McGill, who in 2004 was named senior vice president of the Corporation, cited ExxonMobil's financial strength, largest resource base among international companies, and technological expertise as characteristics that will enable the Company to continue to outpace the competition.
"Plenty of oil and gas remains around the world, but it will take the best technology and the most capable and efficient organizations to produce it with strong returns for their shareholders," said McGill. "ExxonMobil has these characteristics. We have a proven record, the organizational capabilities, and the resource prospects to continue leading performance."
McGill noted that world demand for oil and gas is expected to increase by 1.7 percent per year, while the world's oil and gas fields on average are declining in production at a rate of 4 to 6 percent per year. This base decline, coupled with the growing demand for oil and gas, means that the amount of new daily production needed in 2020 is nearly equivalent to replacing all of today's daily production.
"This is both an enormous challenge for the energy industry and an opportunity for those companies with the right capabilities," McGill said.
Citing return on capital employed as a clear measure of company performance, McGill noted that ExxonMobil's results lead the industry.
"The reasons for this are clear," said McGill. "We have a unique and experienced upstream organization that is designed for obtaining superior results. We have the technology and the commitment to extend current knowledge as well as to pursue technological breakthroughs. We pursue opportunities with integrity and with rigorous investment discipline, and our financial capabilities are unmatched.
"These are strengths that were not created overnight," McGill added. "They have been developed and nurtured over a long period of time, and reflect a constancy of purpose that is grounded in having a long-term view of our business."
McGill made his remarks at the Goldman Sachs Energy Conference held at their offices in New York City.
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