The Chemical Engineer of the Future

in the Oil and Petrochemical Industry

Michael J. Dolan
May 7, 2004

Taking on the world’s toughest energy challenges.™

This presentation includes forward-looking statements. Actual future conditions (including economic conditions, energy demand, and energy supply) could differ
materially due to changes in technology, the development of new supply sources, political events, demographic changes, and other factors discussed herein
(and in Item 1 of ExxonMobil’s latest report on Form 10-K). This material is not to be reproduced without the permission of Exxon Mobil Corporation.
The Outlook for Energy

• Energy is critical to economic growth, especially in developing markets

• Oil and gas will remain the primary sources of energy through 2020

• Energy companies face significant challenges to meet world demand

• Groundbreaking research required to develop

portfolio of energy options
 Energy and GDP Growth Closely Linked

1970-2020
Increasing Energy - BDOE Per 1000 People

1000

N. America
E. Europe
100

W. Europe
Africa/M. East Latin
America
10 Asia Pacific

1
1 10 100
Increasing Income - $K GDP/Capita
 Oil & Gas Remain Primary Energy Sources

Total Energy Other Energy Wind & Solar

MBDOE MBDOE MBDOE
350 60 1.2
Growth Rate Growth Rate
1980-2000, % 2000-2020, %
300 1.7 1.7 50 Wind & Solar
0.9
250
1.1
40

200 Other 1.5 1.0

30 Biomass, 0.6
3.1 MSW Wind 14
150 Coal 1.8
2.4
1.3 20
100 Gas
2.3 0.3
0.4
6.6 Nuclear
10
50
1.0 Oil 1.6
2.6 Hydro 2.0 Solar 10
0 0 0.0
1980 1990 2000 2010 2020 1980 1990 2000 2010 2020 1980 1990 2000 2010 2020
Oil Resource Base Large
$/bbl

New Tech/
New Tech/
Price
Price
Unconventional
Unconventional

Conventional

0 1 2 3 4 5 6

Trillion Barrels

2000 2020
Cumulative Production

• Oil resource base sufficient to economically satisfy global demand growth

The Indispensable Chemical Engineers

• Fuels and petrochemicals will continue to be large employers of ChE’s

• Industries are mature with moderate growth but technical challenges are
important and significant

• Enhanced technology will demand broader skills from entry level ChE’s and
a need for continuous learning throughout career
Manufacturing Plant of Today

• Plants and equipment are more reliable and predictable

– Less trouble shooting and fire fighting

– More planning and optimization

• Computers control all aspects of the manufacturing environment and make

routine or repetitive operating decisions that once required engineering
assistance
– Examples include: online economic optimization, equipment advisories (expert
systems), “Safe Park” shutdowns

• Technicians have been upskilled and perform many of the tasks that
chemical engineers performed twenty years ago
– Improved training and support as well as expert systems and online optimization
Manufacturing Plant of Tomorrow

• Competitor in truly global market

• Ever increasing size, scale, automation will require engineering solutions

in all aspects

– Materials, equipment, catalyst, process control and optimization

• Meeting the world’s needs will require technology to squeeze more from
every barrel

– Cleaner fuels; more functional chemicals

• Control and optimization of physical properties (temperature, pressure,

volume flow) will give way to molecular management
Impact on Chemical Engineers
• Entry level no longer just design and monitoring
– Monitoring, operational advice, optimization largely by technicians

– Engineers will design new tools, engineer new technology and become the
“player/coach” on the operating floor
– More than ever, engineers will bridge the technical and business worlds to optimize
financial performance in real time in a global market

• Chemical Engineers must “up skill” in the traditional core areas

– Traditional basics more critical than ever

– Design, modeling, reaction engineering, advanced control engineering

– Acquire skills traditionally provided in graduate programs

• Must add other skills from non-traditional areas

– Computing, computer control and optimization

– Modeling at the molecular level

– Economics and business

– Leadership
A Word on Globalization
• Chemical Engineers in the future will be part of a global workforce
providing technical support and solutions in real time on a global basis
– Industries and companies that can get this right will be the most successful

– Ideas and technology advances will be deployed globally in near real time

– Geographic mobility is a must

• Engineers will be located in plants and regionally, but will be linked by a

single collaboration and knowledge management network
– Work will be done by virtual teams

– “Customers” for service will be global

• Chemical Engineers with foreign language skills and global experiences via
internships or IQP/MQP will have an advantage in this global environment
Recruiting Model is Changing

• The need to improve efficiency is significantly changing the campus

recruiting model

• A smaller number of target schools that have provided greatest recruiting

success are now visited

• Summer Internships are more and more used to select and identify
undergraduates for employment offers

– Conversion of summer interns to regulars hires is a win-win for all

– Retention and assimilation are much improved

– Sophomores are now targeted for multi-year internships

 The Chemical Engineer of the Future
in the Oil and Petrochemical Industry
Michael J. Dolan
May 7, 2004

Taking on the world’s toughest energy challenges.™

This presentation includes forward-looking statements. Actual future conditions (including economic conditions, energy demand, and energy supply) could differ
materially due to changes in technology, the development of new supply sources, political events, demographic changes, and other factors discussed herein
(and in Item 1 of ExxonMobil’s latest report on Form 10-K). This material is not to be reproduced without the permission of Exxon Mobil Corporation.