ExxonMobil

Definition

ExxonMobil is one of the largest publicly traded oil and gas companies in the world, formed from the merger of Exxon and Mobil in 1999. The company plays a crucial role in the energy industry in Texas, where it has a significant presence in oil and natural gas exploration, production, and refining. ExxonMobil's operations not only contribute to the local economy but also impact global energy markets.

5 Must Know Facts For Your Next Test

1. ExxonMobil has extensive operations in the Permian Basin, one of the most productive oil fields in the United States, contributing significantly to its oil output.
2. The company is heavily involved in refining activities, with several refineries located across Texas that process crude oil into gasoline and other products.
3. ExxonMobil has made investments in research and development to improve energy efficiency and reduce greenhouse gas emissions in its operations.
4. As a major player in the energy sector, ExxonMobil's decisions can influence oil prices globally, affecting economies both domestically and internationally.
5. The company has faced challenges related to environmental regulations and public scrutiny over its impact on climate change, leading to shifts in its business strategies.

Review Questions

• How does ExxonMobil's presence in Texas influence local economies and job markets?
  • ExxonMobil's presence in Texas significantly boosts local economies by providing thousands of jobs and generating substantial tax revenues. The company's operations create opportunities in various sectors, including construction, engineering, and services. Additionally, as one of the largest employers in the region, ExxonMobil attracts a skilled workforce, which further enhances economic development and stability.
• Discuss how ExxonMobil integrates renewable energy initiatives into its traditional fossil fuel operations.
  • ExxonMobil has begun integrating renewable energy initiatives alongside its traditional fossil fuel operations by investing in technologies that promote cleaner energy production. The company is exploring ways to reduce its carbon footprint through research into biofuels and carbon capture technologies. By doing so, ExxonMobil aims to transition toward more sustainable practices while still meeting global energy demands.
• Evaluate the potential impacts of ExxonMobil's operational decisions on global energy markets and climate change policies.
  • ExxonMobil's operational decisions have far-reaching implications for global energy markets, particularly due to its size and influence within the oil and gas industry. Changes in production levels or investment strategies can directly affect oil prices and availability. Furthermore, as environmental concerns grow, ExxonMobil faces pressure to align its business practices with climate change policies. This might lead to a shift toward more sustainable practices or prompt regulatory changes that could reshape how energy is produced and consumed worldwide.

Related terms

Hydraulic Fracturing: A technique used to extract oil and natural gas from underground rock formations by injecting high-pressure fluid to create fractures.

Downstream Operations: The processes involved in refining crude oil into finished products and distributing them to consumers, which is a significant part of ExxonMobil's business.

Renewable Energy: Energy generated from natural processes that are continuously replenished, such as solar and wind, which are increasingly being integrated into traditional energy companies' portfolios.