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Justin Burkholder Tom Frantzen Jeff Nocella Robert Shoyer. Exxon A broad perspective. Who? World’s largest publicly traded international oil and gas company What?
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Justin Burkholder Tom Frantzen Jeff Nocella Robert Shoyer
ExxonA broad perspective • Who? • World’s largest publicly traded international oil and gas company • What? • Uses innovation and technology to deliver energy to a growing world: Exploration, Development, Production, Natural Gas & Power marketing etc… • How? • Operate ethically, safely and with the future in mind: i.e. Operations Integrity Management Systems (OIMS) • Where? • Operate, explore for oil and natural gas, or market products on 6 continents.
Company Financials • Ranked as #1 Fortune 500 company (May, 2009) • Exxon mobil increased its NI by >80% in just 4 years (2004-2008). • Price per share: 2007- $93 vs. 2008- $79 • Economic Crisis has decreased cash available for investment • Exxon's intangible worth
Emerging Technologies Seismic mapping – best to date 3D technology that can make detailed drawings of the world’s oil and gas reservoirs. remote reservoir resistivity mapping(R3M) using low-frequency electromagnetic waves, it can remotely map undersea oil and gas reservoirs. directional drilling - wells can be horizontally drilled starting miles away from the product they are drilling for.
Continued… unconventional resources – energy resources such as tight gas, heavy oil and oil sands. enhanced oil recovery – improved technologies such as injecting liquids or natural gas into a reservoir or even reverse the natural decline of a producing field.
What sets Exxon apart and gives them a competitive advantage • Deepwater Drilling • Exxon can drill for offshore oil and gas deposits in water depths that were not possible a generation ago. • Over the last 5 years, this technology has added an average of 3.1 billion oil-equivalent barrels to the resource base per year.
Technologies and Potential Impact on Exxon Mobil • Better planning and decision making for company as a whole • More information to make decisions on • Effective communications • Ultimately maximizing profitability
Technologies and Potential Impact on Exxon Mobil (cont.) • High quality value of information through new technology • Strong global relationships/communication to insure management of all systems correctly
Technologies and Potential Impact on Exxon Mobil (cont.) • Keeping up to date technologies helps for EM to focus on Customer Resource Management • Reporting Tech. • Analysis Tech. • Predicting Tech. • Supply Chain Management
Porter’s Five ForcesSupplier Power - Countries do have the power to deny ExxonMobil their oil resource • ExxonMobil reduces this threat by: • Creating value for that supplier • Ability to process and manufacture the oil into products for the supplier. • Creating strong customer relations
Porter’s Five Forces Buyer Power • Low Buyer Power due to high demand of gasoline • Good Buyer Relations
Porter’s Five Forces Barriers of Entry • Low threat of new rivals • Globally located for oil resource • Very good global business processes • Cost of Entry is Large • Costs would be enormous to start a successful new oil company
Porter’s Five Forces Threat of Substitute Products • Low Threat • No viable alternatives • Research funding is low • ExxonMobil is on the forefront of substitute product research • Ethanol
Porter’s Five Forces Rivalry • Global Leader • Value In-House Research • Global Centralized Business Processes