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Business Portfolio Of Exxonmoil

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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 …show more content…

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

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