Exxon Mobile Research Paper Example | Topics and Well Written Essays - 1500 words

Exxon Mobile - Research Paper Example Its large production operations reserves and diversity, possession of one of the largest E&P portfolios and its technological superiority are some of the benefits attributed to its efficiency. Exxon Mobile markets its products under three brands including Esso, Mobil, and Exxon. The company also owns smaller subsidiary such as Sea River Maritime and Imperial Oil Limited. The biggest cash flow is, however, dominated by the upstream divisions, which account for about 70% of the total revenue (Exxon Mobile Corp, 2011). Company and industry characteristics Primary products Exxon mobile’s primary products include fuels, chemicals, natural gas and lubricants and special products. The fuel products, which is its core activity, is produced in a variety of types including gas oil for industrial applications, heavy fuel oils for power stations, domestic fuel oil for heating in buildings and houses, LPG and diesel for cars and gas oil for industrial applications and heavy fuel oils for p ower stations. Exxon also manufactures lubricants and fuels for the aviation industry. Lubricants and special products are sold under the Mobil brand, which comes in a wide range of amounts and types. The chemicals are classified as petrochemicals, which are produced from petroleum and include the common chemicals that are used in everyday life, such as synthetic rubber, packaging materials, solvents, plastic bottles and other consumer products. Lastly, ExxonMobil produces natural gas, which is in pure form of LPG used as a propellant for manufacturing cosmetics. Competitiveness of the industry The oil and gas industry is operating under a challenging and a dynamic global marketplace and a progressively more adamant group of participants. The regulatory demand is increasingly putting pressure on the operations, and the demand growth is becoming sluggish, while the existing reserves are more expensive and difficult to generate. As the demand to meet future demand builds up, worldwide alliances are becoming more significant. Over the recent years, oil price fluctuation has become the order of the day. In spite of this, the companies in this industry have a challenging task of ensuring they focus on the medium to long-term conditions if they are to make credible decisions and achieve their growth targets. Investing in people, technology and R&D are critical in ensuring a lasting competitive edge. Exxon Mobile’s primary competitors include Chevron Corporation and BP. Chevron is an American multinational energy Corporation with the presence in more than 180 nations. Its operations cover all aspects of gas, oil, and geothermal energy industries that include mining; refinement, marketing and transportation; sale and manufacture of chemicals; and also generation of power. Chevron is among the top 6 major oil companies. (U.S. Energy Information Administration, 2011). Financial statements and ratio analysis Financial statement analysis In financial statements ana lysis, we have used year 2008 to 2011 comparatives. Total revenue reported in year 2008 amounting to $ 433,526,000 dropped to $ 275,564,000 in 2010 (Exxon Mobile Corp, 2011). This significant decline in revenues could be attributed to the effects of global economic depression that had just started to bite and due to sharp rise in prices of fuel products - this forced many people and businesses to use alternative sources of energy. To guard against losses occasioned by reduced economic activity, the