Exxon Mobil Corporation

Exxon Mobil Corporation (NYSE:XOM) is a multinational oil and gas firm and is one of the biggest publicly traded energy corporations in the world. In recent times, oil and gas companies like Exxon have reported record profits as a result of the increase in oil and gas prices, which was mostly driven by western nations' sanctions against Russia as a result of its invasion of Ukraine. In terms of market capitalisation, Exxon is the second largest in the world after Saudi Aramco. In terms of revenue, it is the fourth largest in the world after Saudi Aramco, Sinopec and PetroChina respectively.

Company Overview

History of the Company

The company was created as a result of the merger in 1999 between Exxon Corporation and Mobil Corporation, which were two of the world's oldest and most prominent oil companies at the time. Exxon is the largest direct existing entity of Standard Oil founded by John D. Rockefeller, which was broken up in 1911 into 43 different entities after being found as an illegal monopoly. The merger was positioned as a strategic move to enhance competitiveness, achieve cost savings through synergies, and create a stronger and leading global energy player. According to Lee Raymond and Lou Noto, chairmen and chief executive officers of Exxon and Mobil, respectively, "This merger will enhance our ability to be an effective global competitor in a volatile world economy and in an industry that is more and more competitive. "

The firm is vertically integrated across the whole oil and gas sector but also includes a chemicals section that makes plastic, synthetic rubber, and other chemical products. Although ExxonMobil was formally formed in New Jersey, the company is based in Houston,Texas.

ExxonMobil is also the largest investor-owned oil company in the world. Approximately 60% of the company's shares are held by institutions, the largest of which as of 2023 were The Vanguard Group (9.7%), BlackRock (7.10%), and State Street Corporation (5.43%).

Mission and Values of the Company

According to its website," Exxon Mobil Corporation is committed to being the world's premier petroleum and chemical manufacturing company. To that end, we must continuously achieve superior financial and operating results while adhering to high ethical standards." The goal of ExxonMobil is to address the world's expanding energy needs by delivering dependable energy in an ethical and ecological manner. Some of the guiding principles the company adopts are:

Integrity: ExxonMobil is dedicated to upholding the highest moral principles while dealing with stakeholders.

Health and Safety: To stop accidents from happening and to keep people safe, the company works hard to establish a strong safety culture.

Environmental Responsibility: The company tries to appropriately manage its environmental footprint and invests in research and technology to create cleaner, more effective energy solutions.

Excellence: The company consistently aims to innovate, perform better, and produce remarkable results in all areas of its operations.

Main Offerings and Operations of the Company

The three main business divisions of Exxon are:

Upstream: This division is responsible for providing reliable and affordable energy solutions.

Product Solutions: This division is a combination of the Chemical and Downstream businesses. By combining the two, Exxon established the world’s largest integrated chemical, fuels, and lubricants company.

Low Carbon Solutions: Exxon has recently achieved significant progress in reducing the emissions intensity of its operational assets, and has also boosted anticipated investments in lower-emission programmes to roughly $17 billion from 2022 to 2027.

Recent Developments: ExxonMobil began oil production from the Liza field offshore Guyana in late 2019.

In 2020, ExxonMobil increased production of vital goods including polypropylene, which is used to manufacture protective masks, gowns, and wipes, as well as isopropyl alcohol, which is used to make hand sanitizer in reaction to the COVID-19 epidemic.

In order to commercialise its enormous portfolio of low-carbon technologies, ExxonMobil established a new company in 2021. ExxonMobil Low Carbon Solutions, the newly launched company, will first concentrate on carbon capture and storage, one of the crucial technologies necessary to reach net zero emissions and the climate targets set forth in the Paris Agreement.