Exxon Mobil Essay -- Business Analysis

ExxonMobil is the largest publicly traded oil colour 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 foodstuff fuels (1). ExxonMobils world-class petroleum portfolio gives access to proved reserves of 21.9 billion oil-equivalent position of oil and gas, which is the highest in the industry (1). The companys discovered resources consist of 72 billion oil equivalent barrels of oil and gas. On average, each day, they promote 2.5 million barrels of oil and 10.5 billion cubic feet of gas (4). Their addition base, includes more than 60,000 production wells in 1,800 fields in 25 countries. With activities in some 40 countries, ExxonMobils oil and gas fields adjoin from West Texas to West Africa and from Australia to Alaska (1). The company operates in deep seas, arctic shabu and deserts in some of the worlds most re mote regions (1). ExxonMobil is the worlds largest nongovernmental marketer of impartiality 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 Exxons basal means of revenue. In the Oil industry there are rivalrous forces that function in the industry, but none stronger than the barriers of opening. One of the major barriers to entry is finding a supply of petroleum or gas. The cost of research, discovery, and getup of gas and petroleum can easily reach the 100s of millions of dollars. Another problem a new company would face, is receiving permission to lift oil in a foreign country. Because of the amount of money confused in oil, countries tend to produce oil on their own, rather than trade the profits. The large investment in capital and the political connections needs to acquaint the industry, make it almost i mpossible to start a new oil company.The second force that affects the oil industry is the bargaining provide of suppliers. In the industry, suppliers have all the power. There is no international trade commission, so oil can be dispersed at any footmark and be sold at what ever price suppliers want. The inelasticity of oil and the everlasting fear that oil is on the verge of running out, gives suppliers absolute power in the ... ...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(prenominal) the financial and humanity rewards. For Exxon to end with oil would be a enormous 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 compensation a dollar more for Exxons gas tha n Texaco. Another cipher that eliminates competition from the industry is a unwritten theme that gas prices happen upon together. It is rare to see two gas stations on the equivalent block with significance in price. When oil prices go up, gas prices follow. kit and caboodle Cited1.ExxonMobils Official Website 2.TexacoShells Official Website 3.Yahoo Finance ExxonMobil line of work information and financial reports. 4.ExxonMobils Official Website Products and Services Subsidiaries and info about.5.TexacoShells Official Website 6.ExxonMobil stock information and financial reports. Historical Stock Prices