Exxon Mobil_Assignment

Exxon Mobil Corporation

Company Profile

Presented By :

Group -1

1. Abhishek Kr (R. No -1) 2. Ajit Singh Yadav (R. No -2)3. Akhil Kr Chaudhary (R. No -3)4. Aman Arora (R. No -4)5. Amit Anand (R. No -5)6. Ankita Wahi (R. No -6)7. Vasudeep (R. No -61)

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Exxon Mobil CorporationTable of Contents

Table of Contents Page No

Company Overview………………………………………………………………..3

Key Facts…………………………………………………………………………...3

Business Description………………………………………………………….........5

History……………………………………………………………………………...6

Fortune Rankings – An Analysis…………………………………………………..12

Elements of Planning…………………………………………………………........19

Revenue Analysis…………………………………………………………………..22

Managerial/Leadership style in terms of Growth………………………………….23

Major Products and Services………………………………………………………25

Environment and Climate Change…………………………………………….......27

SWOT Analysis…………………………………………………………………...30

Top Competitors…………………………………………………………………..36

Company View………………………………………………………………........37

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Exxon Mobil CorporationCompany Overview & Key Facts

COMPANY OVERVIEWExxon Mobil Corporation (Exxon Mobil) is an integrated oil and gas company based in the US. It is engaged in exploration and production, refining, and marketing of oil and natural gas. The company is also engaged in the production of chemicals, commodity petrochemicals, and electricity generation.

The company operates across the globe. It is headquartered in Irving, Texas and employs about80,000 people.

The company recorded sales and operating revenues of $459,579 in the financial year endingDecember 2008 (FY2008), an increase of 17.7% over the financial year ending December 2007(FY2007). The operating profit of the company was $84,070 million in the FY2008, an increase of17% over FY2007. The net profit was $45,220 million in the FY2008, an increase of 11.4% overFY2007.

KEY FACTSHead Office Exxon Mobil Corporation5959 Las Colinas BoulevardIrvingTexas 75039 2298USAPhone 1 972 444 1000Fax 1 972 444 1348Web Address http://www.exxonmobil.comRevenue / turnover 459,579.0(USD Mn)Financial Year End DecemberEmployees 79,900

Present CEO: Mr. Rex W. Tillerson

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Exxon Mobil CorporationCompany Overview & Key Facts

Ranking of Exxon Mobil in Fortune 500 from FY 2001 to 2009

Revenues

Year Rank Company

Profits($ millions)

($ millions)

2001 1Exxon Mobil 210,392.00 17,720.00

2002 2Exxon Mobil 191,581.00 15,320.00

2003 3Exxon Mobil 182,466.00 11,460.00

2004 2Exxon Mobil 213,199.00 21,510.00

2005 2Exxon Mobil 270,772.00 25,330.00

2006 1

Exxon Mobil (XOM) 339,938.00 36,130.00

2007 2Exxon Mobil 347,254.00 39,500.00

2008 2Exxon Mobil 372,824.00 40,610.00

2009 1Exxon Mobil 442,851.00 45,220.00

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Exxon Mobil CorporationBusiness Description

BUSINESS DESCRIPTION

Exxon Mobil Corporation (Exxon Mobil) is engaged in exploration and production of crude oil and natural gas, manufacture of petroleum products, and transportation and sale of crude oil, natural gas, and petroleum products. The company also manufactures and markets commodity petrochemicals and specialty products. Exxon Mobil is also engaged in electric power generation.

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The company operates across the globe. Exxon Mobil operates through three segments: upstream, downstream, and chemicals.

The upstream segment explores for and produces crude oil and natural gas. The company's upstream business has operations in 36 countries and includes five global companies. These companies are responsible for the corporation's exploration, development, production, gas and power marketing, and upstream-research activities. The company's upstream portfolio includes operations in the US, Canada, South America, Europe, the Asia-Pacific, Australia, the Middle East, Russia, the Caspian, and Africa.At the end of FY2008, the company had net reserves of 7,576 million barrels of oil and 31,402 million cubic feet of natural gas. The company had 16,558 of crude oil and 9,387 of natural gas net production wells at the end of FY2008. Exxon Mobil’s net exploration acreage totaled 73 million acres in 33 countries at the end of the same period. The company is also engaged in power generation. Exxon Mobil has interests in electric power generation facilities with total capacity of 16,000 megawatts (MW).

The company's downstream activities include refining, supply, and fuels marketing. The company's refining and supply business focuses on providing fuel products and feedstock. Exxon Mobil manufactures clean fuels, lubes, and other high-valued products. At the end of FY2008, the company had interests in 37 refineries across 20 countries, with distillation capacity of 6.2 million barrels per day and lubricant base stock manufacturing capacity of 140 thousand barrels per day. The company has interests in 12 lubricant refineries and manufactures three brands of finished lubricants (Exxon, Mobil, and Esso) through interests in over 31 blending plants. In FY2008, Exxon Mobil's refinery throughput was 5.4 million barrels per day. The fuels marketing business operates throughout the world. The Exxon, Mobil, Esso, and On the Run brands serve motorists at nearly 29,000 service stations and provide over one million industrial and wholesale customers with fuel products. Fuel products and services are provided to aviation customers at more than 630 airports and to marine customers at more than 180 marine ports around the world. The company supplies lube base stocks and markets finished lubricants and specialty products.

The chemicals division manufactures and sells petrochemicals. Exxon Mobil Chemical is an integrated manufacturer and global marketer of olefins, aromatics, fluids, synthetic rubber, polyethylene, polypropylene, oriented polypropylene packaging films, plasticizers, synthetic lubricant base stocks, additives for fuels and lubricants, zeolite catalysts, and other petrochemical products.

Exxon Mobil CorporationHistory & Background

HISTORY & BACKGROUND

With the merger of Exxon and Mobil in 1999, the newly formed Exxon Mobil Corporation brought together a shared history that dates back over 120 years to their origins as part of the Standard Oil family of companies.

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John D. Rockefeller and partners formed the Standard Oil Company of Ohio in 1870, after having entered the oil business in 1863 with the founding of Andrews, Clark & Company and later Rockefeller, Andrews & Flagler in 1867. Standard Oil quickly began partnering with or purchasing many other Northeastern companies responsible for refining, transporting and marketing petroleum products. In 1882, after determining the feasibility of setting up a joint-stock corporation, Rockefeller and partners formed the Standard Oil Trust to unify what then numbered about 40 companies. From then on, the Trust’s nine trustees exercised broad management and control for each company, with daily operational decisions made at the individual company level. That same year, the Trust formed Standard Oil Company of New Jersey and Standard Oil Company of New York, which soon became two of the Trust’s larger concerns.

By 1889, the Trust had amassed companies responsible for all aspects of the petroleum industry – exploration, production, refining, transportation and marketing – creating a vertically integrated organization. Congress’s passage of the Sherman Anti-Trust Act of 1890, however, which aimed to ensure fair competition in interstate commerce and to eliminate monopolies, eventually led to the dissolution of the Trust in 1892.

Not to be outdone, the company rebounded by forming the Standard Oil Interests, consisting of about 20 holding companies. In 1899, taking advantage of a New Jersey law allowing a single corporation to own stock in other companies, Standard Oil Company of New Jersey became the holding company for the Standard Oil Interests.

The re-organized Standard Oil Company of New Jersey and Standard Oil Company of New York emerged as two of the strongest companies. (The former would become Exxon; the latter Mobil.) Throughout the 20th century, both companies continued to grow and forge individual identities. This growth meant strengthening its industry alliances, merging with other companies, developing new technologies and diversifying its holdings.

Both companies weathered the breakup well. Provisions of the 1911 dissolution agreement assigned marketing for New York state and New England to Standard Oil Company of New York (Socony) and allowed Socony to maintain its extensive overseas operations. Standard Oil (New Jersey) maintained marketing in the mid-Atlantic region and gained control of Standard Oil Company of Louisiana (Southern marketing), Carter Oil Company (production), Imperial Oil Company (Canadian operations) and Gilbert & Barker Manufacturing (service station equipment).

The companies’ first major expansion was in the southwest. With oil discovered in Corsicana, Texas, as early as 1894, this was a logical region for exploration. Texas-based Magnolia Petroleum Company experienced rapid growth during the 1910s and quickly caught Socony’s attention, resulting in substantial stock acquisitions. By 1925, Magnolia’s stock was exchanged for Socony stock, and Socony’s Texas properties were transferred to the newly incorporated Magnolia.

With Magnolia as a full-fledged subsidiary, Socony continued its growth by merging with Vacuum Oil Company of Rochester, New York, in 1931 to form the Socony-Vacuum Oil Company, Inc. The Standard Oil Company of Ohio had acquired majority interest in Vacuum Oil in 1879, and it was yet another strong company to emerge from the 1911 breakup. Organized in 1866,Vacuum Oil produced the first petroleum-based lubricants for horse-drawn carriages and, later, for steam engines. Notably, Vacuum Oil introduced the Mobil brand, which Socony-Vacuum continued to use.

As the merger provided increased stability in the domestic market, Socony-Vacuum set its sights on its foreign resources and joined with Standard Oil (New Jersey) to form the Standard-Vacuum Oil Company, or Stanvac, in 1933.


This 50/50 venture operated in nearly 50 countries, from Africa to the South Pacific, until the assets were divided in 1962.

Just as Socony expanded into the southwest, Standard Oil (New Jersey), too, sought to take advantage of new opportunities in the region and entered Texas soon after Socony, acquiring considerable interest in Humble Oil & Refining Company in 1919.

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Standard Oil continued to build its interest in Humble throughout the first half of the century. By 1958, Standard Oil owned nearly 98% of Humble. The next year Standard Oil and Humble consolidated their U.S. operations. By the end of 1960, Humble had absorbed Esso Standard (Standard’s domestic operating company), Carter Oil Company, Enjay Chemical Company, Oklahoma Oil Company and other Standard Oil affiliates, resulting in a more streamlined and efficient company.

During World War II, major oil companies stepped up production and refining to support the war effort. Unfortunately, both companies experienced casualties as facilities and tankers were destroyed in the European and Pacific theaters. When the war ended, the companies looked toward rebuilding and again expanding their markets. In 1948, Standard Oil (New Jersey) and Socony-Vacuum collaborated again, joining with Texaco and the Standard Oil Company of California in the Arab-American Oil Company (Aramco) venture in Saudi Arabia, marking their first significant presence in the Middle East.

Socony-Vacuum reorganized in 1955 to become the Socony Mobil Oil Company, Inc. Further consolidation occurred in 1959, when Magnolia Petroleum Company, as well as General Petroleum Corporation (a California-based affiliate) and Mobil Producing Company (a Socony Mobil subsidiary) began operating as the Mobil Oil Company, a wholly owned subsidiary of Socony Mobil. A decade later, with increased brand recognition for Mobil products, Socony Mobil opted to once again change its name, this time becoming simply the Mobil Oil Corporation.

In 1959, Standard Oil (New Jersey) discovered oil in Libya, setting off a decade of major discoveries in the Middle East. Standard Oil established itself as a global chemical producer in 1965, following the formation of Mobil Chemical Company in 1960.

The 1970s proved to be a period of great change for both companies. Standard Oil started the decade contemplating its corporate identity. Throughout Standard’s partnership with Humble, they marketed products under various names, using Esso (the phonetic spelling of the abbreviation “S.O.”) on the east coast, Humble in Texas and Ohio, and Enco (short for “Energy Company”) in 19 other states. The existence of other “Standard Oils” around the country – California, Indiana, Ohio, to name a few – made it necessary to use these different brand names in different regions. Citing the need for uniformity among its products, Standard Oil (New Jersey) announced in 1972 that it would market its products under the brand name “Exxon;” Standard Oil Company of New Jersey would become Exxon Corporation; and Humble Oil & Refining Company would become Exxon Company, U.S.A., the domestic arm of the Corporation. Outside the U.S., products would still carry the Esso name.

A big challenge to the oil industry came in 1973 with the Arab oil embargo, with countries disrupting production, causing oil supplies to diminish and prices to soar. This event forced Exxon and Mobil to increase exploration and production in other parts of the world, including the North Sea, the Gulf of Mexico, Africa and Asia. As a result of the energy crisis, Mobil began seriously diversifying its holdings, acquiring Marcor, the parent company of retailer Montgomery Ward and Container Corporation of America, producer of paperboard packaging. Later, in 1976, Mobil Corporation formed as a holding company for Marcor and Mobil Oil Corporation, which included the company’s oil and gas operations and Mobil Chemical Company.

The 1980s and 1990s marked a period of relative prosperity for Exxon and Mobil, with increased oil supplies and reduced prices. This period also saw the introduction of new marketing techniques, such as Exxon’s Tiger Market convenience stores and Mobil’s Speed pass technology. By 1999, Exxon and Mobil were poised to merge and become the world’s largest energy corporation.


Year 2001 -2002

In 2000, the company completed its $2 billion Sable Offshore Energy Project located off the coast of Nova Scotia, Canada. In 2002, Exxon Mobil created a new business venture, Exxon Mobil Travel Guide, to expand the commercial

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product and service line of the company's Mobil Travel Guide series. In the same year, the company disposed its coal and mineral business to focus on its core operations.

Year 2003

In 2003, the company launched its first synthetic blend motor oil for high mileage engines. The company consolidated its US East and US West production organizations to improve business performance, in the same year. Towards the end of 2003, Exxon Mobil's subsidiary, Mobil North Sea, made a gas discovery in the southern sector of the North Sea, following the successful testing of an exploration well (about 32 miles east of Bacton, the UK).

The year also saw rise in crude oil prices, which was to continue for several years and the rise in crude oil prices also resulted in higher profits from Exxon Mobil.

Year 2004

Exxon Mobil Chemical acquired sales and marketing assets of the BP's European isopropyl alcohol business, in 2004. In the same year, the government of the State of Qatar and an Exxon Mobil subsidiary, Exxon Mobil Qatar GTL, entered into a heads of agreement (HOA) for a gas-to-liquid (GTL) project worth about $7 billion. Further in 2004, the company strengthened its exploration and production activity in Angola and Columbia. Exxon Mobil received E1.39 billion (approximately $1.73 billion) from the sale of its stake in the pipeline unit of Gasunie to the Dutch government, in the same year.

Rise in Crude prices continued for the second year and from the levels of $25 per barrel, it doubled nearly to $50 per barrel. The soaring prices contributed to Exxon Mobil’s earnings tremendously.

Year 2005

Exxon Mobil divested its 3.7% stake in China Petroleum and Chemical Corporation (Sinopec), in 2005. In the same year, Qatar Petroleum, Exxon Mobil, and Edison entered an agreement for developing a liquefied natural gas (LNG) terminal offshore the coast of Italy in the North Adriatic Sea. The company entered into a five-year supply agreement with Caterpillar to supply Caterpillar oils to Caterpillar factories and dealers worldwide, also in 2005.

Further in 2005, Exxon Mobil Chemical Company entered into a product distribution agreement with R T Vanderbilt to distribute Exxon Mobil's commercial vistalon ethylene propylene diene rubber products in North America. The company also announced its plans to convert its 71 Tigermarket convenience stores in Nashville and Memphis to its flagship On the Run convenience store brand, in 2005.

Year 2006

In 2006, Exxon Mobil expanded its lubricants distribution network across Germany and Poland to distribute Exxon Aviation Oil Elite 20W-50 and the company's other aviation lubricants for aircraft piston engines. In the same year, Exxon Mobil signed an agreement with Thailand-based PTT Chemical Public Company for production of low-density polyethylene (LDPE) and ethylene vinyl acetate (EVA) in a 100 kilotons per annum autoclave system.


Further in 2006, Exxon Mobil acquired 28% undivided interest out of Abu Dhabi National Oil Company's exploration and production activities in the Upper Zakum oil field in Abu Dhabi. In the same year, Exxon Mobil signed an agreement with Indonesia-based PT Pertamina, to conduct exploration and production activities in Indonesia. Subsequently, Mobil Pipe Line Company (MPLCO), Exxon Mobil's affiliated company, commenced delivery of Canadian crude to the US Gulf Coast through an 858-mile crude oil pipeline that runs from Patoka, Illinois to Nederland, Texas. Further in 2006, Exxon

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Mobil Chemical and Mitsubishi Chemical Corporation (MCC) agreed to terminate certain joint venture agreements for Mytex Polymers Asia Pacific (Mytex AP) and Mytex Polymers Partnership (Mytex US). In the same year, the company started production from the Erha deepwater development, located approximately 60 miles (97 kilometers) offshore Nigeria.

Further in 2006, India-based Reliance Petroleum selected Exxon Mobil Research and Engineering Company's (EMRE) sulfuric acid alkylation technology for the construction of their export refinery in Jamnagar, India for upgrading the gasoline pool. In the same year, Exxon Mobil extended its technology partnership with Team McLaren Mercedes to supply the Formula 1 racing team with Mobil 1-branded motor oils and high-performance fuels. Exxon Mobil Middle East Gas Marketing, a wholly-owned subsidiary of Exxon Mobil, signed the development plan and the launch of the Al Khaleej Gas-Phase Two (AKG-2) project with the State of Qatar and Qatar, also in 2006. With this, the company completed the initial stage of the project,AKG-1, which was started in November 2005. Subsequently, Exxon Mobil Chemical announced the expansion of Halobutyl manufacturing at its plant in Baytown, Texas. The facility was to increase the capacity of Bromobutyl rubber by 60% by modifying existing equipment and adding new equipment.

Year 2007

In 2007, Exxon Mobil completed the phase one of the Sakhalin-1 project offshore Eastern Russia with affiliates of Rosneft, RN-Astra, and Sakhalinmorneftegas-Shelf, Sakhalin Oil and Gas Development Company, and ONGC Videsh.

Further in 2007, Exxon Mobil Chemical completed the expansion of its steam cracker in Singapore. The expansion project, announced in 2005, increased the ethylene capacity of the Singapore Chemical Plant by 75,000 tons per year to more than 900,000 tons per year. In the same month, the company signed a production sharing contract with the government of Indonesia for the Mandar block located in the Makassar Straits offshore West Sulawesi. The contract was to enable Exxon Mobil to begin exploration activities on the block.

Further in 2007, Sinopec, Exxon Mobil, and Saudi Aramco received the government approval for the Fujian Refining and Ethylene Joint Venture Project.The Chinese government granted the business licenses for their two joint ventures in Fujian Province, Fujian Refining & Petrochemical Company, and Sinopec SenMei Petroleum Company. The two joint ventures, with a total investment of about $5 billion, was Exxon Mobil's first fully integrated refining, petrochemicals, and fuels marketing project with foreign participation in China. Exxon Mobil Chemical Company announced the establishment of a manufacturing facility for new specialty elastomer compounds to improve the durability of tires and significantly reduce fuel consumption, also in 2007. In the same year, Exxon Mobil Chemical Company completed a debottleneck project at its specialties plant in Edison increasing production of synesstic alkylated naphthalene (AN) blendstocks by about 40%. Further in 2007, Exxon Mobil announced a new addition to its Mobil Pegasus Series of lubricants for natural gas engines, Mobil Pegasus 1005.

Subsequently in 2007, Exxon Mobil Chemical Technology Licensing and Thai Paraxylene Company (Thai PX) launched the first licensed application of Exxon Mobil's new olgone technology in Thailand. The Olgone process implemented at Thai PX's Sriracha petrochemical complex was to help in the removal of olefinic contaminants from a heavy reformate feed and conversion to paraxylene as the final product.

In the same year, Exxon Mobil Chemical announced plans to expand its Rotterdam Aromatics Plant. The expansion would make the plant Exxon Mobil’s largest paraxylene production facility, increasing its paraxylene production capacity by 25% and benzene production capacity by 20%.

Further in 2007, Exxon Mobil Chemical Company formed a new specialty compounds and composites business to focus on the development, production, and marketing of engineered polyolefin compounds. In the same month, Exxon Mobil’s


subsidiary, Esso Exploration Angola (Block 15), started production from the Marimba North project, designed to develop 80 million barrels of oil in approximately 3,900 feet (1,300 meters) of water more than 90 miles (145 kilometers) off the coast of Angola. Subsequently in 2007, Exxon Mobil Libya signed a heads of agreement to execute an exploration and production sharing agreement (EPSA) with Libya's National Oil Corporation to initiate exploration activity offshore Libya in the Sirte Basin.

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Year 2008

Exxon Mobil Chemical announced the start-up of a new $20 million compounding facility in January 2008, to supply high-performance polymers to the automotive, appliance, and specialty consumer products industries. The facility had an initial annual capacity of 40,000 tons of specialty compounded product.

In March 2008, Exxon Mobil Exploration and Production Malaysia, a subsidiary of Exxon Mobil, signed a 25-year production sharing contract with the Malaysian national oil company PETRONAS for sustainable energy supplies to Malaysia.

In the following month, Exxon Mobil Exploration and Production Hungary, a subsidiary of Exxon Mobil, signed an agreement with MOL Hungarian Oil and Gas for a joint exploration program in southeast Hungary. Further in April 2008, Exxon Mobil announced plans to sell Esso filling station chain in Brazil to sugar and ethanol producer Cosan. In the same month, Exxon Mobil entered into an agreement to sell Esso Espanola and Exxon Mobil Portugal Holdings to Galp Energia SGPS. In May 2008, Exxon Mobil signed an agreement with Newfield Exploration to jointly explore and develop approximately 87,000 gross acres in south Texas.

Exxon Mobil announced an investment of about $100 million in offshore oil exploration in Philippines, in June 2008. In the same month, the company announced its plans to exit the retail gas business by selling 2,220 branded service stations in the US due to rising gasoline prices and intense competition. ExxonMobil Production Company awarded contracts for work in support of the first well of a multi-well drilling program at Point Thomson, in July 2008. Subsequently, Exxon Mobil announced an investment of $1.1 billion by the Gippsland Basin Joint Venture, which included its subsidiary, Esso Australia, to develop more than 270 million oil-equivalent barrels from the Turrum field in the Bass Strait,offshore southeast Australia. Further in July 2008, the company’s affiliate, Mobil Producing Nigeria commenced operations of a $1.3 billion project in Nigeria to produce and sell natural gas liquids.

In August 2008, ExxonMobil Chemical completed a major expansion to increase the halobutyl manufacturing capacity at its plant in Baytown, Texas. The Baytown plant increased its capacity to produce EXXON bromobutyl rubber (brominated butyl rubber) by 60%. Subsequently, the company’s subsidiary, Esso Exploration Angola (Block 15) (Esso Angola), commenced production from the Saxi and Batuque fields, as part of the development progression of the Kizomba C project. In the same month, ExxonMobil Chemical announced the start-up of a manufacturing facility at its existing site in Pensacola, Florida. The facility provided new capacity for the production of a new tire material technology Exxcore dynamically vulcanized alloy (DVA), which improved vehicle fuel efficiency. ExxonMobil Chemical announced an agreement with Resin & Pigment Technologies (R&P), a subsidiary of EnGro Corporation, in September 2008. Under the agreement, R&P would manufacture a broad range of ExxonMobil Chemical’s specialty compounds for use in automotive interior and exterior applications, appliances, and consumer products. In the same month, ExxonMobil Aviation introduced HyJet V, a fire-resistant aviation hydraulic fluid with higher stability and longer servicelife than type IV fluids. ExxonMobil Research and Engineering Company (EMRE) entered into an agreement with Synthesis Energy Systems (SES), in September 2008, under which SES would execute up to fifteen methanol to gasoline technology licenses in its global operations.

In October 2008, ExxonMobil Chemical completed a 130,000 tons per year capacity expansion at its Exxsol hydrocarbon fluids plant in Jurong Island, Singapore, increasing capacity at this site to more than 500,000 tons per year. Subsequently, Exxon Mobil entered into an agreement with Pratt & Whitney Rocketdyne to develop next-generation technology to convert coal, coke, or biomass to synthesis gas (carbon monoxide and hydrogen). Further in October


2008, Exxon Mobil sold its terminal in South Wilmington, North Carolina to Koninklijke Vopak, the terminal’s operator since 1991.

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The films business of ExxonMobil Chemical announced Multi-Plastics and Plastics Canada as its national distributors, in November 2008, for its affiliates' oriented polypropylene (OPP) film products in the US and Canada. In the same month, ExxonMobil’s Vistamaxx specialty elastomers and resins products targeted at flexible and rigid food packaging applications received approval from the US Food and Drug Administration (FDA) under the food contact notification process. Subsequently, the company’s affiliate, ExxonMobil Exploration and Production Turkey, signed an agreement with the Turkish national oil company, Turkiye Petrolleri Anonim Ortakligi (TPAO), to explore in two large deepwater blocks offshore Turkey. In December 2008, Exxon Mobil’s affiliate, ExxonMobil Exploration and Production Romania, signed an agreement with Petrom to explore deepwater portions of the Neptun Block offshore Romania. In the same month, ExxonMobil Refining and Supply announced an investment of more than $1 billion in three refineries to increase the supply of cleaner burning diesel by about six million gallons per day. The company would construct new units and modify existing facilities at its Baton Rouge in Louisiana, Baytown in Texas, and Antwerp in Belgium, refineries. Exxon Mobil, in March 2009, announced an investment between $25 billion and $30 billion annually over the next five years to meet expected long-term growth in world energy demand. In the same month, the company announced its plans to build a technology center in Shanghai, China to provide product applications support for its growing business in the Chinese and Asian markets.

Year 2009

Exxon Mobil, in March 2009, announced an investment between $25 billion and $30 billion annually over the next five years to meet expected long-term growth in world energy demand. In the same month, the company announced its plans to build a technology center in Shanghai, China to provide product applications support for its growing business in the Chinese and Asian markets. ExxonMobil inaugurated its newest cogeneration plant at its Antwerp refinery in Belgium, also in March 2009. Besides generating 125 MW, the new plant would reduce Belgium's carbon dioxide emissions by approximately 200,000 tonnes per year.

In April 2009, ExxonMobil Chemical applied its proprietary catalyst hydrogenation technology to produce ultra-low aromatic (ULA) fluids that comply with existing environmental and regulatory requirements. Subsequently, Exxon Mobil announced the sale of its On the Run convenience store franchise system in the US, and 43 of its company owned and operated sites in the Phoenix, Arizona to Couche-Tard.

In the following month, ExxonMobil Chemical developed two new grades of V series co-extruded battery separator films, which enhanced safety for hybrid and electric vehicles, power tools, and electronic devices including laptop computers.

Exxon Mobil CorporationFortune Rankings – An Analysis

FORTUNE RANKINGS – An Analysis

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2001

Rank CompanyRevenues

($ millions)Profits

($ millions)1 Exxon Mobil 210,392.0 17,720.02 Wal-Mart Stores 193,295.0 6,295.03 General Motors 184,632.0 4,452.04 Ford Motor 180,598.0 3,467.05 General Electric 129,853.0 12,735.0

In 2001, Exxon Mobil vaulted into the top spot on the annual FORTUNE 500 ranking of the largest American companies, replacing 15-year veteran GM.

With revenues for 2000 at a record $210 billion, Exxon outpaced No. 2 Wal-Mart by $17 billion and No. 3 GM by $26 billion. The FORTUNE 500 ranking has been dominated by two industries -- cars and oil -- since its inception in 1955: in 47 years, only two companies have been at the top of the list, Exxon (which merged with Mobil in 1999) and GM.

Exxon Mobil wasn't the only oil company to jump in the rankings. "The country faced an energy crunch as the drain on resources from several years of economic expansion collided with utility deregulation, soaring natural gas prices, and OPEC's maneuvering to keep oil prices high," FORTUNE's Lee Clifford writes in the introduction to the list. Those high prices helped other energy companies strike it rich: Duke Energy (No. 17) and Reliant Energy (No. 55) nearly doubled their revenues to catapult up the list, as did diversified energy companies like Enron (No. 7) and Dynegy (No. 54). "Of course, should energy prices fall, these companies will have a tough time hanging onto their new spots on the FORTUNE 500," Clifford said.

2002

Rank CompanyRevenues($ millions)

Profits($ millions)

1 Wal-Mart Stores 219,812.0 6,671.02 Exxon Mobil 191,581.0 15,320.03 General Motors 177,260.0 601.04 Ford Motor 162,412.0 -5,453.05 Enron 138,718.0 N.A.

In 2002, Wal-Mart dethroned Exxon Mobil from Number one spot in Fortune rankings but that was only in terms of revenues. In terms of profit, Exxon Mobil was still number one and largest profit making company in the world. The company had more than 15 billion dollars as profits.


The Wal-Mart Stores grew in revenues due to high consumer demand in United States and European markets as the boom in world economy began in 2002 and consumer demands reached to a new high. The Wal-Mart stores, having largest number of employees, could not out pace Exxon Mobil due to high profitability in the Oil and Gas Business. The fall in Exxon Mobil’s revenues were also attributed to

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company’s decline in oil production. The then CEO of the Company, legendary Lee R. Raymond had promised to increase daily oil production to 5 million barrels by 2005, from 4.25 million. Instead, output fell and its impact were felt on the revenues of the Exxon Mobil Corporation.

2003


Profits($ millions)

1 Wal-Mart Stores 246,525.0 8,039.02 General Motors 186,763.0 1,736.03 Exxon Mobil 182,466.0 11,460.04 Ford Motor 163,630.0 -980.05 General Electric 131,698.0 14,118.0

In 2003, Wal-Mart maintained its numero uno position in Fortune’s list and at the same time, its nearest rival Exxon Mobil went down one place to number three spot. Second place was occupied by General Motors, largest automobile company of the US and the world. The reasons cited for the Wal-Mart were similar to 2002 reasons as the demand was kicked by strong consumer demand in the United States and in the European Union. However, the margins in energy sector again out paced the margins in the FMCG-Consumer driven industry. This was evident in the profits of General Electric, which posted highest profit that year (more than $ 14 billions) and was followed by Exxon Mobil (more than $ 11 billion). Wal-Mart Stores came distant third, having profit at $ 8 billions. Exxon Mobil’s revenues also came down due to stagnant oil production. Although increase in crude oil prices helped Exxon to post higher profits, but not to the levels of 2001 and both – revenues and profits fell significantly.

2004


($ millions)Profits

($ millions)1 Wal-Mart Stores 258,681.0 9,054.02 Exxon Mobil 213,199.0 21,510.03 General Motors 195,645.2 3,822.04 Ford Motor 164,496.0 495.05 General Electric 134,187.0 15,002.0


2004 would be remembered for unprecedented growth in consumer demand world wide and it helped Wal-Mart Stores to maintain its numero uno position for the third time in row. At the same time, crude oil prices have also started soaring and it helped Exxon Mobil to increase its revenues and profits. That

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too despite having stagnant crude oil production. The unprecedented margin in crude oil production and sales helped Exxon Mobil to post a profit of nearly $ 21.5 billions, which was never seen before and the margins in oil and gas business again out paced margins in the consumer driven industry. Consumer demand was continuously high was evident from the fact that out of first five companies, two belonged to automobile industry and this indicated that consumers were on spending spree in the United States and in EU.

2005


Profits($ millions)

1 Wal-Mart Stores 288,189.0 10,267.02 Exxon Mobil 270,772.0 25,330.03 General Motors 193,517.0 2,805.04 Ford Motor 172,233.0 3,487.05 General Electric 152,363.0 16,593.0

World Economy was on a new plane, never seen before in the history and it was fuelled by strong consumer spending in the United States. This year, along with high consumer spending, US Housing market was also on its peak. These things helped Wal-Mart Stores to continue as number one in Fortune list in terms of revenues. At the same time, Exxon Mobil continued to post profits never seen and imagined before. Due to strong consumer spending, money started flowing in the Crude Oil markets and speculations took world crude oil prices

to a new high, where crude prices rose to almost $ 60 per barrels. Leaders from Oil producing nations fuelled the prices further by saying that crude prices could rise to above $ 75 per barrels. All of this helped Exxon Mobil to post higher revenues and profits but for the first time company realized that high prices are fuelling the production cost also. Another set back for the Exxon Group was stagnant oil

production and playing safe approach. Crude oil production for the Exxon group remained closed to the levels of 2001 (4.25 millions barrels a day).

2006

Rank Company Revenues ($ millions)Profits ($ millions)

1 Exxon Mobil (XOM) 339,938.0 36,130.02 Wal-Mart Stores (WMT) 315,654.0 11,231.03 General Motors (GM) 192,604.0 -10,600.04 Chevron (CVX) 189,481.0 14,099.05 Ford Motor (F) 177,210.0 2,024.0


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High Crude Oil prices finally helped Exxon Mobil to regain number one spot in Fortune list and despite stagnant oil production, its revenues and profits scaled unprecedented heights. In fact, oil production for Exxon group declined to 4.1 million barrels a day in 2006 (In 2001, it was 4.25 million barrels a day) but soaring prices helped the company in several ways than one. For the first time, the world saw crude oil prices going above $ 75 per barrel and speculators, including leaders from the OPEC nations continued to fuel prices by saying that it could touch even $ 100 per barrels. The boom in world economy helped Wal-Mart as well and their revenues also went up but the growth in the crude oil prices out paced growth in every other sector. Due to which Wal-Mart has to settle for second place in Fortune rankings after several years. For the first time, Chevron Corporation entered into elite club of Fortune first five, which is another evidence of high crude oil prices impacted the world economy. However, it’s another matter that Exxon group was nearly double the size of its nearest competitor of oil and gas sector and had nearly 2.5 times more profits to Chevron Corporation.

2007


($ millions)Profits

($ millions)1 Wal-Mart Stores 351,139.0 11,284.02 Exxon Mobil 347,254.0 39,500.03 General Motors 207,349.0 -1,978.04 Chevron 200,567.0 17,138.05 ConocoPhillips 172,451.0 15,550.0

In 2007, Wal-Mart regained its number one position due to ever growing demand in world markets. At the same time, Exxon group was not far behind in terms of revenue and was far ahead to close profits to $ 40 billion. However, despite several attempts, crude prices continued to rise and it went up to above $ 80 per barrel. The speculators were having free run in the world crude oil markets and several predictions of oil prices going above $ 120 per barrels. The unprecedented rise in crude oil prices helped the oil companies in a big way and it was evident in the Fortunes’ list as well where out of first five companies, three belonged to oil sector. At the same time, The retail giant – Wal-Mart store reclaimed the top spot on the Fortune 500, making it the largest company in the United States for the fifth time in six years. The company suffered a series of public relations gaffes last year, but has launched a crusade to spruce up its image. It now employs 1.9 million people worldwide and revenues are up 11% over last year, but profits grew less than 1%, amid a slowdown in same-store sales.

2008


($ millions)Profits

($ millions)1 Wal-Mart Stores 378,799.0 12,731.02 Exxon Mobil 372,824.0 40,610.03 Chevron 210,783.0 18,688.04 General Motors 182,347.0 -38,732.05 ConocoPhillips 178,558.0 11,891.0


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Wal-Mart Stores maintained its dominance in Fortune list this year again but others were not far

behind. For Wal-Mart, dramatic reduction in prices on some 15,000 items including popular toys and

electronics - by 20% more than usual to lure holiday shoppers, was a big success. That rocked the

industry, pressuring other retailers to squeeze already tight margins.

The tactic worked: Wal-Mart grossed $100 billion, breaking its fourth-quarter sales record, and soundly

beat Target in same-store holiday sales for the first time in nearly a decade.

At the same time, Crude Oil prices continued its upward momentum and were hovering around $ 100

per barrel. This was never seen before and despite fall in production, Exxon Mobil’s financial

performance. The high prices helped Exxon Mobil to earn better revenues and exceptional profits.

Talking about physical performance, Exxon Group failed to increase its production significantly and at

4.2 million barrels a day, it was little higher than last year’s level.

The dominance of oil sector companies on world economy was visible in the Fortune list as well and

among top five companies, three belonged to Oil Sector (Exxon, Chevron and ConocoPhillips) second

year in a row.

2009


($ millions)Profits

($ millions)1 Exxon Mobil 442,851.0 45,220.02 Wal-Mart Stores 405,607.0 13,400.03 Chevron 263,159.0 23,931.04 ConocoPhillips 230,764.0 -16,998.0

5 General Electric 183,207.0 17,410.0

The year 2008 was a tumultuous year, where it witnessed a historical high of $147 per barrel in the crude oil prices and in the later parts of the year saw world economy getting into the recessionary mode, which’s been talked about greatest since the great depression of 1930’s. on the one side, speculators were taking the crude oil prices to unimagined levels and analysts had started saying that it could go to $ 200 per barrel. However, talks of curbs and controlling the crude oil prices were raised world wide and US presidential candidate Barack Obama (now President of United States) started demanding control. At the same time, another great thing was happening – Burst in Housing Bubble of the United States, which started with bankruptcy of two biggest housing firms in history – Freddie Mac and Fannie Mae. Come September and collapse of Lehman Brothers worked as a trigger for recession to set in the world economy. Suddenly banks became risk aversive world wide and along with liquidity crunch, crisis of confidence hogged the world economy.Exxon Mobil CorporationFortune Rankings – An Analysis

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Both these factors affected Exxon Mobil. While first three quarters, the company posted exceptional profits, fourth quarter profits went down. These two factors were evident in balance sheets of other companies of the first five in Fortune list. While the oil companies again dominated the show, revenues of Wal-Mart Stores also got impacted in fourth quarter (when recessionary trends settled in). High Crude Oil prices led Exxon Mobil to regain top spot from Wal-Mart, but its production levels have now become a big cause of concern. It continued to the levels of 4.2 million barrels a day, while the vision 2010 of the company talks about enhancing it to 5 million barrels a day

However, Exxon's chairman Rex Tillerson tried to assuage fears by saying that “the company found more new oil in 2008 than it took out of the ground, the 15th year in a row its new discoveries have outpaced production”.

Exxon Mobil CorporationPlanning & Strategy

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PLANNING & STRATEGY

2

KEY FINDINGS

• The culture of Exxon Mobil is reflected in its organizational structure. The organization is focused on engineering and employs centralized planning; a belief that knowledge provides a competitive advantage explains large investments in R&D

• The disciplined, centralized management system has been instrumental to the company’s success

• The corporate planning department plays a key role in formulating strategy and recommends investments to the business units. Business unit executives can make decisions up to certain investment limits

• Due to the importance of the planning department, it is staffed by highly talented executives who are periodically rotated to other line functions


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3

THE STRATEGIC PLANNING FUNCTION IS CENTRALIZEDWITH SENIOR MANAGEMENT RESPONSIBILITIES

Sources: Company Web site; team analysis

Exxon Mobil Corporation

Operating organizations

Global servicesFinancial

management support functions

• Upstream • Downstream• Chemicals• Coal, power, etc.

• IT• Procurement• Property• Business centers

• Finance• Investor relations • Planning• Human resources• Legal• Health, safety, and

environment

The corporate planning department

is headed by a general manager who is part of the company’s senior

management


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4

COMPANY’S BASIC BELIEFS UNDERPIN ORGANIZATIONAL STRUCTURE

Sources: Factiva; team analysis

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• Business is predictable and disciplined; centralized management is key

• Knowledge is proprietary competitive advantage

Basic beliefs

Corporate planning

Individual research units to focus on

each function

Centralized planning to give top-down direction; centralized research for

areas such as unconventional energy

Exxon Mobil CorporationRevenue Analysis

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REVENUE ANALYSIS

Overview

Exxon Mobil Corporation (Exxon Mobil) recorded sales and operating revenues of $459,579 million in FY2008, an increase of 17.7% over FY2007.The US, Exxon Mobil’s largest geographical market, accounted for 29.9% of the sales and operating revenues in FY2008.Exxon Mobil generates revenues through three divisions: downstream (83.1% of the sales andoperating revenues in FY2008), upstream (8.5%), and chemical (8.4%).The balance of the company’s revenues is contributed by the corporate and financing non operating segment, and includes interest revenue relates to interest earned on cash deposits and marketable securities.Revenue by segment In the FY2008, the downstream segment recorded revenues of $382,060 million, an increase of 17.6% over FY2007.

The upstream segment recorded revenues of $39,113 million in the FY2008, an increase of 36.5% over FY2007. The chemical segment recorded revenues of $38,388 million in the FY2008, an increase of 4.2% over FY2007.

Revenue by geography

The US, Exxon Mobil’s largest geographical market, accounted for 29.9% of the total revenues inthe FY2008. Revenues from the US reached $137,615 million in FY2008, an increase of 13.6% over FY2007.

Canada accounted for 7.3% of the total revenues in the FY2008. Revenues from Canada reached $33,677 million in FY2008, an increase of 23.4% over FY2007.

Japan accounted for 6.6% of the total revenues in the FY2008. Revenues from Japan reached$30,126 million in FY2008, an increase of 15.2% over FY2007.

The UK accounted for 6.5% of the total revenues in the FY2008. Revenues from the UK reached$29,764 million in FY2008, an increase of 18.5% over FY2007.

Belgium accounted for 5.5% of the total revenues in the FY2008. Revenues from Belgium reached $25,399 million in FY2008, an increase of 23.6% over FY2007.

Germany accounted for 4.5% of the total revenues in the FY2008. Revenues from Germany reached $20,591 million in FY2008, an increase of 18% over FY2007.

France accounted for 4% of the total revenues in the FY2008. Revenues from France reached$18,530 million in FY2008, an increase of 29.7% over FY2007.

Italy accounted for 3.9% of the total revenues in the FY2008. Revenues from Italy reached $17,953 million in FY2008, an increase of 10.4% over FY2007.

Norway accounted for 2.7% of the total revenues in the FY2008. Revenues from Norway reached$12,258 million in FY2008, an increase of 21.8% over FY2007.

Other countries accounted for 29.1% of the total revenues in the FY2008. Revenues from othercountries reached $133,666 million in FY2008, an increase of 19.3% over FY2007.

Exxon Mobil CorporationManagerial/Leadership Style

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MANAGERIAL/LEADERSHIP STYLE

Present CEO

CEO Rex W. Tillerson, who took over in 2006, runs Exxon much the same way it has always been run. Tillerson is more polished and politically astute than his predecessor, Raymond, but the differences between the two are more stylistic than substantive.

Growing up in rural Texas, Tillerson was a second-generation Eagle Scout. (His father, Bob, even worked for the Boy Scouts of America.) While earning a degree in civil engineering from the University of Texas at Austin in 1975, Tillerson won a coveted position as percussion section leader for the Longhorn Band, for which he played bass drum. "You have 80,000 people screaming in the stadium, you count on the base drum to keep the band steady, and Rex was the guy," says Scott Harmon, who was drum major. "He was like a machine."

Quiet and intense, Tillerson was a perfect fit for Exxon. He joined the company straight out of college and rose swiftly through the ranks. During the 1990s, as a senior executive overseeing Exxon's business in the former Soviet Union region, he negotiated the acquisition of a 30% share of Sakhalin-I, a giant oil and natural gas field in Russia.

Tillerson "had the kind of personality that the Russians respond to," says Eugene Lawson, at the time head of the U.S.-Russia Business Council. "He had a presence when he walked in. He looked you in the eye. He wanted to get down to business."

Previous CEO

Under Lee R. Raymond, Exxon Mobil blossomed. He propelled Exxon, the successor to John D. Rockefeller's Standard Oil Trust, to the pinnacle of the oil world for 13 years as Chairman and Chief Executive

Under Mr. Raymond, the company's market value increased fourfold to $375 billion, overtaking BP as the largest oil company and General Electric as the largest American corporation. Net income soared from $4.8 billion in 1992 to record-setting $36.13 billion of 2006.

Shareholders benefited handsomely on Mr. Raymond's watch. The price of Exxon's shares rose an average of 13 percent a year. The company, now known as Exxon Mobil, paid $67 billion in total dividends.

Exxon Mobil CorporationManagerial/Leadership Style

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Mr. Raymond certainly distinguished himself as an oil executive. Exxon is known in the business as a disciplined and tightly focused company with an obsessive attention to the bottom line. In 1999, Mr. Raymond pulled his biggest coup by taking advantage of a slump in oil prices to acquire Mobil in an $81 billion merger, at the time the largest ever.

Thanks to his strategy, the company each day produces now close to 2.5 million barrels of oil — more than Kuwait — and 9.2 billion cubic feet of natural gas. It is the world's top refiner and controls 22 billion barrels of oil reserves, the most among its publicly traded peers.

Exxon Mobil CorporationMajor Products & Services

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MAJOR PRODUCTS AND SERVICES

Exxon Mobil Corporation is an integrated oil company engaged in exploration and production, refining and marketing of oil and gas. The company also operates in petrochemicals and electric power generation.

The company's key products and services include the following:

Upstream products:

Crude oilNatural gasRefined products:GasolineDieselAviation turbine fuelFurnace oilBitumenOther petroleum products

Lubricants and specialties:LubesPetroleum specialties

Chemicals:Aliphatic fluidsAromatic fluidsHigher olefinsSynthetic fluids and lubricantsHigher alcoholsPlasticizersOxygenated fluidsNeo acids

Polymers:Butyl polymersEPDM rubberSpecialty elastomersSantoprene TPEsPolyethylenePolypropylenePlastomersHydrocarbon tackifier resinsStyrenic block copolymersFunctionalized polymers

Exxon Mobil CorporationMajor Products & Services

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Polymer films:OPP filmsElectricity generationTechnology licensing:Aromatics and olefins technologyExxpol technologyPolymers technologyRefining technologiesUnivation technologies

Services:Service stationsConvenience storesTechnical advisory services

Brands:ExxonEssoMobilExxon MobilSpeedpassOn the RunMobil 1Mobil Delvac

Exxon Mobil CorporationEnvironment & Climate Change

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ENVIRONMENT & CLIMATE CHANGE

PAST

Exxon Valdez Oil Spill

On March 24, 1989, the Exxon Valdez oil tanker ran aground in Prince William Sound, Alaska, spilling 10 - 30 million gallons of oil, which spread out over 1,200 miles of coastline, immediately killing thousands of animals, including an estimated 250,000 sea birds, 250 bald eagles, 22 orcas, 2,800 sea otters and 300 harbor seals. The disaster caused Congress to pass the Oil Pollution Act of 1990. The company was fined $1.1 billion, the largest fine in U.S. government history.

On June 25, 2008, the U.S. Supreme Court dramatically lowered the civil damages Exxon would have to pay for the 1989 spill in Prince William Sound to $500 million.

Of the more than 32,000 fishermen and small-business owners who filed the class action suit, 20 percent were already dead at the time of the decision. The 1994 class action suit against Exxon resulted in a jury verdict of $5 billion in punitive damages, knocked down to $2.5 billion by the federal appeals court.

On October 19, 2005 US EPA published a consent decree with Exxon for Clean Air Act and related violations at seven U.S.-based refineries (representing 11 percent of U.S. refining capacity) in states including Illinois and Louisiana. Exxon agreed to pay a $7.7 million civil penalty for settlement of the claims in the complaint and undertake $6.7 million in federal and state environmentally-beneficial projects.

In June, 2008, Exxon agreed to sign a CERCLA consent decree and pay $3 million for its portion of responsibility for clean up of Big John's Salvage Site, Marion County, WV.

ALLEGATIONS

Exxon Mobil has been slow to concede that global warming is a real phenomenon caused largely by human beings burning fossil fuels. Exxon Mobil opposed (and still opposes) the Kyoto accord. It has contributed money to Washington research groups that have cast doubt on the severity of global warming and on the need for taking drastic measures to reverse its effects. It has generally opposed mandatory caps on greenhouse gases. Even as


27

BP and Royal Dutch Shell embraced the notion that the world needed to start doing something to mitigate the effects of global warming, Exxon Mobil held back.

The language its opponents use is amazingly harsh. Shawnee Hoover, who runs Exxpose Exxon, accused the company of using its might to finance what she called the “global warming deniers,” a phrase that seems meant to echo those awful words “Holocaust deniers.” The Union of Concerned Scientists has compared Exxon Mobil to the tobacco industry in its efforts to sow “disinformation” about the realities of global warming.

Most recently, Exxon Mobil has been accused of “bribing” scientists through one of the organizations it helps finance, the American Enterprise Institute, to cast doubt on the latest Intergovernmental Panel on Climate Change report. That’s the report that made headlines recently by saying there was a 90 percent certainty that human activities had been the main cause of global warming.

COMMENTS

Exxon Mobil stands out as a special case. In recent times, it has managed to turn itself into a Wal-Mart-size target for the environmental set: the energy company all right-thinking people love to hate. On the Internet you’ll find sites like exxonsecrets.org, which is maintained by Greenpeace, and takes as its premise the notion that Exxon Mobil is at the heart of a vast conspiracy to sow doubt about global warming, and there’s Exxpose Exxon, a group set up by a coalition of environmental groups to put pressure on the company.

Partly, Exxon Mobil is a target simply because of its size. Partly, it’s because many of the very things that Wall Street likes about the company —its relentless focus on finding oil and gas, and the use of its cash to reward shareholders instead of plowing the money into, say, solar power — drives environmentalists nuts. And partly it is a legacy of the 1989 Exxon Valdez oil spill.

Some of the accusations hurled at Exxon Mobil are ridiculous — the “bribery” allegation turned out to be an effort by two American Enterprise Institute scholars to solicit articles from a range of global warming experts for a book they were putting together. They were paying $10,000 an article. (And Exxon Mobil, which contributes a minuscule portion of the group’s budget, knew nothing about the book until the accusations showed up in the papers.)

Some of Exxon Mobil’s arguments are, at the very least, defensible. For instance, it takes the view that over the next few decades, oil, gas and coal will still be the primary means of generating energy — and thus its focus on searching for oil and gas makes sense for


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the country and the world. It also argues that using fossil fuels more efficiently is more sensible, in the short term, than investing in wind power.

But it has done a bunch of really dumb things, for example, financing groups like the Competitive Enterprise Institute, which a few years ago (after Exxon stopped financing it) ran ads promoting the wonders of carbon dioxide. Lee Raymond, Exxon Mobil’s crusty former chief executive, used to scoff openly at environmentalists and alternative-energy efforts — and yes, even cast doubt on global warming. He almost seemed to enjoy being a foil for the other side

But early last year, Mr. Raymond retired, and Exxon Mobil’s new chief executive, Rex W. Tillerson, is a kinder gentler sort. And with the broad scientific consensus on global warming — and the near certainty that the United States will soon be imposing some form of regulation on greenhouse gases — Exxon Mobil is finally trying to change its tune. At last month’s World Economic Forum in Davos, Switzerland, Mr. Tillerson said during one of the 17 (that’s right: 17) panels on global warming: “It is clear that something is going on. It’s not useful to debate it any longer.”

What is striking, though, is that this same company that is so utterly competent at its core mission — finding, producing, refining and delivering oil and gas — is so utterly incompetent when it comes to making the case that it is not the devil incarnate when it comes to the environment.

Another part of the problem is that Exxon Mobil doesn’t want to acknowledge that it has ever been on the wrong side of the issue. Kenneth P. Cohen, Exxon’s vice president for public affairs made a point some time back that the world doesn’t really need Exxon Mobil to finance alternative energy efforts because scads of money is being thrown at it, starting with venture capitalists in Silicon Valley. “Renewable energy efforts are not being held back by a lack of capital,” he said.

He also complained that it was unfair to assume that Exxon Mobil held the puppet strings at the research institutions and other groups it financed. As a general rule, at a place like the American Enterprise Institute, it doesn’t.

Exxon Mobil’s insularity has made it a great oil company. But if it doesn’t learn to open up and talk more straightforwardly about its beliefs, it will never stop being the Company That Denies Global Warming. And being the world’s whipping boy isn’t a lot of fun.

Exxon Mobil CorporationSWOT Analysis

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SWOT Analysis

Exxon Mobil Corporation (Exxon Mobil) is engaged in exploration and production of crude oil andnatural gas, manufacture of petroleum products, and transportation and sale of crude oil, naturalgas, and petroleum products with a global presence. The company operates in more than 200countries under the names Exxon Mobil, Exxon, Esso, and Mobil. Leading market position acrosskey product lines gives the company a competitive edge with a strong brand image. However,slowdown in the US economy and the European Union would depress revenue growth and reduce margins of Exxon Mobil.

STRENGTHS WEAKNESSES

Leading market position Legal proceedings

Diversified revenue stream Employee unrest

Steady financial performance Declining production in the US

Strong R&D capabilities

OPPORTUNITIES THREATS

Increasing demand for refined products inAsia

Economic slowdown in the US and theEuropean Union

Increasing demand for liquefied natural gas(LNG)

Risks associated with conducting businessoutside the US

Capital investments Environmental regulations

STRENGTHS

Leading market position

Exxon Mobil is the world’s largest publicly traded integrated petroleum and natural gas companywith market capitalization of $337,236.8 million as on May 15, 2009.The company operates in more than 200 countries under the names Exxon Mobil, Exxon, Esso, and Mobil.

The company holds exploration and production acreage in 36 countries and production operations in 24 countries around the world. In 2008, eight major upstream projects started production. The total oil and gas production available for sale averaged 3.9 million oil-equivalent barrels per day in 2008.


30

Exxon Mobil has interests in 37 refineries located in 20 countries and markets its products through more than 29,000 retail service stations. In 2008, refinery throughput averaged 5.4 million barrels per day, and petroleum product sales were 6.8 million barrels per day. Exxon Mobil is the leading global supplier of lube basestocks and marketing finished lubricants, asphalt, and specialty products.

Exxon Mobil leads the petrochemical industry with interests in 49 wholly-owned and joint-venturefacilities around the world. Leading market position across key product lines gives the company acompetitive edge with a strong brand image.

Diversified revenue stream

Exxon Mobil has wide presence across various regions.The company’s revenue stream is diversified in terms of geographies. Exxon Mobil divides its geographic divisions as US and non-US.The non-US region covers the countries of Japan, Canada, the UK, Germany, Belgium, Italy, Norway, and France.

In FY2008, the company generated 29.9% of the total sales and operating revenues from the US,its core market. Revenues from Canada accounted for 7.3%, revenues from Japan accounted for6.6%, and revenues from the UK accounted for 6.5% of the total revenues. Belgium contributed5.5% to the total revenues, Germany 4.5%, France 4%, Italy 3.9%, and the revenues from Norway accounted for 2.7%. Other countries accounted for 31.3% of the remaining revenues.The company’s global operations and regional brand identity gives it competitive advantage over its competitors and also indicates that the company has a wider scope in increasing its revenues by utilizing its global presence. Further, its world wide presence reduces exposure to economic conditions or political stability in any once country or region.

Steady financial performance

Over the years, Exxon Mobil has delivered consistent financial results.The sales and other operating revenues of the company have increased at a CAGR of 12% during FY2004-FY2008 from $291.2 billion in FY2004 to $459.6 billion in FY2008. Further, the revenues increased at a rate of 17.7% in FY2008 over FY2007.

The company’s profits have followed a similar trend. The net profit of the company increased at aCAGR of 16% during FY2004-FY2008, from $25.3 billion in FY2004 to $45.2 billion in FY2008. The net profit increased by 11.4% in FY2008 over FY2007. Steady financial performance enables the company to manage its operations well and also increases the financial flexibility of the company.

Strong R&D capabilities

Exxon Mobil has strong research and development (R&D) capability.The company conducts research to develop new products and improve existing products, as well as to enhance manufacturing and production methods and improve service. It spent $847 million on R&D in FY2008. R&D expenses in previous years were $814 million in FY2007, $733 million in FY2006, $712 million in FY2005, and $649 million in FY2004. Because of its strong R&D capabilities, the company, for instance, in April 2008 introduced Metallyte UBW-ES, a new OPP film for flexible packaging. This sealant technology is a breakthrough for oriented polypropylene (OPP) films as it provides excellent seal strength (1500 g/2.5cm), seal integrity, and the ability to seal through product contamination in the seal area, as compared to traditional OPP films.


31

Further in 2008, Exxon Mobil Chemical Company introduced a new product, Enable mPE, with the potential to significantly reduce waste and energy consumption across a wide variety of filmapplications. Enable mPE makes packaging easier for shipping and storing bottled water, beverages, canned goods, hand soaps, detergents, health products, and beauty aids. In April 2009, ExxonMobil Chemical applied its proprietary catalyst hydrogenation technology to produce ultra-low aromatic (ULA) fluids that comply with the most stringent environmental and regulatory requirements. In the following month, ExxonMobil Chemical developed two new grades of V series co-extruded battery separator films, which enhanced safety for hybrid and electric vehicles, power tools and electronic devices including laptop computers.

The company's strong R&D capabilities provide it with a competitive advantage and help it to innovate and launch new products.

WEAKNESSES

Legal proceedingsExxon Mobil is involved in many legal proceedings. In October 2008, the company was fined by the European Commission along with eight other petrochemical companies for price fixing of paraffin wax. Exxon Mobil was fined E83.6 million (approximately $123 million). In June 2008, Exxon Mobil was sued by the attorney of San Francisco. The company faced an allegation that it failed to clean up hazardous pollutants from a fueling depot at Fisherman's Wharf. Mobil Oil operated a fueling facility at Fisherman's Wharf between 1938 and 1992. The suit alleges that Exxon Mobil's neglect has contaminated the soil, groundwater, tidal water, and sediment of San Francisco Bay. The suit demands that Exxon clean the site and pay the damages.

In another incident, a resident of Linden claimed to contract a rare form of stomach cancer as aresult of conditions at the Bayway Refinery in Linden. This refinery was formerly owned by ExxonMobil. The jury found Exxon Mobil responsible for the cancer called ‘peritoneal mesothelioma.’ The company paid $7.5 million as damages. Such cases result in huge penalties and can have adverse effects on the company’s profitability.

Employee unrest

The workers of Mobil Producing Nigeria (MPN), an affiliate of Exxon Mobil, went on a strike in April 2008 over pay and working conditions.

Exxon Mobil, the largest oil producer in Nigeria, produces about 800,000 barrels per day in a jointventure with the state. The company's equity share is around 427,000 bpd. The eight day strike by workers resulted in the stoppage of the full production of 800,000 barrels per day and forced the company to declare force majeure on its shipments.Therefore, the company could not fulfill contractual obligations to clients. The strike resulted in a decline of the Exxon Mobil’s oil production by more than half.

Further, in May 2008, port workers of Exxon Mobil carried out a strike at the Los Angeles-arearefinery in Torrance, California. Such employee actions adversely affect the operations of the company and result in decline in the productivity.


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Declining production in the US

The upstream division in the US has recorded a consistent decline in its production volumes. Thecrude oil and natural gas liquid production volumes in the region have been declining since FY2004.

The net liquid production has declined at a CAGR of 10% from 557,000 barrels per day in FY2004 to 367,000 barrels per day in FY2008. The company recorded a 6.4% decline in its net liquid production in FY2008 compared with FY2007.

A similar trend is noticed in the natural gas production volumes. The natural gas production hasdeclined at a CAGR of 11% from 1,947,000 barrels per day in FY2004 to 1,246,000 barrels per day in FY2008.The company recorded a 15.1% decline in its natural gas production in FY2008 compared with FY2007. A continuation of this trend is likely to have an adverse impact on the company's revenue growth rates.

OPPORTUNITIES

Increasing demand for refined products in Asia

Over the next 10 years, the company expects about 60% percent of the world’s petrochemicaldemand growth to occur in Asia, with more than one-third in China alone. The demand for refinedpetroleum products in China is expected to rise sharply in the coming decades. China, despitesubstantial additions to refining capacity over the next three decades, is expected to remain a netimporter of refined products in 2030. The refining capacity in China is forecast to increase from 6.2 million barrels per day in 2006 to 14.6 million barrels per day in 2030.

To capture the rising demand, the company has been making investments in Asia and the MiddleEast in projects in with long-term competitive advantages, including integration with other operations, advantaged feedstocks, proprietary process and product technology, and market access.

Exxon Mobil is currently working on an integrated refining and petrochemical facility located inQuanzhou, Fujian Province, China. This project includes a 800,000 tons per year ethylene steamcracker and integrated polyethylene, polypropylene, and paraxylene units. The company is building a world-scale petrochemical complex at its integrated refining and chemical facility in Singapore.

This project includes a 1 million tons per year ethylene steam cracker; and polyethylene,polypropylene, specialty elastomer, and benzene units. The project, which is scheduled to start-up in FY2011, also covers the expansion of the existing oxo alcohol and paraxylene units.Furthermore, ExxonMobil has signed an agreement with Saudi Basic Industries Corporation (SABIC) and is conducting detailed studies at its petrochemical joint ventures in Saudi Arabia, Kemya and Yanpet, to supply synthetic rubber, thermoplastic specialty polymers, and carbon black.The company is also carrying out studies in cooperation with Qatar Petroleum for a world-scale petrochemical complex in Ras Laffan Industrial City, Qatar. The ethylene steam cracker would utilize feedstock from gas development projects in Qatar’s North Field.The project involves deployment of ExxonMobil’s proprietary steam-cracking furnace and polyethylene technologies.


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These investments would enable the company to export refined products or establish fresh refining capacity and take advantage of the increasing demand for refined products in Asia.Increasing demand for liquefied natural gas (LNG)

The demand for liquid fuels is expected to increase to 108 million oil-equivalent barrels per day by2030, an increase of 30% from 2005. The company forecasts the global liquefied natural gas (LNG) demand to more than triple in volume from 2005 to 2030, driven by the demand in North America, Europe, and Asia Pacific markets.

ExxonMobil is currently participating in building the Golden Pass LNG regasification terminal on the US Gulf Coast, with a planned capacity of about 2 billion cubic feet per day. The company has also applied for regulatory approval for a new LNG regasification terminal, BlueOcean Energy, 20 miles off the coast of New Jersey.

In Europe, the South Hook LNG terminal in Milford Haven, Wales, and the Adriatic LNG terminaloffshore Italy, both developed by ExxonMobil and its partners, would be operational in 2009. These terminals would have a combined capacity of nearly 3 billion cubic feet of gas per day.In Asia-Pacific, the company’s LNG operations in Indonesia and Qatar are major exporters to Japan, South Korea, India, and Taiwan. ExxonMobil is also one of the largest suppliers of pipeline gas to markets in Australia and Malaysia, and provides pipeline gas supplies to markets in Thailand, far east Russia, and Qatar.The company has been pursuing additional LNG opportunities in the Middle East, Australia, Indonesia, Russia, Papua New Guinea, and West Africa. Such investments place the company in an ideal position to exploit growing demand for LNG.

Capital investments

Exxon Mobil plans to invest between $25 billion and $30 billion annually over the next five years to deliver major projects to meet growing world energy demand. The demand for global energy isexpected to increase approximately 35% from 2005 to 2030.

The company expects nine projects to commence production in FY2009, collectively adding 485,000 oil-equivalent barrels per day to Exxon Mobil's production. In the downstream segment, the company would invest more than $1 billion in lower-sulfur diesel projects at three refineries in the US and Europe. Upon completion in FY2010, these projects would increase lower-sulfur diesel production by 140,000 barrels per day.

In the chemical business, the company has scaled up construction activity on world-scalepetrochemical projects in China and Singapore. In addition, it has been investing in specialty business growth, including a new plant in South Korea to manufacture lithium ion battery separator film to meet expected demand growth including batteries for hybrid and electric vehicles.

These investments aim to develop new technology, bring on new upstream projects, increase thecompany’s base refining capacity, and grow its chemical business. These investments also reinforce Exxon Mobil’s position as an industry leader in bringing new supplies to the market.


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THREATS

Economic slowdown in the US and the European Union

The company has a significant presence across the US and the European market. According toInternational Monetary Fund’s (IMF) World Economic Outlook, April 2009, the US and the European Union economies could face slowdown in 2009. The US GDP growth rate declined from 2% in 2007 to 1.1% in 2008. The country is forecasted to record a negative GDP growth rate of 2.8% in 2009. The GDP growth rate in the European Union declined from 2.7% in 2007 to 0.9% in 2008.The region is forecasted to record a negative growth rate of 4.2% in 2009. A weak economic outlook for these regions could depress industrial development and impact the demand for the company’s products.

Risks associated with conducting business outside the US

The company operates in more than 200 countries under the names Exxon Mobil, Exxon, Esso, and Mobil. The non-US countries accounted for more than 70% of the total revenues of the company in the FY2008. In these foreign locations, the company might experience fluctuations in exchange rates, complex regulatory requirements, and restrictions on its ability to repatriate investments and earnings from its foreign operations.The company might also face changes in the political or economic conditions in the foreign countries it operates in. Such instabilities could negatively impact the revenue growth of the company.

Environmental regulations

Exxon Mobil’s businesses are subject to numerous laws and regulations relating to the protectionof the environment. With rising awareness of the damage to the environment caused by industry,especially regarding global warming, regulatory standards have been continuously tightened inrecent years. One of the most important developments in this area has been the introduction of the Kyoto Protocol for the reduction of greenhouse gases. The protocol calls on industrialized countries to reduce their greenhouse gas emissions level by 5.2% on an average annual basis during the 2008-12 period, compared with 1990 emissions levels.

Further, in 2005, the US environmental protection agency (EPA) issued a ’clean air interstate rule’(CAIR), to reduce the emission levels. According to the rule, the states have to reduce the allowable sulfur dioxide (SO2) emissions by 70% and reduce nitrogen oxide (NOX) emissions by 60%, by 2015 compared with the 2003 levels. The company is governed by these regulations which could impose new liabilities on the company. This could result in a material decline in Exxon Mobil’s profitability in the short term.

Exxon Mobil CorporationTop Competitors

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TOP COMPETITORS

Chevron Corporation Royal Dutch/Shell Group TOTAL S.A. ConocoPhillips Lyondell Chemical Company Valero Energy Corporation BP Plc Repsol YPF, S.A. Imperial Oil Limited Sunoco, Inc. Hess Corporation

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Company View

A statement by Rex W. Tillerson, Chairman of the Board of Directors and Chief Executive Officer ofExxon Mobil Corporation, is given below. The statement has been taken from the company's annual report for the FY2008: 2008 was another outstanding year for ExxonMobil.We delivered $45 billion in net income, a record for the Corporation, with each of our businesses – Upstream, Downstream, and Chemical – achieving strong earnings performance. Return on average capital employed was 34 percent, and cash flow from operations and asset sales was nearly $66 billion. These results reflect the strength of our straightforward business model and long-term perspective in a highly competitive global industry.

The Corporation distributed a total of $40 billion to our shareholders in 2008, an increase of $4 billion from 2007, through dividends and share purchases to reduce shares outstanding. Over the past five years, we have distributed a total of over $146 billion to our shareholders, including a 58-percent increase in our annual dividend.

We recognize the uncertain economic environment that has developed. Highly volatile commodityprices, the global credit crisis, and the impacts of economic slowdown have created challengingconditions affecting businesses and consumers worldwide. At the same time, access to global energy resources remains difficult in some countries where policy and regulatory changes have limited resource development.

Despite these challenges, our capital and exploration expenditures were $26 billion in 2008. Overthe next five years, we plan to invest record amounts, more than $125 billion, to develop newtechnology, deliver new Upstream projects, increase our refining capacity, and grow our Chemical business.

In 2008 ExxonMobil continued to lead the industry in workforce safety performance.We also recorded zero marine spills from company-operated marine vessels, contributing to a greater than 60-percent reduction in total spills greater than one barrel for the company since 2001.These accomplishments are evidence of the commitment, training, and performance of our workforce throughout our worldwide operations.

Eight major Upstream projects started up in 2008, including multiple new fields in Angola anddevelopments in Nigeria and Malaysia. These projects not only deliver new supplies of crude oil and natural gas to the world, but also deliver significant value for resource owners and for ourshareholders.The effective development and execution of complex, long-term projects is a competitive advantage for ExxonMobil.

In our Downstream and Chemical businesses, we have continued to improve efficiency and increase the capacity of our facilities.We are applying our operational expertise to world-class investment opportunities such as the Singapore petrochemical project, which when completed, will be part of our largest integrated chemical and refining site. This project, along with our partnership in China’s first fully integrated, world-scale refining and petrochemical project in Fujian Province, will help meet long-term demand growth in Asia.

Meeting the projected increase in energy demand is an enormous challenge. The world is expected to need about 30 percent more energy in 2030 than it does today, driven by continued economic growth in developing countries. Oil and natural gas will continue to meet the majority of that demand as indispensable parts of a diverse portfolio of energy sources and suppliers.To

Exxon Mobil CorporationCompany View

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meet this demand, it is essential that we develop all economically viable energy sources while at the same time reducing environmental impact.

ExxonMobil has a steadfast commitment to the business principles that have proven successful for over 125 years. Our business approach – effective long-term risk management, disciplined capital investment, enduring business controls, and an unwavering commitment to safe and reliable operations – sets us apart from industry competition and allows us to continue to grow long-term shareholder value.

Pursuing an integrated set of solutions is vital to meeting growing demand. ExxonMobil is activelyexploring for new resources in challenging locations and is committed to the development oftechnological advancements that will be required to develop those resources.We are alsostrengthening our partnerships with resource owners and governments. In addition ExxonMobil isimproving energy efficiency and taking effective steps to curb emissions in our operations.Our ability to develop, apply, and deploy innovative technology will remain a key competitiveadvantage. Our investments in research and development, totaling more than $3.7 billion over thepast five years, are fueled by the talent of ExxonMobil’s nearly 15,000 scientists and engineers.ExxonMobil is on the cutting edge of advancing new energy technologies – both in our core business areas and in new, energy-saving innovations.

We are pioneering new technologies for finding, developing, producing, refining, and deliveringenergy while improving efficiency, reducing environmental impact, and enhancing safety. For example technological breakthroughs allow us to map undersea reservoirs, drill horizontally under arctic oceans, and develop new battery component technologies for hybrid and electric cars, enabling ExxonMobil to help meet the world’s energy needs.

The people we employ are at the core of ExxonMobil’s achievements. Our success is driven by the dedication of these talented men and women who are committed not only to the results they deliver, but also to upholding the ethical standards we demonstrate every day in our business operations around the world.

Our commitment to being a good corporate citizen is an extension of our ethical standards. Protecting our employees, supporting local communities, and safeguarding the environment are principles of corporate citizenship that we believe are a priceless asset.

ExxonMobil’s National Content strategy extends our citizenship commitment to the host nationswhere we operate.We strive to promote economic development by employing and training a localworkforce, using local suppliers of goods and services, and investing in infrastructure projects tosupport education and healthcare.

We reflect on the year’s successes knowing that significant challenges remain in the future. I amconfident that ExxonMobil’s competitive advantages position us well to meet these challenges.Wewill continue to deliver superior performance through disciplined investment, the strength of ourfunctional organization, our ongoing commitment to technology, and maintaining our focus on safety and operational excellence.

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THANK YOU

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