ExxonMobil is an international oil and gas company formed on 30th November 1999 after the merger of Exxon and Mobil. In conducting Economic analysis, the focus is done on products, for instance. The company’s stock symbol is Exxon Mobil Corporation – XOM (NYSE). It ‘s a Global Industry Classification Standard (GICS) is Energy while the sub-industry is Integrated Oil and Gas. ExxonMobil’s impact on global warming has faced much criticism in the past. In 2018, ranking, its the tenth American corporations emitting airborne pollutants, thirteenth by emitting greenhouse gases and sixteenth by emitting water pollutants. This is one of the costliest risk factors facing ExxonMobil. However, the company’s ss profits have also grown tremendously in the past five years, with an average quarterly increase of 6.4%.
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ECONOMIC ANALYSIS; PRODUCTS AND CUSTOMERS
ExxonMobil’s principal products include basic olefins and aromatics. These products account for most of ExxonMobil’s profits. The company also produces synthetic lubricant base stocks as well as lubricant additives. However, most of these products add to ExxonMobil’s impact on global warming due to its chemical properties. Some of the company’s largest customers by market share include CenterPoint Energy Inc. and Devon Energy Corp. The risk factors facing ExxonMobil that may result in a shift in demand include supply and demand, economic conditions, increased supply from the development of new oil and gas supply sources. Also, technologies and increases in industry refining or petrochemical manufacturing capacity relative to demand which tends to reduce margins on the affected products. Other include market factors such as interest rates and inflation, government and political factors. The demand curve for ExxonMobil is elastic, with the major drivers for demand being policy, technology, and consumer preferences.
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MARKET STRUCTURE OF EXXONMOBIL
Currently, the company is an oligopoly. As an oligopoly, ExxonMobil is facing changes in the market trends that affect the oil industry and each company. Since the company is one of the few companies that control a percentage of the oil and energy market, the market structure of an oligopoly helps reinforce the power it has acquired over the past two decades. This adds to ExxonMobil’s profit, which surged 57% to $6.24 billion. The earnings came in at $1.46 per share, compared with a $1.23 forecast by analysts in a Refinitiv survey in 2018. Additionally, ExxonMobil’s production and manufacturing expenses amounted to approximately 36.68 billion U.S. dollars. Costly ventures and government restrictions in some countries increase the effects of risk factors facing ExxonMobil. Such decisions for instance, are due to the company’s history in oil spillage. This results in negative impacts on global warming by Exxon Mobil.
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