I/ CORE BUSINESS
“The Exxon Mobil Corporation or ExxonMobil is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil”. (Auke Visser 2007)
“The Exxon Mobil Corporation headquarters are located in Irving, Texas. ExxonMobil markets products around the world under the brands of Exxon, Mobil, and Esso. It also owns hundreds of smaller subsidiaries such as Imperial Oil Limited (69.6% ownership) in Canada, and Sea River Maritime, a petroleum shipping company”. (Wikipedia - the free encyclopedia, 2010)
ExxonMobil is organized functionally into several worldwide operating divisions. These divisions are grouped into three categories for reference, although the company also has several ancillary divisions, such as coal, minerals, which are standing alone.
• Upstream (oil exploration, extraction, wholesale operations and shipping). This division is based in Houston, Texas
• Downstream (marketing, refining, and retail operations). This division based in Fairfax, Virginia
• Chemical division based in Houston, Texas: The chemicals division produces and sells petrochemicals. Exxon Mobil Chemical is an affiliated manufacturer and global marketer of olefins, aromatics, fluids, synthetic rubber, polyethylene, polypropylene, oriented polypropylene packaging films, plasticizers, synthetic lubricant base stocks, additives for fuels and lubricants, zeolite catalysts, and other petrochemical products.
The upstream division dominates the cash flow of Exxon Mobil, accounting for approximately 70% of revenue. The company employs over 82,000 people worldwide, as denoted in ExxonMobil's 2006 Corporate Citizen Report, with approximately 4,000 employees in its Fairfax downstream headquarters and 27,000 people in its Houston upstream headquarters. (Wikipedia - the free encyclopedia, 2010)
“The chemical business of ExxonMobil is believed to be a growth driver, with its high-volume commodity chemical portfolio” (ICIS 2011). The company plans to grow and strengthen its chemical businesses through new product development and expansion in new markets. It will also centralize on improving efficiency and reducing the costs of manufacturing, selling, and distributing its products. ExxonMobil will build up a second world-scale steam cracker complex in Singapore, which has been estimated to cost around $4bn, to meet growing regional demand for its products. ExxonMobil intends to integrate the project with its existing Singapore site in Jurong Island, providing feedstock, operating and investment synergies with both the chemical plant and its refinery. The petrochemical project will comprise about a 1m tones/year ethylene steam cracker, two 650,000 tones/year polyethylene (PE) units, a 450,000 tones/year polypropylene (PP) unit, a 300,000 tones/year specialty elastomers unit, an aromatics extraction unit to produce 340,000 tones/year of benzene and an oxo-alcohol expansion of 125,000 tones/year.
Exxon Mobil has run its business so successfully since 2007. In ranking “the 500 leading U.S. companies in 2009 based on 2008 revenue," published by Fortune magazine, Exxon Mobil Corp. Group, with revenue of 442.85 billion, up nearly 19% compared to 2007, has exceeded Wal-Mart Stores Inc.- the retail group, occupying the first position. Oil companies based in Texas is also big business profit in 2008, with 45.2 billion dollars. Exxon Mobil's budget for the mining and oil and gas production reached a record 20 billion dollars in 2009. Half of them was given to existing wells and the proposed project operating in that year. Rest for the project was completed later in 2010. Exxon Mobil's profit increased 11% in 2008, reaching 45.2 billion U.S. dollars, a record level of profits that U.S. firms achieve, even though its revenue in quarter 4-2008 quarter reduced 33% due to oil...