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.

Regulatory and litigation risks. Even in countries with well-developed legal
systems where ExxonMobil does business, we remain exposed to changes in law
(including changes that result from international treaties and accords) that
could adversely affect our results, such as:

increases in taxes, duties, or government royalty
rates (including retroactive claims);
────────────────────────────────────────────────────────────────────────────────
price controls;
changes in environmental regulations or other laws
adoption of regulations mandating efficiency
adoption of government payment transparency
government actions to cancel contracts,

Legal remedies available to compensate us for
expropriation or other takings may be inadequate.

We also may be adversely affected by the outcome of
litigation, especially in countries such as the United States in which very
large and unpredictable punitive damage awards may occur, or by government
enforcement proceedings alleging non-compliance with applicable laws or
regulations.

Security concerns. Successful operation of particular facilities or projects may be
disrupted by civil unrest, acts of sabotage or terrorism, cybersecurity
attacks, and other local security concerns. Such concerns may require us to
incur greater costs for security or to shut down operations for a period of
time.

Climate change and greenhouse gas restrictions. Due to concern over the risks of climate change, a
number of countries have adopted, or are considering the adoption of,
regulatory frameworks to reduce greenhouse gas emissions. These include
adoption of cap and trade regimes, carbon taxes, restrictive permitting,
increased efficiency standards, and incentives or mandates for renewable
energy. These requirements could make our products more expensive, lengthen
project implementation times, and reduce demand for hydrocarbons, as well as
shift hydrocarbon demand toward relatively lower-carbon sources such as natural
gas. Current and pending greenhouse gas regulations or policies may also
increase our compliance costs, such as for monitoring or sequestering
emissions.

Government sponsorship of alternative energy. Many governments are providing tax advantages and
other subsidies to support alternative energy sources or are mandating the use
of specific fuels or technologies. Governments and others are also promoting
research into new technologies to reduce the cost and increase the scalability
of alternative energy sources. We are conducting our own research both in-house
and by working with more than 80 leading universities around the world,
including the Massachusetts Institute of Technology, Princeton University, the
University of Texas, and Stanford University. Our research projects focus on
developing algae-based biofuels, carbon capture and storage, breakthrough
energy efficiency processes, advanced energy-saving materials, and other
technologies. For example, ExxonMobil is working with Fuel Cell Energy Inc. to
explore using carbonate fuel cells to economically capture CO 2

Operational and Other Factors

In addition to external economic and political
factors, our future business results also depend on our ability to manage
successfully those factors that are at least in part within our control. The
extent to which we manage these factors will impact our performance relative to
competition. For projects in which we are not the operator, we depend on the
management effectiveness of one or more co-venturers whom we do not control.

Exploration and development program. Our ability to maintain and grow our oil and gas
production depends on the success of our exploration and development efforts.
Among other factors, we must continuously improve our ability to identify the
most promising resource prospects and apply our project management expertise to
bring discovered resources on line as scheduled and within budget.

Project and portfolio management. The long-term success of ExxonMobil's Upstream,
Downstream, and Chemical businesses depends on complex, long‑term,
capital intensive projects. These projects in turn require a high degree of
project management expertise to maximize efficiency. Specific factors that can
affect the performance of major projects include our ability to: negotiate
successfully with joint venturers, partners, governments, suppliers, customers,
or others; model and optimize reservoir performance; develop markets for
project outputs, whether through long-term contracts or the development of
effective spot markets; manage changes in operating conditions and costs,
including costs of third party equipment or services such as drilling rigs and
shipping; prevent, to the extent possible, and respond effectively to
unforeseen technical difficulties that could delay project startup or cause
unscheduled project downtime; and influence the performance of project
operators where ExxonMobil does not perform that role. In addition to the
effective management of individual projects, ExxonMobil's success, including
our ability to mitigate risk and

provide attractive returns
to shareholders, depends on our ability to successfully manage our overall portfolio,
including diversification among types and locations of our projects.

The term "project" as used in this report can refer to
a variety of different activities and does not necessarily have the same
meaning as in any government payment transparency reports.

Operational efficiency. An important component of ExxonMobil's competitive
performance, especially given the commodity‑based nature of many of our
businesses, is our ability to operate efficiently, including our ability to
manage expenses and improve production yields on an ongoing basis. This
requires continuous management focus, including technology improvements, cost
control, productivity enhancements, regular reappraisal of our asset portfolio,
and the recruitment, development, and retention of high caliber employees.

Research and development. To maintain our competitive position, especially in
light of the technological nature of our businesses and the need for continuous
efficiency improvement, ExxonMobil's research and development organizations
must be successful and able to adapt to a changing market and policy
environment, including developing technologies to help reduce greenhouse gas
emissions.

Safety, business controls, and environmental risk
management. Our results depend on
management's ability to minimize the inherent risks of oil, gas, and
petrochemical operations, to control effectively our business activities, and
to minimize the potential for human error. We apply rigorous management systems
and continuous focus to workplace safety and to avoiding spills or other
adverse environmental events. For example, we work to minimize spills through a
combined program of effective operations integrity management, ongoing
upgrades, key equipment replacements, and comprehensive inspection and
surveillance. Similarly, we are implementing cost-effective new technologies
and adopting new operating practices to reduce air emissions, not only in
response to government requirements but also to address community priorities.
We also maintain a disciplined framework of internal controls and apply a
controls management system for monitoring compliance with this framework.
Substantial liabilities and other adverse impacts could result if our
management systems and controls do not function as intended.

Cybersecurity. ExxonMobil is regularly subject to attempted cybersecurity disruptions from a
variety of threat actors. If our systems for protecting against cybersecurity
disruptions prove to be insufficient, ExxonMobil as well as our customers,
employees, or third parties could be adversely affected. Such cybersecurity
disruptions could cause physical harm to people or the environment; damage or
destroy assets; compromise business systems; result in proprietary information
being altered, lost, or stolen; result in employee, customer, or third-party
information being compromised; or otherwise disrupt our business operations. We
could incur significant costs to remedy the effects of such a cybersecurity
disruption as well as in connection with resulting regulatory actions and
litigation.

Preparedness. Our operations may be disrupted by severe weather events, natural disasters,
human error, and similar events. For example, hurricanes may damage our
offshore production facilities or coastal refining and petrochemical plants in
vulnerable areas. Our facilities are designed, constructed, and operated to
withstand a variety of extreme climatic and other conditions, with safety
factors built in to cover a number of engineering uncertainties, including
those associated with wave, wind, and current intensity, marine ice flow
patterns, permafrost stability, storm surge magnitude, temperature extremes,
extreme rain fall events, and earthquakes. Our consideration of changing
weather conditions and inclusion of safety factors in design covers the
engineering uncertainties that climate change and other events may potentially
introduce. Our ability to mitigate the adverse impacts of these events depends
in part upon the effectiveness of our robust facility engineering as well as
our rigorous disaster preparedness and response and business continuity
planning.

Insurance limitations. The ability of the Corporation to insure against many
of the risks it faces as described in this Item 1A is limited by the capacity
of the applicable insurance markets, which may not be sufficient.

Competition. As noted in Item 1 above, the energy and petrochemical industries are highly
competitive. We face competition not only from other private firms, but also
from state-owned companies that are increasingly competing for opportunities
outside of their home countries. In some cases, these state-owned companies may
pursue opportunities in furtherance of strategic objectives of their government
owners, with less focus on financial returns than companies owned by private
shareholders, such as ExxonMobil. Technology and expertise provided by industry
service companies may also enhance the competitiveness of firms that may not
have the internal resources and capabilities of ExxonMobil.

Reputation. Our reputation is an important corporate asset. An operating incident,
significant cybersecurity disruption, or other adverse event such as those
described in this Item 1A may have a negative impact on our reputation, which
in turn could make it more difficult for us to compete successfully for new
opportunities, obtain necessary regulatory approvals, or could reduce consumer
demand for our branded products.

Projections, estimates, and descriptions of
ExxonMobil's plans and objectives included or incorporated in Items 1, 1A, 2, 7
and 7A of this report are forward-looking statements. Actual future results,
including project completion dates, production rates, capital expenditures, costs,
and business plans could differ materially due to, among other things, the
factors discussed above and elsewhere in this report.

ITEM 1B. UNRESOLVED
STAFF COMMENTS

None.

Item 2. Properties

Information with regard to oil and gas
producing activities follows:

1. Disclosure of Reserves

A. Summary of Oil and Gas Reserves at
Year-End 2017

The table below summarizes the oil-equivalent proved
reserves in each geographic area and by product type for consolidated
subsidiaries and equity companies. Gas is converted to an oil-equivalent basis
at six million cubic feet per one thousand barrels. The Corporation has
reported proved reserves on the basis of the average of the
first-day-of-the-month price for each month during the last 12-month period. No
major discovery or other favorable or adverse event has occurred since December
31, 2017, that would cause a significant change in the estimated proved
reserves as of that date.

Crude Natural Gas Synthetic Natural Oil-Equivalent
Oil Liquids Bitumen Oil Gas Basis
(million bbls) (million bbls) (million bbls) (million bbls) (billion cubic ft) (million bbls)
────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
United States 1,137 352 - - 12,649 3,597
Canada/Other 85 7 657 473 512 1,307
Europe 93 26 - - 1,231 325
Africa 593 83 - - 584 773
Asia 2,070 112 - - 4,030 2,854
Australia/Oceania 85 46 - - 4,420 868
Total 4,063 626 657 473 23,426 9,724
United States 201 7 - - 154 234
Europe 14 - - - 4,899 830
Africa - - - - - -
Asia 715 304 - - 12,898 3,168
Total Equity 930 311 - - 17,951 4,232
Total Developed 4,993 937 657 473 41,377 13,956
United States 1,558 609 - - 6,384 3,231
Canada/Other 325 12 355 - 860 835
Europe 26 4 - - 137 53
Africa 136 1 - - 11 139
Asia 1,426 - - - 310 1,478
Australia/Oceania 25 6 - - 2,474 443
Total 3,496 632 355 - 10,176 6,179
United States 44 4 - - 69 60
Europe 1 - - - 1,265 212
Africa 6 - - - 914 158
Asia 382 49 - - 1,350 656
Total Equity 433 53 - - 3,598 1,086
Total Undeveloped 3,929 685 355 - 13,774 7,265
8,922 1,622 1,012 473 55,151 21,221

(1) Other Americas includes proved
developed reserves of 2 million barrels of crude oil and 42 billion cubic feet
of natural gas, as well as proved undeveloped reserves of 150 million barrels
of crude oil and 175 billion cubic feet of natural gas.