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. With activities in some 40 countries, ExxonMobil's oil and gas fields extend from West Texas to West Africa and from Australia to Alaska (1). The company operates in deep seas, arctic ice and deserts in some of the world's most remote regions (1). ExxonMobil is the world's largest nongovernmental marketer of equity natural gas. The company has access to 56 trillion cubic feet of proven reserves and discovered resources of more than 185 trillion cubic feet. It has gas sales in 25 countries and across five continents (4).
Oil is Exxon’s primary means of revenue. In the Oil industry there are competitive forces that function in the industry, but none stronger than the barriers of entry. One of the major barriers to entry is finding a supply of petroleum or gas. The cost of research, discovery, and output of gas and petroleum can easily reach the 100’s of millions of dollars. Another problem a new company would face, is receiving permission to develop oil in a foreign country. Because of the amount of money involved in oil, countries tend to produce oil on their own, rather than share the profits. The large investment in capital and the political connections needs to enter the industry, make it almost impossible to start a new oil company.
The second force that affects the oil industry is the bargaining power of suppliers. In the industry, suppliers have all the power. There is no international trade commission, so oil can be dispersed at any pace and be sold at what ever price suppliers want. The inelasticity of oil and the constant fear that oil is on the verge of running out, gives suppliers absolute power in the ...
... middle of paper ...
...d. The have more than enough money and resources to work on alternative energy sources. Whether it is hydrogen or electricity, they can reap both the financial and humanity rewards. For Exxon to end with oil would be a tremendous blunder.
Exxon is not a company that needs to worry about competition. In the oil industry it is all about raw materials. The more a company has the more control they have. Exxon also has no need to be concerned with competition because gas is gas. No one is going to pay a dollar more for Exxon’s gas than Texaco. Another factor that eliminates competition from the industry is a unwritten theme that gas prices move together. It is rare to see two gas stations on the same block with significance in price. When oil prices go up, gas prices follow.
Works Cited
1. ExxonMobil’s Official Website
2. TexacoShell’s Official Website
3. Yahoo Finance ExxonMobil stock information and financial reports.
4. ExxonMobil’s Official Website Products and Services Subsidiaries and info about.
5. TexacoShell’s Official Website
6. ExxonMobil stock information and financial reports.
Historical Stock Prices
Many of Methanex’s competitors diversify their offerings, including methanol as just one offering in their diverse portfolio of chemical production, which provides them with protection from fluctuations in the pricing of methanol and raw materials needed to produce it. Many general chemical competitors also only enter the methanol production market once pricing reaches comparative levels to that of a barrel of oil, which can cause an oversupply in the market and drive prices down.
Martin Luther King Jr.’s approach towards ending segregation was not only tactful, it was forthright in the ideals of racial equality. His argument holds such strong logic, that it seems like it is unchallengeable. This letter is solid proof of the intelligence and passion that contributed greatly towards African Americans gaining the rights they fought for, and rightfully
When John D. Rockefeller merged with the railroad companies, he had gained control of a strategic transportation route that no other companies would be able to use. Rockefeller would then be able to force the hand on the railroads and was granted a rebate on his shipments of oil. This was a kind of secret agreement between the two industries. None of the competition knew what the rates were for the rebates or the rates that Rockefeller was paying the railroad. This made it hard for the competition to keep up with the Standard Oil Company. The consequences led to many oil companies getting bought out by Rockefeller secretly. All in all, 25 co...
In his letter, Martin Luther King is trying to persuade his readers to understand his action and point of view of an African-American living in this era. He did so all while replying to the public published statement and criticisms written to him by the eight Alabama clergymen. This illuminating work of art that King had created was filled with heightened terminology which was gratified by his precise framework. By King writing this response letter with such high dialect, it reflects off of his determined and highly educated mentality immensely. In this letter King directly tries to build a connection
Martin Luther King, Jr. is known to be a civil rights activist, humanitarian, a father, and a clergyman. He is well known for fighting for the equal rights of colored people and ending discrimination. King’s Letter from Birmingham Jail is an important part of history that showed King’s opinion of a letter that he happened to read in the newspaper written by a group of clergyman. In this letter, the group of clergyman report that colored people, also known as black people, are being violent towards Birmingham City. Also, the clergymen believed the time that will allow segregation to be diminished was not happening anytime soon because it is not convenient. King refuted the clergymen’s argument in a variety of ways using tactics of argumentation and persuasion like appeal to emotion through real life examples, appeal to logic, and even articulating certain phrases through metaphors and word choice. Many of these different tactics of argumentation and persuasion made his letter very effective and is now seen as a great piece that is looked upon highly today.
Exxon Mobil is world’s largest publicly traded integrated oil company serving companies in more than 200 countries worldwide. Standard and Poor’s stock report for Exxon Mobil indicates that Exxon’s global functional organization and substantial diversification helps mitigate its exposure to business risk and margin volatility.
According to ExxonMobil, for future, the company will invest on exploration for oil and gas at around $34 billion annually. However, Exxon took criticism that investing on exploration for oil and gas affects to destroy climate by recklessly extracting and burning fossil fuel reserves. The company tried to rebuild its business image. Exxon’s recent investments have been in natural gas, which pollutes less CO2 than oil when it burned. The company spends about $6 billion a year for reducing pollute. Investing on exploration for oil and gas will generate revenue in
The meltdown of Chernobyl's fourth reactor was the result of a series of errors in the reactor design, operations, and a failure to follow established safety protocols. These human errors resulted in more than 400 times the radioactivity of the Hiroshima nuclear bomb being released into the environment (Salge & Milling, 2006). This caused a massive economic, environmental, and human toll to the region. Improved reactor design and proper adherence to safety procedures could have prevented this disaster.
Exxon Mobile employs roughly 83,600 employees worldwide. The company produces approximately 3 percent of the world’s oil and about 2% of energy. Exxon Mobil had 72 billion barrels of oil equivalent reserves that are expected to last more than 14 years, the company also had 37 oil refineries in 21 countries, which collectively have a refining capacity of 3.92 million barrels per day, and this makes the corporation the largest oil manufacturer in the world.
Both the CEO of Exxon, Lee Raymond, and the CEO of Mobil, Lucio Noto, announced that it is because of this reduction in prices and downsizing within the oil industry that the merger is taking place, the very nature of the oil industry was becoming increasingly competitive. The oil industry as whole was becoming more efficient, causing oil prices to fallr. Firms can only maintain their prices equal to or above marginal cost, and if prices are lower than marginal...
During the mid 2000’s until late 2012, media mogul Rupert Murdoch’s newspaper company, News Corp, conceived one the biggest scandals in media history to date. Speculation of phone hacking occurred in November of 2005 when the Royal’s officials reported possible voice mail phone hacking to the police because News of the World released a story about Prince William hurting his knee. The victims of the phone hacking scandal not only included the Royal family but also politicians, celebrities, people who were murdered, and family members of soldiers who died during combat totaling the victim list to 3,870. The entire duration of the investigation revealed not only disturbing information about the conducts committed by journalist, but the conspiring with private investigators and the London police enforcement, also known as the Scotland Yard, to cover up corruptions on all ends (CNN, 2012).
America is dependent on other nations for their ability to create energy. The United States is the world’s largest consumer of oil at 18.49 million barrels of oil per day. And it will continue to be that way for the foreseeable future considering the next largest customer of oil only consumes about 60% of what the U.S. does. This makes the U.S. vulnerable to any instability that may arise in the energy industry. In 2011, the world’s top three oil companies were Saudi Aramco (12%), National Iranian Oil Company (5%), and China National Petroleum Corp (4%). The risk associated with these countries being the top oil producers is twofold. One, they are located half way around the world making it an expensive to transport the product logistically to a desired destination. And two, the U.S. has weak, if not contentious,...
Chernobyl was the greatest nuclear disaster of the 20th century. On April 26th, 1986, one of four nuclear reactors located in the Soviet Union melted down and contaminated a vast area of Eastern Europe. The meltdown, a result of human error, lapsed safety precautions, and lack of a containment vessel, was barely contained by dropping sand and releasing huge amounts of deadly radioactive isotopes into the atmosphere. The resulting contamination killed or injured hundreds of thousands of people and devastated the environment. The affects of this accident are still being felt today and will be felt for generations to come.
...agic event that impacted lives all around Europe. It released record amounts of radiation, affected millions of lives, called for thousands of abortion requests, destroyed wild life, and it was a key turning point in history for nuclear safety. Chernobyl has very many negative aspects associated with it, but it helped us learn from our mistakes. It is now nearly impossible for anything like this to be repeated again due to revised architecture, added systems, and improved technology. However, that does not take away the pain experienced from Chernobyl; this event will forever be known in infamy. Many lives are still being affected by this event, even 28 years later. Thousands of families lost loved ones and millions had their family members lives affected drastically from serious diseases and deformities. Chernobyl and the families affected will always be remembered.
One of the most significant environmentally damaging instances in history was the Chernobyl incident. In 1986, the Chernobyl Nuclear Plant in Ukraine exploded. It became one of the most significant disasters in the engineering community. There are different factors that contributed to the disaster. The personnel that were tasked with operating the plant were unqualified. The plant’s design was a complex one. The RBMK reactor was Soviet design, and the staff had not be acquainted with this particular design. As the operators performed tests on the reactor, they disabled the automatic shutdown mechanism. After the test, the attempt to shut down the reactor was unsuccessful as it was unstable. This is the immediate cause of the Chernobyl Accident. It later became the most significant nuclear disaster in the history of the