ExxonMobil Streamlines Structure to Improve Efficiency, Increase Value and Reduce Costs
IRVING, Texas–(BUSINESS WIRE)–ExxonMobil said today it is further streamlining its business structure by combining chemical and downstream businesses and centralizing technology and engineering and other support services to better assist customers, improve performance and increase value.
“Our transformed corporate structure enables us to fully leverage the company’s scale, integration, technology advantages, and the skills and capabilities of our talented workforce, to better serve our customers,” said Darren Woods, President and CEO.
“Aligning our businesses with market-driven value chains and centralizing service delivery provides the flexibility to ensure our most skilled resources are applied to the highest business priorities and position us to deliver better returns to shareholders.”
Effective April 1, the company will be organized into three business segments: ExxonMobil Upstream Company, ExxonMobil Product Solutions and ExxonMobil Low Carbon Solutions. They will be supported by a single technology organization, ExxonMobil Technology and Engineering, and other centralized service delivery groups providing similar capabilities, building on the successful consolidation of major projects across the company in 2019.
The move constitutes a further evolution of the company’s business model and is part of its strategy to build globally competitive businesses that lead the industry in earnings and cash flow growth, operating performance and energy transition.
ExxonMobil is on track to exceed $6 billion in structural cost savings by 2023, compared to 2019, thanks to savings from the new business structure and measures such as centralized purchasing, digital process transformation and right-sizing programs that were announced in 2020.
The new ExxonMobil Product Solutions Company will design, manufacture and supply the products needed by modern society at cutting-edge scale, serving multiple segments, products and markets. It will play a key role in reducing greenhouse gas emissions and plastic waste by developing more sustainable products such as:
Low-emission fuels to help decarbonize commercial transportation, including aviation and marine.
Performance chemicals that enable customers to reduce emissions in agriculture, healthcare and renewable energy applications.
Next-generation lubricants and plastics that improve the efficiency of traditional and electric vehicles.
Certified circular polymers that give new life to plastic waste through advanced recycling.
ExxonMobil Product Solutions will be the market leader in sales of polyethylene and other high-value chemicals and hold the No. 2 market position in aromatics, lubricants and fuel additives.
Karen McKee, formerly president of ExxonMobil Chemical Company, has been appointed to lead ExxonMobil Product Solutions.
ExxonMobil’s technology and engineering will integrate technology businesses, enhancing value creation through centralized management of technical capabilities closely tied to business priorities.
Priorities include the development of new technologies to significantly reduce the cost of Scope 1, 2 and 3 emission reductions; reduce greenhouse gas emissions at the asset level; increase production yields and incomes; develop differentiated products with high added value for customers; and improve advanced plastic waste recycling.
Linda DuCharme, formerly president of ExxonMobil Upstream Integrated Solutions and ExxonMobil Upstream Business Development, has been named head of ExxonMobil Technology and Engineering Company.
This change will also consolidate Upstream into a single organization, ExxonMobil Upstream Company, which will be led by Liam Mallon, former chairman of ExxonMobil Upstream Oil and Gas Company.
To strengthen collaboration and integration, the company announced that it will move its headquarters from Irving, Texas to its campus north of Houston. The move, which will be completed by mid-2023, will enable closer teamwork to accelerate and increase value creation through enterprise-wide approaches.
“We greatly value our long history at Irving and value the strong bonds we have developed in the North Texas community,” Woods said. “Closer collaboration and the new, streamlined business model will enable the company to increase shareholder value and position ExxonMobil for success in the energy transition.”
ExxonMobil, one of the world’s largest publicly traded energy companies, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading resource inventory, is one of the largest refiners and marketers of petroleum products, and its chemical company is one of the largest in the world. For more information, visit exxonmobil.com, the Energy Factor and Carbon capture and storage site | ExxonMobil.
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The outlook, projections, estimates, goals, targets, descriptions of business plans and objectives, market expectations and other statements of future events or conditions contained in this release are forward-looking statements. . actual future results, including future earnings and cash flows; cost savings; business performance; market positioning; and shareholder returns could differ materially due to a number of factors. These include changes in oil or gas demand, supply, prices or other market conditions affecting the oil, gas, petroleum and petrochemical industries; the ability to execute business objectives and realize the benefits of organizational change in a timely and successful manner; timely completion and start-up of new projects; results of research efforts and future technological developments; changes in laws or regulations, including treaties and laws relating to the environment; the development of government policies and markets, particularly with regard to low-emission products; actions of competitors; war and other political or security disturbances; the outcome of trade negotiations; the pace of recovery from the COVID-19 pandemic and responsive measures taken by governments and consumers; general economic conditions, including the occurrence and duration of economic downturns; and other factors discussed in 1A. Risk Factors in our most recent Form 10-K and under the heading “Factors Affecting Future Results” available on the Investors page of our website at www.exxonmobil.com. For more information on cash operating costs, see the “Frequently Used Terms” section also available on our website.