EXXON MOBIL CORPORATION

Final Project: Exxon Mobil Corporation

Exxon Mobil Corporation

Introduction

The company I have chosen for my final project is Exxon Mobil. It has recently been awarded top position in the list of Fortune 500 companies; America's annual ranking of 500 largest corporations. The continuous growth of Exxon Mobil and constant profitability in Oil and Gas industry; that is dynamic and deeply affected under changing economic conditions, will help in clear understanding of managerial economics concepts and their applications, if we undertake thorough analysis.

Discussion on Exxon Mobil

Company Profile, products and services offered

Exxon Mobil is a multinational oil and gas corporation based in America with the headquarters being located in Irving, Texas. It was formed in the November of 1999 following the merger of Exxon Corporation and Mobil Oil Corporation; which are the direct descendants of J. D. Rockefeller's Standard Oil. World's largest by revenue and among the largest publicly traded companies by market capitalization, Exxon Mobil's product portfolio basically revolves around fuels, mineral and synthetic lubricants pertaining to consumer, industrial, marine, commercial and aviation segments, petrochemical and polymer products, specialty products, basestocks and asphalt. Furthermore, they are involved in electricity generation and possess service stations and convenience stores in addition to the providing of technology licensing and, technical advice through their technical advisory service. In the end of 2007, its oil reserves were estimated to last over around 14 years. Largest refiner and largest among the six supermajors, Exxon Mobil is ranked by its reserves among the top 14. The clout of the company can be determined by statement of The Daily Telegraph declaring Exxon Mobil as the most hated company because of its influence in the determination of fiscal policy and hence the fate of entire nation.

The corporation possesses number of global operating divisions which are further grouped into three categories. Other than that, Exxon Mobil also possesses some auxiliary standalone divisions such as Coal and Minerals. Their upstream operations mainly consist of exploration and extraction of oil along with its shipment and wholesaling. While on the other hand, downstream activities involve refining, marketing of the products produced and retail operations of Exxon Mobil. Pertaining to these activities, they have numerous separate upstream and downstream companies, in addition to the Exxon Mobil Chemical Company and Exxon Mobil Global Services Company.

Forces impacting Supply and Demand

The principle force impacting the supply and demand of Exxon Mobil is the economic condition. It is the economic conditions because of which Exxon's customers are angry and Exxon can face consumer backlash for the higher gas prices it is charging. Although, rising gas prices are not the direct result of Big Oil or Exxon but yet Exxon undertook PR campaign to deflect even minor of the public attention over Big Oil's role in escalating prices of gas and fuel. This was reflected in the Gallup Poll conducted in the May of 2012. Then percentage of people blaming Oil and gas corporations has fallen over a year from 34% to 20% and those blaming oil refiners ...