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 involves exploration for, and production of, crude oil
and natural gas and manufacture, trade, transport and sale of crude oil,
natural gas, petroleum products, petrochemicals 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.
ExxonMobil held nearly 13 thousand active patents worldwide at the end of
2018. For technology licensed to third parties, revenues totaled approximately $119 million
in 2018. 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 71.0 thousand,
69.6 thousand, and 71.1 thousand at years ended 2018, 2017 and 2016,
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.

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 2018 worldwide environmental expenditures for all such
preventative and remediation steps, including ExxonMobil's share of equity
company expenditures, were $4.9 billion, of which $3.6 billion were
included in expenses with the remainder in capital expenditures. The total cost
for such activities is expected to increase to approximately $5.7 billion
in 2019 and 2020. 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.

The SEC maintains an internet site (http://www.sec.gov)
that contains reports, proxy and information statements, and other information
regarding issuers that file electronically with the SEC.

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;
increased competitiveness of alternative energy sources; 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 countries
to OPEC production quotas and other agreements among sovereigns, and the occurrence
of wars, hostile actions, natural disasters, disruptions in competitors'
operations, logistics constraints 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 or interpretation of settled 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);
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price controls;
changes in environmental regulations or other laws that
adoption of regulations mandating efficiency standards,
adoption of government payment transparency regulations
government actions to cancel contracts, re-denominate the

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,
minimum renewable usage requirements, restrictive permitting, increased
efficiency standards, and incentives or mandates for renewable energy. Such
policies could make our products more expensive, less competitive, 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 CO2emissions from gas-fired power plants. Our
future results may depend in part on the success of our research efforts and on
our ability to adapt and apply the strengths of our current business model to
providing the energy products of the future in a cost-competitive manner. See
"Operational and Other Factors" below.

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 and technological
change. 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. To remain competitive we must also
continuously adapt and capture the benefits of new and emerging technologies.

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 on workplace
safety and 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 including
state-sponsored actors. ExxonMobil's defensive preparedness includes
multi-layered technological capabilities for prevention and detection of
cybersecurity disruptions; non-technological measures such as threat
information sharing with governmental and industry groups; internal training
and awareness campaigns including routine testing of employee awareness and an
emphasis on resiliency including business response and recovery. If the
measures we are taking to protect against cybersecurity disruptions prove to be
insufficient, ExxonMobil as well as our customers, employees, or third parties
could be adversely affected. 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 a major cybersecurity disruption in addition to costs in connection
with resulting regulatory actions, litigation or reputational harm.

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 rainfall 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 or reduce the need for resource-owning
countries to partner with private-sector oil and gas companies in order to
monetize national resources.

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. ExxonMobil's
reputation may also be harmed by events which negatively affect the image of
our industry as a whole.

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 2018

The table below summarizes the oil-equivalent proved
reserves in each geographic area and by product type for consolidated
subsidiaries and equity companies. Natural gas is converted to an
oil-equivalent basis at six billion cubic feet per one million 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, 2018, that would cause a significant change in the estimated proved
reserves as of that date.

Oil-Equivalent
Crude Natural Gas Synthetic Natural Total
Oil Liquids Bitumen Oil Gas All Products
(million bbls) (million bbls) (million bbls) (million bbls) (billion cubic ft) (million bbls)
United States 1,257 439 - - 12,538 3,786
Canada/Other 144 9 3,880 466 605 4,599
Europe 101 22 - - 1,116 309
Africa 496 82 - - 581 675
Asia 2,184 101 - - 3,618 2,888
Australia/Oceania 75 43 - - 4,336 841
Total 4,257 696 3,880 466 22,794 13,098
United States 202 6 - - 152 233
Europe 15 - - - 988 180
Africa - - - - - -
Asia 637 282 - - 11,951 2,911
Total Equity 854 288 - - 13,091 3,324
Total Developed 5,111 984 3,880 466 35,885 16,422
United States 1,947 669 - - 8,865 4,093
Canada/Other 385 18 305 - 1,139 898
Europe 65 13 - - 196 111
Africa 108 3 - - 7 112
Asia 1,173 - - - 223 1,210
Australia/Oceania 30 5 - - 3,126 556
Total 3,708 708 305 - 13,556 6,980
United States 52 4 - - 73 68
Europe - - - - 69 12
Africa 6 - - - 863 150
Asia 383 50 - - 1,370 661
Total Equity 441 54 - - 2,375 891
Total Undeveloped 4,149 762 305 - 15,931 7,871
9,260 1,746 4,185 466 51,816 24,293

(1) Other Americas includes proved
developed reserves of 1 million barrels of crude oil and 99 billion cubic feet
of natural gas, as well as proved undeveloped reserves of 226 million barrels
of crude oil and 423 billion cubic feet of natural gas.