Corporate Strategy Essay
Since inception, ExxonMobil has sort to explore and produce energy in potentially lucrative and profitable opportunities in reservoirs around the world. In the world over, ExxonMobil has drilled wells, partnered with many companies in efforts to make the company highly effective and efficient in energy production and supply. ExxonMobil’s core business is exploration and production of oil and gas.
The company’s petroleum is mainly sold through Exxon’s/Esso’s service stations around the world, while the company’s aviation fuel is mainly marketed and sold at the airports. To cater for the fuel needs at the ports ExxonMobil Marine Fuels is the core servicer to the ports. Not only is the company, the world’s largest non-governmental seller of equity natural gas , but also the world’s leading marketer of finished lubricants, using the brand name Mobil and the world’s largest wholesaler of helium .
Among the company’s chemical products are plastics, oriented polypropylene film, synthetic rubber, fluids, plasticizers, basic chemical building blocks such as ethylene, ethylene glycol, propylene and paraxylene, fuel and lubricant additives and synthetic lubricant base stocks . In its operations, the company operates its coal extraction and mining in two continents while the oil and gas exploration is done all over the
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The company presumes that oil and gas, as energy sources, can maintain approximately 60% of energy resources in 2030 and that no major substitutes to oil will be realized as the transport fuel in the near future. ExxonMobil’s analysis is that alternative energy resources could offer the highest carbon emitting impact in the electricity section, and the world would then maintain its demand for oil and gas for its key energy needs for years and years to come. Strategic mergers and acquisitions have seemingly been ExxonMobil’s strengths.
Competing with such highly competitive companies such as BP ConocoPhillips in pipeline proposal in Alaska, ExxonMobil seems to have exerted its competitiveness as it finally clinched the deal. As Smith (2009) reported: Two decades after the Exxon Valdez oil spill, ExxonMobil, has joined a massive Alaskan engineering project and may be about to regain the favor of the state’s citizenry … The company announced on Thursday that it’s putting its expertise behind a massive $26 billion pipeline project that will transport natural gas from Alaska’s North Slope all the way to Chicago.
In doing so, it’s joining TransCanada Corp. , one of the largest pipeline operators in North America … My main takeaway from this new series of events is an increased regard for ExxonMobil, which clearly will go anywhere to ply its trade. With more North Slope natural gas reserves than anybody, it clearly has the most to benefit from the pipeline. And with crude prices having moved upward in the past few months, Foolish investors clearly should not be unrepresented in the energy sector.
In my opinion ExxonMobil is the ideal proxy for the group. ExxonMobil’s exploration strategy is to identify, evaluate, pursue, and capture the highest quality opportunities around the world (ExxonMobil, n. d). Esso, Mobil and ExxonMobil’s operations in the United Kingdom are all under their parent company Exxon Mobil Corporation.
With an eye in approximately 50, oil and gas producing fields in the United Kingdom, and “the largest net licensed acreage on the UK Continental Shelf” (ExxonMobil website, n. d), Exxon Mobil Corporation sets itself out as one of the leading companies in the oil and gas industry. Esso Exploration and Production UK Limited as well as Mobil North Sea LLC are at the forefront of the company’s offshore operations based in the United Kingdom (UK). In a 50/50 joint venture with \Shell, ExxonMobil made great investments in the North Sea in the UK for the exploration of oil and gas though Shell still remains as the operator of most of the fields as designated in the joint venture.