Justin Burkholder Tom Frantzen Jeff Nocella Robert Shoyer

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 – energyresources such as tight gas, heavy oil andoil sands.

enhanced oil recovery – improvedtechnologies such as injecting liquids ornatural gas into a reservoir or even reversethe 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.

• 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

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