ITEM 1. BUSINESS

Exxon Mobil Corporation was incorporated in the State of
New Jersey in 1882. Divisions and affiliated companies of ExxonMobil operate or
market products in the United States and most other countries of the world.
Their principal business is energy, involving exploration for, and production
of, crude oil and natural gas, manufacture of petroleum products and
transportation and sale of crude oil, natural gas and petroleum products.
ExxonMobil is a major manufacturer and marketer of commodity petrochemicals,
including olefins, aromatics, polyethylene and polypropylene plastics and a
wide variety of specialty products. Affiliates of ExxonMobil conduct extensive
research programs in support of these businesses.

Exxon Mobil Corporation has several divisions and hundreds
of affiliates, many with names that include ExxonMobil, Exxon, Esso,
Mobil or XTO. For convenience and simplicity, in this report the
terms ExxonMobil, Exxon, Esso, Mobil and XTO, as well as terms
like Corporation, Company, our, we and its,
are sometimes used as abbreviated references to specific affiliates or groups
of affiliates. The precise meaning depends on the context in question.

The energy and petrochemical industries are highly
competitive. There is competition within the industries and also with other
industries in supplying the energy, fuel and chemical needs of both industrial
and individual consumers. The Corporation competes with other firms in the sale
or purchase of needed goods and services in many national and international
markets and employs all methods of competition which are lawful and appropriate
for such purposes.

Operating data and industry segment information for the
Corporation are contained in the Financial Section of this report under the
following: "Quarterly Information", "Note 18: Disclosures about Segments
and Related Information" and "Operating Information". Information on oil and
gas reserves is contained in the "Oil and Gas Reserves" part of the "Supplemental
Information on Oil and Gas Exploration and Production Activities" portion of
the Financial Section of this report.

ExxonMobil has a long‑standing commitment to the
development of proprietary technology. We have a wide array of research
programs designed to meet the needs identified in each of our business segments.
Information on Company‑sponsored research and development spending is
contained in "Note 3: Miscellaneous Financial Information" of the
Financial Section of this report. ExxonMobil held over 12 thousand active
patents worldwide at the end of 2017. For technology licensed to third parties,
revenues totaled approximately $89 million in 2017. Although technology is
an important contributor to the overall operations and results of our Company,
the profitability of each business segment is not dependent on any individual
patent, trade secret, trademark, license, franchise or concession.

The number of regular employees was 69.6 thousand,
71.1 thousand, and 73.5 thousand at years ended 2017, 2016 and 2015,
respectively. Regular employees are defined as active executive, management,
professional, technical and wage employees who work full time or part time for
the Corporation and are covered by the Corporation's benefit plans and
programs. Regular employees do not include employees of the company‑operated
retail sites (CORS). The number of CORS employees was 1.6 thousand,
1.6 thousand, and 2.1 thousand at years ended 2017, 2016 and 2015,
respectively.

Throughout ExxonMobil's businesses, new and ongoing
measures are taken to prevent and minimize the impact of our operations on
air, water and ground. These include a significant investment in refining
infrastructure and technology to manufacture clean fuels, as well
as projects to monitor and reduce nitrogen oxide, sulfur oxide and
greenhouse gas emissions, and expenditures for asset retirement obligations.
Using definitions and guidelines established by the American Petroleum
Institute, ExxonMobil's 2017 worldwide environmental expenditures for all such
preventative and remediation steps, including ExxonMobil's share of equity
company expenditures, were $4.7 billion, of which $3.3 billion were
included in expenses with the remainder in capital expenditures. The total cost
for such activities is expected to increase to approximately $5 billion in
2018 and 2019. Capital expenditures are expected to account for approximately
30 percent of the total.

Information concerning the source and availability of raw
materials used in the Corporation's business, the extent of seasonality in the
business, the possibility of renegotiation of profits or termination of
contracts at the election of governments and risks attendant to foreign operations
may be found in "Item 1A. Risk Factors" and "Item 2. Properties" in this
report.

ExxonMobil maintains a website at exxonmobil.com. Our
annual report on Form 10-K, quarterly reports on Form 10-Q, current
reports on Form 8-K and any amendments to those reports filed or furnished
pursuant to Section 13(a) of the Securities Exchange Act of 1934 are made
available through our website as soon as reasonably practical after we
electronically file or furnish the reports to the Securities and Exchange
Commission (SEC). Also available on the Corporation's website are the Company's
Corporate Governance Guidelines and Code of Ethics and Business Conduct, as
well as the charters of the audit, compensation and nominating committees of
the Board of Directors. Information on our website is not incorporated into
this report.

ITEM 1A. RISK FACTORS

ExxonMobil's financial and operating
results are subject to a variety of risks inherent in the global oil, gas, and
petrochemical businesses. Many of these risk factors are not within the
Company's control and could adversely affect our business, our financial and
operating results, or our financial condition. These risk factors include:

Supply and Demand

The oil, gas, and petrochemical businesses are
fundamentally commodity businesses. This means ExxonMobil's operations and
earnings may be significantly affected by changes in oil, gas, and
petrochemical prices and by changes in margins on refined products. Oil, gas,
petrochemical, and product prices and margins in turn depend on local, regional,
and global events or conditions that affect supply and demand for the relevant
commodity. Any material decline in oil or natural gas prices could have a
material adverse effect on certain of the Company's operations, especially in
the Upstream segment, financial condition, and proved reserves. On the other
hand, a material increase in oil or natural gas prices could have a material
adverse effect on certain of the Company's operations, especially in the
Downstream and Chemical segments.

Economic conditions. The demand for energy and petrochemicals is generally linked closely
with broad-based economic activities and levels of prosperity. The occurrence
of recessions or other periods of low or negative economic growth will
typically have a direct adverse impact on our results. Other factors that
affect general economic conditions in the world or in a major region, such as
changes in population growth rates, periods of civil unrest, government
austerity programs, or currency exchange rate fluctuations, can also impact the
demand for energy and petrochemicals. Sovereign debt downgrades, defaults,
inability to access debt markets due to credit or legal constraints, liquidity
crises, the breakup or restructuring of fiscal, monetary, or political systems
such as the European Union, and other events or conditions that impair the
functioning of financial markets and institutions also pose risks to
ExxonMobil, including risks to the safety of our financial assets and to the
ability of our partners and customers to fulfill their commitments to
ExxonMobil.

Other demand-related factors. Other factors that may affect the demand for oil, gas,
and petrochemicals, and therefore impact our results, include technological
improvements in energy efficiency; seasonal weather patterns, which affect the
demand for energy associated with heating and cooling; increased
competitiveness of alternative energy sources that have so far generally not
been competitive with oil and gas without the benefit of government subsidies
or mandates; changes in technology or consumer preferences that alter fuel
choices, such as technological advances in energy storage that make wind and
solar more competitive for power generation or increased consumer demand for alternative
fueled or electric vehicles; and broad-based changes in personal income levels.

Other supply-related factors. Commodity prices and margins also vary depending on a
number of factors affecting supply. For example, increased supply from the
development of new oil and gas supply sources and technologies to enhance
recovery from existing sources tend to reduce commodity prices to the extent
such supply increases are not offset by commensurate growth in demand.
Similarly, increases in industry refining or petrochemical manufacturing
capacity relative to demand tend to reduce margins on the affected products.
World oil, gas, and petrochemical supply levels can also be affected by factors
that reduce available supplies, such as adherence by member countries to OPEC
production quotas and the occurrence of wars, hostile actions, natural
disasters, disruptions in competitors' operations, or unexpected unavailability
of distribution channels that may disrupt supplies. Technological change can
also alter the relative costs for competitors to find, produce, and refine oil
and gas and to manufacture petrochemicals.

Other market factors. ExxonMobil's business results are also exposed to
potential negative impacts due to changes in interest rates, inflation,
currency exchange rates, and other local or regional market conditions.

Government and Political Factors

ExxonMobil's results can be adversely affected by
political or regulatory developments affecting our operations.

Access limitations. A number of countries limit access to their oil and gas resources, or
may place resources off-limits from development altogether. Restrictions on
foreign investment in the oil and gas sector tend to increase in times of high
commodity prices, when national governments may have less need of outside
sources of private capital. Many countries also restrict the import or export
of certain products based on point of origin.

Restrictions on doing business. ExxonMobil is subject to laws and sanctions imposed
by the United States or by other jurisdictions where we do business that may
prohibit ExxonMobil or certain of its affiliates from doing business in certain
countries, or restricting the kind of business that may be conducted. Such
restrictions may provide a competitive advantage to competitors who may not be
subject to comparable restrictions.

Lack of legal certainty. Some countries in which we do business lack
well-developed legal systems, or have not yet adopted, or may be unable to
maintain, clear regulatory frameworks for oil and gas development. Lack of
legal certainty exposes our operations to increased risk of adverse or
unpredictable actions by government officials, and also makes it more difficult
for us to enforce our contracts. In some cases these risks can be partially
offset by agreements to arbitrate disputes in an international forum, but the
adequacy of this remedy may still depend on the local legal system to enforce
an award.