1- ExxonMobil focused on minimizing its upstream operational costs in 2015, which enabled the company to secure leadership in upstream earnings. In 2015, the company’s average production costs per barrel of oil equivalent (boe) declined 16% to US$10.56 from US$12.55 in 2014. In 2015, its close competitors such as Chevron Corporation and Royal Dutch Shell reported production costs per unit of US$14.60/ bbl and US$13.42/boe. Lower operating expenses per unit enabled the company to strengthen its upstream earnings as compared with its competitors. In 2015, the company reported upstream earnings per boe of US$4.6, which was higher than that of its competitors. In 2015, Royal Dutch Shell, Chevron Corporation, and BP, reported negative earnings from their upstream segments.
2- As an integrated business. The company is active in …show more content…
The company could strengthen its operations further by harnessing its global natural gas reserves. According to the Energy Information Administration (EIA), the global natural gas reserves amount to around 1.3 trillion boe with the Middle East and Eurasia (mainly Russia) accounting for 72% of the total. Also, according to the EIA, there is another 1 trillion boe of technically recoverable, undiscovered conventional natural gas.
2- ExxonMobil could strengthen its business with the expected increase in demand for oil and petroleum products across the world. According to World Oil Outlook (WOO), long-term oil demand is projected to grow 20 Mbbl/d, reaching 108.5 Mbbl/d by 2035. Of this increase, developing Asia would account for 88% while the demand in China, India and other developing countries in Asia would reach 94% of that of the OECD countries by 2035. According to WOO, the global demand for petroleum products is expected to increase to 111.1 Mbbl/d by 2040. The demand for diesel and gasoline is projected to grow to 36.1 Mbbl/d and 26.7 Mbbl/d, respectively, by
2- As an integrated business. The company is active in …show more content…
The company could strengthen its operations further by harnessing its global natural gas reserves. According to the Energy Information Administration (EIA), the global natural gas reserves amount to around 1.3 trillion boe with the Middle East and Eurasia (mainly Russia) accounting for 72% of the total. Also, according to the EIA, there is another 1 trillion boe of technically recoverable, undiscovered conventional natural gas.
2- ExxonMobil could strengthen its business with the expected increase in demand for oil and petroleum products across the world. According to World Oil Outlook (WOO), long-term oil demand is projected to grow 20 Mbbl/d, reaching 108.5 Mbbl/d by 2035. Of this increase, developing Asia would account for 88% while the demand in China, India and other developing countries in Asia would reach 94% of that of the OECD countries by 2035. According to WOO, the global demand for petroleum products is expected to increase to 111.1 Mbbl/d by 2040. The demand for diesel and gasoline is projected to grow to 36.1 Mbbl/d and 26.7 Mbbl/d, respectively, by