A Comparison of Exxon and Chevron

     Chevron Texaco, or Texaco Shell, is the leading competitor to ExxonMobil. Texaco is in the same areas of business as Exxon. Their petroleum products and lubricants are sold in the same markets, stores, and in many cases opposite street corners from each other. The two companies are very similar, but Exxon’s recent petroleum deals in the Middle East and Africa have allowed its stock price to jump ahead for the time being (1). In the industry, the two companies mainly compete for the ability to negotiate for new production. The competition is not made at the pump or at the local auto store. It seems that it’s more important to control oil than it is to sell it quickly. Because oil has so much value and power in the world, the industry is made of semi-friendly companies. Surviving and making as much profit as possible, is more important than trying to put people out of business.

Over the course of this paper information regarding John D Rockefeller 's creation of the Standard Oil company will be showcased. First, information regarding Rockefeller’s entry into the oil industry will be presented. Second, how Standard Oil became the largest oil company in the United States. Next, the innovative products and procedures that Standard Oil creates to keep the company relevant throughout the era . Lastly, how the dissolution of Standard Oil paves the way for a diverse oil market with companies specializing in different productions. Now, John D Rockefeller may have been a cutthroat businessman; however, Rockefeller’s vision for Standard Oil creates a period of innovation and advancement of the none existent oil industry that remains relevant today.

Assignment summary: You are taking the role of a security analyst who recently started following the Oil and Gas industry. The analyst has a task to draw a comparison of several financial indicators for two industry leaders: Exxon Mobil and Royal Dutch Shell, based on their income statements and balance sheets (attached at the end of this document) as well as the information from the notes to the financial

Between the Exxon and Chevron companies, Chevron proves to be more profitable than Exxon since Chevron shrunk less in

From the recent case data, ExxonMobil has not acted irresponsibility in pricing its gasoline products. Outside of the grocery industry, I have not heard of any business segments surviving on less than a 5% profit margin. In reading that ExxonMobil reported only a net profit of 8.5%3, it is difficult to state that the firm over priced its products to reap abnormal profits. Although Mr. Lee Raymond’s $400 million retirement seems grossly out of proportion in utilitarian terms, adding these funds back into the firm’s bottom line would not change the profit results. With profit margins of less than 10%, it is unlikely that ExxonMobil would be able to keep the price of gasoline fixed if sweet crude oil were to increase from $80 per barrel to $88. This 10% increase in raw material cost would have to be passed through to the customer in the form of higher prices for the firm to survive.

Formed by the merger of two big oil companies in 1999, Exxon and Mobil, the corporation is now the world’s 8th largest by revenue and third largest publicly traded company by market capitalization. Exxon’s history is the story of two groups; both Exxon and Mobil are descendants of John D. Rockefeller 's Standard Oil Company of Ohio, incorporated as Standard Oil Trust in 1882.

Chesapeake Energy operates under the natural oil and gas industry. While government’s economic data may separate operations within this industry, the industry covers a broad range of activities and is separated into three segments: upstream, downstream, and midstream. Activities within this industry by oil and gas companies include exploring for crude oil or natural gas, drilling into wells, and such transportation of oil and natural gas. Just as any other industry, the gas and oil industry have major risks that companies take into consideration and extensively consider. These risks have the capability of drastically affecting operations, and ultimately the profitability and financial stability of a company. Three top risks related to oil and gas companies are volatile prices of oil and gas, regulatory changes, and finding new reserves or extending prior ones.

The oil and gas industry has been a hot topic for most of my adult life. I was newly married when the Exxon Valdez ran aground. I had two brothers working on off shore rigs in the Gulf of Mexico when the BP Deepwater Horizon rig exploded. The world’s dependence upon oil and gas has created a need to find alternate energy and one of those ways is through fracking. Let us compare these oil disasters and fracking, and first consider how managing ethical risk can reduce accidents, next compare the risk that BP, Exxon, and the fracking industry face to continue to provide energy sources, and finally how ethical leadership can help the oil and gas industry manage risk.

After it creation in 1964 the Texaco oil rig has been wreaking havoc on the local community. Before the oil crisis in 1973 the need for oil has still high and Texaco had found a place that could satisfy some of that need (Zaitchik, 2014). Texaco as well as the prominent Gulf Oil began to work in the Oriente region of Ecuador. However, it was not until 1972 that Texaco began to work in the Lago Agrio Oil Field one year before the Oil Crisis. This drilling for oil continued until 1993 when Texaco left after being accused of dumping toxic waste into the local water systems for 21 years (Amazon Watch, 2013).

I believe Exxon to a bigger company altogether than Chevron, but Chevron had more growth and is more profitable. Chevron has also had better investment opportunities. The company's exploration program has been highly successful in the Gulf of Mexico, generating a flow of lucrative discoveries. ExxonMobil, on the other hand, is being much more cautious in its investment and development selection. Exxon is looking for quality and sustainability. https://www.fool.com/investing/general/2014/07/14/why-chevron-is-more-successful-than-exxonmobil.aspx Rupert Hargreaves Jul 14,

To start a business, ExxonMobil has to register to government for permission to operate. Government also protect the copyright of ExxonMobil, when there is products selling in the markets that infringed to ExxonMobil’s copyright, this is against to the law and government will take action such as sue them to the court.

Exxon, Esso, and Mobil are three of Exxon Mobil’s brands that provide fuels, services and lubricants to fulfill personal and business needs. Their products drive modern transportation, power cities, lubricate industry and provide petrochemical building blocks that lead to thousands of consumer goods.

This report consists of financial analysis of Exxon Mobil Corporation and it is based on the company annual report for the fiscal year ended December 31, 2006, on the company’s official documents placed at their website and on other appropriate sources. For convenience and simplicity, in this report the terms ExxonMobil, Exxon, Esso and Mobil, as well as terms like Corporation, Company, their and its, are sometimes used as abbreviated references to specific affiliates or groups of affiliates.

ExxonMobil is a narrowly diversified company with few lines of related business that operate in global markets. At the core of ExxonMobil’s corporate strategy is related business diversification. The Upstream business segment is the largest one with more than 70 percent of earnings coming from that segment & followed by the downstream business segment at 12 percent. The average capital employed by the upstream business segment is four to six times that of other segments. Clearly, the upstream business is ExxonMobil’s center of gravity

In 2000, Exxon Mobil Egypt (S.A.E.) was made as a consequence of a merger between Esso Standard Near East and Mobil Oil Egypt. Based on this long history, ExxonMobil Egypt (S.A.E.) has kept on being a head energizes and greases advertiser in the nation.