INDUSTRY PERSPECTIVE: MARINE ENVIRONMENTAL CHALLENGES

1. INDUSTRY PERSPECTIVE:MARINE ENVIRONMENTAL CHALLENGES Good Afternoon. It�s a pleasure to be here today to participate in this forum and share my company�s views, as a ship owner, operator and charterer, on how we manage our business with respect to environmental considerations. To help set the stage, I would like to begin with a brief overview of the size and scope of our marine activity and the principles which guide our operations as they relate to environmental performance. -- NEXT SLIDE --Good Afternoon. It�s a pleasure to be here today to participate in this forum and share my company�s views, as a ship owner, operator and charterer, on how we manage our business with respect to environmental considerations. To help set the stage, I would like to begin with a brief overview of the size and scope of our marine activity and the principles which guide our operations as they relate to environmental performance. -- NEXT SLIDE --

2. ExxonMobil Marine Overview As illustrated in the upper left-hand corner of this slide, ExxonMobil�s worldwide marine activities are managed primarily by three separate organizations. They are SeaRiver Maritime, Inc. which is headquartered in Houston, Texas, International Marine Transportation Limited, in Leatherhead, and the Global Marine Optimization group based in Fairfax, Virginia. These organizations work in cooperative fashion through a centralized forum � the Global Marine Center. GMTO provides international commercial and chartering expertise, while SeaRiver and IMT provide operating and technical expertise to meet ExxonMobil�s marine transportation and project support needs around the world � and we strive to achieve all of our important objectives in a manner that is consistently flawless, efficient, competitive and customer-focused. Overall, on an annual basis, these marine functions manage the safe delivery of approximately 2.4 billion barrels of crude oil and petroleum products with some 650 vessels in service on any given day. To put this in perspective, this equates to the safe completion of a load or discharge of hydrocarbons every 3 minutes. The graph in the lower left shows recent volumes transported by region. As you can see, roughly 40% of the volumes transported went to destinations in Asia, and 30% of the volumes were delivered to both the Americas and to Europe. Now let�s briefly look at our environmental performance. -- NEXT SLIDE -- As illustrated in the upper left-hand corner of this slide, ExxonMobil�s worldwide marine activities are managed primarily by three separate organizations. They are SeaRiver Maritime, Inc. which is headquartered in Houston, Texas, International Marine Transportation Limited, in Leatherhead, and the Global Marine Optimization group based in Fairfax, Virginia. These organizations work in cooperative fashion through a centralized forum � the Global Marine Center. GMTO provides international commercial and chartering expertise, while SeaRiver and IMT provide operating and technical expertise to meet ExxonMobil�s marine transportation and project support needs around the world � and we strive to achieve all of our important objectives in a manner that is consistently flawless, efficient, competitive and customer-focused. Overall, on an annual basis, these marine functions manage the safe delivery of approximately 2.4 billion barrels of crude oil and petroleum products with some 650 vessels in service on any given day. To put this in perspective, this equates to the safe completion of a load or discharge of hydrocarbons every 3 minutes. The graph in the lower left shows recent volumes transported by region. As you can see, roughly 40% of the volumes transported went to destinations in Asia, and 30% of the volumes were delivered to both the Americas and to Europe. Now let�s briefly look at our environmental performance. -- NEXT SLIDE --

3. Marine Environmental Performance ExxonMobil marine affiliates share a commitment to operating in an environmentally responsible manner everywhere we do business. To illustrate this commitment, the chart at the top left, shows our spill performance since 2000 (for vessels owned or under long term lease [>3 yrs]). Each bar represents the total number of TEASPOONS that were inadvertently release for every MILLION GALLONS that were safely transported in that year. In 2003, we achieved a rate of less than 1 TEASPOON per MILLION GALLONS transported. In more recent years, we have achieved further improvement to this rate. Industry benchmarking confirms that our (SHE) performance remains at the forefront of industry. Our safety and environmental performance continues to receive recognition from regulators and organizations around the world whose opinions and integrity are widely respected. But we will not be satisfied until we have achieved our target of zero incidents. We attribute our progress to the strong capabilities of our people and remain ever-vigilant and committed to our pursuit of flawless operations in some of the most challenging environments that nature has to offer. Our comprehensive, disciplined management systems help us maintain strong focus on prevention. In addition, we maintain a highly-skilled emergency response capability, should the need arise. -- NEXT SLIDE -- ExxonMobil marine affiliates share a commitment to operating in an environmentally responsible manner everywhere we do business. To illustrate this commitment, the chart at the top left, shows our spill performance since 2000 (for vessels owned or under long term lease [>3 yrs]). Each bar represents the total number of TEASPOONS that were inadvertently release for every MILLION GALLONS that were safely transported in that year. In 2003, we achieved a rate of less than 1 TEASPOON per MILLION GALLONS transported. In more recent years, we have achieved further improvement to this rate. Industry benchmarking confirms that our (SHE) performance remains at the forefront of industry. Our safety and environmental performance continues to receive recognition from regulators and organizations around the world whose opinions and integrity are widely respected. But we will not be satisfied until we have achieved our target of zero incidents. We attribute our progress to the strong capabilities of our people and remain ever-vigilant and committed to our pursuit of flawless operations in some of the most challenging environments that nature has to offer. Our comprehensive, disciplined management systems help us maintain strong focus on prevention. In addition, we maintain a highly-skilled emergency response capability, should the need arise. -- NEXT SLIDE --

4. Regulatory Regimes and Industry Standards In recent years, the maritime industry has seen a significant and growing body of regulations from a wide variety of regimes. I will begin with the International Maritime Organization, which is appropriate considering that today is the IMO�s World Maritime Day Observance. The IMO is a specialized agency of the United Nations with 167 Member States. It�s main purpose is to develop and maintain a comprehensive regulatory framework for shipping. The conventions are aimed at the prevention of accidents and establish standards for vessel design, construction, equipment, operation and manning. Many of the regimes including SOLAS, MARPOL and STCW are noted on this slide. (CLICK MOUSE to activate slide animation) Following the IMO, Port States, regional and local governments exercise their right to introduce additional requirements that may or may not complement the existing requirements. And while the IMO is governs shipping from a global perspective, regional and local entities have separate jurisdiction. Over the past decade, the maritime industry has seen an ever-increasing use of the judicial system to help sort through jurisdictional issues associated with competing and / or conflicting regulatory regimes. Additionally, for more than a decade, we�ve seen a growing number of initiatives by government entities, trade groups and companies that have introduced a variety of voluntary standards, guidelines and best practices � all with the objective of improving performance. Several are noted on this slide. Collectively, these rules, regulations and standards provide a foundation for what is expected. But how does one best manage the important task of staying ahead of the curve? How does a company maintain optimal awareness and compliance? And, is mere compliance sufficient? Let�s take a look�. -- NEXT SLIDE -- In recent years, the maritime industry has seen a significant and growing body of regulations from a wide variety of regimes. I will begin with the International Maritime Organization, which is appropriate considering that today is the IMO�s World Maritime Day Observance. The IMO is a specialized agency of the United Nations with 167 Member States. It�s main purpose is to develop and maintain a comprehensive regulatory framework for shipping. The conventions are aimed at the prevention of accidents and establish standards for vessel design, construction, equipment, operation and manning. Many of the regimes including SOLAS, MARPOL and STCW are noted on this slide. (CLICK MOUSE to activate slide animation) Following the IMO, Port States, regional and local governments exercise their right to introduce additional requirements that may or may not complement the existing requirements. And while the IMO is governs shipping from a global perspective, regional and local entities have separate jurisdiction. Over the past decade, the maritime industry has seen an ever-increasing use of the judicial system to help sort through jurisdictional issues associated with competing and / or conflicting regulatory regimes. Additionally, for more than a decade, we�ve seen a growing number of initiatives by government entities, trade groups and companies that have introduced a variety of voluntary standards, guidelines and best practices � all with the objective of improving performance. Several are noted on this slide. Collectively, these rules, regulations and standards provide a foundation for what is expected. But how does one best manage the important task of staying ahead of the curve? How does a company maintain optimal awareness and compliance? And, is mere compliance sufficient? Let�s take a look�. -- NEXT SLIDE --

5. Driving Performance� To address these questions, I would like to draw your attention to this chart. Listed at the top from left to right are many of the major elements covered by regulatory conventions, rules and regulations. These address the broad categories of safety of people, safety of property and the protection of the environment, along with effective management, documentation, procedures, tracking and testing, and quality assurance. The far right column identifies additional areas of interest. As you move down the chart vertically, you will see several standards, codes and programs, each depicted by a different colored bar. The width of the bar illustrates their scope. For example, by design, the voluntary ISO 9001 standard (shown in yellow), focuses primarily on management, quality issues and customer satisfaction. In contrast, the mandatory ISM code, shown in light green, primarily emphasizes safety, environmental protection and management. If we had the time, and if you had the patience, we could plot each of the regulatory regimes and standards that appeared on the previous slide on to this chart. The point is that each of these regimes has a specific focus and purpose. None of them cover all of the aspects associated with best meeting both current and emerging challenges. A comprehensive, structured and disciplined management system provides order and clarity in DRIVING an organization�s performance consistent with effective compliance AND strong business results. Leading companies understand this and design their management framework and systems to �Do what�s right and do it the right way�. A strong commitment to always look for a better way, based on sound science and proven methodologies, provides a foundation for their success. -- NEXT SLIDE -- To address these questions, I would like to draw your attention to this chart. Listed at the top from left to right are many of the major elements covered by regulatory conventions, rules and regulations. These address the broad categories of safety of people, safety of property and the protection of the environment, along with effective management, documentation, procedures, tracking and testing, and quality assurance. The far right column identifies additional areas of interest. As you move down the chart vertically, you will see several standards, codes and programs, each depicted by a different colored bar. The width of the bar illustrates their scope. For example, by design, the voluntary ISO 9001 standard (shown in yellow), focuses primarily on management, quality issues and customer satisfaction. In contrast, the mandatory ISM code, shown in light green, primarily emphasizes safety, environmental protection and management. If we had the time, and if you had the patience, we could plot each of the regulatory regimes and standards that appeared on the previous slide on to this chart. The point is that each of these regimes has a specific focus and purpose. None of them cover all of the aspects associated with best meeting both current and emerging challenges. A comprehensive, structured and disciplined management system provides order and clarity in DRIVING an organization�s performance consistent with effective compliance AND strong business results. Leading companies understand this and design their management framework and systems to �Do what�s right and do it the right way�. A strong commitment to always look for a better way, based on sound science and proven methodologies, provides a foundation for their success. -- NEXT SLIDE --

6. Responsibility and Commitment Simply put, in considering our significant role with respect to the transportation of hydrocarbons around the world, we, along with other progressive companies: (CLICK MOUSE � slide animation) Understand our responsibilities and take them very seriously. (CLICK MOUSE � slide animation) We know what is at stake - each and every day and (CLICK MOUSE � slide animation) We are committed � (CLICK MOUSE � slide animation) to �Protect Tomorrow, Today.� Thank you. -- NEXT SLIDE is COVER SLIDE � Simply put, in considering our significant role with respect to the transportation of hydrocarbons around the world, we, along with other progressive companies: (CLICK MOUSE � slide animation) Understand our responsibilities and take them very seriously. (CLICK MOUSE � slide animation) We know what is at stake - each and every day and (CLICK MOUSE � slide animation) We are committed � (CLICK MOUSE � slide animation) to �Protect Tomorrow, Today.� Thank you. -- NEXT SLIDE is COVER SLIDE �

7. INDUSTRY PERSPECTIVE:MARINE ENVIRONMENTAL CHALLENGES