Global Energy Management System

Exxon Mobil Corporation has undertaken voluntary actions to continuously improve energy efficiency in our operations for many years. From 1973 to 1999, we improved the energy efficiency of our refineries and chemical plants by over 35 percent – saving the cumulative equivalent of 1.8 billion barrels of oil and reducing carbon dioxide emissions by over 200 million tonnes. In 2000, we redoubled our efforts with deployment of our Global Energy Management System (GEMS), which utilizes international best practices and benchmarking to identify energy efficiencies at each of our refineries and chemical plants. Thus far, we have identified opportunities to improve the energy efficiency of these facilities by an additional 15 to 20 percent. At full implementation, savings are expected to total $500 million to $1 billion per year, with an associated reduction in carbon dioxide emissions of about 10 million tonnes per year – roughly equivalent to removing 1.5 million cars from the world’s roads. A CORPORATE FOCUS Finding, producing, refining, and transporting oil, gas, and petroleum products comprise a chain of energy-intensive operations. In fact, up to 15 to 20 percent of the energy in a barrel of oil is consumed in operations before ever reaching the consumer. At ExxonMobil, refineries and chemical plants account for nearly 80 percent of corporate energy usage and over 50 percent of corporate greenhouse gas emissions. And energy is by far the largest operating expense at these facilities – accounting for about one-half of total cash operating costs. But improving energy efficiency is more than just good business. It is a triple-winner that benefits companies, consumers, and the environment alike. More efficient operations extend the supply and affordability of conventional energy resources, while reducing operating costs and greenhouse gas emissions. Unlike other options, which may require billions – if not trillions – of dollars and many years to develop, there is much we are doing to improve energy efficiency to make a difference right now. A GLOBAL APPROACH GEMS was developed to drive energy efficiency at ExxonMobil refineries and chemical plants toward leading-edge performance. To achieve this objective, management and technical experts from across our global organization collaborated to develop a single, comprehensive energy management system, which could be applied at ExxonMobil refineries and chemical plants worldwide. The system utilizes a common methodology to identify performance gaps, implement closure plans, sustain progress, and continuously improve results. The GEMS business model is based on a three-step approach to performance improvement: • First – improve base performance by operating existing facilities optimally and efficiently through application of best practices. • Second – identify economic investment opportunities above an optimized base for step-change improvement. • Third – establish strong management systems to provide rigor and discipline necessary to sustain progress and drive continuous improvement. GEMS DESIGN Management leadership, organizational commitment, and personal accountability work together to drive continuous improvement at all levels throughout the organization (Figure 1). Management is uniquely positioned to make energy performance an organizational priority. Clear objectives and strong leadership are necessary to get the ball rolling. But real, sustainable, continuous improvement requires firm commitment throughout the organization, where many opportunities exist to improve energy efficiency in process units, major equipment, utilities systems, and project design. Everyone has a role to play – from plant managers, to process engineers and equipment specialists, to console operators. Detailed plans, layered stewardship, and structured communications emphasize personal accountability for operating results and system performance. ESL-IE-05-05-46 Proceedings of the Twenty-Seventh Industrial Energy Technology Conference, New Orleans, LA, May 10-13, 2005 Figure 1. GEMS Design GEMS DEVELOPMENT Early in the development phase, experts from across our global organization evaluated energy usage and management practices across a range of operations and equipment to develop best practices and performance measures for key elements of our refining and chemicals operations. Global Energy Management System