Exxon Business Analysis

Business Report

On

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2015-2016

SUMMARY:

Introduction

I / Overview of the oil and gas market :

I-1        Presentation of the oil and gas market ---------------------------------------

I-2        Competitors ------------------------------------------------------------------------

I-3            Story card --------------------------------------------------------------------------

II/ Company Overview:

II-1        General Presentation ---------------------------------------------------------------

II-2        Where? Map --------------------------------------------------------------------------

II-3        Different sectors: affiliates --------------------------------------------------------

II- 4        Analyse of foreign market entry strategy --------------------------------------------

II-5        Financial report ---------------------------------------------------------------------

II-6        Recent events ------------------------------------------------------------------------

III/ Geopolitical:

III-1         Country Risk --------------------------------------------------------------------------

III-2        Geopolitics’ insecurity areas facts -------------------------------------------------

Conclusion

Introduction:

Petroleum and gas are the two major energetic resources that mark the second half last century history, and that spark off interest concerning future energy.

It both represents 53% of primary energy consumption.

Admittedly, oil portion decrease but the part of gas has greater increase as much as scientists’ debate about oil dethrone by gas in 2035.

Oil represents the tier of energy consumption in the entire world in 2013; it’s nowadays the first energy source even if it’s part in the primary energy consumption decrease since 1973, when it represented 44% of the consumption.

It’s production has increase however, except in 2009 the financial crisis, but 2013 the production gets to it’s record. The rise oil is tie to the development of transport industry. Transport road, which depend of petroleum at 97%, being at the origin of more than 60 of the demand. The rest is for the industry particularly petrochemical and heating.

The demand increase is essentially from developing countries like china, which double it’s consumption between 2000 and 2013.

The principal production area is Middle East, even if other countries or lands are in high increase, like USA, Canada, Brazil, Russia, Azerbaijan, Kazakhstan, China and Angola. In 2013, OPEP is at the origin of 42% of the production but had 72% of the stock.

Gas development is relatively new, dated from 1950 and increase since, exception in 2009. The market is upset since few years by two modifications; Natural liquefies gas development, which facilitate international business, and no conventional gas, which considerably increase the potential stock.

24% of the global energy consumption concerns natural gas which has 3 major advantages; its combustion is less polluting than petroleum, its cheaper and better repartee allocate.

Natural gas is used for heating, industry and more and more to produce electricity.

In 2013, four countries possessed near 60% of proved and authorized stock of gas in the world: Iran, Russia, Qatar and Turkmenistan.

38% of the productions are mass in USA and Russia. The demand increase in developing countries and particularly and without surprise in China

Our work will focused on one of the giant company on the sector : ExxonMobile company. With a large business portfolio and affliates in all the world, we will during this report better understand the complex and worldwide context of this industry.

I / Overview of the oil and gas market :

1. Presentation of the oil and gas market :

There are many ways to look at the oil and gas industry.

Oil and gas provide the world's 7 billion people with 60 percent of their daily energy needs. The other 40 percent comes from coal, nuclear and hydroelectric power, and “renewables" like wind, solar and tidal power, and biomass products such as firewood.

As petrochemical feedstock’s, oil and gas are the raw materials used to manufacture fertilizers, fabrics, synthetic rubber and the plastics that go into almost everything we use these days, from toys to personal and household items to heavy-duty industrial goods.

The Economic Impacts of the Oil & Natural Gas Industry on the U.S. Economy in 2011 by Industry:

From a geopolitical perspective, large quantities of oil and gas flow daily from "exporting" regions such as the Middle East, Africa and Latin America to "importing" regions such as North America, Europe and the Far East. This creates political, trade, economic and even national security concerns on both sides. Oil and gas exporters want to maximize their revenues and improve their trade balances while maintaining control and sovereignty over their natural resources. At the same time, importing nations want to minimize trade deficits and ensure a steady, reliable oil supply. China, for example, has recognized that it must obtain access to oil in order to continue its long-term sustained growth and is actively seeking new sources of supply in the major producing companies.

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