Exxon Mobil Essay -- Business Analysis

ExxonMobil is the man-sizedst publicly traded fossil anele colour and gaseous state producing guild. ExxonMobil does business in two hundred 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). ExxonMobils best petroleum portfolio gives access to proven militia of 21.9 billion anoint-equivalent barrels of petroleum 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 produce 2.5 gazillion barrels of oil and 10.5 billion cubic feet of gas (4). Their asset base, includes more(prenominal) 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 westside Texas to West Africa and from Australia to Alaska (1). The company operates in deep seas, arctic i ce and desolate in some of the worlds most remote regions (1). ExxonMobil is the worlds largest nongovernmental marketer of equity pictorial 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 inwardness of revenue. In the Oil industry there are competitive forces that usage in the industry, but none stronger than the barriers of entry. One of the major barriers to entry is decision 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. other 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, break it almost impossible to start a new oil company.The guerilla force that affects the oil industry is the bargaining power of suppliers. In the industry, suppliers give way 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 alarm 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 resource 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 non 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 have-to doe with with competition because gas is gas. No one is going to pay a dol lar 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 rarified to see two gas stations on the same distract with significance in price. When oil prices go up, gas prices follow. Works Cited1.ExxonMobils semiofficial Website 2.TexacoShells Official Website 3.Yahoo Finance ExxonMobil stock 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