ExxonMobil Essay Example | Topics and Well Written Essays - 3250 words

ExxonMobil - Essay Example In 38 countries Exxon has its exploration and production utilities and in 23 countries they have the production operation. The company has 38 refineries around the world. Close to 90% chemical business of Exxon is ranked first or second in the world, and they are the market leader in this field. ExxonMobil has invested $5 billion over the last five years in technological up-gradation (About Us, n.d.) Upstream In petroleum industry upstream indicates operation like search, recovery and production of crude oil and natural gas. This sector is also known as Exploration and Production sector. Under this division ExxonMobil have the following units- Earning from the upper stream as in 2008 was recorded $35.4 billion. The return on average capital in 2008 was 54% and earning per oil-equivalent barrel was $24.67. The total liquid production and the natural production which was available for sale was 3.9 million oil equivalent per day. The upstream capital and exploration spending was $19.7 billion. The graph indicates that the earnings from the upper division have been increasing constantly. In the year 2007, the earnings were $26497 million which further increased to $35402 by the year 2008. This indicates a sharp rise of 33.61%. This was possible because of the fact that the company managed to increase their production by 3.2 billion barrel oil equivalent per year through out the last five years. The finding and the resource acquisition cost has been gone to $0.66 per barrel which might go high in the coming years. If this happens then the company’s cost of production will go high leading resulting lower earnings in the future. The portfolio of ExxonMobil is one of the largest in the world which includes several units situated in the highly diversified region like extreme deep water heavy oil/oil sand, unconventional gas, arctic, liquefied natural gas, acid on sour