Exxon Mobil Essay -- Business Analysis

ExxonMobil is the largest publicly traded oil and grease-gun producing comp either. ExxonMobil does business in 200 countries world-wide (1). some(prenominal) countries are designated for exploring feature and crude, and some are designated for manufacturing chemicals, lubricants, and market fuels (1). ExxonMobils world-class petroleum portfolio gives access to proven reserves of 21.9 million oil-equivalent barrels of oil and gas, which is the highest in the effort (1). The companys 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, ExxonMobils 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 worlds most remote regions (1). ExxonMobil is the worlds largest nongovernmental vendor 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 Exxons primary means of revenue. In the Oil persistence there are competitive forces that region 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 100s 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 hood 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 talk terms berth 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 ... ...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 monetary 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 Exxons 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 Cited1.ExxonMobils Official Website 2.TexacoShells Official Website 3.Yahoo Finance ExxonMobil stock selective informationrmation 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