top priority” I do not want anyone – inside We view effective risk manage- in part, has to do with the per-
for their company or organiza- or outside the company – to ment and the commitment to sonal choices each of us makes
tion. That’s commendable, but think that pride in our safety sys- safety as business imperatives. to either accept or reject risk, or
I believe that a commitment to tems means we can relax our In short, excellence in safety what we call “risk tolerance.”
safety must run much deeper commitment. The exact oppo- performance leads to excellence The concept of risk tolerance
than simply being a priority. site is true. Continuous improve- in business performance. The involves first recognizing and
Priorities can – and do – ment is essential to achieve our fundamentals to manage safety identifying the risk, then under-
evolve over time, depending on safety goal, which also happens are the same as those required standing it, and lastly, making the
business conditions and other to be our vision: a workplace for managing a successful busi- choice to either accept or reduce
factors. A commitment to safety, where “Nobody Gets Hurt.” ness. Companies that have a the risk. It is in this last step, in
however, does not change or strong safety culture and high particular, that we find significant
evolve. A commitment to safety What does safety leader- corporate standards not only opportunity.
is a value that shapes all decision ship mean to you? operate more safely, but also At ExxonMobil, we have iden-
making at every level. operate more professionally and tified a number of factors that
We certainly acknowledge the Safety starts with leadership, more profitably. we believe influence risk toler-
risk inherent in the oil and gas because leadership shapes cul- It is this fundamental principle ance. The result has been an
industry. Our responsibility is to ture and culture drives behavior. that underpinned the creation important dialogue that is elevat-
recognize the elements of risk, to Leaders foster this culture by set- of the Robert W. Campbell ing awareness and reinforcing
understand and assess the risk, ting expectations, building struc- Award and the newly launched expectations across all levels of
and to effectively mitigate or elim- ture, teaching others and stew- Campbell Institute at the our workforce.
inate significant risk. To do other- arding results. But most impor- National Safety Council – both To facilitate progress in this
wise, at a minimum, exposes the tantly, they lead by example. created to help businesses and area, we are also continuing
enterprise’s assets and reputation As chairman and chief execu- organizations understand and to reinforce the importance of
– but most tragically, could put tive, I know that a commitment realize the important connection workers looking out for each
lives at risk. to safety and operational integ- between safety excellence and other in the workplace, encour-
So, safety is fundamental to rity begins with me and the rest business success. aging and empowering people
operational excellence. Indeed, of ExxonMobil’s management to intervene on behalf of others
safety is a core value. It requires team. But managers are not – What is the biggest obstacle when faced with a potential at-
a personal commitment at all lev- and should not be – the sole to safety for Exxon Mobil risk situation. We refer to this as
els in the organization. drivers toward building a culture. Corporation, and how do “actively caring.” Our focus is on
ExxonMobil’s goal is not sim- For a culture of safety to grow you work to overcome it? training people to be more effec-
ply to have workers who comply and flourish, it must be embed- tive at intervention, as well as
with safety procedures. A culture ded throughout the workforce. The journey to safety excellence being intervened upon.
of compliance alone can lead Safety leadership at ExxonMobil requires that we seek opportuni- Both of these areas – risk tol-
to complacency. We seek to go comes not just from supervisors ties to continuously improve our erance and actively caring –
beyond compliance, to create and managers, but from the approaches to the prevention may sound very simple, but they
a culture in which workers are entire workforce. of injuries and illnesses. In this represent some of the more
3
perplexing challenges we face and environmental risks and to
related to the human factors in achieve excellence in our opera-
safety management. tional performance.
OIMS guides the activities
How do you instill a sense of each of our employees and
of safety in your employees contractors around the world.
on an ongoing basis? It has become embedded into
every work process at all levels. Exxon Mobil Corporation Chairman
and CEO Rex W. Tillerson
ExxonMobil’s approach to busi- It ensures that we operate the
ness and corporate citizenship same safe way, every day, every-
is built upon a commitment to where around the world.
integrity in everything we do. OIMS helps us to sustain there are a number of oppor- Begin with a self-assessment of
Integrity is a commitment to do superior operational perfor- tunities that hold considerable your own behaviors and commit
the right thing, the right way, mance, to pursue continuous promise for ExxonMobil and the to the safety of your people and
every time – from business and improvement and, ultimately, to industry as a whole. your assets as the most impor-
technical challenges to the way maintain our license to operate. Working with other industry tant element of your manage-
we manage our operations. It’s important to note that leaders, ExxonMobil has been at ment responsibilities.
As I said earlier, excellence the first element of OIMS is the forefront of seeking to better As I’ve said, safety begins
in safety is a core value for our “Management Leadership, understand why companies are with leadership that has nur-
company. Each ExxonMobil Commitment and Accountability.” not experiencing the same level tured a culture of safety. For that
employee and contractor ExxonMobil managers are of performance improvement for culture to flourish, safety must
accepts safety as a job require- expected to lead the OIMS pro- serious injuries and fatalities, or be embedded as a core value
ment – whether working at a cess by demonstrating a visible life-altering injuries, as they have throughout the workforce, sup-
desk, on an oil platform, in a commitment to safety and opera- achieved for lost time and total ported by each person’s com-
refinery or at any of our various tions integrity. recordable injuries. mitment to stay safe and to be
facilities, every employee and Ongoing work in this area responsible for the safety of those
contractor is empowered to be How do you measure has highlighted the importance around him or her.
a leader in safety. Every meet- safety? Where do you see of flawless execution of well- You have heard me describe
ing, engagement or work activity room for improvement? established higher-risk proce- the virtues of our Operations
at ExxonMobil starts with an dures and the significant learning Integrity Management System.
emphasis on safety. Employees You may have heard the phrase potential from investigating and But no system is fully self-
and contractors take ownership “If you can’t measure it, you analyzing incidents and near sustaining. For a management
and accountability for their own can’t manage it.” Well, we misses based on their potential system to endure and flourish
and each other’s personal safety. think it is true. And it is why consequences versus just their over time, it must be adequately
The workforce is empowered ExxonMobil measures and ana- actual consequences. resourced, assessed and con-
and expected to ask questions lyzes its safety performance – all Frankly, we must eliminate tinuously refreshed. But most
or to comment when a colleague the time, all the way down to fatalities from our industry. importantly, it must operate
– whether peer or superior – every business level. We record Through more robust planning within a supportive organiza-
appears to be at-risk. and analyze all injuries and near for potential consequences, tional culture that is shaped by
We have a robust safety man- misses. Our goal is not just to especially those associated with the behaviors of its leaders.
agement structure based on analyze safety incidents, but to higher-risk activities, we will bet- In short, the road to safety
decades of experience and man- identify risks and potential at-risk ter protect our workforce from excellence must be built upon an
age all risks associated with our behaviors before they lead to a unacceptable risks. integrated comprehensive safety
operations through the implemen- safety incident. management system – operating
tation of our Operations Integrity While our journey toward What advice would you offer within a supportive culture – and
Management System – or OIMS. achieving zero incidents is far to other leaders who are at driven by strong leadership. This
OIMS provides the framework to from complete, we have made an earlier stage of their jour- is a journey, but an imperative for
manage safety, security, health significant progress. Nonetheless, ney to safety excellence? business success. the Lamp
4
Produced water in Rockies
provides welcome relief

to arid land
A water management program by Exxon Mobil Corporation’s
XTO Energy benefits wildlife, agriculture, recreation and
watershed stakeholders in the Raton Basin.
About 200 miles south of Denver subsequently embarked on an
in the Sangre de Cristo range ambitious drilling program, result-
of the southern Rockies is XTO ing in the addition of more than
Energy Inc.’s Raton Basin District, 300 wells over 10 years.
an operating area consisting of Today, the company operates
more than 70,000 acres in south- nearly 500 wells in its Raton Basin
eastern Colorado, adjacent to the District, producing about 62 mil-
northern New Mexico border. lion cubic feet of gas a day. The
The region is ruggedly beauti- wells average 2,000 feet deep
ful, with average elevations of and lift CBM from two zones, the
more than a mile above sea level Raton and Vermejo formations.
and expansive views of snow- XTO is the second largest CBM
capped mountains such as the producer in the basin, and dur-
Spanish Peaks that rise like huge ing the span of its operations has
stone walls 13,600 feet into the produced more than 1.2 trillion
sky. Steep rises and dips charac- cubic feet of gas.
terize the pine-tree-dotted land,
and coal seams are a common Sweet gas
sight where roads cut into the Coal-bed methane is known as
basin. In fact, coal mining was “sweet gas” and contains little to
a major industry and economic no impurities. It’s different from
driver for the area beginning in conventional gas reservoirs in that
the late 1800s. the gas molecules are adsorbed
When coal production declined (adhered to) on the surface areas
in the 1980s, companies began of coal in highly efficient ways. For
extracting coal-bed methane example, volumes of adsorbed
(CBM) from remaining deposits. gas can be 10 to 100 times greater
That activity increased signifi- than comparable conventional
cantly during the 1990s, and XTO gas deposits because of the vast
became a major CBM producer surface area of coal, which ranges
in the basin with its acquisition of between 200,000 and 500,000
Williams properties in 2003. XTO square feet per pound – the equiv-
55 Story by Bob Davis Photography by Robert Seale
Produced water in Rockies
provides welcome relief

to arid land
alent of several football fields.
The extraction of CBM also
produces a tremendous amount of
water. This is because of the snow
melt from the surrounding mountains
that makes its way into the formations
where the CBM gas is found. When
the gas is produced, so is a large vol-
ume of associated water, which is very
clean because it’s recharged often by
the melting snow.
Initially, a typical CBM well will go
through what’s called a de-watering
stage where it produces more water
than gas. As water production
declines, gas output rises. However,
most wells will still produce a great
deal of water, and XTO’s Raton Basin
wells discharge an average 1.5 million
gallons a day.
“That’s a significant resource that
would not be available if it weren’t for
energy production in the region,” says
Sam Montoya, regional environmen-
tal, health and safety supervisor for
XTO’s Colorado assets. “The water
produced along with CBM provides
important benefits for agriculture,
wildlife and recreation in the basin,
especially considering the extremely
dry conditions we’ve experienced
Sam Montoya is proud of the
here the last few years.”
benefits the program provides.
66
What’s interesting about the
way XTO manages its produced
water is the effort the company
has made to blend the dis-
charges, called outfalls, into the
natural environment.
“When we discharge our pro-
duced water,” Montoya says, “we
make use of what were once dry
arroyos and streambeds. If you
were to visit our operations, you
would hardly know that the water
flowing through this once dry
area is a direct result of energy
production.”
Natural habitats
The company operates on prop-
erty it owns and private leases,
as well as in Colorado’s largest
state wildlife area, the Bosque
del Oso, public land administered
by Colorado Parks and Wildlife.
The outfalls in all of these areas
create streams that often flow
into retaining pools used regularly
by deer, elk, fox, turkey, bear
and a variety of other animals.
Vegetation created by the outfalls
is prolific – especially compared
to the surrounding land depen-
dent upon rainfall for its primary
water source.
There are nearly 100 active
outfalls on XTO’s producing
property in the basin. The pro-
duced water is of high quality
and released under state-issued
discharge permits without the
need for treatment. The company
continually collects water samples
from the outfalls for quality test-
John Baker, Western Division ing, and submits quarterly reports
vice president, in his office to the Colorado Department of
near Denver.
Public Health and Environment as
77
At a glance: XTO Energy’s Western Division
Fort Worth, Texas-based XTO Energy is a subsidiary of Exxon Mobil Corporation and is
the largest holder of natural gas reserves in the United States. XTO’s portfolio consists of
approximately 8 million acres and resources of nearly 130 trillion cubic feet equivalent.
The company’s Western Division comprises oil and gas operations in Colorado, New
Mexico, North Dakota, Utah, Wyoming, Montana and offshore Alaska.
“What I find exciting for the Western Division as a whole,” says John Baker, division vice
president, “is that we have both a natural gas and crude oil resource base and we can
focus our efforts accordingly, to unlock value across the economic cycle.”
well as to the U.S. Environmental approximately 12 percent is resulting in roughly $3.5 million Looking ahead
Protection Agency. re-injected since it doesn’t meet in total annual economic activity. Sam Montoya, who began
On the main stem of the the criteria for discharge. Local The Harvey study found that his working life as a fourth-
nearby Purgatoire River, where environmental and other groups overall, CBM activity in the area generation coal miner and who
much of the water flows, have proposed that XTO either raised more than $8 million in has strong family roots in the
monitoring stations continuously treat all the produced water or property, sales and severance Raton Basin, knows the impor-
record a variety of data, includ- re-inject it back into the ground. taxes and Federal Mineral Lease tance of having enough water
ing strength of flow, pH, salinity, With an estimated 20 to 40 revenues for school districts, to meet local ranchers’ needs
temperature and the presence years of productive life remain- county government, municipali- and to sustain the wildlife found
of trace elements. Real-time ing for CBM operations in the ties and other agencies. throughout the area. He’s also
information is available online Raton Basin, changes in permit “We have an excellent relation- proud of what XTO has accom-
(purgatoirewatershed.org). limits or additional regulations ship with the state of Colorado plished and his company’s com-
Downstream of XTO’s opera- could result in the shutting in and its agencies,” says John mitment to the program.
tions, farmers and ranchers of some wells or a cutback in Baker, XTO Energy Western “Our ability to conduct busi-
depend on the Purgatoire River future drilling. A study last year Division vice president. “We ness transparently in an envi-
to grow alfalfa and pasture grass by Harvey Economics of Denver respect the rich heritage here in ronmentally sensitive area while
and raise cattle. Farther to the indicated that reduced CBM the West, and our obligations to protecting people and the natu-
east, near the town of Trinidad, activity would result in a decline be a responsible operator and to ral resources – as well as con-
the river flows into Purgatoire in employment, local spending protect the environment. By the tributing an important source of
Lake, a major fishing, boating and royalty income as well as same token, the state and federal water for the region – is a great
and recreation area. fiscal impacts on state and local governments have an obligation accomplishment. We under-
governments. The study added to develop the minerals on pub- stand our responsibilities, and
Challenges that CBM water affects 14 per- lic lands. Our company actively we take what we do here very
While the majority of the water cent of current irrigated acres works with numerous groups to seriously.” the Lamp
produced by XTO’s CBM opera- and contributes nearly $2 million create fair and reasonable policies
tions is released into the outfalls, to agricultural sales each year, that ideally balance all interests.”
8
Specialty elastomers project
progresses in Saudi Arabia
A new world-scale facility will help meet growing demand for synthetic-rubber
products and continue the Kingdom’s economic diversification.
ExxonMobil Chemical and Saudi here in the Kingdom, but also The new elastomers plant will vehicle door seals, fan belts,
Basic Industries Corporation elsewhere in the Middle East and produce 400,000 metric tons per radiator hoses, electrical wire
(SABIC) have begun construc- in Asia, Europe and Africa.” year of specialty synthetic-rubber covering and insulation, appli-
tion of a specialty elastomers When completed in 2015, the products and carbon black. A ance seals and conveyor belts.
(synthetic rubbers) manufac- facility will provide a strategic portion of the production will be As part of the project, a new
turing facility in Jubail, Saudi platform to help meet the grow- used by domestic manufacturers technical vocational training
Arabia, on the Arabian Gulf. The ing demand for rubber-based to make finished rubber goods center for Saudi students has
new plant will be the Kingdom’s automotive products created by for both local and export markets, been established to provide skills
first such facility and will be inte- the significant expansion of road- creating new job opportunities for training required for the new
grated with the existing Al-Jubail way networks and vehicle owner- Saudi nationals. domestic elastomers-conversion
Petrochemical Company com- ship in the region. The project’s joint-venture industry. Located at Yanbu, and
plex, a 50-50 joint venture of partners will leverage their global known as the High Institute for
ExxonMobil and SABIC. Diversifying the economy marketing expertise to foster Elastomer Industries (HIEI), the
“This project will be the basis For more than three decades, local rubber industry develop- center began offering classes last
for creating a world-class rubber Saudi Arabia has pursued diver- ment and export opportuni- fall. The University of Akron, a
value chain in Saudi Arabia,” says sification of its domestic econ- ties. In addition to automotive public research university in Ohio
ExxonMobil Chemical Company omy into industries other than markets, the specialty rubber widely respected for its expertise
President Steve Pryor. “It will be oil and natural gas production. production will be used in other in polymer science and polymer
a valuable extension of the range The effort has resulted in strong industries such as building and engineering, designed the train-
of products and services we growth in the petrochemical and construction, and appliances. ing facility and its curriculum. HIEI
provide to customers, not only manufacturing sectors. End products will include tires, instructors and laboratory assis-
9 Story by Thomas L. Torget Photography by Robert Seale