ExxonMobil Corp. Overview

ExxonMobil Corp.

Introduction

Exxon Mobil is an American multinational oil and gas firm that has its headquarters located in Irving. It is well known by the abbreviation Exxon. It was established on 30 November,1999, by the amalgamation of Exxon and Mobil, and it is the biggest direct descendent of John D. Rockefeller’s Standard Oil. Along with Esso, both of its forerunners are still utilized as brands for gas stations and downstream products today. This multinational firm has some subdivisions. ExxonMobil Chemical, a subdivision of the billion-dollar company, deals in the manufacturing and sales of synthetic products, plastic, and a large number of small chemical commodities. Exxon is incorporated in New Jersey.

History

ExxonMobil has developed over the past 135 years from a local kerosene dealer in the United States to one of the biggest publicly traded petroleum and petrochemical firm in the world. Currently, the company has operations in the majority of the nations across the globe, and its most recognizable brands are Exxon, Esso, and Mobil. It deals in the manufacturing of commodities that power cities, lubricate industry, propel modern transportation, and provide the petrochemical raw materials for countless consumer goods.  

It can be traced all the way back to Standard Oil in the 1860s-era. Standard Oil Company is a company that dates back to 1863 when John .D Rockefeller partnered with Maurice B. Clark and Samuel Andrews in an oil-refining enterprise in Cleveland, Ohio. Rockefeller acquired Clark’s interest in the business in 1865, and two years later he requested Henry M. Flagler to become a partner. This small company grew so rapidly that, in 1870, the largest refineries in Cleveland were run by Rockefeller, Andrews, and Flagler. Standard Oil Company acquired ownership of these as well as allied facilities. By 1880, it had gained control over the refining of 90 to 95 percent of all the oil produced in the United States through the eradication of rivals, merging with other businesses, and the utilization of advantageous railroad rebates.

The Standard Oil Trust was founded in 1882 by the Standard Oil Trust Agreement, which was signed by nine trustees, including Rockefeller, and included the Standard Oil Company and affiliated businesses that were involved in oil refining, manufacturing, and marketing. The agreement allowed for the purchase, creation, dissolution, merging, and division of the business.

This led to the division of the company to form Standard Oil of New Jersey in 1882. Following its establishment, this new subsidiary changed its name. The Standard Oil Corporation (New Jersey) was the new name given to the company’s New Jersey subsidiary in 1899. The company was incorporated as a holding company. In addition to that, the New Jersey subsidiary also received all previous trust-related assets and interests. Despite the fact that consolidation facilitated the large-scale production and distribution of oil products, many critics thought the accompanying increase in economic power concentration was excessive. The Standard Oil Company (New Jersey) was sued by the US government in 1906 under the Sherman Antitrust Act of 1890, and in 1911 it was mandated that it divest 33 of its principal holdings. Eight businesses kept the name “Standard Oil” in their titles when the Standard Oil empire was broken up in 1911, but by the late 20th century the trademark had somewhat disappeared. To become Socony-Vacuum, which later changed its name to Mobil Oil Corporation in 1966, Standard Oil Business of New York and Vacuum Oil Company (another trust company) amalgamated in 1931. Standard Oil (Indiana) was renamed Amoco Corporation in 1985 after absorbing Standard Oil of Nebraska in 1939 and Standard Oil of Kansas in 1948. Standard Oil of California bought Standard Oil of Kentucky in 1961, and in 1984 the company had its name changed to Chevron Corporation. In 1972, Standard Oil Company (New Jersey) became Exxon Corporation. Standard Oil Company (Ohio) was fully acquired by British Petroleum Company PLC in 1987. BP (formerly known as British Petroleum) and Amoco amalgamated in 1998. In 1999, Exxon and Mobil combined to form ExxonMobil and in 2001, Chevron merged with Texaco.

Following the terms of their merger agreement, Exxon would acquire Mobil, change its name to ExxonMobil, and promote Mobil’s CEO to vice-chairman of the newly formed organization.

Founders

The founders of this reputable billion-dollar company are the individuals that established its predecessors. They are John D. Rockefeller (Co-founder & chairman), Stephen V. Harkness

(Co-founder & initial investor), William A. Rockefeller (Co-founder, senior executive & New York Representative), Henry M. Flagler,

(Co-founder & senior executive), Samuel Andrews,

(Co-founder, chemist & head of refining operations).

Business tycoon and philanthropist John Davison Rockefeller Sr. was born in America on July 8, 1839, and died on May 23, 1937. He is largely regarded as the richest individual in modern history and the richest American of all time. Rockefeller was raised in a large family that migrated to different places very frequently. His very mobile family eventually settled in Cleveland, Ohio. He was born in upstate New York. At age 20, delved into the world of business and business partnerships focusing on oil refining. In 1870, Rockefeller established the Standard Oil Company. He served as its manager and biggest shareholder until 1897.

Today, ExxonMobil is one of the biggest reputable companies, having a revenue of about 276 billion dollars and over 64,000 employees scattered across the globe. Just like its predecessors, it has subsidiaries. Some of its subdivisions include;

– Aera Energy

-Exxon Neftegas

-ExxonMobil Australia

-ExxonMobil Nigeria

-Imperial Oil

-SeaRiver Maritime

-XTO Energy.

This reputable company has some very important key names that have ensured that the company remains as on of the top revenue generators. These people work tirelessly in order to ensure that the company keeps its high and status.

Daren Woods (Chairman and CEO)

 Born in the 1960s, Darren W. Woods, an American business tycoon, has served as ExxonMobil’s CEO and chairman. He began his journey as the CEO on the 1^st January, 2017.

1992 saw Woods join Exxon. Before being elevated to CEO in the era of President Donald Trump’s nomination of Rex Tillerson to be the next Secretary of State of the United States, he had spent 24 years working for Exxon. Woods is an expert in the oil refining sector, in contrast to his predecessor, who worked in deal-making and exploration. The company’s refining and chemical divisions, which produced the majority of ExxonMobil’s $7.8 billion in net income in 2016, were managed by Woods before he was named CEO.

Other notable executives include

-Neil Chapman, Senior Vice President

-Kathryn Mikells, Chief Finance Officer CFO and Senior Vice President

-Jack Williams, Senior Vice President

-James Spellings, General Tax Counsel and Vice President.

ExxonMobil has been one of the top ten publicly traded businesses by revenue since its merger agreement. It is one of the largest firms in the world by revenue and has one of the highest market capitalizations. ExxonMobil was rated sixth on the Fortune Global 500 as of 2022 (according to the most recent rankings made public for the Fortune 500). It is the largest oil corporation in the Western Hemisphere, the largest oil company in terms of output and market value, and the largest investor-owned oil company in the world. For the fiscal year 2020, ExxonMobil reported a loss of US$22.4 billion, with an annual revenue of US$181.5 billion, a decline of 31.5% over the previous fiscal cycle. In addition to that, it saw its highest US share value in 2014 ($97.27) and lowest in 2020 ($44.52). As at 2021, there was a slight increment from the previous year, making the value of its share ($57.96).

Operations

A strategic alliance exists between ExxonMobil Corp. and several international operating divisions. Although the corporation also includes various stand-alone divisions, such as Coal & Minerals, these divisions are categorized into three groups for convenience. Additionally, it has a huge number of smaller affiliates, including XTO Energy and SeaRiver Maritime. Additionally, ExxonMobil owns the majority of Imperial Oil. The three main operations are

-Upstream (oil exploration, extraction, shipping, and wholesale operations) (oil exploration, extraction, shipping, and wholesale operations)

-Products Solutions (downstream, chemical)

-Solutions with Low Carbon

Upstream

The majority of ExxonMobil’s revenue—roughly 70% of it—comes from its upstream business. ExxonMobil Corp. had 38.1 trillion cubic feet of natural gas and roughly 30 billion barrels of oil and oil equivalents in 2021.

ExxonMobil Corp. concentrates its oil exploration and production activities in the Permian Basin, Bakken Formation, Woodford Shale, Caney Shale, and the Gulf of Mexico in the United States. The company also has a number of gas developments in the Marcellus Shale, Utica Shale, Haynesville Shale, Barnett Shale, and Fayetteville Shale regions as well.

Products Solutions

In 2022, ExxonMobil Corp. created its Product Solutions division by combining its formerly independent Downstream and Chemical businesses into one business.

As for the downstream aspect, ExxonMobil Corp. earns revenue all around the world under the Exxon, Mobil, and Esso brands. In the states of California, Florida, New York, New England, the Midwest, and the Great Lakes, ExxonMobil’s main retail gasoline brand is Mobil. In the rest of the country, Exxon is the leading brand, with the majority of its retail locations being found in New Jersey, Pennsylvania, Texas (shared with Mobil), and the Mid-Atlantic and Southeastern states. With 46 stations, ExxonMobil is barely ahead of Phillips 66 and behind Shell USA, with the exception of Alaska, Hawaii, Iowa, and Kansas.

Esso and Mobil are mostly utilized outside of the United States; Esso operates in 14 nations and Mobil operates in 29 countries and regions.

The chemical divisions of Exxon and Mobil were combined to form ExxonMobil Chemical, a petrochemical firm. Basic olefins and aromatics, ethylene glycol, polyethylene, and polypropylene are some of its main products. It also produces specialty lines like elastomers, plasticizers, solvents, process fluids, oxo-alcohols, and adhesive resins. In addition, the company makes propylene packing films, catalysts, lubricant additives, and synthetic lubricant base stocks. The major manufacturer of butyl rubber is ExxonMobil Corp.

Low Carbon Solution

The company’s alternative energy branch, Low Carbon Solutions, was formally established as part of ExxonMobil’s organizational restructuring in 2022 and is now run by Dan Ammann, a former president of General Motors. Using a combination of low-emission fuels, hydrogen, carbon capture, and storage, the division hopes to reduce emissions in hard-to-decarbonize industries like heavy industrial, commercial transportation, and power production. Research on clean energy technologies is done by Low Carbon Solutions. Examples include algae biofuels, biodiesel produced from agricultural waste, carbonate fuel cells, and the use of a membrane and osmosis rather than heat to transform crude oil into plastic.