NOV View Ahead. DAVID REID Chief Marketing Officer. ExxonMobil 2040 Outlook Simplified: Demand MORE PEOPLE MORE MONEY MORE ENERGY.

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1 DAVID REID Chief Marketing Officer Started in 1992 with Varco in the top drive repair shop in Montrose, Scotland. Spanning from service to product management and strategic growth in the rig arena and beyond. He has influenced change in the industry to rebuild better technology and business models. NOV View Ahead NOV Analyst Day David Reid Chief Marketing Officer NOVEMBER 18, 2014 Statements made in the course of this presentation that state the Company s or management s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the Company s actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements, including risk factors, is contained from time-to-time in the Company s filings with the U.S. Securities and Exchange Commission. Any decision regarding the Company or its securities should be made upon careful consideration of not only the information here presented, but also other available information, including the information filed by the Company with the SEC. Copies of these filings may be obtained by contacting the Company or the SEC or through the Company s website NOV NOV View Ahead 1 NOV View Ahead ExxonMobil Outlook Simplified: Demand Internal analysis of EXXONMOBIL production Translated demand for PRODUCTS and SERVICES Developed strategies to consider a LONG-TERM VIEW MORE PEOPLE with MORE MONEY demand MORE ENERGY to grow and thrive +2B global population increase¹ +130% larger global economy² +35% global energy demand³ 1 Based on current global population of 7B 2 Globally GDP per capita +80% from 2010 to. Assumes 2% annual growth for OECD countries and 4.4% for non-oecd. 3 From 2010 to but could have more than doubled without assumed efficiency gains Source: ExxonMobil The Outlook for Energy: A View to 2014 NOV NOV View Ahead NOV NOV View Ahead 4

2 ExxonMobil Outlook Simplified: Supply The great energy challenge of the future, which will test all sources, is meeting the demand growth of a growing world. -Daniel Yergin Vice Chairman, IHS MAJORITY of the demand will be met by oil and natural gas Natural gas SURPASSES coal as second-largest fuel source ENABLING TECHNOLOGIES open up new sources of oil and gas GREATER capital and service intensity for challenging reservoirs Source: ExxonMobil The Outlook for Energy: A View to Source: ExxonMobil The Outlook for Energy: A View to 2014 NOV NOV View of the World NOV NOV View of the World 6 ExxonMobil Outlook: Liquids Supply Global Liquids Supply by Type ExxonMobil Outlook: Natural Gas Supply Global Natural Gas Production by Type OIL PRODUCTION GROWS BY 25% 2010 TO NATURAL GAS PRODUCTION GROWS BY 65% 2010 TO DEEPWATER PRODUCTION GROWS BY 150% 2010 TO UNCONVENTIONALS REPRESENT 65% OF GROWTH 2010 TO Source: ExxonMobil The Outlook for Energy: A View to 2014 NOV NOV View Ahead 7 Source: ExxonMobil The Outlook for Energy: A View to 2014 NOV NOV View Ahead 8

3 Four Trends Drive Growth DRILLING OUTLOOK Short-term and Long-term PROGRESSION OF UNCONVENTIONAL TECHNOLOGIES REPLACEMENT OF AGING RIG FLEET BUILDOUT OF DEEPWATER RIG FLEET DEVELOPMENT OF FLOATING PRODUCTION SYSTEMS 2014 NOV Proprietary and confidential. NOV View Ahead NOV NOV View Ahead 10 Projecting Deepwater Rig Count An example ExxonMobil Production Understanding Rig Life Extending Life Through Upgrade or Less-Intensive Operations 10 Year Strategic Plan WW Deepwater Production Prime Drilling Years Long-Term Demand Total Deepwater Wells Total Deepwater Rigs KEY ASSUMPTIONS DW Decline Rate 15%/Yr 3 DW Wells/Rig Per Yr 2014 NOV NOV View Ahead NOV NOV View Ahead 12

4 Projecting Unconventional Liquids Rig Count An example Global Rig Activity 10 Year Strategic Plan ExxonMobil Production WW Unconventional Liquid Production Active Rig Count: Land and Offshore 7,200 4, % CAGR 6, % CAGR 3,995 Long-Term Demand Total Unconventional Liquids Rigs Total Unconventional Liquids Wells KEY ASSUMPTIONS UL Type Curve Decline 50% Yr1 24 Wells/Rig/Yr NAM Land 2,311 2, N. American Oil N. American Natural Gas International Oil International Natural Gas Global Deepwater Global Shelf Total Excludes Russia and China 2014 NOV NOV View Ahead NOV NOV View Ahead 14 Comparisons with Industry Forecasts An Example North America Rig Count Projections 2,450 RIG FLEET ADDITIONS THROUGH 2,300 2,150 LAND RIGS JACKUP 6, FLOATERS 470 2, NOV Sell-Side Sell-Side includes projections from BofA, Cowen, Credit Suisse, Morgan Stanley, TPH, and Wells Fargo and also includes Spears Land rig additions include Russia & China 2014 NOV NOV View Ahead NOV NOV View Ahead 16

5 Annual Well Count Annual Land Well Count Global Well Count Projections per Year ,203 Global Land Well Count Projections per Year ,725 Well Count (Thousands) Land Well Count (Thousands) Global Land Global Offshore Total Wells Required Source: Baker Hughes, Spears & Associates, NOV Excludes Russia & China 2014 NOV NOV View Ahead 17 Unconventional Conventional Total Wells Required Source: Baker Hughes, Spears & Associates, NOV MR&A Excludes Russia & China 2014 NOV NOV View Ahead 18 Annual Footage Drilled Wells Drilled Over Next 25 Years Cumulative Footage Drilled Globally per Year 1, Footage Drilled B 109K OFFSHORE 504K CONVENTIONAL 1.9M UNCONVENTIONAL 25B TOTAL FEET DRILLED Total Footage Drilled Total Footage Drilled Source: Baker Hughes, Spears & Associates, NOV Excludes Russia & China Excludes Russia & China 2014 NOV NOV View Ahead NOV NOV View Ahead 20

6 FPSO Fleet FLOATING PRODUCTION FPSO Fleet Projections FPSO Fleet (Units) FPSO FPSO 2014 NOV NOV View Ahead NOV NOV View Ahead 22 FPSO Addition Comparison FPSO Fleet FPSO Five-Year Addition Projections FPSO Fleet Projections by Market FPSO Fleet (Units) NOV Douglas Westwood International Maritime Associates Deepwater Shelf Total Fleet 2014 NOV NOV View Ahead NOV NOV View Ahead 24

7 FPSO ADDITIONS THROUGH INTERVENTION & COMPLETION FPSO NOV NOV View Ahead NOV NOV View Ahead 26 Frac Stages Number of Frac Stages (Thousands) Frac Stage Projections for U.S. Land Market Q1 11Q3 12Q1 12Q3 13Q1 13Q3 14Q1 14Q3 15Q1 15Q3 16Q1 16Q3 17Q1 17Q3 PREPARING FOR THE LAND 6,650 ADDITIONS THROUGH JACKUPS 589 WELLS DRILLED 121,203 ACTIVITY IN FLOATERS 470 FOOTAGE DRILLED 1.2B FPSOs 303 Source: PacWest Consulting 2014 NOV NOV View Ahead 27 Land rig additions includes Russia and China 2014 NOV The Value of Leadership 28

8 Growing demand will TEST ALL SOURCES AGING of conventional reservoir base Development of more CHALLENGING reservoirs Deepwater and unconventionals become the NEW NORMAL Capitally intensive process requires NEW EFFICIENCIES 2014 NOV NOV View Ahead NOV NOV View Ahead 30