Key Strategies of ExxonMobil

ExxonMobil

ExxonMobil meets a range of consumer needs while maximizing shareholder value by concentrating on its key skills, which include a strong R&D platform, vertical integration, product diversification, economies of scale, and operational excellence. Utilizing fundamental strengths across the entire Oil & Gas value chain, from crude oil and natural gas production to refining, transportation, marketing of petroleum products, and product trading, Exxon is able to give value to clients and achieve a competitive edge. Exxon, currently the largest oil and gas firm in the world, is a significant player in the conversion of hydrocarbons, marketing and sales of petrochemical products, production and sales of plastic and synthetic commodities, and so on. Exxon uses its unique geoscience expertise and knowledge of the world’s hydrocarbon endowment to identify and prioritize all high-quality resources in a way that is both efficient and affordable.

Exxon’s strategy is a cost-leadership unique strategy that thrives by producing a comparable commodity valued at a low cost using its knowledge and abilities, thereby beating its competitors. This reputable firm uses its industry-leading capabilities and technologies, and a methodical approach to outshine its rivals and at the same time practice solutions that will mitigate environmental pollution.

The goal of ExxonMobil is to be the leading oil and petrochemical corporation in the world. Each of the three market segments—upstream, downstream, and chemical—must be the best among its rivals in order to carry out that objective. Using its unique strategy, it has fulfilled that objective, and the company is working on new strategies to enable them to stay at the peak.

ExxonMobil is concentrating on five crucial strategic goals to steadily increase shareholder value and generate revenue by:

-Leading the sector in terms of financial, operational, and environmental performance, particularly in terms of important indicators like dependability, safety, intensity reductions of greenhouse gas emissions, earnings, and cash flow growth.

-Being a vital partner by developing cutting-edge solutions for clients, partners, and stakeholders.

-Upgrading the business’s advantageous portfolio to make sure it outperforms the competition and adds value across a variety of external settings and turbulent, changing markets.

-Maintaining innovation while offering services that reliably and affordably address society’s expanding requirements This entails new goods, technology, and methods that can be widely used to have a significant influence while better meeting the demands of the present and the future.

-Developing the company’s workforce and keeping a diverse, engaged workplace that gives each employee unmatched chances for professional and personal growth while producing meaningful work that meets society’s changing needs.

In recent times, the company is not only embarking on key strategies to enhance its growth and generate revenue, but very importantly, strategies that can curb its large production of hazardous gases and products in its operations. ExxonMobil is dedicated to delivering trustworthy and reasonably priced energy to enable human growth while putting into practice and advancing practical solutions to reduce environmental hazards. The company is in a good position to responsibly satisfy the rising energy demand of a more affluent world thanks to the measures taken to address the risks associated with climate change, which are illustrated below.

Reducing emissions in the company’s operations

ExxonMobil employs a comprehensive array of procedures to increase energy efficiency and reduce emissions, including initiatives aimed at lowering methane emissions as well as flaring and venting. These procedures include customized goal-setting at the business, location, and equipment levels as necessary, followed by monitoring progress toward achieving those goals. This genuine approach works well to increase operational economies and lower greenhouse gas emissions while aiming for industry-leading performance. From 2011 to 2020, ExxonMobil’s greenhouse gas emissions decreased by about 13%. The reduction in greenhouse gas emissions from the base facilities that were in operation in 2011 was almost 27 percent (roughly 33 million tonnes), primarily as a result of portfolio optimization, advancement in energy, a reduction in flaring, venting, and fugitive emissions, and the aftermath of COVID-19 had on the firm’s operations.

The creation and use of scalable technology solutions

The company is well-positioned to advance advances in fields including carbon capture, biofuels, and energy-efficient process technologies thanks in large part to ExxonMobil’s persistent investment in R&D. The power, industrial, and long-distance heavy-duty transportation sectors might all benefit from using these technologies, which are crucial for mitigating the risks of climate change.

To provide economical and scalable energy, a range of scientific and engineering disciplines are required. ExxonMobil has about 20,000 scientists and engineers working for the firm, many of whom have doctorate degrees (more than 2,000). Over the past ten years, the company’s scientists have written more than 1,000 peer-reviewed articles and have received more than 10,000 patents. ExxonMobil has collaborated with organizations like FuelCell Energy to promote the development and application of less expensive carbon capture technologies, as well as with Viridos (formerly Synthetic Genomics Inc.) to create sustainable fuels. The company is in an advantageous position to advance energy solutions from the lab to scale because of its strengths in science and engineering across the innovation pipeline and broad connections.

Supplying goods that assist clients in reducing their emissions

Even under 2°C scenarios, it is anticipated that in the next few decades, an increase in population and economic growth, as well as an unprecedented rise in the global middle class, will lead to an increase in demand for energy and hydrocarbon products. ExxonMobil is addressing this increase in product demand by providing clients with solutions that help them lower their emissions and increase their energy efficiency. The company is planning to work on natural gas, as it is very cogent in the reduction of global emissions. When life cycle emissions are taken into account, natural gas for power generation emits a whooping 60% less greenhouse gases and much less air pollution than coal. When wind or solar energy are not accessible, natural gas offers a dependable source of electricity as a backup. LNG makes it possible to transport natural gas securely and affordably from supply hubs to customers. As of today, ExxonMobil is one of the biggest manufacturers and suppliers of natural gas. The company is also a leader in LNG.

In addition to working on natural gas, the billion-dollar firm is also working on the production and supply of lightweight materials.

Manufacturing and supply of lightweight materials and packaging

The market for petrochemical-based goods such as electronics, building supplies, vehicle parts, and other goods is steadily expanding. ExxonMobil creates materials for vehicles that reduce the overall weight by 10%, this results in an estimated 7% gain in fuel efficiency. Butyl rubber manufactured by the company helps tires retain air pressure, which increases fuel efficiency by up to 2% and elevates electric vehicle range by up to 7%. Without lightweight materials, such as those created by ExxonMobil, many recent technological advances, such as battery-powered electric vehicles, would not be possible.

ExxonMobil also offers lightweight packaging materials for consumer goods, lowering energy consumption and greenhouse gas emissions associated with transportation. It delves into the manufacturing packaging materials. In addition to adding days or even weeks to the shelf life of fresh foods, advanced packaging also increases food safety, lowers food waste, and reduces agricultural process emissions.

Active engagements in climate-related policies

ExxonMobil participates directly in climate-related policies through trade associations and targeted industry collaboration initiatives like the Oil and Gas Climate Initiative. In order to effectively combat global poverty, improve global health and education success, and ensure energy security, policy solutions to combat climate change should be balanced. Higher levels of childhood education, decreased poverty and malnutrition, and longer life expectancies are all strongly correlated with access to modern energy.

ExxonMobil is a member of the Oil and Gas Climate Initiative (OGCI), a voluntary initiative that brings together 12 of the biggest producers of oil and natural gas in the world to work cooperatively to reduce the risks associated with climate change. OGCI is an organization led by CEOs that focuses on creating workable solutions in a variety of fields, such as carbon capture and storage, lowering methane emissions, and improving energy and transportation efficiency.

Conclusion

These aforementioned strategies in generating revenue, and curbing environmental pollution and climate hazard have seemed to yield success in recent days.