Global Energy Management System VOLUNTARY ACTIONS BY THE OIL AND GAS INDUSTRY TO ADDRESS CLIMATE...
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Global Energy Management System VOLUNTARY ACTIONS BY THE OIL AND GAS INDUSTRY TO ADDRESS CLIMATE CHANGE Brian D. Eidt Global Energy Management ExxonMobil Refining & Supply Company June 26, 2003 The Business Roundtable Corporate Energy Management
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Transcript of Global Energy Management System VOLUNTARY ACTIONS BY THE OIL AND GAS INDUSTRY TO ADDRESS CLIMATE...
Global Energy Management SystemGlobal Energy Management System
VOLUNTARY ACTIONS BY THE OIL AND GAS INDUSTRY
TO ADDRESS CLIMATE CHANGE
VOLUNTARY ACTIONS BY THE OIL AND GAS INDUSTRY
TO ADDRESS CLIMATE CHANGE
Brian D. EidtGlobal Energy ManagementExxonMobil Refining & Supply Company
June 26, 2003The Business Roundtable
Corporate Energy Management
2
Global Energy Management System
WORLD ENERGY OUTLOOK
• Oil and natural gas supply 60% of world energy demand
• About 50% of 2010 supply will come from new production
• Balanced approach required to meet the supply challenge
0
50
100
150
200
1980 1990 2000 2010
OIL & GAS SUPPLY
MO
EB
/D
Existing
New
Actual0
50
100
150
200
250
300
1980 1990 2000 2010
ENERGY DEMAND
MO
EB
/D Coal
Other
Gas
Oil
3
Global Energy Management System
MEETING THE CHALLENGE
• ExxonMobil engaged on a number of fronts to meet tomorrow’s energy needs ...
– New exploration and production
– New technologies and improved products
– Energy conservationand efficiency
4
Global Energy Management System
A CORPORATE FOCUS
• Refining and Chemicals account for over 75% of energy consumption and 60% of greenhouse gas emissions
• Initial efforts aimed at improving Downstream energy efficiency
• Initiatives also underway in Upstream and Lubes Manufacturing
0%
25%
50%
75%
100%
EnergyConsumption
Greenhouse GasEmissions
Other Operations
Exploration & Production
Refining & Chemicals
5
Global Energy Management System
IMPROVING ENERGY EFFICIENCY
• Plant energy efficiency has improved over 35% since 1973– Saved cumulative equivalent of 1.8 billion barrels of crude oil– Translates to over 200 million tonne decrease in GHG emissions
• Ongoing initiatives expected to provide additional improvement– Additional investment in highly efficient cogeneration facilities– Implementation of Global Energy Management System (G-EMS)
+0%
+10%
+20%
+30%
+40%
+50%
1974 1979 1984 1989 1994 1999
PLANT ENERGY EFFICIENCY
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Global Energy Management System
COGENERATION
• Cogeneration 30-35% more efficient than conventional technology
• Facilities at 32 locations produce 2700 megawatts of electricity– Efficiency gain sufficient to service nearly 1 million U.S. residential households– GHG emissions reduced nearly 7 million tonnes per year versus alternatives
• Additional 970 megawatts planned at 5 sites in U.S. and Canada– Potential to further reduce GHG emissions more than 2 million tonnes per year
when new capacity fully on line
0%
25%
50%
75%
100%Waste Heat
SimpleCycle
CombinedCycle
Cogen
Steam
Electricity
COGEN EFFICIENCY
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1970 1980 1990 2000
XOM COGEN CAPACITY
MW
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Global Energy Management System
PLANT ENERGY EFFICIENCY
• Industry trend groups improving 1% per year on average
• Top performers appear to have lined-out ... for now
• Data highlights potential opportunity for many plants
50 70 90 110 130 150
AP
WE
US
EII% QUARTILES
1Q 2Q 3Q 4Q
Energy Intensity Index - %
Solomon Associates, Inc.60
70
80
90
100
1996 1998 2000
AVG
1Q
EII% TRENDS
US
APWE
En
erg
y In
ten
sity
In
dex
- %
Solomon Associates, Inc.
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Global Energy Management System
A GLOBAL APPROACH
OBJECTIVES
• Establish a single, comprehensive global energy management system (G-EMS)
• Utilize a common methodology to identify performance gaps, implement closure plans, sustain progress, and continuously improve results
BUSINESS MODEL
• Operate existing facilities optimally and efficiently through application of best practices
• Identify economic investment opportunities above an optimized base for step-change improvement
• Implement strong management systems to sustain progress and drive continuous improvement
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Global Energy Management System
G-EMS DESIGN
Management Leadership
EquipmentClasses
ProjectDesign
ProcessUnits
UtilitySystems
Organizational Commitment to Best Practices
SystemPerformance
OperatingResults
AnalysisPlanning
Personal Accountability
Continuous Improvement
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Global Energy Management System
G-EMS DEVELOPMENT
• Best practices documented in 12 volume set of manuals
• Contain 1200 pages and identify over 200 key energy variables
• Cover key process, equipment, and utility operations
• Also address energy efficiency in project design
Energy Management System
ProcessUnits
Management Leadership
EquipmentClasses
CapitalProjects
ProcessUnits
UtilitySystems
Organizational Commitment
SystemPerformance
OperatingResults
StewardshipPlanning
Personal Accountability
Continuous Improvement
Energy Management System
EquipmentClasses
Management Leadership
EquipmentClasses
CapitalProjects
ProcessUnits
UtilitySystems
Organizational Commitment
SystemPerformance
OperatingResults
StewardshipPlanning
Personal Accountability
Continuous Improvement
Energy Management System
UtilitySystems
Management Leadership
EquipmentClasses
CapitalProjects
ProcessUnits
UtilitySystems
Organizational Commitment
SystemPerformance
OperatingResults
StewardshipPlanning
Personal Accountability
Continuous Improvement
Energy Management System
ProjectDesign
Management Leadership
EquipmentClasses
CapitalProjects
ProcessUnits
UtilitySystems
Organizational Commitment
SystemPerformance
OperatingResults
StewardshipPlanning
Personal Accountability
Continuous Improvement
11
Global Energy Management System
G-EMS MEASUREMENT
Headquarters &Plant Management
Business TeamsProcess EngineersEquipment Specialists
Shift SupervisionConsole OperatorsField Operators
Plant / SiteEnergy Index
Energy ExpenseProfitability
Unit / EquipmentTargets & HandlesDirectly Actionable
Area / ComplexImplementation
Lost Opportunity
Key Energy Variables
DiagnosticIndicators
GlobalMeasures
12
Global Energy Management System
G-EMS DEPLOYMENT PLAN
• Rollouts at 15-20 sites address 80% of economic opportunity
• Balance of opportunity addressed via rigorous Self-Assessments
• 13 Rollouts executed through 2002 ... 5 Rollouts planned in 2003
0
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60
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Pla
nt
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po
rtu
nit
y -
M$
/Ye
ar l
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80
100
Cu
mu
lati
ve
Op
po
rtu
nit
y -
% l
BENCHMARKING HIGHLIGHTS OPPORTUNITY
Self-AssessmentsExternal Assessments
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Global Energy Management System
G-EMS ROLLOUT RESULTS
• Rollouts and Self-Assessments address 80% of total opportunity– Process Units total nearly 50% -- mainly investment related– Utility Systems account for over 30% -- mix of no/low and investment items– Equipment Classes total 20% -- many no/low investment options
• Potential savings equal to 15-20% of plant energy bill on average– About half of the benefits identified require little or no investment to capture– Potential to further reduce GHG emissions nearly 9 million tonnes per year
at full implementation
0%
20%
40%
60%
80%
100%
UtilitySystems
EquipmentClasses
ProcessUnits
No/LowInvestment
RequiresInvestment
Uneconomic
Self-Assessments
G-EMSRollouts
Dis
trib
uti
on
of
Ben
efit
s
14
Global Energy Management System
PATH FORWARD
• Potential for climate change poses a legitimate long-term risk
• Path forward must be marked by rational scientific, economic, and technical analysis
• Maintain focus on increasing supplies, developing next generation products and technology, energy conservation and efficiency
• Continue support for scientific and economic research and participate in cooperative programs with industry and government
• Conservation and efficiency -- the first path
– Develop 970 MW of additional cogeneration capacity– Improve refinery/chemical plant efficiency an additional 15-20%– Reduce GHG emissions about 11 million tonnes per year
• Benefits consumers, companies, and the environment alike now and well into the future
