Exxon News – 2010

News summaries from ExxonMobil press releases and from unaffiliated news agencies are provided below. The summaries are sorted by month and are further categorized as upstream news, downstream news, and business/finance news.

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January

• Upstream news:

- Exxon Mobil Corporation (NYSE:XOM) and Petrobras announced that an ExxonMobil affiliate signed an agreement with a Petrobras affiliate and the Turkish National Oil Company (TPAO) to explore for hydrocarbons in the deepwater Black Sea offshore Turkey. Under the terms of the farm-in agreement, ExxonMobil Exploration and Production Turkey B.V. will acquire a 25 percent interest in the Sinop, Ayancik and Çarþamba sub-blocks of the AR/TPO/3922 exploration license. Petrobras will retain a 25 percent equity interest in the block and will remain the operator. TPAO holds the remaining 50 percent interest.

- ExxonMobil Production Company announced a project at the Hawkins Field in northeast Texas to recover the equivalent of an additional 40 million barrels of oil, an amount equal to the annual energy needs of over one million Texas households. New facilities will be installed at the Hawkins Field to recover and reinject nitrogen and other gases from the field’s natural gas production. This will enable more oil and gas to be recovered from the reservoirs. The reinjection of these gases will reduce the plant's air emissions by almost one-third. Construction is expected to begin in the first quarter 2010. At its peak, the ExxonMobil project will employ a construction workforce of about 300 people. Project start-up is anticipated in late 2011. The Hawkins Field is located in Wood County, Texas, about 100 miles east of Dallas. Over the past 70 years, it has produced more than 800 million barrels of oil. The field is one of the largest ever discovered in the state and provided significant energy supplies to support America's effort during World War II.

- ExxonMobil announced the successful completion of the first two extended-reach wells at the Odoptu field offshore eastern Russia, employing one of the world's most powerful land-based rigs. ExxonMobil subsidiary Exxon Neftegas Limited (ENL) is operator on behalf of the five-company international Sakhalin-1 Consortium. The Yastreb rig, which is located onshore Sakhalin, drilled horizontally under the Sea of Okhotsk to a target area in the Odoptu oil reservoir over nine kilometers offshore. The extended-reach wells are the first two of seven which will tap the reservoir at Odoptu. The field is anticipated to begin producing oil in the second half of 2010.

- A House Energy and Commerce panel meets to discuss the financial ramifications of Exxon Mobil Corp.'s plans to purchase a large independent natural gas company, a move that would boost the oil and gas giant's activity in unconventional natural gas. The proposed all-stock deal valued at $41 billion between Exxon Mobil and XTO Energy Inc. has been seen by many in the oil and gas industry as a show of confidence for the future of unconventional reserves such as those from shales, tight sands and coal seams. Exxon Mobil has said it wants to use the merger as an opportunity to set up a new business unit to develop and deploy technologies to extract fuels from unconventional plays. The proposed purchase would boost Exxon Mobil's acreage in unconventional natural gas reservoirs to 8 million acres -- the largest portfolio in the industry, according to the company. The reservoirs include significant acreage in the Barnett, Marcellus and Haynesville shales, among others. The deal would grant Exxon access to XTO's expertise in tapping hydrocarbons. Though many industry insiders have praised the deal as a boost for hydraulic fracturing, the drilling technique is controversial and has drawn criticism from environmentalists and lawmakers concerned about its effects on water supplies. Hydraulic fracturing blasts water, chemicals and sand or plastic beads into compact rock to release trapped fuel. The oil and gas industry has used the technique for decades, but it has gained popularity recently as companies have discovered economic ways to tap vast shale reserves. Critics, though, are concerned the technique could contaminate water supplies, deplete local watersheds and release toxic substances into aquifers. Legislation has been introduced in both the House (H.R. 2766 (pdf)) and Senate (S. 1215 (pdf)) to require companies to comply with the Safe Drinking Water Act by revealing the ingredients of their fracturing fluids. And in a spending bill for environmental agencies for fiscal 2010, Congress authorized U.S. EPA to conduct a new study on the risks of hydraulic fracturing on drinking water supplies. The oil and gas industry maintains the drilling technique is safe and has been opposed to federal oversight in the past. Currently, states regulate hydraulic fracturing, but Exxon appears to have concerns about potential federal regulation. The proposed deal with XTO is contingent on Congress not passing laws that would make hydraulic fracturing "illegal or commercially impracticable," according to contract language filed by Exxon with the Securities and Exchange Commission. William Hederman, senior vice president for energy policy at Concept Capital, a research firm advising institutional investors, said the pending bills are not likely Exxon's primary concern, and he added that any hydraulic fracturing legislation likely would not pass before the Exxon deal closes in the second quarter of 2010. Still, the natural gas industry has expressed concern about the contract contingency and proposed legislation, and the topic of hydraulic fracturing safety is likely to come up at tomorrow's hearing. Rex Tillerson, Exxon's CEO, and Bob Simpson, XTO's founder, are expected to testify tomorrow. In addition to discussing the financial ramifications of the deal and the environmental impact of hydraulic fracturing, lawmakers could also question the executives about other oil and gas issues, such as increased offshore and public lands drilling or executive compensation, Hederman said.

- With large North Slope resources, Alaska has the opportunity to be a major supplier of natural gas to North America, Rich Kruger, president of ExxonMobil Production Company, said in a keynote address at the 2010 Meet Alaska Conference in Anchorage. The development of natural gas at Point Thomson stands out as a great example of the opportunity. Kruger said, “It is currently one of Alaska’s largest active North Slope projects in execution phase, providing new jobs and investment in the state. ExxonMobil wants to see Point Thomson developed. We believe it underpins the success of the Alaska Pipeline Project. The owners’ commitment to achieving progress at Point Thomson is demonstrated by investments which have now topped $1 billion.”

- Exxon Mobil Corporation (NYSE:XOM) announced that its affiliate ExxonMobil Iraq Limited signed an agreement with the Iraq Ministry of Oil to redevelop and expand the West Qurna-1 field in southern Iraq. The agreement was signed in Baghdad by representatives of the Ministry of Oil and the West Qurna-1 contractor consortium in the presence of the Iraq Oil Minister Hussain al-Shahristani and Rob Franklin, president of ExxonMobil Upstream Ventures. The consortium members are ExxonMobil as the lead contractor with 60 percent interest, Oil Exploration Company (owned by the Iraq government) with 25 percent interest, and Royal Dutch Shell with 15 percent interest.

- With a $31 billion swipe of its virtual debit card, Exxon Mobil Corp. has started changing decades-old conventional wisdom in Congress that accessing the ocean of natural gas trapped under U.S. soil is merely a pipe dream. Natural gas is the cleanest of the fossil fuels, and electric utilities that burn it to generate electricity belch out half the amount of carbon dioxide emissions they produce when when they burn coal. Exxon's decision in December to purchase Fort Worth, Texas-based XTO Energy, one of the nation's largest gas producers, could mark a dramatic shift in the way Washington understands domestic energy supply. It also underscores the role that gas is likely to play in cutting industrial emissions, in the United States and in fast-growing developing countries such as China and India. Congress has long been undecided about where natural gas should fit into the energy-supply pie. Coal has dominated as a fuel source for electricity generators. More than 100 nuclear plants supply about 20 percent of U.S. power, and natural gas supplies about 20 percent. Industry estimates and policymakers' assumptions about gas supply and its role in cleaning the air shift decade to decade. At the end of the 1970s and into the 1980s, gas was considered a precious commodity with a short, 10-year domestic supply. But starting in the late 1990s and through much of the past decade, utilities built gas-burning power plants to the exclusion of coal-fired plants to help them comply with clean-air mandates. North American gas supply and demand changes depending on the weather, gas storage, U.S. industrial demand and the impact of hurricanes on Gulf Coast drilling rigs. Gas prices skyrocketed after Hurricane Katrina hit in 2005, and since then prices have been a roller coaster for producers and consumers. In the past year, the economic recession slashed consumption and kept household gas and electric bills relatively low. In Congress, the long memory of those price swings has kept the skeptics skeptical and the industry largely on the sidelines during the ongoing climate debate. At a Senate hearing in August, Sen. George Voinovich (R-Ohio) tore into the chairman of the Federal Energy Regulatory Commission, Jon Wellinghoff, for suggesting that gas, in combination with renewable resources and energy efficiency, could be a near-term bridge until zero-carbon technology is widely deployed. The $31 billion Exxon-XTO all-stock deal still has to jump some regulatory hurdles. If the merger becomes real, Exxon will be the largest natural gas producer in the country, controlling large chunks of acreage in the most promising onshore gas fields in the United States. Texas, Louisiana, Oklahoma, Arkansas and the Appalachian regions of Pennsylvania and New York are the epicenter of shale gas, coalbed methane and tight-sand gas formations. Because natural gas, not oil, is so critical to power generation, Exxon's voice will carry weight it perhaps never did before in the battle over climate policy. Exxon has openly opposed proposals to adopt a cap-and-trade program that would reduce greenhouse gas emissions below 2005 levels by making it expensive for industrial plants and utilities to use high-carbon fossil fuels. Ceres has pressed Exxon to reveal more to shareholders about the long-term financial risks it faces due to climate change and government policies aimed at targeting oil consumption. Logan said investor activists have filed those resolutions again, hoping Exxon's board will heed their concerns and open up the dialogue. Exxon has a fraught relationship with Congress. In 2008, when world oil prices climbed to $147 a barrel and its earnings soared, Exxon became a punching bag for populist Democrats and Republicans. For much of the past decade, perceptions that the company is run by climate skeptics who are hostile to any policy prescription aimed at reducing industrial emissions put Exxon on the enemies lists of some on Capitol Hill. For others, Exxon is the corporate name behind "foreign oil" because of its headstrong push, with U.S. backing, into hostile areas of the world in search of oil. Exxon has been more outspoken about climate change under CEO Rex Tillerson, who has been less willing than his predecessor, Lee Raymond, to completely dismiss it as a policy challenge. Still, the company's precise views on the issue are hazy to both lawmakers and investor activists who have pressed Exxon for more clarity. Consider this exchange from a House Energy and Commerce Committee hearing last week, where Tillerson testified about the Exxon-XTO merger and answered questions about Exxon's position on climate and energy use: Exxon scientists believe the climate is changing, Tillerson said, and one contributing factor is industrial greenhouse gases. But, he continued, "It is a scientific challenge. We view it as a risk-management problem." "Our view for some time has been, first and foremost, let's continue to support the scientific investigation of what is one of the most complicated areas of science that people are studying today, and that is climate," Tillerson said. "We support the scientific advancement of understanding this issue." Climate models, he asserted during the hearing, are inconclusive. Rep. Jay Inslee (D-Wash.) replied, "I still get letters from constituents saying humans are not involved in changing the climate. I'm going to report back to them that the leader of the largest energy company in the United States believes that we are one contributing factor to climate change. I hope they'll listen to that." Exxon is expanding its gas drilling, Logan said, but doubling down in the Canadian oil sands, where a significant percentage of Exxon's new oil reserves are located. Environmental groups have criticized Exxon and the parade of oil companies developing Alberta's fields for bankrolling a massively dirty, greenhouse gas-heavy and water-intensive oil project. Operators there say it will provide a large amount of oil to the United States. Exxon has a majority stake in one of Canada's largest oil companies, Imperial Oil, which has stakes in three major oil sands projects. According to a 2008 financial statement, Imperial's Cold Lake field is the largest of its kind in the world. Green Century Funds, a Boston-based group, has filed a stockholder resolution calling on Exxon to report on the long-term financial risks associated with the "significant environmental, social and economic challenges associated with the oil sands." It will be the first resolution addressing the oil sands if Exxon includes it as part of the corporate proxy statement put before shareholders at its general meeting this spring. The company's new role in the North American natural gas market isn't all bad, Logan said. "The potential for applying that in innovative ways is very real," he said. "This purchase has implications in terms of global energy use." Exxon is a disciplined operator, Logan said, and could raise the bar for environmental stewardship in shale and tight-sands gas fields where public concern about groundwater contamination has emerged as a potential liability for smaller producers. "Their entrance also brings in a new 800-pound gorilla," Logan said. Exxon might raise the bar on a field-by-field basis, but it has lobbying heft that could stifle attempts in Congress to impose a broad set of rules on hydraulic fracturing, the process of using some combination of chemicals, water and sand to blast through rock and release trapped natural gas. Tillerson and XTO Energy CEO Bob Simpson told the congressional panel they could support a federal requirement that producers disclose those chemicals. But they said additional U.S. EPA regulation -- or an outright ban on the process to protect drinking water -- would bring a quick and certain end to unconventional gas development in the United States. Gas producers that use the technique the industry refers to as "fracking" and use horizontal drilling to extend the reach of gas rigs maintain the process is safe and poses no threat to nearby water tables. Questions have been raised by environmental and local groups. New York officials and communities that sit on top of the Marcellus Shale in the northern part of the state contend that any leakage of harmful chemicals out of pipes drilled into gas formations would contaminate water used by millions in the region and in New York City. People in Appalachian regions of Pennsylvania, where much of the giant Marcellus Shale gas formation resides, have emphasized the job growth and real estate boom that has come with the land rush by energy companies and gas drilling. Deutsche Bank's Sieminski has been among the more outspoken energy economists pushing for policies that promote gas as a short-term "bridge fuel" used by electric utilities to replace coal as the country develops low- or zero-carbon electricity sources.Produce the nation's shale gas and shut down the 80 highest-polluting coal plants, he told his colleagues at the National Economists Club. What's the politics of that?Joseph Stanislaw, a senior energy adviser for Deloitte & Touche, said Exxon's decision to carve out a substantial space in the U.S. gas market should boost confidence in Congress that industry claims that there is a 100-year supply under the continental United States aren't bluster. Small, independent gas producers have expanded into unconventional gas effectively and efficiently, he said. But the Exxon-XTO combination sends a political signal about the reality of the expansion. "It gives Congress confidence it can actually happen," Stanislaw said. Exxon and the other members of Big Oil club -- the investor-owned global oil and gas giants such as BP, Chevron, ConocoPhillips and Shell -- do their best to deflect criticism from environmental and investor-advocacy groups that they haven't diversified their business portfolios enough and should pour money into alternative fuels and clean energy technology. Exxon has been vilified the most. Stanislaw said most major oil companies are expanding investments in biofuels, natural gas and carbon capture and sequestration. There is no common approach among the majors for integrating more alternative energy into their portfolios, but he said the ability to use the billions of dollars in infrastructure in place for fossil fuel development will dictate their choices for decades. Exxon is more likely to find a way to develop technology that strips carbon dioxide emissions out of oil and gas than it is to shift to wind or solar power. For its part, Exxon has already shaken up the debate in gas industry circles. At the Jan. 20 House hearing, Tillerson said using gas to produce baseload electricity is "a lot more efficient use of the gas" than using compressed natural gas to replace Exxon's oil in trucks and buses. The idea that power generation is a good use of gas raises the ire of gas utilities and gas-heavy industries such as chemical makers that worry about gas prices shooting through the roof if power companies use too much of the supply. Some analysts have suggested that the Exxon-XTO deal is a rather straightforward acknowledgment by Exxon that it has limited capacity to increase oil production in areas of Africa, Asia and the Middle East where unstable and unpredictable governments call the shots and state-run oil companies get first dibs on local resources.Perhaps to that end, Tillerson expressed unfettered optimism about the future of gas, and he used the language of climate politics to explain the merger. "Already, policies [are] in place in much of the world, in European countries and elsewhere, that do put a price on carbon, and that does shift you toward natural gas," he said.

• Downstream news:

• Business/Finance news:

- The ExxonMobil Foundation announced it will contribute $500,000 to Teach For America to recruit and train math and science teachers for public schools in low-income communities in Dallas, Houston, southern Louisiana and Washington, D.C. The ExxonMobil grant will be used to recruit more than 1,500 top college graduates from across the United States to teach middle-school math and science. The funds will also support Teach For America’s rigorous program of pre-service training, ongoing professional development and mentoring for these teachers.

- Meeting the world’s growing energy needs while reducing the impact on the environment will require the development of all viable sources of energy and new technology development, said Emil Jacobs, Vice President of Research and Development at ExxonMobil Research and Engineering Company. In a speech to the 2010 World Future Energy Summit, Jacobs outlined the energy challenge facing the world: global energy demand is expected to be 35 percent higher in 2030 than it was in 2005 despite the current economic slowdown and anticipated efficiency improvements. Providing energy to meet that demand, which is driven by economic expansion largely in developing countries, while protecting the environment will require development of all viable sources of energy and multiple technology breakthroughs, he said.

- ExxonMobil, in partnership with Ashoka’s Changemakers and the International Center for Research on Women (ICRW), launched Women | Tools | Technology: Building Opportunities & Economic Power, an innovative challenge that will identify transformative solutions for promoting women’s economic advancement through technology. Through the Women | Tools | Technology Challenge, the partners are looking for creative ideas and sustainable approaches that enable more women from developing countries to be active contributors to and leaders in our rapidly changing economy.

- The Board of Directors of Exxon Mobil Corporation (NYSE:XOM) declared a cash dividend of 42 cents per share on the Common Stock, payable on March 10, 2010 to shareholders of record of Common Stock at the close of business on February 10, 2010.

- ExxonMobil will release its fourth quarter 2009 earnings on Monday, February 1, 2010. A news release will be issued over Business Wire.

- Former U.S. Astronaut Bernard Harris gave students and teachers in San Diego a first-hand experience with the wonders of science, technology, engineering and mathematics when “The Dream Tour, presented by ExxonMobil” made its first stop of 2010 on January 29 at Abraham Lincoln High School speaking to 650 students from Millennial Tech Middle School, Innovation Middle School and Memorial Preparatory School. The tour is designed to encourage today’s middle school students to realize their potential and strive to acquire strong math and science skills. The program included an interactive and inspirational program by Harris, a demonstration on space and engaging dialogue about achieving goals.

February

• Upstream news:

- ExxonMobil Production Company announced that it has successfully drilled and cased PTU-15, the first development well for the Point Thomson project on Alaska’s North Slope. In addition, a 60-mile ice road has been completed from Endicott to Point Thomson which enables the transport of heavy equipment and materials to the site. ExxonMobil drilled the well to a measured depth of over 16,000 feet. The shore-based rig directionally drilled under the Beaufort Sea to the targeted gas reservoir more than 1.5 miles offshore.

- Exxon Mobil Corporation (NYSE:XOM) announced that additions to its proved reserves in 2009 totaled 2.0 billion oil-equivalent barrels, replacing 133 percent of production. Excluding the impact of asset sales, reserves additions replaced 134 percent of production. These additions are based on the corporation’s definition of proved reserves, which utilizes the long-term pricing basis that the corporation uses to make its investment decisions. This is a different price basis than the SEC basis, which uses 12-month average prices for the 2009 year-end reserves calculation.

• Downstream news:

- Qatar Petroleum and Exxon Mobil Corporation (NYSE:XOM) announced the Al Khaleej Gas-Phase 2 (AKG-2) project, with 1,250 million cubic feet per day (mcfd) of sales gas capacity, initiated operations in December 2009. The new facilities are designed to meet the growing demand of local industries. Combined with Al Khaleej Gas-Phase 1 (AKG-1), which began production in 2005, AKG will have a total capacity of 2,000 mcfd, making it the largest source of domestic gas supply in the State of Qatar.

- Ras Laffan Liquefied Natural Gas Company Limited (3) (Ras Laffan 3) announced the completion and start-up of Train 7 at Ras Laffan Industrial City, Qatar. The project is a joint venture of Qatar Petroleum (70 percent) and ExxonMobil Ras Laffan (3) Limited (30 percent) and represents another expansion of LNG production facilities operated by RasGas Company Limited. Ras Laffan 3 Train 7 is the fourth 7.8 million tons per year LNG plant brought online by Qatar Petroleum and ExxonMobil joint ventures within the past 12 months. It matches the capacity of Ras Laffan 3 Train 6, one of the largest operating LNG production facilities in the world, inaugurated in October 2009. These mega facilities have sufficient scale to competitively reach markets around the globe. Qatar's giant North Field, which is estimated to contain in excess of 900 trillion cubic feet of natural gas, will supply both trains.

• Business/Finance news:

- Upstream earnings were $5,780 million, up $146 million from the fourth quarter of 2008. Higher crude oil realizations increased earnings $1.8 billion while lower gas realizations reduced earnings by $1.2 billion. Lower gains from asset sales decreased earnings by $600 million. On an oil-equivalent basis, production increased nearly 2% from the fourth quarter of 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up over 3%. Liquids production totaled 2,393 kbd (thousands of barrels per day), down 79 kbd from the fourth quarter of 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was essentially flat, as increased production from projects in Qatar was offset by field decline.

- Dr. Bernard A. Harris, Jr., the first African American to walk in space, and ExxonMobil announced that more than 1,500 middle school students will participate in free science camps this summer. The ExxonMobil Bernard Harris Summer Science Camps will be hosted in 30 universities across the country. The announcement came on the 15th anniversary of Dr. Harris’ historic space walk on Feb. 9, 1995 while aboard the Space Shuttle Discovery.

- Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil Corporation (NYSE:XOM) has been named the 2010 recipient of the Award for Corporate Citizenship by the Woodrow Wilson International Center for Scholars. The award, presented at a ceremony in Dallas, recognizes ExxonMobil’s long-standing commitment to improving education in the United States, promoting women as catalysts for economic development and combating malaria in developing countries.

- What happens when you hand a group of middle-school girls dowel sticks, index cards, marshmallows and rubber bands and challenge them to build a catapult? The hope of ExxonMobil employees at the company’s headquarters in Irving is that they will not only build a launcher, but also a desire to pursue a career in engineering. More than 55 girls from Bowie, Crockett, Houston and Lamar Middle Schools and Schultz Elementary School visited the site as part of the company’s annual “Introduce a Girl to Engineering” Day. The activities at ExxonMobil site are part of a broader company-wide initiative designed to encourage girls’ interest in pursuing science, technology, engineering and math studies and careers.

March

• Upstream news:

- The development of natural gas resources from around the world will play an important role in the future global economy, Tom Walters, president of ExxonMobil Gas & Power Marketing Company, said at a plenary session during the CERAWeek 2010 conference in Houston, Texas. Walters joined a group of industry leaders to address a global gas plenary on “The Role of Natural Gas in the Future Energy Mix.” He noted that despite the effects of the recent economic downturn, the long-term outlook for natural gas is positive. “We expect global energy demand to increase nearly 30 percent in the next 20 years. By 2030, global gas demand will be around 140 billion cubic feet per day higher than 2009,” he said.

- ExxonMobil Exploration and Production Turkey B.V., an ExxonMobil affiliate, will use the Deepwater Champion, a specially designed, newly built drillship from a subsidiary of Transocean Ltd. to explore the deepwater Black Sea offshore Turkey. Elwyn Griffiths, vice president, ExxonMobil Exploration Company, announced plans for the Deepwater Champion during a speech at the annual 9th Turkish Oil and Gas Showcase and Conference in Ankara.

• Downstream news:

- Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation (NYSE:XOM) and operator of the PNG LNG Project, announced that the Project participants have finalised a Sale and Purchase Agreement (SPA) with CPC Corporation, Taiwan (CPC) for a long-term supply of liquefied natural gas (LNG) totalling approximately 1.2 million tonnes per annum (MTA). Under the agreement, the PNG LNG Project will supply LNG to CPC for a period of 20 years.

- Building on the success of its debut season in 2009, ExxonMobil announced that Season Two of “Mobil 1: The Grid,” a weekly 30-minute television series devoted to motorsports, will kick off on SPEED at 11:30 a.m. ET on Friday, March 5. Developed in partnership with Sunset & Vine, a leading global sports television distribution and production company, “Mobil 1: The Grid” offers unique, behind-the-scenes access to today’s popular, international professional racing circuits and successful race teams.

- ExxonMobil introduced a new feature that will allow customers to download Exxon and Mobil service station locations to their GPS devices. This feature is downloadable from the ExxonMobil Station Locator website and is compatible with the leading consumer GPS devices, including Garmin, TomTom and Magellan. The site features easy to follow instructions along with a video tutorial.

- Exxon Mobil Corporation (NYSE: XOM) announced that sales and purchase agreements with liquefied natural gas (LNG) buyers and financing arrangements with lenders are now complete and its affiliate, Esso Highlands Limited, is proceeding with full execution of the Papua New Guinea (PNG) LNG project. The integrated development includes gas production and processing facilities in the Southern Highlands and Western Provinces of Papua New Guinea; liquefaction and storage facilities with capacity of 6.6 million tons per year, located northwest of Port Moresby on the Gulf of Papua; and over 450 miles (700 kilometers) of pipelines connecting the facilities.

- ExxonMobil, Technology Partner to the Vodafone McLaren Mercedes team since 1995, has introduced an innovative new lubricant and fuels package for use in the Mercedes-Benz FO 108X engines of the 2010 Vodafone McLaren Mercedes MP4-25 cars. Following the FIA’s regulation change banning in-race refueling, Mobil 1 engineers were tasked by the Team to place even greater focus on delivering fuel efficiency through reduced friction. This had to be achieved whilst ensuring the same levels of Mobil 1 protection that delivered 100 percent engine reliability in 2009 – as well as the first ever three-race winning Formula One engine.

- To create a once-in-a-lifetime opportunity, Mobil 1, the world’s leading synthetic motor oil brand, commissioned Orange County Choppers to build a one-of-a-kind bagger-style custom motorcycle inspired by OCC founder Paul Teutul Sr. The custom bike became the centerpiece of the grand-prize package of the Mobil 1 Orange County Choppers Sweepstakes, which was won by James Polerecky of Omaha, Nebraska. As part of the grand prize, Polerecky also won a free trip to the 2010 Daytona Bike Week celebration, where he received his new custom motorcycle from Paul Sr. himself.

- Continuing a motorsports alliance showcasing the performance benefits of world-class synthetic motor oil technology, ExxonMobil and Corvette Racing have extended their partnership in which ExxonMobil provides its Mobil 1 lubricant technology and engineering support to the Corvette Racing team. Formally announced before the debut of the 2010 American LeMans Series (ALMS) season at the 58th Annual Mobil 1 Twelve Hours of Sebring, the renewed collaboration will mark the 14th consecutive year in which the Mobil 1 brand has been a major associate sponsor for Corvette Racing and the “Official Lubricant of Corvette Racing.” In this multi-year agreement, Mobil 1 branding will continue to appear on Corvette Racing’s C6.R cars, uniforms and vehicles.

- ExxonMobil Chemical has expanded its portfolio of metallocene polyethylene (mPE) resins with the introduction of Enable™ mPE 35-05 grade resin for tough, stiff, high clarity films. Enable mPE 35-05 resin provides converters and end users with significant downgauging opportunities that can lead to more sustainable flexible film opportunities, while delivering outstanding processability across a wide range of applications and extrusion equipment.

• Business/Finance news:

- Former U.S. Astronaut Dr. Bernard Harris gave students and teachers in Anchorage a first-hand experience with the wonders of science, technology, engineering and mathematics when “The Dream Tour, presented by ExxonMobil” made its second stop of 2010 on March 3 at West Anchorage High School speaking to 1,400 students from Begich, Central, Clark and Romig Middle Schools. The tour is designed to encourage today’s middle school students to realize their potential and strive to acquire strong math and science skills. The program included an interactive and inspirational program by Dr. Harris, a demonstration on space and engaging dialogue about achieving goals.

- Exxon Mobil Corporation (NYSE:XOM) delivered industry-leading results in 2009 during a volatile and challenging industry environment and is well positioned for future growth across a range of market conditions, the company said in its annual presentation to investment analysts at the New York Stock Exchange.

- The Mickelson ExxonMobil Teachers Academy selected 200 elementary school teachers from across the country to learn innovative new math and science teaching skills at three academies to be held this summer. The selection of the teachers from applications submitted at www.sendmyteacher.com marks the second year that teachers from all 50 states have been chosen to participate in the five-year-old professional development program. The academy is an intensive one-week, all-expense paid professional development program designed to provide teachers with innovative math and science teaching skills. The participants were selected by a panel of educators from the National Council of Teachers of Mathematics and the National Science Teachers Association based on their qualifications, dedication to inspiring students at an early age and overall commitment to enhancing the teaching profession.

- The Dallas Mavericks and ExxonMobil have teamed up with The Museum of Nature & Science to create Measure Up to the Mavs, a free, hands-on science program designed to educate students in grades 4 – 6 on mechanics and levers as they relate to basketball. Eduardo Najera, a forward for the Dallas Mavericks, will join 32 students to take part in Measure Up to the Mavs in the Nature Building at the Museum of Nature & Science located at 1318 South 2nd Avenue in Fair Park.

- Seventy-five non-profit agencies in the Dallas area will receive summer interns to increase their ability to serve the community, ExxonMobil announced. The interns will be paid through the ExxonMobil Community Summer Jobs Program, which for 20 years has offered undergraduate college students paid summer internships in nonprofit and community service sectors.

April

• Upstream news:

- ExxonMobil has completed the world’s longest extended-reach well drilled from an existing offshore fixed platform drilling rig, increasing the company’s ability to produce more domestic oil supplies from existing facilities at the Santa Ynez unit, offshore southern California. The well drilled from the Heritage platform using ExxonMobil’s Fast Drill technology extends more than six miles horizontally and more than 7,000 feet below sea level. Through the use of this extended reach drill technology, the well will be able to produce an additional 5.8 million barrels of oil equivalent, an amount equal to the annual energy consumption of over 144,000 Californians.

- Senator Bill Nelson, the Florida Democrat, has drafted legislation that would suspend the Obama administration’s plan to move forward with offshore exploration and drilling for new oil deposits until a full investigation of the Gulf of Mexico explosion and spill is completed and new protocols developed to prevent future accidents of this sort. This is probably only the beginning, given that the oil has yet to reach coasts.

• Downstream news:

- ExxonMobil and Gardella Racing announced they will team up for the 2010 season in a partnership that expands ExxonMobil’s commitment to motorsports and to drifting, a high-performance form of racing.

- A significant milestone in the development of ExxonMobil’s largest integrated chemical and refining complex was reached with the arrival of seven world-scale furnace modules at the Singapore facility. Each furnace module is about 15 stories (50 meters) tall and weighs over 2,000 tons, the equivalent of the combined take-off weight of five Boeing 747 airplanes. Employing ExxonMobil’s state-of-the-art, proprietary furnace technology, the furnaces are part of a feed-flexible steam cracker that will have an ethylene production capacity of one million tons per year.

• Business/Finance news:

- Exxon Mobil Corporation and the National Society of Black Engineers announced a new award to recognize university programs focused on retaining minority engineering students. The Diversity in Engineering Impact Award, funded by a $40,000 grant from ExxonMobil, will acknowledge universities that have developed innovative and successful retention programs targeting African American, Hispanic American and American Indian students pursuing degrees in engineering. Three universities will be awarded $10,000 each in September to support their efforts and provide recognition to encourage other universities to duplicate or develop their own retention programs. The application process will begin in May.

- Former U.S. Astronaut Bernard Harris gave students and teachers in Billings a first-hand experience with the wonders of science, technology, engineering and mathematics when “The Dream Tour, presented by ExxonMobil” made its third stop of 2010 on April 9 speaking to 600 eighth grade students from Lewis and Clark Middle School and Riverside Middle School. The tour is designed to encourage today’s middle school students to realize their potential and strive to acquire strong math and science skills. The program included an interactive and inspirational program by Harris, a demonstration on space and engaging dialogue about achieving goals.

- Two hundred twenty students were awarded with highest honors at the ExxonMobil Texas Science and Engineering Fair, a four-day competition that brings together top science fair winners from across the state. Best of Fair awards, presented to the top contestants in the junior and senior divisions, were presented to Carlos Rivero-Lopez of Sugar Land, Texas and Amy Chyao of Plano, Texas. Students competed in two divisions – junior (grades six through eight) and senior (grades nine through 12) – in one of 19 categories at the Henry B. Gonzalez Convention Center. Selected from more than 1,100 entries, awards were given to first through fourth place winners in each category, and Grand Prize and Best in Fair projects in each division. Senior division Grand Prize winners received all-expense paid trips to compete at the Intel International Science and Engineering Fair May 9–14 in San Jose, Calif. The top 10 percent of competitors in the junior division qualified to participate in the Discovery Channel Young Scientists Challenge.

- ExxonMobil Foundation announced a $1 million grant to Spelman College to provide scholarships to black women pursuing technology-related degrees. The Women in Science and Engineering Scholars program is the second contribution from the company to help facilitate the recruitment, retention and graduation of black females pursuing degrees in chemistry, physics, mathematics and computer science.

- The best way for government to kick-start the economy is to provide a level playing field for competition and create stable policies that will enable long-term investments, Rex Tillerson, chairman and chief executive officer of Exxon Mobil Corporation (NYSE:XOM), said. Tillerson said America’s businesses – both small and large – need to be able to plan for the future in order to make investments that will create badly needed jobs for the nearly one in 10 Americans who are unemployed and millions more who are underemployed or no longer seeking work.

- In commemoration of World Malaria Day on April 25, ExxonMobil announced new funding and additional efforts to combat the disease and raise awareness, including a renewed partnership with “American Idol.”

- ExxonMobil and its employees donated more than $36 million to a total of 911 educational institutions across the United States through the ExxonMobil Foundation’s 2009 Educational Matching Gift Program. ExxonMobil employees, retirees, surviving spouses and directors made more than 8,300 individual contributions totaling $11 million to institutions of higher education across the United States. ExxonMobil Foundation matched those donations with more than $25 million in unrestricted educational grants.

- ExxonMobil and its employees donated more than $1 million to a total of 30 educational institutions across New Jersey through the ExxonMobil Foundation’s 2009 Educational Matching Gift Program.

- ExxonMobil and its employees donated more than $1.2 million to a total of 37 educational institutions across Virginia through the ExxonMobil Foundation’s 2009 Educational Matching Gift Program.

- ExxonMobil and its employees donated more than $7.9 million to a total of 83 educational institutions across Texas through the ExxonMobil Foundation’s 2009 Educational Matching Gift Program.

- ExxonMobil and its employees donated more than $2.7 million to a total of 89 educational institutions across New York through the ExxonMobil Foundation’s 2009 Educational Matching Gift Program.

- ExxonMobil and its employees donated more than $2.6 million to a total of 19 educational institutions across Louisiana through the ExxonMobil Foundation’s 2009 Educational Matching Gift Program.

- ExxonMobil will release its first quarter 2010 earnings on Thursday, April 29, 2010. A news release will be issued over Business Wire.

- The Board of Directors of Exxon Mobil Corporation (NYSE:XOM) declared a cash dividend of 44 cents per share on the Common Stock, payable on June 10, 2010 to shareholders of record of Common Stock at the close of business on May 13, 2010.

- Upstream earnings were $5,814 million, up $2,311 million from the first quarter of 2009. Higher crude oil prices, partly offset by lower natural gas realizations, increased earnings $2.5 billion. Higher gas volumes improved earnings by $190 million while higher operating expenses decreased earnings $380 million. On an oil-equivalent basis, production increased 4.5% from the first quarter of 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up nearly 6%.

- Exxon Mobil Corp. said its quarterly profit jumped 38 percent as oil prices rose in the first three months of the year. That marks the first year-over-year increase in profits for Exxon since it posted an all-time record of $14.83 billion in the third quarter of 2008. Still, earnings remain significantly below that level. During the first three months of this year, the Irving, Texas, oil giant had a profit of $6.3 billion, or $1.33 per share. That compares with $4.55 billion, or 92 cents per share, in the same period last year. Two years ago, Exxon earned $10.89 billion in the first quarter. Revenue jumped 41 percent to $90.25 billion. Analysts had expected earnings of $1.41 a share on revenue of $96.41 billion. Exxon's profit relied heavily on its exploration and production of oil and gas. Oil prices surged over the past 12 months, jumping from a low of $33 a barrel in the first quarter of 2009 to more than $80 a barrel this year. The company responded to the rise in price by pumping more from the ground. Production of oil and natural gas increased 4.5 percent from the first quarter of 2009. New operations in Qatar came online. helping to boost profits even though natural gas prices had flattened from the previous year. Exxon's refineries struggled, however, especially those located in the United States. American petroleum consumption dropped in the first quarter, and refineries had trouble passing the higher oil costs along to consumers. The company's U.S. downstream operation, which includes refineries, lost $60 million in the first quarter, compared with a profit of $352 million in the year-ago period. Meanwhile, Exxon's chemicals business more than tripled its profits in the quarter to $1.25 billion. Exxon said it benefited from stronger profit margins and higher sales volumes. The company also said corporate and financing expenses nearly doubled to $800 million, primarily because of new health care benefits now required in the U.S. During the quarter, Exxon continued to expand its business, increasing capital and exploration spending 19 percent year-over-year to $6.9 billion. Exxon said it plans to complete its acquisition of natural gas producer XTO by the end of the second quarter.

May

• Upstream news:

- Oil behemoth BP PLC faces billions of dollars in costs connected to its oil spill in the Gulf of Mexico, analysts and legal experts predict. The question now is just how big and fast that bill will grow. With the possibility that it could take three months to stop the Deepwater Horizon spill, payments are likely to start at $2 billion and could reach more than $8 billion, experts said, while cautioning that it is early to make accurate estimates. Cleanup and damages, they said, are just part of the pain connected to this disaster. BP also could take a hit to future earnings if it needs to slow other exploration and drilling in the Gulf of Mexico, where it has substantial acreage rights, analysts said. In the wake of the disaster, the company's stock price already has tumbled about 13 percent since the April 20 spill, shaving off $20 billion in market value. And images of blackened water flowing toward Louisiana have soiled the reputation of the company that previously relabeled itself "beyond petroleum," analysts said. The disaster already appears poised to pass the scope of the 1989 Exxon Valdez disaster in Prince William Sound, Alaska. There were no employee fatalities involved in the Exxon Valdez incident, while 11 people died in the Deepwater Horizon incident. Those deaths follow 15 fatalities in an explosion at BP's Texas City Refinery in 2005. Analysts who put the cost of the Deepwater Horizon spill at anywhere from $2 billion to $8 billion also cautioned that the numbers could change quickly. BP earned $17 billion in net income last year and is projected to earn $23 billion in 2010, according to Raymond James. BP has said that it is spending $6 million to $7 million per day to shut off the flow and limit damage. It has offered repeated assurances that it takes responsibility for the spill. The company set up the toll-free phone number 1-800-440-0858 to take damage claims. President Obama also has said that BP will pay for the costs. That is expected to include reimbursing federal and local governments for work they put into stopping the spill. The company is continuing several approaches to stop the leak, including chemical sprays, covering the leak with a type of dome and drilling another well to relieve the pressure. But drilling that second well will take at least 90 days. If the leak continues to discharge 5,000 barrels of oil a day, within about 50 days it will eclipse Exxon Valdez in terms of oil spilled. In the Exxon case, 250,000 barrels (or 10.8 million gallons) of oil spilled. That is what led many analysts to use the Exxon Valdez as the barometer for what BP is likely to pay. Exxon paid more than $3.8 billion in cleanup and damage costs, plus about $500 million in punitive damages. Because the Gulf of Mexico is far more open than the area where the Exxon Valdez disgorged oil, it is easier to get crews and equipment in to try and stop the spill and erect booms to protect the shore, Molchanov said. BP faces a different environment than did Exxon, however. The aftermath of the Exxon Valdez case shifted the legal landscape around oil spills. In the Valdez case, the law that applied said that only those who had been physically touched by the oil could collect damages, said Dave Oesting, lead counsel for plaintiffs in that case and an attorney at Davis Wright Tremaine in Anchorage. Congress in 1990 passed the Oil Pollution Act, which lifted that restriction. Now those who believe they have related economic damages can file claims. That could mean a wide range of businesses and people will seek compensation in the Deepwater Horizon spill, attorneys said. Already 26 lawsuits have been filed, the Associated Press reported. Louisiana fishermen and shrimpers are seeking (pdf) millions of dollars in damages for the ongoing oil spill, which they say could destroy their livelihoods. One lawsuit names two commercial shrimpers as the plaintiffs, and another comes from the captain of a charter boat that fishes near rigs off the Gulf Coast. The shrimpers case, which seeks class-action status, also lists 10 other groups of lawyers representing plaintiffs, including New York-based environmental advocate Robert F. Kennedy Jr. That firm had already received calls from other businesses that foresee financial harm, including hotels and scuba diving businesses, commercial fisheries and municipalities, said Kevin Madonna, a partner at the firm Kennedy & Madonna LLP. The Oil Pollution Act has not been applied in a spill of this scope and remains untested in some areas, Madonna said, adding that this case "is going to be the mother of all tests." In addition to cleanup costs, payments that BP will have to make likely will include damage to natural resources, including animals that are killed because of the oil, and damage to property and property values on the beaches where oil hits, attorneys and analysts said. There is the potential for even more widespread economic damage if the oil spill disrupts traffic on the Mississippi River for an extended period, Lipnow said. Agricultural goods from the Midwest are exported out of the Port of New Orleans, he said. The Exxon Valdez case took 21 years to resolve and ended up at the U.S. Supreme Court. Cases connected to BP could move faster because of the Oil Pollution Act, which clarifies an oil company's liability, Oesting said. Punitive damages cannot be collected if a suit is filed under that act, attorneys said. But suits seeking punitive damages could be filed outside that act, Madonna said. BP and other oil companies will likely need to re-examine their technology and make sure they have proper precautions to prevent future incidents, Lipow said. The political environment also is likely to shift. Already, President Obama has tabled for a month his plan to expand offshore drilling. That could have an impact on BP and other oil companies, Gheit said. Others said they expected BP and other oil companies would move forward without any significant longer-term problems.

• Downstream news:

- Motorsports fans around the world can compete in the toughest on-track driving conditions by playing Mobil 1’s new online game, The Mobil 1 Global Challenge. Thanks to an innovative recording function, players can race head-to-head with a virtual representation of their friends or with the likes of Vodafone McLaren Mercedes F1 drivers Jenson Button and Lewis Hamilton.

• Business/Finance news:

- Former U.S. Astronaut Bernard Harris gave students and teachers in Phoenix a first-hand experience with the wonders of science, technology, engineering and mathematics when “The Dream Tour, presented by ExxonMobil” made its fourth stop of 2010 on May 7 speaking to 700 students from Bethune, Dunbar, Edison, Faith North, Lowell and University Public School in Phoenix Elementary School District #1.

- Exxon Mobil Corporation (NYSE:XOM) announced that Suzanne M. McCarron, General Manager, Public and Government Affairs, has been named President of the ExxonMobil Foundation. She replaces Gerald W. McElvy, who has been the foundation's president since 2005, and who is retiring after 33 years of distinguished service to ExxonMobil. As president of the foundation, McCarron will be responsible for guiding the foundation’s philanthropic activities, including its strategic focus on advancing economic opportunities for women in the developing world, preventing and treating malaria, and supporting math and science education.

- ExxonMobil is holding its annual meeting of shareholders on Wednesday, May 26, 2010. Media access will be provided to authorized representatives of commercial news organizations who pre-register by Friday, May 21, 2010. Please note, only media who have pre-registered will be provided access to the annual meeting.

- As the Gulf Coast prepares for the start of hurricane season, the American Red Cross is recruiting and training local volunteers to help victims if another major storm strikes the Houston area. Disaster can strike quickly and with little notice. From setting up emergency shelters to distributing food, Red Cross officials today trained volunteers, including ExxonMobil employees, as part of the Ready When the Time Comes program. If a large-scale disaster occurs, the Red Cross will call on partner corporations like ExxonMobil, which recruits the largest number of volunteers, to immediately mobilize the trained force to help those in need.

- ExxonMobil has announced a grant of more than $100,000 in support of the American Indian College Fund (the Fund). The donation extends ExxonMobil’s partnership with the Fund dating back to 1988 and will provide scholarships, sponsorship and administrative support to the organization.

- The National Community Action Foundation and Exxon Mobil Corporation (NYSE:XOM) recognized the Association for Energy Affordability (AEA) with an $800,000 grant to establish a weatherization training program. The grant is being used to prepare workers for careers in the growing fields of weatherization and energy efficiency. This is one of nine grants across eight states aimed at increasing the capacity of Community Action Agencies and Weatherization Assistance Program agencies serving areas with high concentrations of income-eligible multifamily buildings. The grant allows the Association for Energy Affordability to combine conventional classroom and field-based learning tools with new media technology. The training curricula addresses regional climate differences and national standards for multifamily auditors, construction managers, program managers, and multifamily trainers. In partnership with national and local workforce agencies, AEA is helping local job developers and workforce organizations learn more about the skills job seekers need for careers in energy efficient buildings.

- Former U.S. Astronaut Bernard Harris gave students and teachers in Denver a first-hand experience with the wonders of science, technology, engineering and mathematics when “The Dream Tour, presented by ExxonMobil” made its fifth stop of 2010 on May 21 speaking to 360 students from Grant Beacon Middle School.

- Exxon Mobil Corporation (NYSE:XOM) issued its 2009 Corporate Citizenship Report detailing actions to improve environmental, economic and social performance, while providing the energy needed to support economic recovery and growth around the world. The report details how ExxonMobil reduced greenhouse gas emissions, was an industry leader in worker safety and, despite the economic downturn, invested at record levels in 2009 – more than $27 billion in capital and exploration expenditures. The company also contributed about $262 billion, or more than 13 times its earnings, to economies around the world through taxes and purchases of goods and services.

- Exxon Mobil Corporation (NYSE:XOM) announced that shareholders elected two new members, Peter Brabeck-Letmathe and Jay S. Fishman, to its board of directors. Brabeck-Letmathe is chairman of Nestlé S.A. Fishman is chairman and chief executive officer of The Travelers Companies, Inc. With the additions, the ExxonMobil board stands at 11 directors, 10 of whom are non-employee directors. Brabeck-Letmathe, 65, was appointed to his current position as chairman of Nestlé in 2005. He also served as chief executive officer from 1997 to 2008. Fishman, 57, was appointed to his current position as chief executive officer of The Travelers Companies in 2004 and assumed the additional role of chairman in 2005. In these roles, he leads one of the largest property casualty insurance carriers in the United States.

June

• Upstream news:

- Exxon Mobil Corporation (NYSE: XOM) announced it has completed its agreement with XTO Energy Inc., creating a new organization to focus on global development and production of unconventional resources. Under the agreement, approved by XTO stockholders at a special meeting, the new organization will continue to be known as XTO Energy Inc. and maintain its head office location in Fort Worth, Texas. Jack Williams, a former vice president of ExxonMobil Development Company, has been elected president of XTO Energy Inc. Keith Hutton, formerly XTO’s chief executive officer, is executive vice president of the new organization.

- Three weeks before the Gulf of Mexico spill began on April 20, President Obama announced that his administration would open protected waters off the Atlantic seaboard and Alaska coast to oil exploration. A few days after the spill, Obama reversed course and issued a moratorium on offshore drilling. Leading up to the March 1989 Exxon Valdez oil spill in Alaska, the Bush administration similarly called for easing restrictions on drilling in environmentally protected areas, most notably in the Arctic National Wildlife Refuge. Following the oil spill then, The Times' editorial board questioned the wisdom of opening these areas to oil exploration.

- A massive oil spill blankets the sea, threatening birds, fish and the local economy. The company responsible assures the country that the impact is small, and a top executive promises financial compensation. But soon after, the business garners condemnation for its lackluster response. That was Exxon 21 years ago. Despite initially appearing to react differently, London petroleum giant BP PLC after its April 20 oil spill fell into many of the same public relations mistakes as Exxon did in 1989, according to corporate crisis experts. As a result, they said, BP likely faces a similar black eye, one that will last decades. The company already has taken a massive financial hit. BP's stock yesterday fell to a 14-year low and has lost $95 billion, or half its market value, since the Deepwater Horizon explosion. Until the BP spill, the Exxon Valdez accident ranked the largest U.S. oil spill. The Valdez oil tanker smashed into Alaska's Prince William Sound reef and disgorged nearly 11 million gallons of petroleum. BP's spill has already eclipsed that record, and no one knows just how bad this disaster will become. Since the April 20 explosion of the Deepwater Horizon rig that BP leased, the company has focused on stopping the spill and communicating its actions, said Andrew Gowers, BP's head of group media. There have been obstacles to both goals. Gowers declined to talk about Exxon or whether BP attempted to act differently from that company after its Valdez spill. Exxon has long been considered the archetype of how not to behave following a business crisis, several analysts said. Exxon, now Exxon Mobil Corp., declined to comment on how it approached the Valdez incident. BP's oil disaster is in many ways dramatically different from what Exxon encountered with Valdez. That spill happened in a remote area of Alaska, while the BP spill occurred in the Gulf of Mexico near the populated Louisiana coast. The spill part of Exxon's disaster ended quickly. BP's well, by comparison, has been gushing oil since the rig explosion in the Gulf of Mexico. Only in the past week has the company succeeded in capturing some leaking petroleum. The Valdez spill also transpired in a vastly different technological environment. The Internet was in its infancy. While daily newspapers, television and magazines carried news of the Exxon spill and its aftermath, there were no blogs and social media platforms containing constant updates and personal accounts and photographs. Cell phones were not widely available. BP's spill occurred in the world of 24/7 news, blogs, tweets, status updates and niche-media. After the Deepwater Horizon rig sunk, BP appeared eager to jump in front of the crisis. BP helped set up a Louisiana command center. CEO Tony Hayward claimed the company's responsibility and said it would pay all "legitimate" claims for damages. Although Exxon over the past 20 years fought how much it would pay in economic costs, that company also initially made statements about compensating those with damages. In 1989, Exxon executive Don Cornett, according to numerous media reports, vowed that the company would help those affected by the spill. There already are questions about how much BP will pay in damages. Despite Hayward's media statements about taking care of legitimate claims, Hayward privately rejected committing to paying all economic damage claims, Sen. Bill Nelson (D-Fla.) disclosed after the two met in April (E&E Daily, April 5). There currently is a $75 million cap for economic damages connected to an oil spill, but two Democratic senators are pushing legislation that would eliminate that limit (E&E Daily, June 9). BP also hit controversy as it offered to pay fishermen $5,000 while asking them to sign waivers agreeing not to sue BP. The company has since said that was a "misstep." Both Exxon and BP made a public relations error in emphasizing science over people, Sellnow said. After Exxon's spill, he said, the company blamed Alaska for not allowing the use of dispersants to stop the oil from spreading. Exxon said that was the reason the oil hit the shore, Sellnow said. Reporters largely ignored that scientific argument and instead targeted the stories of people, said Kathleen Fearn-Banks, communications professor at University of Washington and author of the book "Crisis Communication, A Casebook Approach," which examines the Exxon Valdez spill. BP also focused on science and engineering, Sellnow said, talking about how it planned to stop the oil spill. While that was understandably an emphasis, he said, it created a public relations problem. BP focused on "aggressively responding," Gowers said, adding that the "massive scale of the containment effort was the initial focus" but that the company did not lack concern for people hurt by the spill. BP has been quick to pay economic damage claims, he said, even to people who lacked appropriate documentation. To date, he said, BP has paid $53 million in claims and spent $1.25 billion on responding to the spill. Both BP and Exxon tried to shift blame, analysts said. Exxon after the Valdez spill blamed the tanker's captain, Joseph Hazelwood, Seeger said. Hazelwood was accused of being drunk at the time of the crash but was acquitted of that charge at trial. The crash, spill and cleanup morass was a "systemic failure," Seeger said. Exxon before the Valdez crash, he said, had waged a public relations campaign persuading the Prince William Sound community that it was safe to drill and export oil from the area. As a consequence, Seeger said, there was a failure to accept that disaster could happen and prepare for it. Equipment that would later be needed for cleanup had been taken out of the area, he said. Early on, BP's Hayward told CBS's "The Early Show" that "this is not our accident," because the rig was owned by Transocean Ltd. He did, however, say at the time that, "it's our responsibility." Hayward also told Forbes that "the real issue is the failure of the safety equipment," referring to the blowout preventer, which was not handled by BP. In the intervening weeks, Gowers said, BP has "filled in detail" and "presented a more complex and nuanced picture" of what occurred. Exxon and BP also underplayed the impact of the spills, Seeger said. Exxon's CEO at the time said that the environmental impact of the Valdez oil would be small. BP's Hayward after the spill told London's Guardian newspaper on May 14 that "the Gulf of Mexico is a very big ocean. The amount of volume of oil and dispersant we are putting into it is tiny in relation to the total water volume." He also told British TV station SkyNews on May 18 that the "the environmental impact of this disaster is likely to have been very, very modest." There have been accusations that BP underplayed the amount of oil that has been spilled, with initial estimates saying that 1,000 to 5,000 barrels a day were flowing out. There are now some estimates that it could be as high as 100,000 barrels per day. BP's Gowers said that the 1,000 and 5,000 barrel numbers "were not BP estimates" but rather came from the incident's Unified Command, which included BP but also the U.S. Coast Guard and government agencies. The current estimates are not BP numbers, he said. Journalists also have charged that BP blocked access to the site. Gowers said that is not accurate. BP yesterday sent a letter to Unified Command incident commanders clarifying that people are free to talk to reporters if they wish. The CEO of Exxon in 1989 and BP now became public relations liabilities, communications experts said. Exxon CEO Rawl in 1989 decided not to go to the Valdez spill site, which likely compounded the company's image problems, said Fearn-Banks. Hayward has made a number of gaffes, including the remark about the size of the Gulf and lamenting to the "Today" show on May 31 that, "there's no one who wants this over more than I do. I would like my life back." He later apologized for that comment. Hayward might not have too many positive options, Fearn-Banks said. BP has run ads in which Hayward apologizes for the spill and promises, "we will get it done. We will make this right." But even that falls flat, Seeger said. "It creates the impression that the company is disingenuous," Seeger said. "It creates the perception that the company is more concerned about its image than the cleanup." BP struggled as it was unable to stop the spill and days stretched into weeks and now nearly two months. Interior Secretary Ken Salazar and President Obama demanded answers, with Obama saying that he wanted to "know whose ass to kick" over the disaster. The drumbeat of failures as the company tried repeatedly to cap the spill drowned out its public relations message, he said. Meanwhile BP failed to answer obvious questions "in a compelling manner," Sellnow said, such as, "If you can't plug the hole, then really what are you going to do that I can have confidence in?" The inability to stop the leak for so long "has really conditioned the atmosphere in which this is unfolding," Gowers said. "It's just been a very unfortunate saga and frustrating for everyone involved, including us." While BP has struggled with stopping the leak, Exxon's initial woes came over cleanup. That petroleum company belonged to a consortium responsible for removing the oil. But Exxon and that consortium argued for days about how the petroleum would be removed. Meanwhile it spread, killing wildlife, Fearn-Banks said. BP was part of that consortium in 1989. In this spill, BP "whether intentionally or not, they over-reassured the public that they could plug the well," Sellnow said. "They failed to acknowledge the uncertainty of the situation." That created the question in people's minds, Sellnow said, of "'If you didn't have an adequate plan in place should there be a failure of the system, why were you drilling [so far down]?' In the court of public opinion they haven't answered that question adequately." Public relations experts say it appears both Exxon and BP failed to follow the first rule of crisis communications: having a plan in place to deal with a potential disaster. "BP never had a plan in place for the worst-case scenario or they would have put it in place," Fearn-Banks said. "I don't think it's a question of money. ... They absolutely don't know what to do at all." The company already had developed a reputation for taking inappropriate risks. A 2005 explosion at BP's Texas City Refinery killed 15 people. Between 2006 and 2008, three workers died at the Texas City refinery in three separate incidents. Preparing for this disaster was not possible, Gowers said. As Hayward has stated, Gowers said, the disaster was "a completely unanticipated event. It required multiple systems to fail to happen. "The industry has been drilling safely in deep waters for over 20 years and now is having to rethink everything," Gowers said. In the months after the spill, Exxon helped turn around its image when it "focused on the cleanup and stopped trying to minimize their failures or the severity of the spill," Sellnow said. Exxon involved the community in the cleanup, he said. It is not clear yet whether BP could do something similar he said, because of concerns about vapors. BP's current inability to dig itself out image-wise in some ways helps Exxon, a few analysts said. Seeger said that "it helps Exxon that it will no longer be at the top of the list," in terms of the country's worst environmental disaster. But at the same time, Exxon and oil companies are hurt by BP's spill and public relations stumbles. Disasters leading to death and environmental mayhem trigger shifts in the public policy agenda, Seeger said.

- Two decades after the Exxon Valdez oil spill, cleanup technology has progressed so little that the biggest advancement in the Gulf of Mexico disaster — at least in the public’s mind — is an oil-water separator based on a 17-year-old patent and promoted by the movie star Kevin Costner. Experts say there have been some improvements in skimmers and other existing technologies since the 1989 Exxon accident in Alaska. Dispersants to break up oil have been far more widely used in the Deepwater Horizon leak in the gulf than in any previous spill, and they have been used for the first time underwater. Controlled burns of oil — only tested in 1989 — have been conducted regularly in the gulf. But more significant advances have been hampered by a lack of money for research and laws and regulations that make it difficult to test new ideas and introduce improved equipment. In the gulf spill, the laying of boom and the skimming of oil remain a last, and not completely effective, line of defense for coastal areas. Skimming, for instance, cannot be done in rough seas and is often limited to daylight hours because of the difficulties in detecting oil at night. Even officials with BP, the company responsible for the gulf spill and cleanup, acknowledge that most of the equipment in use represents improvements in old technology, and cite the lack of major spills in the past two decades as one reason. BP said last week that it would buy 32 of Mr. Costner’s machines to help clean the oil spill. But the machines work much better on fresh oil than weathered oil, so it is unclear how much of a contribution they will make. Experts in cleanup technologies say that there are no magic-bullet approaches on the horizon and that in some ways, cleanup is limited by a basic fact of nature: oil and water do not mix. In testimony this month before Congress, Mr. Costner told of years of woe trying to market his separator, a centrifuge originally developed and patented in 1993 by the Idaho National Laboratory, for use in oil spills. One obstacle, he said, was that although his machines are effective, the water they discharge is still more contaminated than environmental regulations allow. He could not get spill-response companies interested in his machines, he said, without a federal stamp of approval. Beyond regulatory obstacles, a major reason for the dearth of new technologies has been a lack of money for research. Programs that were flush with cash in the 1990s after the Exxon Valdez spill and the subsequent creation of the Oil Pollution Act have had their appropriations dry up over the past decade. And research money from oil companies has declined in the same period. Kurt Hansen, project manager for spill research with the Coast Guard’s Research and Development Center in New London, Conn., said that in the 1990s, his group’s budget was $5 million to $6 million a year. Research is hampered in other ways. For example, there is only one place in the United States — a center in New Jersey operated by the Minerals Management Service — where cleanup technologies can be tested, at full scale, on spilled oil. Other countries, notably Norway and Canada, allow occasional testing involving intentional spills into the environment, although only after an exhaustive permitting process. In the United States, just obtaining oil for use in small-scale laboratory research can be extremely difficult, said Scott Pegau, research program director of the Oil Spill Recovery Institute, a research center established in Cordova, Alaska, after the Exxon Valdez spill. Mr. Pegau said it recently took him months to obtain less than a gallon of crude. Oil spill experts also say that much of the research that has been conducted may have, in retrospect, focused on the wrong target. For years scientists and environmentalists have been concerned about the possibility of a spill in Arctic and near-Arctic areas, with their fragile ecosystems and extreme drilling conditions. But with a runaway gusher 5,000 feet under the surface of the gulf, “now we know it’s quite extreme there,” Ms. Kinner said. Ken Lee, executive director of a Canadian government center for offshore gas and oil research, said scientists had made progress in developing better ways to cope with spills in cold environments. One approach, Mr. Lee said, is to introduce fine mineral particles that help the oil naturally disperse, after which it can be degraded by bacteria. But the research is not particularly useful for the current spill, he said, because the Gulf of Mexico is naturally full of fine mineral particles, so presumably much natural dispersion is happening anyway. For years after the Exxon Valdez disaster, scientists studied the possibility of improving bacterial degradation by adding different, perhaps even genetically engineered, bacteria to the water in the vicinity of a spill. A more voracious microbe, the thinking went, would eat more oil. Since no one bacterium degrades all the components of oil, he said, “there’s no net advantage in adding one bug.” And studies showed that natural bacteria often quickly beat out any new designer microbes added to the mix. Ms. Kinner and others said that with all the attention being paid to the gulf spill, the prospects for more research money had brightened considerably. This month, for instance, the Coast Guard issued a call for research proposals related to the gulf disaster, including ideas for “innovative applications not commonly used for oil response.”

• Downstream news:

- The team behind Mobil Delvac heavy duty diesel engine oil will sponsor the 35th Annual 2010 Budweiser Dairyland Super National Truck & Tractor Pull. The event takes place from June 24-27 in Tomah, Wisconsin. The event boasts six sessions of action-packed pulling over the course of four days, and it is one of the largest motorsports events in the Midwest.

• Business/Finance news:

- The ExxonMobil Community Summer Jobs Program kicks off its 39th year in 12 states across the country. The program is one of ExxonMobil’s signature community programs and helps 270 nonprofits across America employ college students for eight weeks each summer. The students receive a paid internship introducing them to a wide variety of community service organizations and giving them hands-on experience related to their field of study. Selected nonprofit agencies receive much-needed support during peak summer months from students viewed as future community leaders.

- U.S. Senator Jon Tester joined the National Community Action Foundation and Exxon Mobil Corporation (NYSE:XOM) as they awarded the Montana Weatherization Training Center at Montana State University with a $354,000 grant to establish the Weatherization Television Network (WXTV), a weekly, 45-minute, multimedia webcast open to weatherization workers nationwide. The grant will be used to help meet the need for easy-access materials to refresh or expand the skills of weatherization workers. This is one of nine grants across eight states to increase the capacity of community action agencies and weatherization assistance program agencies.

- Developing new energy sources to meet growing demand requires technological advancements and strong international partnerships, Mark Albers, senior vice president of Exxon Mobil Corporation (NYSE:XOM), said at the International Oil and Gas Conference and Exhibition in China. Noting that recoverable energy resources often are found in complex, remote locations with challenging conditions, Albers said cutting-edge technology founded on operational excellence is needed to overcome these challenges and bring abundant resources to market in a safe and environmentally responsible manner.

- Seventy-five interns and nonprofit agencies today kicked off the 20th annual ExxonMobil Community Summer Jobs Program with a reception at the Dallas Arboretum. Dedicated to helping agencies and interns alike, the eight-week paid internship program offers nonprofits much-needed help during the busy summer months and provides interns with hands-on experience in a variety of organizations. This year, ExxonMobil will provide $270,000 to cover intern salaries and program administration expenses in Dallas.

- The ExxonMobil Green Team kicked-off its 29th year providing summer internships and educational opportunities for low- to moderate-income high school students. The Green Team is active in 10 cities across the country and is one of ExxonMobil’s signature community programs.

- The ExxonMobil Green Team celebrated its 29th year in Dallas with a kickoff event at Exxon Mobil Corporation headquarters. The Green Team provides 50 high school students with environmentally focused work experience and educational opportunities each summer through a paid internship.

- Ashoka’s Changemakers, ExxonMobil and the International Center for Research on Women (ICRW) announced the three winners of the Women | Tools | Technology: Building Opportunities & Economic Power Challenge. The winners were selected from 268 project entries from 67 different countries in Africa, Asia, Latin America and the Middle East.

July

• Upstream news:

- XTO Energy Inc. (“XTO”), a wholly owned subsidiary of Exxon Mobil Corporation (“ExxonMobil”) (NYSE: XOM), announced the commencement of cash tender offers (each, a “Change of Control Offer”) for any and all of its outstanding 7½% Senior Notes Due 2012 (CUSIP No. 98385XAA4) and 6¼% Senior Notes Due 2013 (CUSIP No. 98385XAC0) (collectively, the “Securities”). The Securities are fully and unconditionally guaranteed by ExxonMobil, although such guarantee may be revoked in certain circumstances.

- A plan to build and deploy a rapid response system that will be available to capture and contain oil in the event of a potential future underwater well blowout in the deepwater Gulf of Mexico was announced by Chevron, ConocoPhillips, ExxonMobil and Shell. The new system will be flexible, adaptable and able to begin mobilization within 24 hours and can be used on a wide range of well designs and equipment, oil and natural gas flow rates and weather conditions. The new system will be engineered to be used in deepwater depths up to 10,000 feet and have initial capacity to contain 100,000 barrels per day with potential for expansion. The companies have committed $1 billion to fund the initial costs of the system. Additional operational and maintenance costs for the subsea and modular processing equipment, contracts with existing operating vessels in the Gulf of Mexico and any potential new vessels that may be constructed will increase this cost commitment. This system offers key advantages to the current response equipment in that it will be pre-engineered, constructed, tested and ready for rapid deployment in the deepwater Gulf of Mexico. It is being developed by a team of marine, subsea and construction engineers from the four companies. The system will include specially designed subsea containment equipment connected by manifolds, jumpers and risers to capture vessels that will store and offload the oil. Dedicated crews will ensure regular maintenance, inspection and readiness of the facilities and subsea equipment. The four companies will form a non-profit organization, the Marine Well Containment Company, to operate and maintain this system. Other companies will be invited and encouraged to participate in this organization. Work on this new containment system is being accelerated to enhance deepwater safety and environmental protection in the Gulf of Mexico, which accounts for 30 percent of U.S. oil and gas production and supports more than 170,000 American jobs. The sponsor companies will proceed immediately with the engineering, procurement and construction of equipment and vessels for the system. ExxonMobil will lead this effort on behalf of the four sponsor companies. The companies are also actively involved in significant industry efforts to improve prevention, well intervention and spill response. This includes rig inspections and implementation of new requirements on blowout preventer certification and well design. The industry has proactively formed several multi-disciplinary task forces to further develop improved prevention, containment and recovery plans. The companies have reviewed the system with key officials in the federal Administration and Congress and will conduct briefings with other key stakeholders.

- Exxon Mobil Corporation’s $31 billion hedge is way out of the money, Breakingviews says. Gas prices have tumbled since the company agreed to pay that amount for the gas producer XTO. That doesn’t make the deal a bust. A carbon tax might make the XTO purchase look smart, but Exxon benefits for as long as Congress twiddles its thumbs, the publication argues. To his credit, Exxon’s chief executive, Rex W. Tillerson, has made little attempt to mask the grim economics of the natural gas market. If anything, these have worsened since December when Exxon broke a decade-long deal fast to buy XTO. Since then, the already depressed gas price has fallen nearly another 20 percent. The very technical success of drillers uncovering growing quantities of shale gas is proving their financial undoing, Breakingviews says. The Congressional failure to place a price on carbon, a move that promised to catapult demand for clean-burning gas, is a bigger worry still, according to the publication. Exxon’s own number-crunchers assume a $30-a-ton price for carbon over the next 10 years, leading electric utilities to ditch coal for natural gas. Since December’s XTO deal, however, what minimal Republican support existed for a climate bill has nearly disappeared, Breakingviews notes. With unemployment so high, both political parties seem hesitant to push a bill that might be accused of destroying jobs. So it may be years before XTO contributes to Exxon’s industry-beating return on equity, the publication suggests. Yet Mr. Tillerson may not be too perturbed, Breakingviews says. XTO represents a fraction of Exxon’s business. The heads of Exxon’s other carbon-spewing businesses are unlikely to be praying for climate legislation. The company’s downstream and refining business already has lost over $200 million since the start of 2009 and a price on carbon would likely add to the pain. What’s more, the XTO bet doesn’t need to pay off any time soon, Breakingviews says. Unlike fast-gushing deepwater oil, XTO’s shale wells will last for 40 years at current rates of production. By holding on to leases as cheaply as possible and drilling in the most promising wells, the publication says, Exxon can keep shale businesses from being too much of a drain.

- Disgruntled investors have wiped more than $40 billion off the value of Exxon Mobil since its splurge on the gas giant XTO Energy — almost exactly the latter firm’s price tag. With Congress ditching carbon emissions rules, clean-burning gas looks like a bad bet. Yet to assume that XTO has zero value seems wrongheaded. Even before lawmakers went cold on limiting greenhouse gases, investors were skeptical of the purchase. Between the announcement of the deal on Dec. 14 and second-quarter results, Exxon stock slid 16 percent. Adjusting for an average 4 percent fall of its peers Chevron and Royal Dutch Shell, investors have lopped slightly more than XTO’s entire $41 billion enterprise value off Exxon’s market capitalization. True, Exxon’s huge outlay on XTO is starting to look questionable. With the benefit of hindsight, it may not have been the ideal time for Exxon to nearly triple its natural gas production in the United States. But anemic gas prices in 2009 didn’t stop XTO from eking out $6 billion or so of operating cash flow during the year. And although natural gas demand may not spike, conventional gas production in the United States is set to halve by 2030, providing some support for prices. And Exxon’s discipline and strong credit rating will surely lower costs at XTO. Exxon’s better-than-expected $7.6 billion profit in the second quarter is a reminder that there is more to the company than XTO. Unlike ConocoPhillips, Exxon is continuing to lift output. Annual production growth of 2 to 3 percent looks within reach over coming years. Nor is Exxon as exposed to the troubled Gulf of Mexico as Chevron. And a top-notch reputation for safety should become even more valuable to Exxon as risk aversion increases in the wake of BP’s spill. XTO may not deliver the plump returns on capital Exxon shareholders have grown accustomed too. But the deal isn’t the total wipeout the loss of market value would suggest. Exxon shares have suffered too much.

• Downstream news:

- Exxon Mobil Corporation (NYSE:XOM) and Synthetic Genomics Inc. will announce the next step in their research to develop next generation biofuels from photosynthetic algae at a press conference at SGI headquarters in La Jolla, California on July 14, 2010.

- Exxon Mobil Corporation (NYSE:XOM) and Synthetic Genomics Inc. (SGI) announced the opening of a greenhouse facility enabling the next level of research and testing in their algae biofuels program. The new facility, opened at a ceremony at SGI headquarters in La Jolla, CA, moves the project from a laboratory setting to an environment that better reflects real-world conditions for algae production. SGI and ExxonMobil researchers are using the facility to test whether large-scale quantities of affordable fuel can be produced from algae.

- As part of a multi-year agreement, ExxonMobil will manufacture and supply Caterpillar® branded lubricants to Caterpillar factories and dealers worldwide. With this agreement, ExxonMobil continues as the exclusive worldwide supplier for 33 Caterpillar® lubricants used in engines, transmissions, hydraulics and final drives.

• Business/Finance news:

- Exxon Mobil Corporation (NYSE:XOM) and Synthetic Genomics Inc. will announce the next step in their research to develop next generation biofuels from photosynthetic algae at a press conference at SGI headquarters in La Jolla, California on July 14, 2010.

- Mobil 1 and O’Reilly Auto Parts are giving four NASCAR® fans the trip of a lifetime to join the year’s top drivers in Las Vegas for the 2010 NASCAR Sprint Cup Series Champions Week.

- Exxon Mobil Corporation (NYSE:XOM) and Synthetic Genomics Inc. will announce the next step in their research to develop next generation biofuels from photosynthetic algae at a press conference at SGI headquarters in La Jolla, California on July 14, 2010.

- Students from throughout Texas will showcase scientific research projects and displays at the 2010 ExxonMobil-sponsored Texas FFA AgriScience Fair in Corpus Christi on July 14. The competition will be held at the American Bank Center in conjunction with the 82nd Annual Texas FFA Convention running from July 13-16. With 10,000 members and supporters expected to attend, the Texas FFA Convention is the largest state FFA convention in the nation and the largest youth-led convention in Texas.

- XTO Energy Inc. (“XTO”), a wholly-owned subsidiary of Exxon Mobil Corporation (“ExxonMobil”) (NYSE: XOM), announced the commencement of cash tender offers (each, an “Offer”) for any and all of its outstanding debt securities in the series specified in the table below (the “Securities”) with a total principal amount outstanding of $2,694 million. The Securities are fully and unconditionally guaranteed by ExxonMobil, although such guarantee may be revoked in certain circumstances.

- A. T. (Tim) Cejka, president, ExxonMobil Exploration Company, and vice president, Exxon Mobil Corporation (NYSE:XOM), has elected to retire on Aug. 31, 2010, after more than 34 years of service. It is anticipated that the board of directors of Exxon Mobil Corporation will appoint S. M. (Steve) Greenlee as president of ExxonMobil Exploration Company and elect him a vice president of the corporation effective Sept. 1, 2010. Greenlee is currently president, ExxonMobil Upstream Research Company.

- XTO Energy Inc. (“XTO”), a wholly-owned subsidiary of Exxon Mobil Corporation (“ExxonMobil”) (NYSE: XOM), announced the consideration to be paid in the previously announced cash tender offers (each, an “Offer”) for any and all of its outstanding debt securities in the series specified in the table below (the “Securities”). The Securities are fully and unconditionally guaranteed by ExxonMobil, although such guarantee may be revoked in certain circumstances.

- XTO Energy Inc. (“XTO”), a wholly-owned subsidiary of Exxon Mobil Corporation (“ExxonMobil”) (NYSE: XOM), announced that the previously announced cash tender offers (each, an “Offer”) for any and all of its outstanding debt securities in the series specified expired at 5:00 p.m., New York City time, on July 26, 2010. After the expiration of the Offers, XTO accepted for purchase all of the Securities which were validly tendered and not validly withdrawn prior to the expiration of the relevant Offer, representing a total aggregate principal amount of approximately $2.048 billion.

- The Council of Great City Schools has named four high school graduates as the inaugural winners of the ExxonMobil Bernard Harris Math and Science Scholarships. The awards are given annually to four students, two African American and two Hispanic, residing in the largest urban school districts in America, to encourage their pursuit of technology-related degrees.

- ExxonMobil will release its second quarter 2010 earnings on Thursday, July 29, 2010. A news release will be issued over Business Wire.

- The Pre-GED School and Arlette Hinojosa, a senior at The University of Texas at Dallas, were honored during a dinner marking the conclusion of the ExxonMobil Community Summer Jobs Program in Dallas. Along with the awards for Agency of the Year and Intern of the Year, both winners received a check for $1,000 honoring their accomplishments. The reception concluded the program’s 20th year in Dallas. During that time, ExxonMobil Foundation has contributed more than $3.5 million locally to fund approximately 1,475 internships through the Community Summer Jobs Program.

- The Board of Directors of Exxon Mobil Corporation (NYSE:XOM) declared a cash dividend of 44 cents per share on the Common Stock, payable on September 10, 2010 to shareholders of record of Common Stock at the close of business on August 13, 2010.

- Upstream earnings were $5,336 million, up $1,524 million from the second quarter of 2009. Higher crude oil and natural gas realizations drove the improvement and increased earnings by $1.6 billion. On an oil-equivalent basis, production increased 8% from the second quarter of 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up about 10%.

August

• Upstream news:

• Downstream news:

- Mobil 1, the world’s leading synthetic motor oil brand, is now a featured product at Pep Boys, the nation’s leading automotive aftermarket service provider. As part of a newly announced agreement, Pep Boys service technicians will recommend Mobil 1 as the chain’s preferred synthetic motor oil.

- Camping World, America’s largest retailer of recreational vehicle supplies, accessories, new and used RVs, and related services selected ExxonMobil as its exclusive lubricants supplier.

• Business/Finance news:

- Former astronaut Dr. Bernard A. Harris, Jr. gave Boy Scouts and their scout masters a first-hand experience with the wonders of science, technology, engineering and math at the National Scout Jamboree.

- XTO Energy Inc. (“XTO”), a wholly owned subsidiary of Exxon Mobil Corporation (“ExxonMobil”) (NYSE: XOM), announced that the previously announced cash tender offers (each, a “Change of Control Offer”) for any and all of its outstanding debt securities in the series specified (the “Securities”) expired at 5:00 p.m., New York City time, on August 6, 2010.

- ExxonMobil and its employees donated more than $429,000 to three Alabama universities through the ExxonMobil Foundation’s 2009 Educational Matching Gift Program.

- ExxonMobil Foundation has donated $100,000 to the Red Crescent for flood relief and recovery efforts in Pakistan, where the United Nations reports monsoon flooding has killed up to 1,600 people and left millions homeless.

September

• Upstream news:

- ExxonMobil, on behalf of the Marine Well Containment Company (MWCC), announced an agreement with BP to provide its underwater well containment equipment to MWCC as part of BP's intent to join the new organization. Chevron, ConocoPhillips, ExxonMobil and Shell are establishing the MWCC to provide emergency response services in the U.S. Gulf of Mexico. As part of the agreement, BP equipment will be made available to all oil and gas companies operating in the U.S. Gulf of Mexico. The equipment could be deployed to capture and contain oil from a potential underwater well blowout while the new rapid-response system announced in July is being developed. ExxonMobil is leading the engineering, procurement and construction of the system on behalf of the sponsor companies. Existing BP equipment is being assessed for use in near-term response capability. The sponsor companies' project team will utilize full time BP technical personnel with experience from the Gulf of Mexico response. The equipment will be operated by MWCC. The formation of the company and details about membership will be announced soon.

- Exxon Mobil Corporation (NYSE:XOM) announced the licensing of its award-winning Multi-Zone Stimulation Technology (MZSTSM) well treatment process to Calfrac Well Services Ltd. of Calgary, Alberta, Canada. The MZST process can be used to rapidly and reliably stimulate multiple reservoir zones in a single operation, yielding improved well economics. The MZST process was developed by ExxonMobil Upstream Research Company in Houston, Texas and was recognized with Platts Global Energy Award for Most Innovative Commercial Technology in 2005. The MZST process can be particularly beneficial for fracturing operations in tight gas, shale gas, and coal bed methane wells that target multiple reservoir zones, thick reservoir sections, or long reservoir intervals where multiple stimulation treatments are required. The MZST process will enable Calfrac to optimize its stimulation operations by combining the deployment of perforating and fracturing equipment simultaneously in the wellbore to enable single-trip, multi-zone stimulations. The technology dramatically increases the number of zones that can be fractured per day compared to conventional fracturing and stimulation operations. Calfrac is a leading Calgary-based independent provider of specialty designed fracturing, coiled tubing, cementing and well servicing solutions.

- Exxon Mobil Corporation (NYSE:XOM) announced the startup of production from the Odoptu field at the Sakhalin-1 project offshore northeastern Russia. ExxonMobil subsidiary Exxon Neftegas Limited (ENL) is operator on behalf of the five-company international Sakhalin-1 Consortium. The Odoptu field is expected to add up to 11 million barrels (1.5 million tons) to Sakhalin-1 oil production in 2011. The startup is on schedule and within development cost expectations.

• Downstream news:

- This fall, Exxon and Mobil retailers and Citi are giving cardholders the opportunity to earn a dining certificate that can be used at thousands of restaurants and online merchants. From September 1 through November 30, 2010, ExxonMobil Personal Cardholders who register at dining.exxonmobilcard.com will earn a $50 dining certificate if they purchase 100 gallons of gasoline within 90 days of the date of registration. Offered by Restaurant.com, this certificate can be redeemed online at more than 15,000 restaurants and online merchants nationwide.

- ExxonMobil signed an agreement to continue as the lubricants supplier for the U.S. General Motors’ dealer network for the next five years. In addition, ExxonMobil announced that a number of its key products, including Mobil 1, are now officially dexosTM licensed worldwide.

- ExxonMobil is celebrating its 50-year anniversary as the official lubricant supplier for exhibitors at the International Manufacturing Technology Show in Chicago (September 13-18). This half-century partnership demonstrates ExxonMobil’s longstanding commitment to engineering products that help companies in the machine shop industry optimize equipment performance.

• Business/Finance news:

- Former U.S. Astronaut Bernard Harris gave students and teachers in San Francisco a first-hand experience with the wonders of science, technology, engineering and mathematics when “The Dream Tour, presented by ExxonMobil” made its sixth stop of 2010 on September 3 speaking to 950 Marina Middle School students.

- Exxon Mobil Corporation announced that Rex W. Tillerson, chairman and CEO, has joined the board of Change the Equation, a CEO-led initiative launched by President Barack Obama to cultivate widespread literacy in science, technology, engineering and math. The company also announced it expects to spend more than $120 million on U.S. math and science education through 2012.

- Exxon Mobil Corporation (NYSE:XOM) announced a $1 million commitment at the Clinton Global Initiative (CGI) to invest in the expansion of high impact, sustainable technologies that advance women economically in the developing world. The program is expected to directly benefit more than 13,500 people, with indirect benefits reaching more than 475,000 people in the next two years. The new commitment will help innovators in scaling up technologies that benefit women economically and were identified through ExxonMobil’s partnership with Ashoka’s Changemakers in the Women | Tools | Technology: Building Opportunities & Economic Power Challenge, launched at last year’s CGI. The new financial support from ExxonMobil will help provide consulting support, facilitate the innovators’ connections with other social entrepreneurs, business and technical experts and identify best practices.

October

• Upstream news:

- ExxonMobil, on behalf of the Marine Well Containment Company (MWCC), announced the award of a contract to Technip for front-end engineering and design of underwater well-containment equipment. This equipment, when complete, will be used by the MWCC to provide emergency response services in the U.S. Gulf of Mexico. The scope of the work includes system engineering and design of specific subsea components including the containment assembly, manifold, control umbilicals, accumulator, dispersant injection, risers, and flowlines. ExxonMobil is leading the engineering, procurement and construction of the marine well containment system on behalf of the sponsor companies, which also include Chevron, ConocoPhillips and Shell. A project organization of 100, staffed from the four companies, is working full-time on the design of the new system.

- Exxon Mobil Corporation announced the licensing of its award-winning Multi-Zone Stimulation Technology (MZSTSM) well treatment process to Canyon Technical Services Ltd. of Calgary, Alberta, Canada.

- ExxonMobil announced that it has successfully drilled and tested the PTU-15 and PTU-16 development wells for the Point Thomson project on Alaska’s North Slope, ahead of the year-end 2010 target. Point Thomson is a remote natural gas and condensate field located on Alaska’s North Slope, approximately 60 miles east of Prudhoe Bay. It is estimated to hold about 25 percent of the North Slope’s discovered gas resources. Concurrent with the drilling of these two development wells, activities are also focused on engineering and environmental permitting which are critical for project development. To date about $1.5 billion, including more than $730 million in the last two years, has been invested in Point Thomson. The Point Thomson project includes gas cycling facilities designed to recover hydrocarbon liquids and re-inject natural gas back into the reservoir, making Point Thomson the highest-pressure gas cycling operation in the world.

- Exxon Mobil is the biggest publicly traded company in the world, but its stock price has been lagging over the last year chiefly because a lot of people wonder why it’s making such a big bet on natural gas. Exxon Mobil spent $41 billion a year ago to acquire XTO Energy, doubling its natural gas reserves. And it is building up a massive liquefied natural gas capacity around the globe. Too bad for Exxon Mobil that a gas glut in the United States and elsewhere is causing gas prices to tank, and a boom in shale drilling promises moderate prices for years to come. I caught up with William M. Colton, the company’s vice president for corporate strategic planning, late Friday afternoon and asked him about natural gas. I got an earful of passionate praise for the product that Exxon Mobil has staked so much on. There is no doubt about gas with this executive. “If there is any kind of major trend, we think it’s going to be a shift toward more natural gas,” he said. “Natural gas is available. It’s the most efficient way to generate massive power. It’s affordable. We already have gas infrastructure in place. From a CO2 emissions standpoint, it’s 60 percent cleaner than coal, and it’s all U.S. We have 100 years of supply.” And for the world? “Natural gas will be the fastest growing fuel to supply the world’s growing demands into the future.” Okay, okay, natural gas is great then. But can it ever be profitable? That’s where the discussion gets really interesting. Mr. Colton thinks policymakers are one day going to put a price on carbon dioxide emissions, a debatable point of view, perhaps, now that cap-and-trade legislation looks dead in Congress and some anti-tax Republicans appear poised for victory. “We tend to assume that at some point, various governments are going to adopt some kind of cost of carbon,” Mr. Colton said, adding that carbon emissions policy is “the elephant in the room.”“That’s something we have to consider, and it’s another reason we see gas as growing,” he said. Get this gentleman on the top of natural gas, and there is no end to his enthusiasm.

• Downstream news:

- ExxonMobil Lubricants and Petroleum Specialties, a division of Exxon Mobil Corporation, has been selected as the preferred supplier of oil engine products for Nissan North America. As a result, Nissan and Infiniti dealers in the United States will recommend Mobil-branded engine oil products for all dealer-based vehicle service and have access to ExxonMobil sales and marketing support.

- ExxonMobil announced it has completed commissioning of new units to produce ultra low sulfur diesel at its Baytown, Texas and Baton Rouge, LA refineries. This will enable ExxonMobil to increase the supply of ultra low sulfur diesel by over 3 million gallons a day from the refineries, and allow for reduced emissions from diesel consumption when used in modern engines.

- ExxonMobil Chemical’s affiliate ExxonMobil Yugen Kaisha (EMYK) announced that Japan Butyl Co. Ltd. has completed a major expansion to increase butyl rubber production capacity at its plant in Kawasaki, Japan. The expansion adds 18,000 tons per year of production capacity bringing the plant’s total capacity to 98,000 tons per year. The expansion is part of the company’s commitment to help meet growing demand for butyl rubber and showcases ExxonMobil’s recent advances in process technology. For example, these new proprietary technology advancements allow for the butyl polymerization reaction, which normally occurs at -95°C, to operate at -75°C. This creates significant energy and capital investment savings.

• Business/Finance news:

- Former U.S. Astronaut Bernard Harris gave students and teachers in Cleveland a first-hand experience with the wonders of science, technology, engineering and mathematics when “The Dream Tour, presented by ExxonMobil” made its seventh stop of 2010 on October 1 speaking at Charles A. Mooney School to 900 5th-8th grade students from Benjamin Franklin, Charles A. Mooney, Denison and William Cullen Bryant schools.

- The application deadline for the Mickelson ExxonMobil Teachers Academy is October 31, leaving only a few weeks for elementary school teachers to apply for the all-expenses-paid professional development opportunity. Applications and nominations can be submitted by visiting www.SendMyTeacher.com. Additionally, up to 1,500 qualified applicants not selected for the program will receive a complimentary one-year membership to the National Science Teachers Association (NSTA).

- ExxonMobil signed a multi-year sponsorship agreement with two-time NASCAR Sprint Cup Series Champion Tony Stewart and Stewart-Haas Racing beginning in 2011. The new agreement allows ExxonMobil to build on Mobil 1’s “Official Motor Oil of NASCAR” designation and demonstrate its ongoing commitment to NASCAR.

- This fall, ExxonMobil, in conjunction with the Hispanic Heritage Foundation, is recognizing Hispanic high school students around the country for achievements in engineering and mathematics through the Hispanic Heritage Youth Awards. ExxonMobil has contributed more than $1.7 million to the Hispanic Heritage Foundation in the ten years the company has sponsored the awards.

- Former U.S. Astronaut Bernard Harris gave students and teachers in Baton Rouge a first-hand experience with the wonders of science, technology, engineering and mathematics when “The Dream Tour, presented by ExxonMobil” made its eighth stop of 2010 on October 27 speaking to nearly 2,000 East Baton Rouge Parish, West Baton Rouge Parish, Baker Middle School and Crestworth Learning Academy middle school students at Scotlandville Magnet High School.

- The Board of Directors of Exxon Mobil Corporation (NYSE:XOM) declared a cash dividend of 44 cents per share on the Common Stock, payable on December 10, 2010 to shareholders of record of Common Stock at the close of business on November 12, 2010.

- Upstream earnings were $5,467 million, up $1,455 million from the third quarter of 2009. Higher crude oil and natural gas realizations increased earnings by $1 billion, while higher liquids and gas volumes improved earnings by $270 million. On an oil-equivalent basis, production increased over 20% from the third quarter of 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 20%.

- Generous Houstonians raised more than $200,000 to help improve classroom teaching, school leadership and student achievement in the Houston region’s public schools at the second annual “Power of the Network” dinner, benefiting Houston A+ Challenge, held on October 12 at River Oaks Country Club.

- Exxon Mobil, the world’s largest publicly traded company, reported a larger-than-expected 55 percent rise in its third-quarter profit, helped by higher crude oil prices and increased production of natural gas. Exxon’s performance reflected the strong results of several other large oil companies, although profits still cannot compare with the records set two and three years ago when oil and gas prices were substantially higher than they are today. Royal Dutch Shell, Europe’s largest oil company, reported earlier that its third-quarter profit rose by 7 percent. ConocoPhillips announced that its net income had more than doubled for the quarter. There are signs, however, that oil prices are not going to support higher profits over the next several quarters. The Energy Department released a report Wednesday showing that crude oil inventories rose last week by more than 5 million barrels as a result of weak demand, the largest increase since July. Oil prices have been lodged in a relatively narrow band of $70 to $86 over the last year, and they have been hovering just above $80 over the last month. Most energy experts expect continuing slow economic growth will decrease the likelihood of any oil price increase over the winter months unless there is a geopolitical crisis or a collapse of the dollar that would encourage private investments in commodities. Meanwhile an abundance of natural gas from a wave of drilling in shale fields in recent years has brought the gas price down to below $4 per million British thermal units, a price that makes profitable drilling difficult. Stockpiles of gas are also growing, and weather analysts are expecting a warmer winter than last year, which should produce modest demand. The industry is also facing the slowdown of drilling in the Gulf of Mexico after the BP well blowout in April that killed 11 rig workers and spilled millions of barrels of crude oil into the gulf. Shell reported that it expected to produce 40,000 fewer barrels next year in the gulf, which represents more than 1 percent of its current production, and declines could persist into 2012. But Exxon, based in Irving, Tex., reported a strong quarter with oil and gas output rising by 21 percent, largely as a result of its acquisition of XTO Energy, a major gas producer, and the ramping up of huge liquefied natural gas export projects in Qatar. The company’s third-quarter net profit was $7.35 billion, or $1.44 a share, compared with $4.73 billion, or 98 cents a share, in the period a year earlier. Revenue rose to $95.3 billion, a 15.8 percent rise. Crude oil prices were about 13 percent higher in the quarter than the comparable quarter in 2009, while gas prices were also higher for much of the quarter. Shares of Exxon rose 55 cents, or 0.84 percent, to $66.22. Mr. Rosenthal said the company welcomed the recent government lifting of the gulf drilling moratorium, and was preparing revised permitting applications to drill new wells. “We are always looking for opportunities that are out there,” he said. Royal Dutch Shell benefited from improving conditions in the industry, Peter Voser, the chief executive, said in a statement. Shell was “making good progress against our targets, and there is more to come,” Mr. Voser said. Shares rose 0.5 percent in trading in London. Like its rivals, Shell is reducing costs to try to improve profitability. Shell sold $2 billion of assets this year, including older oil assets in Norway and refining capacity in Germany. The company said it expected to sell another $6 billion of assets by the end of next year, mainly operations in Europe and Africa that were not part of its core business. To increase output, Mr. Voser plans to invest in new projects in Qatar, China and the United States. He said that Shell was “in a delivery window for new growth.” A new oil sands mine in Canada started production in the third quarter, and Shell has decided to invest in deepwater projects in the Gulf of Mexico and Brazil. Net profit rose to $3.46 billion in the third quarter, from $3.25 billion a year earlier. Excluding one-time items and inventory changes, Shell earned $4.9 billion, compared with $2.6 billion in the third quarter of last year. Production in the third quarter rose 5 percent, to 3.058 million barrels of oil equivalent a day, from 2.92 million barrels in the year-earlier period. Sales for liquefied natural gas, or LNG, rose 22 percent, to 4.26 million tons.

November

• Upstream news:

- The independent company Energy XXI has agreed to buy $1 billion in oil and natural gas properties in the Gulf of Mexico from Exxon Mobil. The deal includes nine shallow-water fields on the Gulf of Mexico shelf, located primarily between Energy XXI’s two main drilling operations there. Energy XXI is the operator of 94 percent of the assets being acquired. The purchase would make Energy XXI the third-largest oil producer on the shelf, with interests in seven of the 11 largest oil fields there, the company said. The addition of the Exxon fields would increase the company’s proved plus probable reserves 72 percent, to 158.1 million barrels of oil equivalent, from 92.1 million barrels as of June 20. It would also increase its daily production more than 77 percent from its daily average as of Sept. 30. Exxon Mobil announced in October that it intended to sell a small slice of its oil and natural gas production assets in the Gulf of Mexico, mostly in shallow waters. Energy XXI, for its part, said it expected to realize “meaningful cost savings” from the consolidation of the properties within its core focus area on the Gulf of Mexico shelf. The company, which is based in Bermuda, said it expected the deal to close by Dec. 20.

- The Oil and Natural Gas Corporation, the Indian state-run explorer, is in talks with Exxon Mobil’s Angolan arm to buy its 25 percent stake in an oil field for about $2 billion, The Economic Times reported. O.N.G.C. Videsh, the international arm of the Indian company, plans to bid for the oil field, the newspaper said, citing two people with direct knowledge of the situation. The Economic Times said that Esso Exploration, a unit of Exxon Mobil, owns a quarter of the deepwater block in Angola.

• Downstream news:

- Mobil Delvac Extended Life Coolant/Antifreeze has been selected as the featured coolant for all TravelCenters of America (TA) and Petro truck stops, which together are America’s largest full service truck stop chain. Mobil Delvac Extended Life Coolants, as well as Mobil Delvac heavy duty diesel engine oils, which have been the featured lubricants at Petro since 1999 and TA since 2004, will be sold at all of TA and Petro’s more than 200 locations nationwide.

- ExxonMobil (NYSE:XOM) introduced the "Exxon Mobil Fuel Finder" iPhone® and iPod touch® application, which provides drivers with real-time maps, driving directions and station information for more than 10,000 Exxon and Mobil retail locations across the continental United States.

- Exxon Mobil has agreed to pay $25 million and commit to a more thorough cleanup of its huge oil spills along Newtown Creek and a faster timetable for the process, according to a settlement announced by Attorney General Andrew M. Cuomo. Of the $25 million, $19.5 million will go to projects, like parks, that benefit the environment — the largest single payment for such a purpose in New York State history, state environmental officials said. The agreement settled a suit filed by the state in 2007 over the extent and pace of oil companies’ efforts over more than two decades to clean up spills from refineries and storage tanks at the site, underneath the Greenpoint section of Brooklyn. The amount of oil in the combined spills is estimated at 17 million to 30 million gallons, contaminating about 55 acres of land. The federal government recently named Newtown Creek a Superfund site slated for a comprehensive cleanup of oil that has leached into the water, along with pesticides, PCBs and other pollutants found in both water and sediment. Along with the settlement, environmentalists say, the designation will assure that the contamination will be identified and remediated. Under the terms of the settlement, which was filed in Federal District Court in Brooklyn, Exxon Mobil, which was responsible for most of the continuing cleanup in the area, agreed to expand its efforts to remove not just the oil but also oil-contaminated groundwater and soil, as well as soil vapor. The agreement also sets a timetable for faster cleanup operations, including a plan for identifying the scope of the contamination and quarterly reports on the status and progress of the cleanup effort. The company will also pay more than $5 million in penalties and costs. In a statement, Exxon Mobil officials said they were “pleased” to have reached a resolution to the suit. Exxon Mobil noted that, along with BP and Chevron, two companies that have taken responsibility for part of the cleanup, it has removed over 11 million gallons of spilled oil. But the environmental group Riverkeeper and the residents who had filed separate lawsuits over the cleanup deemed the efforts, which began in earnest in 1990, to be too little and too slow.

• Business/Finance news:

- Innovation and strong partnerships are crucial to meet rising global energy demand at a time when there is growing pressure to lower carbon emissions to combat the risks of climate change, Andy Swiger, senior vice president of Exxon Mobil Corporation (NYSE:XOM), said.

- Africare President Darius Mans announced new investments from ExxonMobil to extend their partnership in its fight against malaria. ExxonMobil, which has long been a supporter of Africare, will fund three key malaria prevention and intervention programs in Africa.

- More than 200 Girl Scouts will become engineers for the day as they construct devices capable of launching a ping-pong ball, build an electrical circuit, create a game using electronics and learn about positive aspects of the engineering profession during the Society of Women Engineers’ (SWE) first “Invent It. Build It.” event on November 6. The event is part of the SWE’s annual conference in Orlando, which takes place November 3-6.

- XTO Energy Inc. (“XTO”), a wholly-owned subsidiary of Exxon Mobil Corporation (“ExxonMobil”) (NYSE: XOM), announced the commencement of cash tender offers (each, an “Offer”) for any and all of its outstanding debt securities in the series specified (the “Securities”) with a total principal amount outstanding of approximately $2,508 million. The Securities are fully and unconditionally guaranteed by ExxonMobil, although such guarantee may be revoked in certain circumstances.

- Exxon Mobil Corporation (NYSE:XOM) will be the platinum sponsor of the 8th annual conference of The Academy of Medicine, Engineering and Science of Texas (TAMEST) January 6-7 in Austin. ExxonMobil’s Chairman and Chief Executive Officer Rex W. Tillerson will deliver a keynote address on oil and gas exploration.

- XTO Energy Inc. (“XTO”), a wholly-owned subsidiary of Exxon Mobil Corporation (“ExxonMobil”) (NYSE: XOM), announced the consideration to be paid in the previously announced cash tender offers (each, an “Offer”) for any and all of its outstanding debt securities in the series specified (the “Securities”). The Securities are fully and unconditionally guaranteed by ExxonMobil, although such guarantee may be revoked in certain circumstances.

- XTO Energy Inc. (“XTO”), a wholly-owned subsidiary of Exxon Mobil Corporation (“ExxonMobil”) (NYSE: XOM), announced that the previously announced cash tender offers (each, an “Offer”) for any and all of its outstanding debt securities in the series specified (the “Securities”) expired at 5:00 p.m., New York City time, on November 17, 2010. After the expiration of the Offers, XTO accepted for purchase all of the Securities which were validly tendered and not validly withdrawn prior to the expiration of the relevant Offer, representing a total aggregate principal amount of approximately $1.244 billion.

- Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil Corporation, and his wife Renda, presented the Children’s Advocacy Center for Denton County (CACDC) with a $50,000 grant to support its work serving Denton County and area residents with counseling for victims of abuse, child abuse prevention programs and interagency collaboration to keep communities safe by holding offenders accountable for their crimes against children. CACDC is the fifth nonprofit organization to receive ExxonMobil’s annual Chairman’s Gift.

December

• Upstream news:

• Downstream news:

- ExxonMobil announced the completion of an expansion to the world’s largest carbon dioxide capture plant. Located near LaBarge, Wyoming, the expanded plant will help reduce greenhouse gas emissions and enhance oil production in the United States. The $86 million expansion includes the installation of compressors to capture 50 percent more carbon dioxide for potential use in enhanced oil recovery and other industrial uses. Enhanced oil recovery involves the injection of carbon dioxide into reservoirs to produce additional oil and gas. The carbon dioxide for this project is captured from the natural gas streams produced from fields in Wyoming. The gas streams contain significant amounts of carbon dioxide and other components that are removed at the LaBarge processing plant. With the expansion, the plant has the capacity to capture approximately 365 million cubic feet per day of carbon dioxide from the gas streams - equivalent to the amount emitted by more than 1.5 million cars. The captured carbon dioxide is sold to companies for enhanced oil recovery, helping to extend the productive lives of mature oil fields and producing more energy supplies for America.

- ExxonMobil congratulated Qatar on becoming the world’s largest producer of liquefied natural gas at a ceremony marking the production capacity milestone of 77 million tones per annum (MTA). The event was celebrated in Ras Laffan Industrial City at a ceremony under the patronage and in the presence of His Highness Sheikh Hamad Bin Khalifa Al Thani, the Emir of the State of Qatar and His Excellency Abdullah Bin Hamad Al Attiyah the Deputy Premier and Minister of Energy and Industry. Also in attendance were Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil Corporation (NYSE:XOM), ministers, senior government officials and delegations from Qatar Petroleum, Qatargas and RasGas.

- ExxonMobil's Educational Alliance Program has awarded $1.8 million in grants this year to 2,400 schools to help enhance math and science education across the United States. This is the 11th consecutive year for the program, which has provided funds to schools in 41 states and the District of Columbia.

• Business/Finance news:

- ExxonMobil’s employees in the Metropolitan D.C. area raised more than $2.8 million for local community and charitable organizations during the 2010 Employees' Favorite Charities Campaign. The amount is another record level for the campaign, eclipsing last year’s record-setting amount of $2.7 million. The campaign has raised nearly $19 million for organizations in the Metropolitan D.C. area since 2002.

- Former U.S. Astronaut Bernard Harris gave students and teachers in Nashville a first-hand experience with the wonders of science, technology, engineering and mathematics when “The Dream Tour, presented by ExxonMobil” made its ninth stop of 2010 on December 1 speaking to 400 students from Bailey and Litton Middle Schools at Stratford High School.

- ExxonMobil Foundation announced a $520,000 grant to the National Action Council for Minority Engineers, Inc. (NACME), a premier non-profit focused on increasing the number of underrepresented students pursuing careers in engineering. Of the total grant, $270,000 is part of an annual grant for organization support and scholarships, and $250,000 will go toward NACME’s Pre-Engineering Program and Academies of Engineering (AOE) strategy.

- XTO Energy Inc. (“XTO”), a wholly-owned subsidiary of Exxon Mobil Corporation (“ExxonMobil”) (NYSE: XOM), announced the commencement of cash tender offers (each, an “Offer”) for any and all of its outstanding debt securities in the series specified (the “Securities”) with a total principal amount outstanding of approximately $3,831 million. The Securities are fully and unconditionally guaranteed by ExxonMobil, although such guarantee may be revoked in certain circumstances.

- Former U.S. Astronaut Bernard Harris gave students and teachers in Philadelphia a first-hand experience with the wonders of science, technology, engineering and mathematics when “The Dream Tour, presented by ExxonMobil” made its final stop of 2010 on December 10 speaking to 600 Wagner Middle School students.

- XTO Energy Inc. (“XTO”), a wholly owned subsidiary of Exxon Mobil Corporation (“ExxonMobil”) (NYSE: XOM), announced the consideration to be paid in the previously announced cash tender offers (each, an “Offer”) for any and all of its outstanding debt securities in the series specified (the “Securities”). The Securities are fully and unconditionally guaranteed by ExxonMobil, although such guarantee may be revoked in certain circumstances.

- XTO Energy Inc. (“XTO”), a wholly owned subsidiary of Exxon Mobil Corporation (“ExxonMobil”) (NYSE: XOM), announced that the previously announced cash tender offers (each, an “Offer”) for any and all of its outstanding debt securities in the series specified (the “Securities”) expired at 5:00 p.m., New York City time, on December 16, 2010. After the expiration of the Offers, XTO accepted for purchase all of the Securities which were validly tendered and not validly withdrawn prior to the expiration of the relevant Offer, representing a total aggregate principal amount of approximately $1.982 billion.