Singapore June 2019 Group II in Asia Pacific: Trends and New … · 2019. 11. 7. · Source:...

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Nothing contained herein is intended to override the corporate separateness of affiliated companies. “ExxonMobil,” “EM,” “we ,” “our” and similar terms herein are used for convenience only and may refer to Exxon Mobil Corporation and/or one or more of its affiliates. In addition, countries or other geographic areas representations are used herein for convenience only andmay represent one or more affiliated companies. This presentation includes forward-looking statements. Actual future conditions (including economic conditions, energy demand, and energy supply) could differ materially due to changes in technology, the development of new supply sources, political events, demographic changes, and other factors discussed herein (and in Item 1A of ExxonMobil’s latest report on Form 10-K or information set forth under “factors affecting future results” on the “investors” page of our website at www.exxonmobil.com). Group II in Asia Pacific: Trends and New Capacities Singapore – June 2019 ICIS Base Oils & Lubricants Conference Shaara Blome Business Venture Executive ExxonMobil Fuels & Lubricants Company

Transcript of Singapore June 2019 Group II in Asia Pacific: Trends and New … · 2019. 11. 7. · Source:...

Page 1: Singapore June 2019 Group II in Asia Pacific: Trends and New … · 2019. 11. 7. · Source: ExxonMobil assessment of publicly available information ... Gp I Gp II Gp III 2010 2030

Nothing contained herein is intended to override the corporate separateness of affiliated companies. “ExxonMobil,” “EM,” “we,” “our” and similar terms herein are used for convenience only and may refer to Exxon Mobil Corporation and/or one or more of its affiliates. In addition, countries or other geographic areas representations are used herein for convenience only andmay represent one or more affiliated companies. This presentation includes forward-looking statements. Actual future conditions (including economic conditions, energy demand, and energy supply) could differ materially due to changes in technology, the development of new supply sources, political events, demographic changes, and other factors discussed herein (and in Item 1A of ExxonMobil’s latest report on Form 10-K or information set forth under “factors affecting future results” on the “investors” page of our website at www.exxonmobil.com).

Group II in Asia Pacific:Trends and New Capacities

Singapore – June 2019

ICIS Base Oils & Lubricants Conference

Shaara BlomeBusiness Venture ExecutiveExxonMobil Fuels & Lubricants Company

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• Impacts of macro trends

• Supply and demand

• Key implications

Today’s discussion

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Macro trends driving future requirements

Global trends

• Efficiency demands• Reduce GHG emissions

Application changes

• Higher fuel economy• Energy efficiency / EV• More severe operating

conditions• Longer drain intervals

Impact on base stocks

• ‘engineered fluids’ to meet performance demands

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Viscosity chart not at scale; global view

Tailoring base stock design to meet needs

Fuels and lubes economy

Durability

Emissions

Evolving performance

Changing TBN and fuels

Energy efficiency

• Manage increasing complexity while meeting more stringent industry requirements

Grp IGrp IIGrp IIIGrp IVGrp IGrp IIGrp IIIGrp IV

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• India, Southeast Asiadriving growth

• China demand moderating

• Impacts of electrification

• Growth shifting toheavy duty

Source: ExxonMobil assessment of publicly available information; ExxonMobil 2018 Outlook for Energy

Growing lubes demand, changing mix

2010 2020 2030

China India

South East Asia Rest of AP

Transportation energy demandMBDOE

Finished lubes demandIndexed

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• New capacity centered on Group II and III

• Group I remains technically capable despite diminishing supplies

• High viscosity requirements rely on Group I

• Group II “heart of the market” in Asia Pacific

Growing supply, shifting demand

Source: ExxonMobil assessment of publicly available information

AP base stock capacity

(Indexed paraffinic industry)

Gp I

Gp II

Gp III

2010 2030

Base stock demand

Gp I

Gp III

Gp II

2010 2020

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New capacities and volatility in Asia Pacific

• Asia Pacific currently net importer

• New capacity leading to volatility, shifting supply

• Uncertainty for suppliers and consumers

Source: ExxonMobil assessment of publicly available information

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Supply demand balance challenges producers

• Recent capacity additions outstrip demand growth

• Rationalization anticipated to rebalance global market

• IMO 2020 further pressures Group I refiners

Source: ExxonMobil assessment of publicly available information

11 15 19 23

Group I

Group II

Group III

Supply / DemandBalance

Group I rationalization anticipated

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Implications for the industry and customers

• Adapt and respond to uncertainty and volatility

• Meet rapidly changing requirements

• Address diversity, reduce supply chain complexity

• Optimize blending through base stock design

• Ensure reliable, quality supply over the long term

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ExxonMobil expanding global capabilities

CORE™ Group I

EHC™ Group II

• Singapore expansions

• Innovative high viscosity Group II

• Long-term Group I supply

• Committed global resources

BaytownBaton Rouge

Rotterdam (2019)GravenchonFawleyAugusta (*)

Singapore(Jurong, PAC)Wakayama (*)

(*) Not ExxonMobil owned; multi-year agreement in place

24 supply locations worldwide

6 refineries, 5 distributors, 12 terminals

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