INTEGRATING BUSINESS VALUES EXXON MOBIL

Integrating Business Values Exxon Mobil

Integrating Business Values Exxon Mobil

Global Oil Industry

Oil has been a major driving force in the dynamics of global politics and economics. Being a major driver of growth, oil is also one of the most potential causes of conflict. This report assesses the global markets for oil, the power that lies behind the countries possessing these natural reserves and the global politics that is driving the market.

“Where global industries are concerned, the oil and gas industry comes as close as any other to being truly universal. It is a multi-billion dollar, pan-continental business arena, inhabited by some of the world's biggest and most well-known companies - ExxonMobil, Shell, BP - as well as a multitude of smaller players, each occupying one of the many niche sectors within this multifaceted business environment.

The oil market can also be considered as homogeneous as any other. Oil is the most heavily traded commodity worldwide (coffee comes a distant second). Every major integrated oil company produces, stores, transports, trades, blends, and markets oil products around the world with every other company and via vast networks of outlets. Supply chains range from crude oil production at wellheads and platforms, to refining of crude into a variety of products, to primary supply of both crude and refined products between market regions, to the secondary distribution of refined products to service stations and commercial customers.”

It is likely that corporate strategies that were successful in the 1990s may no longer work. What is unclear is whether adaptation of companies' existing strategies will be enough, or whether companies will have to consider entirely new strategies.

Legality, Morality, and Social Responsibility of the Oil Industry

Globality: CERA's Globality scenario entails a deepening and broadening of trends that have taken root since the end of the Cold War. This is a world of robust wealth creation, but one that is highly competitive and subject to rapid changes in market and industry conditions that could result in unsettling social structures—particularly in emerging markets.

Leviathan: The Leviathan scenario examines a recalibration and readjustment in the boundary between state and marketplace that expands the role and responsibilities of government. In this scenario, growing international consensus and scientific evidence regarding environmental challenges—especially surround the issue of global warming—results in a greater and more coordinated role for government.

Fragmentation: In this scenario, fragmented national interests and their ramifications expand around the world. Political action groups with sharply divergent views on global security and economic policies immobilize governments and obstruct progress toward further global, market-based economic integration.”

With hundreds of billions of dollars invested around the world, oil companies are on the lookout for new sources of petroleum, and they are concerned about the consequences of political upheaval. France's TotalFinaElf SA, Italy's Eni SpA and a clutch of companies from Russia, China and India already have agreements to develop Iraq's huge oil fields second only to Saudi Arabia in terms of proven reserves once United Nations sanctions are ...