Oil and Gas Company Case Study: ExxonMobil

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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…show more content…
It is estimated that Exxon has 22 billion barrels of crude oil in its possession (4). This is far more than any other nongovernmental company. Exxon 's ability to create production in foreign countries is the trait that allows them to stay ahead of the competition. Exxon is currently working deals in West Africa, Qatar, the Caspian, and Russia (1). Overall they hope to have 30 new projects in the next 3 years. The amount of oil Exxon possesses will allow it to out last the competition. With the exception of new oil wells being discovered, Exxon will remain in business much longer and more successfully than the competition. As long as oil is the primary source of fuel in the world, Exxon will be able to keep control of the nongovernmental market. Exxon is in very good financial shape. Net income in the company went up over $4 billion dollars from 2003 to 2004 (6). Their stock price has also risen from around $40 to $60 during the same period (6). Despite fear around the world that oil prices will hit $80 dollars in the coming months and year, Exxon has continued to show large profit margins. Financially, Exxon is great shape. They make such incredible profits that in 2003, they were able to spend $12 billion on exploration and production of new oil (1). Taking into account that Exxon earned $14 billion had a return on capital of 30%, it seems the oil industry, and especially Exxon will continue hear rumors or price fixing
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