(2006)
AITCM is a performance or technical demonstration of the construction and deconstruction of the mythology and symbology of environmental toxification, structured in five chapters following the five phases of organic mutagenesis. Presented by the Center of Decorporative Research, the performance lasted forty-five minutes and was performed on April 24th, 2006 at the School of the Art Institute of Chicago. The performance begins in a large, bunker like room with floor to ceiling windows along one wall looking out onto an ecnlosed courtyard. There are speakers that play the pre-recorded statements and music, as well as the live sound from the wireless microphones inside of the Technicians' respirators and the microphone in the courtyard into which the Victim speaks. The Technicans were Tif Bullard, Renée Reynolds, and Darcy French-Myerson, and the Victim was Nicholas Monsour.
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CONDITIONS (1 minute) Technicians kneel in their designated position upon the Distribution Mat and wait for the trainees to arrive. Technicians are wearing their respirators without cartridges. Their breathing is amplified through the stereo system.
DISTRIBUTION (1 minute 30 seconds) A VOICE COUNTS DOWN FROM TEN. OPENING REMARKS: WHEN THE WELCOMING REMARKS BEGIN, TECHNICIAN 1 removes her rose from her packet and gives it to TECHNICIAN 2, who is seated to her right. TECHNICIAN 2 slides the rose into her suit, and then removes her rose from her packet and gives it to TECHNICIAN 3. TECHNICIAN 3 slides the rose into her suit, and then removes her rose and gives it to TECHNICIAN 1. TECHNICIAN 1 slides the rose into her suit, and then waits.
THE FIRST PHASE: EXPOSURE WHEN A VOICE SAYS “THE FIRST PHASE: EXPOSURE” and the Chinese song begins, technicians unwrap their packages. TECHNICIAN 1 puts one cartridge on TECHNICIAN 2, and one on TECHNICIAN 3. TECHNICIAN 2 puts one cartridge on TECHNICIAN 1, and one TECHNICIAN 3. TECHNICIAN 3 puts one cartridge on TECHNICIAN 2, and one on TECHNICIAN 1. WHEN THE MUSIC ENDS, TECHNICIAN 2 and TECHNICIAN 3 get up and open the curtains. VICTIM is lying in a puddle of blood just outside the window, with a microphone pointed at his face. TECHNICIANS leave. TECHNICIANS enter the courtyard. TECHNICIANS walk around, inspecting debris and collecting samples. Slowly, TECHNICIANS start talking and interacting normally, as themselves. WHEN THE PIANO MUSIC BEGINS, EVERYBODY stops talking.
THE SECOND PHASE: TOXICOKINESIS A VOICE SAYS “THE SECOND PHASE: TOXICOKINESIS” and TECHNICIANS return to official business. Each TECHNICIAN retrieves one Reflective Marker, and goes about placing it in a triangle over the next ten minutes. This is a time to really investigate the space and be in the character of a technician. Any interaction is functional— about investigating the space. VICTIM: WHEN THE DRONE MUSIC STARTS, TECHNICIANS become more frantic. TECHNICIANS talks more, or breathe more loudly. WHEN THE MUSIC SWELLS AND THEN SUDDENLY ENDS, EVERYBODY stops.
THE THIRD PHASE: TOXICODYNAMISM A VOICE SAYS “THE THIRD PHASE: TOXICODYNAMISM” and TECHNICIANS grab kites and fly them. TECHNICIANS pay no attention to VICTIM who is flopping around in fake blood and possibly weeping. WHEN THE MUSIC FADES OUT, TECHNICIANS put their kites away. VICTIM, who is now standing, walks to the center of the triangle and begins digging with his hands.
THE FOURTH PHASE: TOXICODYNAMISM A VOICE SAYS “THE FOURTH PHASE: TOXICOGENESIS” and TECHNICIANS come and stand in front of the window. TECHNICIAN 1 (stepping forward): Good day, ladies and gentlemen, and welcome to ExxonMobil's 2005 Chemical Webcast and Conference Call. My name is Ann Marie, and I'll be your coordinator for today. I would now like to turn the presentation over to your host for today's call, Mr. Henry Hubble, Vice President, Investor Relations, and Secretary, Exxon Mobil Corporation. Please proceed, sir. TECHNICIAN 1 steps back TECHNICIAN 2: (TECHNICIAN 1 produces a dry-erase marker, steps forward, and starts drawing/writing on the window) We will begin with Mike's remarks and then take your questions either via telephone or through the Internet. Before I turn it over to Mike, I draw your attention to the cautionary statement that you now will find on the screen and at the front of the presentation material. This statement contains important information regarding today's presentation and discussion. And I ask that you read it now. I would also refer you to our website at www.exxonmobil.com for additional information on factors affecting future results as well as supplemental information defining key terms that will be used today. It is now my pleasure to introduce Mike Dolan. (TECHNICIAN 2 stands and waits) TECHNICIAN 2: SKIP TO 4.5! TECHNICIAN 3: Thank you, Henry, for that introduction. I'm very pleased to have this opportunity to discuss our chemical business with you. I hope to provide you with some insights on our industry, our performance and plans for the future. I'll start with a little background on industry structure and then describe the types of products we make and how they fit in the overall value chain. And I'll contrast this with competition. Then we'll move into a discussion of our core strategy elements where I'll provide some additional insights on key programs and initiatives. We hope you come away with a better understanding of our continued earnings power and ability to provide industry-leading returns. Let's start with a quick introduction. Next slide, please. (TECHNICIAN 1 erases window and starts drawing/writing again) ExxonMobil has had a growing, profitable chemical business for a long time. Consistent deployment of our key strategies has resulted in performance better than other major oil companies and our "chemical only" competitors. This leadership is reflected in our industry-leading return on capital employed of 14% across the most recent commodity chemical cycle. We exceed the top "chemical only" competitor by over 2% and oil competitors byover 7%. In fact, many oil competitors are divesting large portions of their chemical portfolio after years of being in an acquire and build mode. Our approach has been very different. We have demonstrated constancy of purpose and commitment in the chemical area, which has proven to be a favorable differentiating factor. Most recently, our 2004 performance was exceptionally strong with record volumes of 27.8 million tons and record earnings of $3.4 billion, representing a 30% improvement over our last earnings peak in 1995. Return on capital employed reached 23%, also our best since 1995. And you've seen our first quarter earnings of $1.4 billion, which included $150 million from the sale of Sinopec's shares. My focus today will not be on the chemical markets in general, but rather on the attributes of our chemical business that differentiate us. One of our key strengths is our ability to draw on synergies available to us as part of Exxon Mobil Corporation. Through this relationship, we have access to advantaged feedstocks in prime locations and synergies across operational units in our plants as well as access to corporate technology development. One last differentiating factor is the global scope and scale of our operations. Nothing could be more important as we prepare for the future. By 2015, we expect Asia to contribute 45% of global demand for key commodity products. And China alone will represent 25%. To be the best, you must be truly global in how you develop and execute your business strategies. Most of our key competitors are regional players. A few are semi-global at best. By contrast, our business is globally structured, which drives better decisions and stronger results. You'll hear evidence of our global strength across many of the areas we'll discuss today. Next slide, please. (TECHNICIAN 1 erases, starts again) Let me use this slide to provide perspective on our business within the chemical industry. Starting with the left side of the chart, the industry processes a variety of raw materials, principally oil and gas, to generate its products. About 10% of today's global oil production finds its way into chemicals. You may be most familiar with the products depicted in yellow. We all buy pharmaceuticals and are familiar with the major companies active in this area. Agricultural chemicals include a variety of herbicides and pesticides. Fine chemicals include products used as food and plastic additives, water treatment chemicals and electronic chemicals. ExxonMobil's focus, on the other hand, is Basic Chemicals and Polymers. These are generally large-volume, hydrocarbon-based products that are sold to agricultural, mining or other industrial users shown here in dark green. In these value chains, there are often several parties involved between the industrial producers and end consumers. For example, converters may form the initial product into a specific part, brand owners may assemble the part into a larger product and finally, retailers market the product to the public. Our focus in the Basic Chemicals and Polymers area is not by accident, but by design. We have shaped our portfolio over time to capitalize on our strengths. Our raw material integration is key, which is why we've shaded in blue both raw materials and Basic Chemicals and Polymers. We'll discuss this in greater detail a little later. Next slide, please. (TECHNICIAN 1 erases window and starts drawing/writing again) Focused on Basic Chemicals and Polymers On this slide we drill down a little more to show the range of basic chemicals and polymers that we produce, shown on the right in blue. You can see our participation is quite broad across the category. We participate in four of the top five bulk petrochemical markets and are the top global producer of propylene, benzene and paraxylene and the number two producer of ethylene. We then process those bulk petrochemicals into a range of secondary derivatives including polyethylene and polypropylene and a number of less cyclical specialty products. I'll highlight some of the unique aspects of these businesses a little later, but let me give you a feel now for the type of products we're talking about. Our Intermediate Chemicals include the high-performing, synthetic basestocks used in Mobil One. We make a range of synthetic rubbers used in everything from automobile seals and gaskets to ski boots and roller skates. In the solvents area, our products include the rubbing alcohol that you find on your bathroom shelf as well as high purity synthetic fluids used in everything from racing fuels to inks to cosmetics. Our product line is quite unique compared to our competitors. The closest match is with a chemical-only competitor and even then, we estimate less than a 50% overlap, when looking at volumes. I recognize this makes it difficult to draw comparisons across competitors. But I hope that today you'll come away with a better understanding of how our chemical business contributes to the growth and profitability of Exxon Mobil Corporation. Let me spend a minute reviewing some of the longer term trends facing our industry. Next, slide please. (TECHNICIAN 1 erases, starts again) The upper left hand graph depicts long-term demand trends split by geography while the bottom chart shows historical variations in margin trends among our two largest volume commodity chemicals. Starting with demand, there are a couple of important messages to keep in mind. First, this is a growth business. Chemical applications continue to penetrate end use markets, displacing other materials and as a result, are growing at 2% to 3% above broader economic indicators such as GDP. Growth is not evenly paced year to year as it is very dependent on economic activity levels so it ends up being highly cyclical. The other key demand message is the market shift in demand toward Asia, and more specifically China. In our view, China alone is positioned to capture a third of key commodity demand growth between now and 2015. Demand in our specialty businesses is also growing and also moving toward Asia, although the rate of growth tends to be closer to the GDP average. In the lower chart, you'll note the downward cyclical trend in commodity chemical margins on a real basis. The cyclical nature stems from timing of industry capacity additions and changes in product demand, both of which affect capacity utilization. The ongoing margin trends shown by the chart underscores the importance of investment discipline, tight cost management and a continued drive for process improvement. Companies that do well in these areas will be more likely to succeed in the chemical industry. Note that if you add inflation effects back to the chart, industry margins are about flat. One last aspect to mention, however, is that 2004 key commodity industry margins were not exceptional. We would view them as being just above trend line. By the way, I'm often asked where we think we are in the petrochemical cycle and what the next few quarters might look like. It won't surprise you that I'm not in the position to answer that directly. Near term margins will be a fallout of market forces. We're cautiously optimistic about the near term, but our focus remains on the long term. So, while improved industry conditions helped our results, other aspects of our strategy played a larger role. Let's discuss that next. Next slide, please. (TECHNICIAN 1 erases window and starts drawing/writing again) ExxonMobil made a decision many years ago that the chemical business is important. Our key strategies have been proven over the decades. We remain faithful to these strategies regardless of where we are in the petrochemical cycle. We have a unique portfolio of global businesses. Each one focused on products and services to meet the challenging demands of our customers and well positioned to take advantage of synergies with other ExxonMobil operations. Our performance is rooted in superior technology, which we view to be a significant source of differentiation. We have a relentless focus on cost management and continually drive manufacturing excellence. And, we are disciplined in our investment decisions ensuring each investment is based on long-term competitive advantage. These strategies reflect our long-term approach and overall commitment to the chemical industry and they remain the foundation for our decisions and ultimately, our performance. And none of this would be possible without the highest caliber and best trained workforce in the industry. I'll now discuss each of these elements in greater detail. Next, slide please. (TECHNICIAN 1 erases, starts again) Our unique portfolio of businesses has been developed to capitalize on our strength. We continue to take a balanced approach to our portfolio. We emphasize profitable growth in cyclical businesses, which provides strong earnings potential in the peak years; and in our specialty businesses, which provide a consistent earnings base and uplift on returns during the cycle down years. Our emphasis in the less-cyclical specialty businesses differentiates us from other oil companies who have progressively exited similar businesses. Speaking of competitors, we are often asked who is most similar to us. If you look at the top three competitors across our 12 businesses shown here, 19 different competitors are present. The most frequent competitor would appear only three times. Coupled with the fact that individual businesses within the portfolio have differing industry cycles, you see how earnings results can vary between competitors who would outwardly appear similar. We'll be highlighting strengths in many areas today, but perhaps one less obvious area is the integration synergies within our chemical portfolio. Several of our chemical businesses provide the raw materials for other parts of the portfolio. For example, our olefin business provides ethylene and other monomers for our ethylene elastomers business, and it also provides propylene for our polypropylene business, which in turn is the key raw material for our films business. This provides us with better insights on market trends, enables advantaged technology development and allows us to capture efficiencies within the value chain. We've often said that our specialty businesses makes us unique. We thought it worthwhile to describe a few of these businesses and their dynamics in depth, which I'll cover next. Next slide, please. (TECHNICIAN 1 erases window and starts drawing/writing again) Our customers ultimately determine the products that are specialties. In their end uses, these products deliver advanced performance and hence command a higher value. These specialty products are often anchored in proprietary technologies developed in our research laboratories and then tailored to meet specific customer needs. Some examples will probably help to illustrate the point. You may wonder why you need to put air in your tires less frequently. Our halobutyl rubber, used in the inner liner in passenger tires, forms an air retention barrier that is incredibly effective. Through increased use of this product, air retention in tires has improved by as much as 50% over the last 15 years and more advances are on the way. You may think that adhesives are used mainly in tapes and labels, but there are really a wide range of applications. In fact, disposable diapers contain up to 15 different adhesive formulations. Our Ethylene Elastomers products deliver a wide range of properties that can be tailored to exacting specifications. Films made with our Exxact plastomers are used to ensure freshness of the coffee beans marketed by a major national retail chain. And our Santoprene products are used on soft grips for well-known national brands of kitchen gadgets, hand tools, razors and pens. Our wide range of Specialty Fluids are used in everything from leading cosmetics and personal care items to high quality inks. In each of these areas, we work continuously with customers to support their technical needs and reliably supply high quality products to global markets. Our technology commitment is key to a successful specialty business in the long run. Let's now move to our second strategic element, synergies. Next, slide please. (TECHNICIAN 1 erases, starts again) Integration Across ExxonMobil Operations Although ExxonMobil maintains a separate chemical company to focus on managing our portfolio of chemical businesses, we are at the same time highly integrated with ExxonMobil Upstream and Downstream operations to capture synergies throughout our value chain. Integration benefits continue to be one of ExxonMobil Chemical's key differentiating factors. We currently have over 17 global initiatives with our refining company and are delivering annual benefits in the hundreds of millions of dollars. Sponsorship is shared across the Corporation with our top leaders actively engaged. This slide gives you a feel for the physical integration of our sites with the Downstream. The refining facilities and products are shown in gray. Our Chemical plants and products are shown in blue. The products we exchange are shown in red and green. At our largest Chemical complexes, more than 60 products are transferred between the refinery and the Chemical plants continuously. And we've made significant gains with respect to programs that optimize the use of the various streams across refining and Chemical plant borders. These optimizations are run on a real time basis, which is not easily duplicated without ownership of both the refining and Chemical assets as well as co-location of the facilities.
HALFWAY THROUGH THE FOURTH PHASE (about 7 minutes in) A VOICE COMES BACK AND SAYS “SAMPLE IDENTIFIFCATION” TECHNICIAN 2 reacts by walking and picking up an object and saying “One”, “Two”, “Three”, etc... THERE ARE 47 IDENTIFICATIONS! AFTER 14 MINUTES, THE LOUD HISS RETURNS and EVERYBODY stops and leaves. THE LOUD HISS lasts 1 minute thirty seconds, during which time VICTIM falls over, dead.
THE FIFTH PHASE: MUTAGENESIS A VOICE SAYS “THE FIFTH PHASE: MUTAGENESIS” and EVERYBODY comes back, carrying the Mutagenesis Membrane and the Yellow Cord, T.S. ELIOT reads the Wasteland. TECHNICIAN 1 puts the Cord and the Membrane on the ground in front of VICTIM. EVERBODY rolls VICTIM onto the Membrane. EVERYBODY wraps VICTIM in the Membrane, and tie him up AFTER 3 MINUTES, T.S. ELIOT begins to repeat the phrase: “I will show you fear in a handful of dust,” and then the DRONE MUSIC returns. EVERYBODY walks in front of the VICTIM TUMOR and take their flowers out of their suits. They stick them in the ground in front of the TUMOR. TECHNICIAN 2 and TECHNICIAN 3 take their back positions in the large triangle, while TECHNICIAN 1 pulls out a lighter and lights the flowers on fire. TECHNICIAN 1 takes her forward place in the triangle. Over the next five minutes, EVERYBODY: KNEELS TAKES OFF ONE CARTRIDGE AND PLACES IT ON THE GROUND THEN THE OTHER, THEN SLOWLY DIES/MELTS. ALL REMAIN DEAD. VOICE COMES BACK AND GIVES CONCLUDING REMARKS:
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