From Q4 2008 ExxonMobil Quarterly news magazine.



Harnessing science and human brain power, ExxonMobil takes the search for new energy supplies to the farthest reaches of the globe.

Exploration President Tim Cejka tells how it’s done.

How do you identify new exploration opportunities?

It starts with understanding the geology – the “rocks” that hold hydrocarbons. We’re continuously evaluating the geology of basins around the world to determine where the best areas are so we can be ready when host governments make them available for lease. We manage new opportunities with our prospect inventory. Imagine this as a funnel into which we pour all of our new ideas and concepts, perhaps hundreds in any given year. These are then sorted and prioritized, and we pursue and capture the best.

How do you prioritize those opportunities?

We ask ourselves three questions. First, is it a quality opportunity? Advanced technology and smart people help us determine whether an area or prospect has potential. Next, is it a good fit with our goals, resources and investment philosophy? And finally, is there a commercial deal to be struck? We don’t want to rule out a prospect too early by saying it has limited economic potential. We’d rather see if it passes the first two tests, and then look for a creative way to structure a commercial arrangement.


How does this process work when you don’t have much data?

If we don’t know much about a particular basin, we look at basins similar to it – analogues – in other parts of the world. These analogues help us determine whether the basin we’re interested in may have the potential for a robust hydrocarbon system. It’s a matter of understanding the risk and lowering the uncertainty by acquiring the best information and by conducting the most thorough analysis. It’s important to understand the difference between risk and uncertainty. With risk, you’ve identified a prospect and understand the potential variables well enough to make a business decision. With uncertainty, you just don’t have the information to determine whether it’s risky or not. Therefore, a phased approach to collecting key data is very important.

Theres more .... (Page 6)

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