Exxon puts out their 10 - Q Y2K disclosure.

The quote below seems to be the most interesting statement.
 

"Modification and testing phases continue, with more than
95 percent of required system modifications to mission critical systems completed."
 

 Yahoo! Finance - XON form 10-Q

YEAR 2000 ISSUE

The Year 2000 Issue is the result of computer programs being written using two
digits rather than four to define a specific year. Absent corrective actions, a
computer program that has date-sensitive software may recognize a date using
"00" as the year 1900 rather than the year 2000. This could result in system
failures or miscalculations causing disruptions to various activities and operations.

The corporation initiated assessments in prior years to identify the work efforts
required to assure that systems supporting the business successfully operate
beyond the turn of the century. The scope of this work effort encompasses
business information systems, infrastructure, and technical and field systems,
including systems utilizing embedded technology, such as microcontrollers. The
program places particular emphasis on mission critical systems, defined as those
which could have a significant safety, environmental or financial impact, should
Year 2000 issues arise.

Plans for achieving Year 2000 compliance were finalized during 1997, and
implementation work has been underway since then. The initial phases of this
work, an inventory and assessment of potential problem areas, have been
essentially completed. Modification and testing phases continue, with more than
95 percent of required system modifications to mission critical systems completed.
Some work is continuing into 1999, including final testing of some systems and
scheduled implementation of new systems with Year 2000 impacts. Attention has
also been focused on compliance attainment efforts of vendors and others,
including key system interfaces with customers and suppliers. Most key suppliers
and business partners have been contacted for clarification of their Year 2000
plans and over three-fourths have confirmed that compliance plans are in place.
Follow-up discussions are being held with key suppliers when necessary to gain
satisfaction on their state of readiness. These reviews will continue through 1999.
Testing of critical third party products and services is underway, including such
areas as process control systems, credit card processing, banking transactions and
telecommunications.

Notwithstanding the substantive work efforts described above, the corporation
could potentially experience disruptions to some mission critical operations or
deliveries to customers as a result of Year 2000 issues, particularly in the first few
weeks of the year 2000. Such disruptions could include impacts from potentially
non-compliant systems utilized by suppliers, customers, government entities or
others. Given the diverse nature of Exxon's operations, the varying state of
readiness of different countries and suppliers, and the interdependence of Year
2000 impacts, the potential financial impact or liability associated with such
disruptions cannot be reasonably estimated.

Exxon operating sites around the world, including those in developing countries,
are working with key suppliers in their respective countries to address Year 2000
issues. In addition, Year 2000 Business Contingency Guidelines are being used
by all operating organizations and affiliates, and include specific reference to areas
such as transportation, telecommunications and utility services. Existing site
contingency plans are being updated in order to attempt to mitigate the extent of
potential disruption to business operations. This work is essentially complete with
refinement of contingency plans continuing through 1999

-- Brian (imager@home.com), September 01, 1999

Answers

Brian,

Great find! This is a very interesting report, indeed! Thanks, Brian. Great work.

While I agree with you on your selected quote as being significant I think there's another segment that is even more revealing...more on that in a minute...but first... regarding the quote you selected...

The thing about it that struck me was to ask myself: "I wonder what they define as 'mission critical.' Perhaps its the PCs sitting on the bean counter's desks? It could be that this is what they're referring to. What you and I call Mission Critical may not be what they're calling mission critical, ya know what I mean, Brian?

Here's the segment that really struck me as revealing:

"Notwithstanding the substantive work efforts described above, the corporation could potentially experience disruptions to some mission critical operations or deliveries to customers as a result of Year 2000 issues, particularly in the first few weeks of the year 2000."

My thoughts:

OH NO, Shazam...Say it ain't so, Joe!!! Oh my...what an admission! But it gets even more revealing...read on...

"...Such disruptions could include impacts from potentially non-compliant systems utilized by suppliers, customers, government entities or others."

My Comment: Oh gee, no kidding!!! Oh, surely they jest! This could NEVER BE...Just couldnt be...not Exxon. I mean these are the folks that gave us the Exxon Valdez fuzzy moment in ecological history. These folks know how to guide ships and avoid the rocks, don't they? Hey, at least we should give them some credit. They're admitting more than most of the LIARS out there in corporate-land. Now here's more from that paragraph...

"Given the diverse nature of Exxon's operations, the varying state of readiness of different countries and suppliers, and the interdependence of Year 2000 impacts, the potential financial impact or liability associated with such disruptions cannot be reasonably estimated."

ME: OH... NO KIDDING!!!! Oh, you coulda bowled me over with a feather on that one. Talk about some major back-pedaling here. Its all basically "CYA" time. Oh yeh, they're okay, just worried about everyone else... Like we're worried about them too while they're worrying about us.

So, Brian... Great find... I HOPE THE LINKMEISTER AND OTHERS RECORD THIS STORY FOR THE RECORD...As this is a real key indicator for the industry as a whole...and guess what guys... this is more like AMOCO TEXACO and all the rest of the majors. I suspect Exxon is in a state of panic for them to admit this much now. I suspect they realize things are going to collapse for their operations for them to admit to this much. Sadly, my sources indicate EXXON is not alone. The other majors are in equally bad shape, but they won't admit it.

Again, Brian, thanks much for posting this one. It's a keeper.

-- R.C. (racambab@mailcity.com), September 02, 1999.

Ummm... "The initial phases of this work, an inventory and assessment of potential problem areas, have been essentially completed."

as in: we're STILL working on it!

Oh well, its old data, and I'm sure they would never let anything bad happen...

-- Racer X (racerx@altinet.net), September 02, 1999.