Hurricane Katrina Operational Update
Assistance Line for Displaced Employees
ExxonMobil Commits $2 Million
August 31, 2005
ExxonMobil Refineries
ExxonMobil's refining and chemical operations in Baton Rouge continue to run at reduced rates until normal feedstock supply and product movement is restored.
Operations at Chalmette Refining LLC, a joint venture between ExxonMobil and PDVSA, remains shut down. (Chalmette Refining went through a systematic shutdown process on Sunday, August 28, 2005). Our employees are under mandatory evacuation orders. Their safety and the safety or our contractors is of the utmost importance to us and our thoughts are with them as they go through this difficult experience.
Our emergency response teams will continue to work with local, state and federal authorities to respond to the challenges ahead of all of us.
ExxonMobil refineries at Beaumont and Baytown currently are operating normally.
ExxonMobil Retail Sites
Some service stations in the Baton Rouge area, where there is power, are operating. Stations in the New Orleans area are closed and we are attempting to assess damage to those sites. We are evaluating other sites and assessing damage. Along with our distributors, we will work to re-open additional sites as power is restored, product deliveries are possible and it is safe to open.
Gasoline Prices
Energy markets, including the commodity gasoline market, are global, openly traded and transparent. The storm has generated a fundamental and significant impact to supplies in the U.S. As a result of these supply and demand impacts, spot commodity gasoline prices in commercial markets have increased.
We recognize this can create an extremely difficult situation for our customers in view of heightened price volatility and uncertain supply. To address this situation, our primary focus is on restoring our supply infrastructure to the marketplace. Increased supplies are the key.
Over the past two days, our U.S. branded wholesale and retail prices have increased far less than the NYMEX or spot market gasoline price increases. However, the market remains fluid, with significant fundamental challenges related to Hurricane Katrina.
We will continue to follow the market dynamics, focus on restoring supply stability, and encourage our independent dealers and distributors to act as responsible neighbors in their communities.
Release of Strategic Petroleum Reserve
Under certain emergency circumstances like Hurricane Katrina, the release of SPR oil can be beneficial to offset the loss of, or access to other Production. The current issue and focus for ExxonMobil is re-establishing the pipeline and marine transportation links to our Baton Rouge Refinery.
Supply Issues
Our focus is in restoring pipeline operations to our Baton Rouge Refinery and to reopen the Mississippi River in a safe and reliable manner.
Upstream
As conditions permit, ExxonMobil is conducting its post-storm assessment to determine the integrity of our facilities. Where it is safe to do so, crews are beginning to return to work to perform more detailed assessments. Assessments of our offshore structures in the Gulf of Mexico continue. Early indications from aerial observation are that damages to the majority of our offshore structures have been limited (i.e. external grating, stairways).
As previously reported, our Western Gulf of Mexico facilities are operating as normal.
Our Inland Louisiana natural gas facilities are back on line.
Approximately 45 kbd liquids (gross) and 760 mcfd gas (gross) remain shut in offshore Gulf of Mexico and at Mobile Bay.
As we complete damage assessments and can ensure safe operations, we will begin start-up activities.
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