ExxonMobil is one of the most recognizable names in the oil and gas industry. It is a global oil company with operations in over 70 countries around the world.
In this article will explore some of the history and current operations of ExxonMobil, from its roots as Standard Oil to its current status as one of the largest publicly traded companies on Earth.
The History of Standard Oil
ExxonMobil’s history starts in 1859 at the hands of Colonel Edwin Drake and Uncle Billy Smith. The pioneers drilled the first successful oil wells in Titusville, Pennsylvania and this started a rush of interest from prospectors.
John D. Rockefeller’s later created Standard Oil on January 10th, 1870. The building of a oil refinery in Cleveland, Ohio improved production quality and soon became know worldwide.
At its height, Standard Oil controlled 88% of all oil production in the United States. This monopoly led to federal antitrust legislation that eventually resulted in a breakup of Standard Oil into 34 different companies, including what would become modern-day ExxonMobil.
The Early Years
In 1863 American Cilvil War era, Rockefeller formed a partnership with other investors to create a small oil refinery in Cleveland, Ohio. The refinery was called “The Flats” and the parnerships name was Andrews, Clark & Co.
This business would eventually become Standard Oil, although it took a few years before it became successful enough to start expanding its operations.
In 1868, Rockefeller and their partner Henry Flagler began purchasing refineries across the United States, creating a monopoly in the refining industry.
As production increased, so did profits for Standard Oil; by 1880, it had become the largest refinery in the world with almost 80% market share.
Standard Oil’s Innovations
Standard Oil became known for its use of vertical integration, which allowed it to expand its reach beyond refineries and into transportation, distribution, and retail outlets for petroleum products.
The company also developed new refining techniques such as cracking (which allowed for more efficient production of gasoline) and horizontal integration (which allowed for better control over pricing).
By 1890, Standard Oil had grown to include more than 40 refineries across 11 states in America and Europe.
The Supreme Court Ruling
In 1911, after several years of litigation brought against them by various competitors, Standard Oil was found guilty of violating antitrust laws by the Supreme Court of the United States.
This ruling forced them to break up their monopoly into 34 different companies that are still active today but no longer have any connection with each other or John D. Rockefeller himself.
The company had over 60,000 employees and it was a huge story at that time.
Global Expansion Efforts
ExxonMobil has become one of the world’s largest publically traded companies, with a current market capitalization estimated at over $269 billion.
In recent years, ExxonMobil has been actively expanding its operations into new markets around the world. Let’s take a closer look at some of their global expansion efforts.
Exploring New Markets
ExxonMobil has been seeking out new markets by investing billions of dollars in multinational projects that span multiple countries and continents.
For example, in 2012 ExxonMobil announced a joint venture with Russia’s Rosneft to explore oil and gas in Russia’s Arctic waters. This was an unprecedented move that marked the first time a major U.S. company had partnered with a Russian firm to invest in Arctic resources.
The arrangement also allowed ExxonMobil access to offshore reserves that are estimated to hold as much as 30 billion barrels of oil equivalent.
Expanding Operations Internationally
On top of exploring new markets, ExxonMobil has also been expanding its operations internationally, particularly in Europe and Asia Pacific regions.
For instance, the company recently completed a project in Germany that involved building two liquefied natural gas terminals along the Baltic Sea coast near Hamburg and Wilhelmshaven ports.
These terminals will be used to supply liquefied natural gas fuel for ships sailing along North European routes.
In addition, the company is also constructed an liquefied a natural gas terminal near Singapore.
ExxonMobil is also investing heavily in Africa, where it is working on several projects related to oil & gas exploration and production as well as power generation and distribution infrastructure development.
The company recently announced plans to partner with Mozambique-based energy firm ‘Eni’ on an integrated liquefaction facility designed for export purposes – this could potentially make Mozambique one of the top exporters of natural gas worldwide by 2024.
As one of the largest energy companies in the world, ExxonMobil has a long history of providing energy solutions to customers around the globe.
From oil and gas exploration to refining, marketing, and shipping, ExxonMobil is a powerhouse in the energy industry. L
et’s take a closer look at what ExxonMobil is currently doing to continue its success today.
ExxonMobil’s Operations and Products
ExxonMobil is involved in all aspects of the energy industry, from exploration and production to refining and marketing. The company produces oil, natural gas, synthetic fuels, petrochemicals, and other products for industrial use.
They have operations in more than 40 countries around the world, producing over 4 million barrels of oil equivalent every day.
In recent years, ExxonMobil has made significant strides in developing new technologies for oil and natural gas production. Their “Project X” innovation program has enabled them to produce more efficiently with fewer emissions than ever before.
They have also invested heavily in renewable energy sources such as solar power and biomass fuel cells. These investments have enabled them to reduce their carbon footprint while still providing reliable energy solutions for customers all over the world.
ExxonMobil’s Role in Energy Policy
As one of the world’s largest energy companies, ExxonMobil has an important role to play when it comes to shaping global energy policy. The company works closely with governments around the world on issues such as climate change and renewable energy development.
Additionally, they are active members of several industry groups that promote responsible practices throughout the oil and gas industry. By being involved in these conversations on a global scale, ExxonMobil is helping ensure that its business remains competitive for years to come.
ExxonMobil has come a long way since John D Rockefeller founded Standard Oil back in 1870. What began as an American monopoly became an international giant after decades of acquisitions and expansion into new markets around the world.
These days it remains at the cutting edge when it comes to innovation within the oil and gas sector while also maintaining high standards when it comes to corporate responsibility initiatives such as reducing emissions or promoting diversity among its staff members.
For American businessmen looking for reliable investments during these uncertain times, there are few better options than investing in ExxonMobil’s continued success story!
Sources: THX News, ExxonMobil & Wikipedia.