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ExxonMobil
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Type Public (NYSE: XOM)
Founded 1999 (merger)
1911 (Standard Oil of New Jersey)
1911 (Standard Oil of New York)
1870 (Standard Oil)
Founder(s) John D. Rockefeller
(Standard Oil)
Headquarters
Irving, Texas, USA
Area served Worldwide
Key people Rex W. Tillerson
(Chairman) & (CEO)
Industry Oil and Gas
Products Fuels
Lubricants
Petrochemicals
Market cap US $ 417.0 Billion (2008)
Revenue ▲ US $ 404.552 Billion[1] (2007)
Operating income ▲ US $ 70.474 Billion (2007)
Net income ▲ US $ 40.610 Billion (2007)
Total assets ▲ US $ 242.082 Billion (2007)
Total equity ▲ US $ 121.762 Billion (2007)
Employees 106,100 (2007) Including Company Operated Retail Sites ("CORS")[2]
Website ExxonMobil.com
The Exxon Mobil Corporation, or ExxonMobil, is an American oil and gas corporation and a direct descendant of John D. Rockefeller's Standard Oil company.[3] Formed on November 30, 1999, by the merger of Exxon and Mobil, ExxonMobil is the world's largest company by revenue, at $404.5 billion for the fiscal year of 2007, having interchanged this status with Wal-Mart in recent years, as oil prices have fluctuated. It is also the largest publicly held corporation by market capitalization, at $501.17 billion on April 18, 2008.[4] Exxon's reserves were 72 billion oil-equivalent barrels at the end of 2007 and, at current rates of production, are expected to last over 14 years.[5] While it is the largest of the six oil supermajors[6] with daily production of 4.18 million BOE (barrels of oil equivalent) in 2007[7], this is only approximately 3% of world production and ExxonMobil's daily production is surpassed by several of the largest state-owned petroleum companies.[8] When ranked by oil and gas reserves it is 14th in the world with less than 1% of the total. [9] [10] Currently, the company ranks #1 in the world in net income, which was almost $40 billion last year.
Organization
The Exxon Mobil Corporation global headquarters are located in Irving, Texas. ExxonMobil markets products around the world under the brands of Exxon, Mobil, and Esso. It also owns hundreds of smaller subsidiaries such as Imperial Oil Limited (69.6% ownership) in Canada, and SeaRiver Maritime, a petroleum shipping company.
The upstream division dominates the company's cashflow, accounting for approximately 70% of revenue. The company employs over 82,000 people worldwide, as indicated in ExxonMobil's 2006 Corporate Citizen Report, with approximately 4,000 employees in its Fairfax downstream headquarters and 27,000 people in its Houston upstream headquarters. [2]
Operating divisions
ExxonMobil is organized functionally into a number of global operating divisions. These divisions are grouped into three categories for reference purposes, though the company also has several ancillary divisions, such as Coal & Minerals, which are stand alone.
- Upstream (oil exploration, extraction, shipping, and wholesale operations) based in Houston, Texas
- Downstream (marketing, refining, and retail operations) based in Fairfax, Virginia
- Chemical division based in Houston, Texas
Operating divisions by category are as follows:
- Upstream
- ExxonMobil Exploration Company
- ExxonMobil Development Company
- ExxonMobil Production Company
- ExxonMobil Gas and Power Marketing Company
- ExxonMobil Upstream Research Company
- Downstream
- ExxonMobil Refining and Supply Company
- ExxonMobil Fuels Marketing Company
- ExxonMobil Lubricants & Specialties Company
- ExxonMobil Research and Engineering Company
- Chemical
- ExxonMobil Chemical Company
- ExxonMobil Global Services Company
- ExxonMobil Information Technology
- Global Real Estate and Facilities
- Global Procurement
- Business Support Centers
History
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Exxon Mobil Corporation was formed in 1999 by the merger of two major oil companies, Exxon and Mobil. Both Exxon and Mobil were descendants of the John D. Rockefeller corporation, Standard Oil which was established in 1870. The reputation of Standard Oil in the public eye suffered badly after publication of Ida M. Tarbell's classic exposé The History of the Standard Oil Company in 1904, leading to a growing outcry for the government to take action against the company.
By 1911, with public outcry at a climax, the Supreme Court of the United States ruled that Standard Oil must be dissolved and split into 34 companies. Two of these companies were Jersey Standard ("Standard Oil Company of New Jersey"), which eventually became Exxon, and Socony ("Standard Oil Company of New York"), which eventually became Mobil.
In the same year, the nation's kerosene output was eclipsed for the first time by gasoline. The growing automotive market inspired the product trademark Mobiloil, registered by Socony in 1920.
Over the next few decades, both companies grew significantly. Jersey Standard, led by Walter C. Teagle, became the largest oil producer in the world. It acquired a 50 percent share in Humble Oil & Refining Co., a Texas oil producer. Socony purchased a 45 percent interest in Magnolia Petroleum Co., a major refiner, marketer and pipeline transporter. In 1931, Socony merged with Vacuum Oil Co., an industry pioneer dating back to 1866 and a growing Standard Oil spin-off in its own right.
In the Asia-Pacific region, Jersey Standard had oil production and refineries in Indonesia but no marketing network. Socony-Vacuum had Asian marketing outlets supplied remotely from California. In 1933, Jersey Standard and Socony-Vacuum merged their interests in the region into a 50-50 joint venture. Standard-Vacuum Oil Co., or "Stanvac," operated in 50 countries, from East Africa to New Zealand, before it was dissolved in 1962.
Mobil Chemical Company was established in 1950. As of 1999, its principal products included basic olefins and aromatics, ethylene glycol and polyethylene. The company produced synthetic lubricant base stocks as well as lubricant additives, propylene packaging films and catalysts. Exxon Chemical Company (first named Enjay Chemicals) became a worldwide organization in 1965 and in 1999 was a major producer and marketer of olefins, aromatics, polyethylene and polypropylene along with specialty lines such as elastomers, plasticizers, solvents, process fluids, oxo alcohols and adhesive resins. The company was an industry leader in metallocene catalyst technology to make unique polymers with improved performance.
In 1955, Socony-Vacuum became Socony Mobil Oil Co. and in 1966 simply Mobil Oil Corp. A decade later, the newly incorporated Mobil Corporation absorbed Mobil Oil as a wholly owned subsidiary. Jersey Standard changed its name to Exxon Corporation in 1972 and established Exxon as a trademark throughout the United States. In other parts of the world, Exxon and its affiliated companies continued to use its Esso trademark.
On March 24, 1989, the Exxon Valdez oil tanker struck Bligh Reef in Prince William Sound, Alaska and spilled more than 11 million gallons (42,000 m³) of crude oil. The Exxon Valdez oil spill was the second largest in U.S. history, and in the aftermath of the Exxon Valdez incident, the U.S. Congress passed the Oil Pollution Act of 1990. The company is still appealing a $2.5 billion USD punitive ruling, and has not paid any damages yet.
In 1998, Exxon and Mobil signed a US$73.7 billion definitive agreement to merge and form a new company called Exxon Mobil Corporation, the largest company on the planet. After shareholder and regulatory approvals, the merger was completed on November 30, 1999. The merger of Exxon and Mobil was unique in American history because it reunited the two largest companies of John D. Rockefeller's Standard Oil trust, Standard Oil Company of New Jersey/Exxon and Standard Oil Company of New York/Mobil, which had been forcibly separated by government order nearly a century earlier. This reunion resulted in the largest merger in US corporate history.