1-Exxonmobil Case Analysis

Improved Essays
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

Related Documents

  • Superior Essays

    Both, money supply and inflation - with reasonable rates, are the cornerstone for automotive industry’s growth and productivity and vice versa. The strength of the economy’s recovery has been seen in the number of job creation in the last three years. According to the Economic Report of the President “The pace of total job growth rose to 260,000 a month in 2014, up from 199,000 a month in 2013, as shown in Figure 1‑2. As recently as 2013, most forecasters expected that the unemployment rate would not fall to 5.6 percent until after 2017. The unemployment rate declined 1.1 percentage points during the 12 months of 2014, or almost an average of 0.1 percentage point a month, falling to 5.6 percent by year…

    • 1102 Words
    • 4 Pages
    Superior Essays
  • Improved Essays

    Kmg Case

    • 985 Words
    • 4 Pages

    In 2014, firm’s current ratio was equal to 1.90, which is 0.03 increase compared to 2010. Firm’s quick ratio increased from 1.68 to 1.73 in the period of 2010-2013. The firm’s cash ratio went up from 0.64 to 0.69. Although current ratio and quick ratio above 1 indicate sufficient liquidity, a cash flow analysis revealed KMG’s high dependence on JV and associates in cash generation. As it was mentioned before, most prominent and profitable oil fields are mainly developed in a partnership with foreign entities.…

    • 985 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    6.61 as compared to Rs. 3.01 per share in 2013. During the year the Company raised equity by issuing Right Shares worth Rs. 2.064 billion at 10% just to benefit the shareholders. 2011 fiscal year was a challenging year for the company with declining profits but since 2012 it has been experiencing high profit margins.…

    • 920 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Phillips 66 Case Analysis

    • 740 Words
    • 3 Pages

    According to opec.org, the demand for refining products will grow significantly in the developing countries driven by expanding fleets of trucks and buses as well as diesel light-duty vehicles and cars. In addition to gasoil and diesel the growing demand for jet and kerosene will contribute significantly to the future importance of middle distillates. The chart below illustrates refining product growth from 2013 to 2040 across the…

    • 740 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Starbucks’s cash conversion cycle was 10 days faster in 2014 than it was in 2013 meaning the company had to finance 10 fewer days of net working capital in 2014. Starbucks held inventory 8 days less in 2014 compared to 2013, which reveals improvement in inventory management. Additionally, Starbucks account receivables remained the same in 2013 and 2014, but account payables were 2 days slower in 2014. All these contributing factors show that Starbucks made improvements from 2013 to 2014 with the ability to convert operating activities into cash more rapidly. Starbucks earned $4.90 of sales for every dollar of fixed assets in 2014, which was slightly lower than $5.08 of sales for every dollar of fixed assets earned in 2013.…

    • 839 Words
    • 4 Pages
    Decent Essays
  • Great Essays

    In early 2015, the Saudi government announced that it was not going to cut back on its oil production. In addition, the U.S. became the world’s largest oil producer and began to export liquified natural gas (Kantchev and Malek 2016). These developments have led to a global oil glut and more competition to the Russian fossil fuel market. This resulted in simple economics: high supply, low prices. Russia thrives when oil prices are high; from 1999 to 2008 it had an average of 7% annual economic growth (Ip 2015).…

    • 1637 Words
    • 7 Pages
    Great Essays
  • Great Essays

    It important to know that whatever affects net profit, will affect operating profit, as indicated in the report. The operating profit margins for the year(s) 2014, 2015, and 2016, showed a 1,12% decrease from 2014 to 2015 (14.47% - 13.25%), but the 2016 operating profit margin balanced the deficit, as the profit grew from 13.25% earned in 2015, to 15.58% earned in 2016, and that is a 2.33%…

    • 1538 Words
    • 7 Pages
    Great Essays
  • Great Essays

    Goldman Sachs Case Study

    • 1384 Words
    • 6 Pages

    The firm’s post-crisis recovery showed a sound pattern over the observed period. Return on equity rose 3.92% from 2011 to 2012 and then remained stable averaging 10.31% until 2015, when it dropped to 7.14%. Given the similarity between 2014 and 2015 total net revenues (cf. Table 1), the reasons behind the ROE fall are to be found in the cost to income ratio, which rose 10.49% in 2015. This rise was due to increased operational expenses, mostly caused by a $3.4bn litigation provision to the Residential Mortgage-Backed Securities Working Group of the U.S. Financial Fraud Enforcement Task Force (Goldman Sachs, 2015).…

    • 1384 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Since it has proved worldwide automotive profit in 2012. It is expected that the profit in the BRIc and ROW is projected to grow more than three times as fast as established market, and by 2020, global profits for automotive OEMs are expected to rise by almost 50 percent. Most of the countries and states will witness a huge increase in profit from the industry. The new profits will mainly from growth in emerging markets and, to a lesser extent, the US. Europe, Japan, and South Korea will be stagnant in terms of profit growth.…

    • 1216 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Inventory Turnover Ratio

    • 938 Words
    • 4 Pages

    Quick Ratio measures the ability of a company to fulfill its current liabilities with its most liquid assets. Overall, a rising quick ratio indicates that the company has enough cash to pay back its current liabilities. From the calculation, a decrease of Sleep Country’s quick ratios is prevalent between the 2014 to 2015 fiscal years. In 2014, the ratio reveals that Sleep Country had approximately $1.06 in quick assets for every $1 in current liabilities. However, in 2015 the quick ratio decreased to 0.40.…

    • 938 Words
    • 4 Pages
    Improved Essays

Related Topics