
Executive Summary
The petroleum industry is well on its way to becoming a global business. Major international firms like EXXON Mobil, Shell, BP, and CNPC are getting even larger and account for an even more significant market share of the global petroleum business, which is estimated at 95.34 production and 93.30 consumption million barrels per day in 2015. Most of these major suppliers are now also managing their petroleum business on a global basis. Clearly, some regions will enjoy significant growth while others will decline. From a volumetric standpoint, the Asia-Pacific region is expected to continue to show the most robust growth. Scientific research has shown that 0.4 % of gross domestic product could be saved in terms of energy in Western industrialized countries if current tribological
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Additionally, ExxonMobil operates a global services company and owns subsidiaries such as XTO.
Corporate Strategy
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
Acquisitions
ExxonMobil acquired XTO Energy for $24.6 billion in June 2010, motivated by its energy outlook that suggests a growing need for natural gas in the next several decades. Another key factor is that most of the company’s upstream assets are abroad, and the merger represents a move toward the U.S. market
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.
The quick ratio for Exxon in 2010 and 2011 are 0.64 times, which falls between the median and lower range of the industry averages on the D & B chart for both years. This shows that ExxonMobil Corporation to be among the average in its industry, therefore it will be a less risky investment. The current ratio in 2010 and 2011 is 0.94 times, in which 2010 falls in the lower range and 2011 falls between the median and lower range of the industry averages. This explains that in 2010 and
Exxon and Chevron are no doubt some of the leading incorporated oil companies on the globe. Exxon Corp. is the second largest oil firm after Royal Dutch Shell, it is respected for getting the biggest revenue return in 2008 which no company in the U.S. have ever reported before. According to Wilson (2009) Chevron has managed to show a lot of profitability in the market despite the decease in its oil production. It graded as one of firms which made a billion dollars profit within a week in the period of July to September 2008. Regardless of profitability trends set by the two oil firms in the U.S. market, they have been facing financial decline like the rest of the companies in other industries. The two firms are like two sailing ships which are taking longer time to sink. In the last few years, the production capacity of Chevron and Exxon has decreased and their listings on the stock market have become weak. The continuation of construction and drilling which requires billions of dollars in expense of oil production might make them experience a bigger financial crisis (Wilson, 2009).
King Leopold’s Ghost, by Adam Hochschild , shows that the violence in Africa has gone rampant and the civil discourse is an effect to the cause of colonialism. Although he does not have a life devoted expertise to the Congo, his research and background was thorough and descriptive. Conrad’s Heart of Darkness served as a primary influence to many people who seeked to further their knowledge on the predicaments surrounding the Congo. On the contrary, rather than displaying literary occurrences, he portrayed creativity in a hypothetical scenario to draw readers attention.
There are three short term recommendations and three long term recommendations. The short term recommendations are so the company can decrease their net capital to debt ratios, create a competitive advantage, and decrease research and development time frame. The long term recommendations are for the company to evolve, explore the market analysis, and invest in more biofuel options.
Exxon Mobile is one of the most successful companies in the oil and energy industries today. But what makes them so successful? In an effort to answer this question, a thorough internal investigation can be helpful in determining what aspects of this company are making it an industry leader. Two aspects of this internal analysis of Exxon Mobile are the company’s resources and capabilities.
ExxonMobil is a United States based transnational oil and gas corporation. Founded on the 30th of November 1999 after the merger between Exxon and Mobil, reuniting the original breakup of standard oil company (Folsom Jr 1998). It is the world’s largest publicly traded oil and gas company by market value and as of 2016, the sixth largest in terms of revenue at $246 million per year (Decarlo 2016) . ExxonMobil’s oil and gas exploration stretches across six continents with
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.
Cooper’s corporate strategy is diversification through acquisitions and mergers. This diversification is in both related and non-related businesses to lessen its dependence on the capital expenditures of the natural gas industry. Cooper’s started acquiring low-technology manufacturing companies. The companies were premium-quality products with strong brands names mainly still own by the original family owners that have seen
Chevron operates in the hydrocarbon industry, where it is one of the world's largest companies with sales of $241.9 billion and net income of $26.18 billion. It is the conclusion of this analysis that a creditor should lend Chevron an additional $20.9 billion. The company has the liquidity, solvency and the cash flow to pay back this amount of debt. The company currently finances its operations largely from operating cash flows, with a small amount of long-term debt. This low debt level has left the company with a balance sheet strong enough to withstand a further $20.9 billion in debt. As a lender, it has been found that Chevron meets all of the lending
While ExxonMobil’s engagement with communities that are proximal to their operations can often be described as proactive and
World oil demand is increasing as emerging economies need more energy to increase their living standards. Estimates, shown below, are that by 2030, China and India as emerging markets will import over 70% to 90% of their fossil fuel needs (1) . Coupled to a continued high and growing demand for oil, makes this a robust market for the next 30 years.
Shell is the largest oil, gas, and energy company compared to Total, Exxon, Chevron, and BP. Shell is very competitive and innovative because they out-think their competition & always change their strategy to be the best. Shell changed their name from Shell Oil & Gas to Shell Energy to set them aside from the competition which was a brilliant move. Peter Voser, the Chief Executive Officer of Royal Dutch Shell stated, “We are delivering a strategy that others can’t easily repeat, with unique skills in technology and integration and a worldwide set of opportunities for new investment”. Shell recently invested and merged with BG Group and changed the entire portfolio which could possibly make them billions in the
The international energy agency (IEA) report that global upstream expenditure and development in oil and gas industry has a strong growth by averaging 11 percent per year in 2000 – 2012 and
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.