Exxonmoil Case Study

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Weaknesses:
Weaknesses found within XOM were their declining oil reserves, human rights issues, and negative public perception.
Declining Oil Reserves: ExxonMobil is a very large corporation. The company recorded on February 19th that they added 1 billion barrels of oil to the reserves. That makes up 67 percent of the production. When building up the reserves most companies want to strive for at least 100 percent of their production for reserves or else it could be viewed as a problem. For a fortune 500 company like ExxonMobil, it’s a big problem. XOM is facing the problem of declining oil reserves. This hasn’t been an issue until this year. ExxonMobil has just ended their streak of 22 years of reaching their goals for oil reserves. Their …show more content…

Over the year’s environmentalist have given a very negative outlook on the oil industry and or a company like ExxonMobil it is a major weakness. In a study conducted by the American Petroleum Institute, they found that the oil and gas industry came second to tobacco as the “industry with the worst public image” (Theodori, 2014). The general public perceives the oil and gas industry to be the issue behind many environmental problems and take measures to attempt and stop the growth of the industry, from going on strike, to voting against candidates in favor of oil drilling. Oil spills also contribute to negative public perception, because they can affect all forms of life and can leave long-lasting consequences. The company’s first oil spill was in 1989, off the coast of Alaska, and it wasn’t their last. Though the company always takes full responsibility in any spills connected to their corporation, it doesn’t change the negative public perception of the oil and gas …show more content…

As Global Data has said, the Alaska LNG Project could become one of the largest Natural Gas development projects in the world. “Its participants include affiliates of BP, ConocoPhillips, and ExxonMobil; and Alaska Gasoline Development Corporation (AGDC).”(XOM FSAR, 2016) According to Global Data, the project is expected to produce 3.5 BCF (billion cubic feet) of gas per day. The next two are the Julia Project and the Liza Project. The Julia project is an ultra-deep-water reserve. The Liza project is a deep-water rig. Both are expected to increase oil production over the next few years. The Julia reserve, according to Global Data, is estimated to hold 6 billion barrels of oil. Lastly, there is the Ca Voi Xanh (Blue Whale) project. The project is based around an offshore Natural Gas Reserve. “Ca Voi Xanh project is expected to have 3-10 tcf of natural gas resource.” (Global data, June 2016)). This project is scheduled to commence in 2021. These projects not only continue advancements for ExxonMobil but also help go after opportunities that have been

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