Name of the Company: ExxonMobil
Business Sector: Oil & Gas
Operating Geography: North America, Global
About the Company: Founded in 1870, ExxonMobil is the largest publicly traded international oil and gas company. It is based in Irving, Texas. It is one of the world’s largest integrated refiners, marketers of petroleum products and chemical manufacturers. The company operates in six continents. The company has approximately 35,047 gross and 29,375 net operated wells.
Revenue: US$218.6 billion (For the Fiscal Year Ended December 31, 2016)
Competitive Analysis of exxonmobil
|1. Integrated Business Model|
2. Global Footprint
3. Strong Financial Resources
|1. Weak Corporate Governance
2. Environment issues & Hazards
3. Human Rights Violation
|1. Increasing Demand of Fuel|
2. Mergers & Acquisitions and Agreements
3. R&D in Biofuels
|1. Regional & national Regulations covering Green-house emissions/ Paris Agreement
2. Fluctuating Crude Oil Prices
3. Alternate Fuel sources
1. Integrated Business Model: The Company’s integrated business model with upstream, downstream and chemical segments reduces the Corporates risk from the changes in commodity prices. The company’s financial and accounting reporting reflects its straight forward business model involving the extracting manufacturing and marketing of hydrocarbons and hydro-carbon based product.
2. Global Footprint: The company operates in six continents exploring for oil and natural gas. In recent times, the company has also captured new high-quality off shore blocks in Australia, Equatorial Guinea, and Suriname.
3. Strong Financial Resources: As per the Second Quarter 2017 Earnings call, Total Earnings increased $1.7 billion on stronger Upstream and Downstream results and lower corporate charges.
1. Weak Corporate Governance: Exxon Mobil Corp has been deleted from Dow Jones Sustainability Index which is major weakness.
2. Environment Issues and Hazards: The Company has been subject to various agitations for environment hazards. Exxon created advertisements that contradicted their own research on global warming. This has tarnished the image of the company. Various regulatory violations on regular basis have been committed by the Company.
3. Human Rights Violation: The Company has various allegations of human rights violations, most prominent in Indonesia. It has been charged for assisting in heinous human rights violations including murder and rape by providing support to the Indonesian military who performed these acts.
1. Increasing Demand of Fuel: Oil is expected to remain the largest source of energy with its share remaining close to one-third in 2040.The share of natural gas is to reach 40% by 2040.Global Natural Gas demand is expected to rise by 45% in Asia Pacific region. According to International Energy Agency, the investment required meeting oil and gas supply requirements worldwide over the period till 2040 will be about $23 trillion.
2. Mergers & Acquisitions and Agreements: The Company has grown its portfolio value and should continue to do further. Recently, The Company has undertaken High-potential exploration program on over 14 million gross acres in Guyana Suriname. ExxonMobil Makes Final Investment Decision to Proceed with Liza Oil Development in Guyana. The company has entered into Mexico Fuel Markets.
3. R&D in Bio fuels: The company has to progress investments and strengthen the portfolio in downstream and chemical business. The company has found breakthrough in algae biofuel research.
|1. Expanding in new territories|
2. Government decisions, Political Stability
|High capital expenditure Costs|
|1.Greater awareness among people regarding environmental issues|
2. Popularity of electric cars
|Breakthrough in Research|
|1. High risks of law suits and penalties in case of oil spills and environmental damage||1. Oil spills, Emission Standards, Pollution of Environment|
1. Expanding in new territories: The Company has entered in new markets and has to comply with the law of land and local regulations. The planned expansion in Port Allen, Louisiana is expected to cost the company a capital investment of $215 million.
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Woodside Petroleum SWOT and PESTLE analysis has been conducted by P Goutam Prasad Rao and reviewed by senior analysts from Barakaat Consulting.