Oil Prices And The World Wide Recession

ExxonMobil is the largest publicly traded oil and gas producing company. ExxonMobil does business in 200 countries world-wide (1). Some countries are designated for exploring gas and petroleum, and some are designated for manufacturing chemicals, lubricants, and market fuels (1). ExxonMobil's world-class petroleum portfolio gives access to proven reserves of 21.9 billion oil-equivalent barrels of oil and gas, which is the highest in the industry (1). The company's discovered resources consist of 72 billion oil equivalent barrels of oil and gas. On average, each day, they produce 2.5 million barrels of oil and 10.5 billion cubic feet of gas (4). Their asset base, includes more than 60,000 production wells in 1,800 fields in 25 countries.

Their ability to map the contours of a market, and then maximize profit given that structure, is just as important as understanding demand, production, and costs (JWI518 W5 L2). Oil and gas prices fluctuate on a minute by minute basis, taking a look at the historical price range is the first place you should look. Many factors determine the price of oil, but it really all comes down to supply and demand. Demand typically does not fluctuate too much (except in the case of recession), but supply shocks can occur for a number of reasons. When OPEC meets to determine oil supply for the coming months, the price of oil can fluctuate wildly. Day-to-day fluctuations should not influence investment decisions in a particular energy company, but long-term trends should be followed more closely (OPEC, 2014).

(BP) happens to be one of the largest oil and gas companies in the world. There operations include the exploration and production of natural gas and crude oil; to include the refining of crude oil; and the manufacturing of petroleum products.

Headquartered in Irving, Texas. Exxon Mobil Corporation is an energy company that explores for and produces crude oil and natural gas. As one of the largest manufacturers of petroleum products in the world, it transports and sells natural gas, crude oil, and oil products. Exxon is also a major manufacturer and marketer of commodity petrochemicals and a wide variety of specialty products. It also markets and refines chemicals, and has interests in power generation facilities. The company operates in two hundred plus countries in North America, Europe, Asia-Pacific, Latin America and Middle East/Africa.

BP is a company that delivers energy products around the world through the exploration and refinements of natural resources. The company is also known as one of the world’s largest oil and gas companies that competes with other major household names such as ExxonMobil and Chevron. Because many of these large

Chevron is an American multinational energy cooperation. It is one of the big successes in the oil companies. Chevron is active in more than 180 companies. Chevron

Chevron Corporation is headquartered in San Ramon, California and has a presence in more than 180 countries worldwide. Its core business is energy and it focuses on oil, gas and geothermal forms of energy.

British Petroleum Company (BP) is a British multinational oil and gas company. It is the third-largest energy company and fourth-largest company in the world. It is vertically integrated and operates in all areas of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. It also has renewable energy activities in biofuels and wind power. BP has operations in over 80 countries, produces around 3.4 million barrels of oil equivalent per day and has around 21,800 service stations worldwide.

Chevron is one of the world’s leading integrated energy companies. Through its subsidiaries that conduct business worldwide, the company is involved in almost every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemicals and additives; generates power and produces geothermal energy; and develops technologies that enhance the company’s operations.

BP is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured in terms of their revenues and stock prices. It is active in every area of the oil and gas industry, including exploration and production,

British Petroleum is among the largest producers of oil and gas in the world. Headquartered in London, England it is one of only seven “supermajors” in the production of petroleum, in fact its performance in 2012 made it the sixth largest producer in its field and by market capitalization. It is also considered a vertically integrated company which operates in all areas of oil production including exploration, refining, distribution, and marketing. It has also recently expanded into biofuels and wind power. [2]

British Petroleum (BP) is the UK’s largest corporation and is one of the largest private-sector energy corporations in the world. It is the third largest energy company and the fourth largest company in the world. It is one of the seven gas super majors. It operates in over 80 countries, and in 2010 their production was approximately 3.4 million barrels of oil each day. The company is headquartered in London.

In the last six months of 2014 the price of crude oil experienced a dramatic decline from over $100 per barrel to around $50 per barrel. Further oil price declines throughout 2015 and into 2016 saw oil plunge to less than $30 per barrel. This drastic reduction in price hurt the profit margins of oil extraction companies, leading to several phases of reduction in operating activity and investment, as well as sizeable employee layoffs. According to Barrionuevo (2016:2), approximately 50% of the jobs in the greater Houston area are energy related. Thus, as the oil price plummeted, Houston experienced a significant loss of jobs, many of which were highly paid, eventually resulting in a decrease in personal income.

ExxonMobil has evolved from a kerosene regional marketer to the largest player in publicly traded energy over the previous 125 years (“Our history,” 2014). In 1870, J. D. Rockefeller and his associates formed the Standard Oil Company and immediately became the largest refining company in the world with the chosen name relaying its standard of high, uniform quality (“Our history,” 2014). The U.S. Supreme Court broke up the Standard Oil Company into 34 unrelated companies in 1911 (“Our history,” 2014). A few of the companies that were established in the breakup by the court decision were the Jersey Standard, Vacuum Oil, and Socony Companies.

Chevron Corporation is an American multinational energy corporation. Headquartered in California, and active in more than 180 countries, it is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron is one of the world 's six "supermajor" oil companies.