ExxonMobil

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Exxon Mobil Corporation <tr><td colspan="2" style="text-align:center; padding:16px 0 16px 0;"> Image:Exxon Mobil Logo.svg </td></tr>
Type	Public (NYSE: XOM)
Founded	1999 (merger) 1911 (Standard Oil of New Jersey) 1911 (Standard Oil of New York) 1882 (Standard Oil)
Headquarters	Image:Flag of the United States.svg Irving, Texas, USA <tr><th style="text-align:right; padding-right:0.75em;">Key people</th><td>Rex W. Tillerson (Chairman/CEO)</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Industry</th><td>Oil and Gas</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Products</th><td>Fuels, Lubricants, Petrochemicals</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Revenue</th><td>$370.680 Billion USD(2005)</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Net income</th><td>Image:Green Arrow Up.svg $36.130 Billion USD (2005)</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Employees</th><td>83,700</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Slogan</th><td>"Taking on the world's toughest energy challenges", "We're drivers too", "Understanding Energy"</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Website</th><td>www.exxonmobil.com</td></tr>

Exxon Mobil Corporation or ExxonMobil (NYSE: XOM), headquartered in Irving, a suburb of Dallas, Texas, USA, is the largest publicly traded integrated oil and gas company in the world, formed on November 30, 1999, by the merger of Exxon and Mobil. As of 2006 it is the largest company in the world (in market value) as ranked by the Forbes Global 2000 and the largest company in the world (by revenue) as ranked by the Fortune Global 500. It is the largest of the six oil "supermajors" with daily production of 6.5m boe (barrels of oil equivalent).

1 Corporate divisions
2 History
3 Corporate governance
- 3.1 Board of directors
4 Organization
5 Largest shareholders
6 Criticism
7 See also
8 External links
9 Bibliography

[edit] Corporate divisions

Exxon Global Corporate Headquarters are located in Irving, a suburb of Dallas, Texas, whereby this company markets products around the world under the brands of Exxon, Mobil, and Esso; it also owns hundreds of smaller subsidiaries such as Imperial Oil Limited (an oil retailer in Canada) and SeaRiver Maritime.

The company is bifurcated into a "Downstream" division (marketing, refining, and retail operations) located in Fairfax, Virginia, an "Upstream" division (oil exploration, extraction, shipping, and wholesale operations) located in Houston, Texas, and a "Chemicals" division also located in Houston, Texas. Although most internal operations are divided along these lines, the company also has several ancillary divisions, such as Coal & Minerals, which are standalone and not part of either the Upstream or the Downstream segments.

The upstream division dominates the company's cashflow, accounting for approximately 70% of revenue. The company employs over 100,000 people worldwide, with approximately 4,000 employees in its Fairfax downstream headquarters and 27,000 people in its Houston upstream headquarters.

The merger of Exxon and Mobil was unique in American history because it reunited the two largest companies of John D. Rockefeller's Standard Oil trust, Standard Oil Company of New Jersey/Exxon and Standard Oil Company of New York/Mobil, which had been forcibly separated by government order nearly a century earlier.

In 2005, ExxonMobil replaced Wal-Mart as the world's largest publicly held corporation when measured by revenue, although Wal-Mart remains the largest by number of employees. (Both Wal-Mart and ExxonMobil are smaller than certain government-controlled corporations such as Saudi Aramco.)

[edit] History

Both Exxon and Mobil were descendants of the John D. Rockefeller corporation, Standard Oil. The reputation of Standard Oil in the public eye suffered badly after publication of Ida M. Tarbell's classic exposé The History of the Standard Oil Company in 1904, leading to a growing outcry for the government to take action against the company.

By 1911, with public outcry at a climax, the United States Supreme Court ruled that Standard Oil must be dissolved and split into 34 companies. Two of these companies were Jersey Standard, which eventually became Exxon, and Socony ("Standard Oil Company of New York"), which eventually became Mobil.

In the same year, the nation's kerosene output was eclipsed for the first time by gasoline. The growing automotive market inspired the product trademark Mobiloil, registered by Socony in 1920.

Over the next decade, both companies grew significantly. Jersey Standard acquired a 50 percent share in Humble Oil & Refining Co., a Texas oil producer. Socony purchased a 45 percent interest in Magnolia Petroleum Co., a major refiner, marketer and pipeline transporter. In 1931, Socony merged with Vacuum Oil Co., an industry pioneer dating back to 1866 and a growing Standard Oil spin-off in its own right.

In the Asia-Pacific region, Jersey Standard had oil production and refineries in Indonesia but no marketing network. Socony-Vacuum had Asian marketing outlets supplied remotely from California. In 1933, Jersey Standard and Socony-Vacuum merged their interests in the region into a 50-50 joint venture. Standard-Vacuum Oil Co., or "Stanvac," operated in 50 countries, from East Africa to New Zealand, before it was dissolved in 1962.

Mobil Chemical Company was established in 1960. As of 1999 its principal products included basic olefins and aromatics, ethylene glycol and polyethylene. The company produced synthetic lubricant base stocks as well as lubricant additives, propylene packaging films and catalysts. Exxon Chemical Company (first named Enjay Chemicals) became a worldwide organization in 1965 and in 1999 was a major producer and marketer of olefins, aromatics, polyethylene and polypropylene along with specialty lines such as elastomers, plasticizers, solvents, process fluids, oxo alcohols and adhesive resins. The company was an industry leader in metallocene catalyst technology to make unique polymers with improved performance.

In 1955, Socony-Vacuum became Socony Mobil Oil Co. and in 1966 simply Mobil Oil Corp. A decade later, the newly incorporated Mobil Corporation absorbed Mobil Oil as a wholly owned subsidiary. Jersey Standard changed its name to Exxon Corporation in 1972 and established Exxon as a trademark throughout the United States. In other parts of the world, Exxon and its affiliated companies continued to use its Esso trademark.

On March 24, 1989, shortly after midnight, the oil tanker Exxon Valdez struck Bligh Reef in Prince William Sound, Alaska, spilling more than 11 million gallons (42,000 m³) of crude oil. The spill was the largest in U.S. history, and in the aftermath of the Exxon Valdez incident U.S. Congress passed the Oil Pollution Act of 1990. At the time of the spill, Exxon paid $300 million immediately and voluntarily to more than 11,000 Alaskans and businesses affected by the Valdez spill. In addition, the company paid $2.2 billion to cleanup Prince William Sound, a process that lasted until 1992, when the State of Alaska and the U.S. Coast Guard declared the cleanup complete. Exxon paid $1 billion in settlements with the state and federal governments. Virtually all Valdez compensatory damages were paid in full within one year of the accident, and the trial court commended Exxon for coming forward "with its people and its pocketbook and doing what had to be done under difficult circumstances." However, a $4.5 billion punitive ruling against Exxon is still under appeal. The punitive damages were set by a Federal court judge in Anchorage, and have twice been vacated by the Ninth Circuit Court of Appeals as excessive.

In 1998, Exxon and Mobil signed a US$73.7 billion definitive agreement to merge and form a new company called Exxon Mobil Corporation, the largest company on the planet. After shareholder and regulatory approvals, the merger was completed on November 30, 1999.

In 2000, ExxonMobil sold a refinery in Benicia, California and 340 Exxon-branded stations to Valero Energy Corporation, as part of an FTC-mandated divestiture of California assets. ExxonMobil continues to supply petroleum products to over 700 Mobil-branded retail outlets in the state.

In 2005, its stock price surged in parallel with rising oil prices, surpassing General Electric as the largest corporation in the world in terms of market capitalization. At the end of 2005, ExxonMobil reported record profits, reporting US $36 billion in annual income, up 42% from the previous year (the overall annual income was an all-time record for annual income by any business, and included $10 billion in the third quarter alone, also an all-time record income for a single quarter by any business). The company and the American Petroleum Institute, the Oil and Chemical industry's lobbying apparatus, however tried to downplay its success in order to avoid criticism from consumers by putting up page-long ads in major American newspapers, such as The New York Times, The Washington Post, comparing Oil Industry profits to that of other large industries such as pharmaceuticals and banking. [1] [2] As an illustration, ExxonMobil's $36 billion in profits came on top of $370.6 billion in revenue, for a profit margin of 9.7%. In other words, Exxon netted 9.7 cents on each dollar of revenue it brought in. By contrast, Microsoft earned 30.8 cents for each dollar of revenue, and Google earned 23.9 cents for each dollar of revenue. Starbucks' profit margin was slightly lower than ExxonMobil's, at 7.8 cents for each dollar of revenue. Exxon's long-time mascot is a Tiger; Mobil's mascot is a Pegasus which dates back to the late 19th century and is one of the oldest marketing symbols still in use.

[edit] Corporate governance

The current Chairman of the Board and CEO of Exxon Mobil Corporation is Rex Tillerson. Tillerson assumed the top position on January 1, 2006 on the retirement of long-time chairman and CEO, Lee Raymond, who received a highly controversial retirement and severance package of approximately $400 Million.

[edit] Board of directors

Current Exxon Mobil board members are:[3]

Michael Boskin, professor of economics, Stanford University
William W. George, professor of management practice, Harvard Business School
James R. Houghton, Chairman of the Board, Corning Incorporated
William R. Howell, Chairman Emeritus, J.C. Penney Company
Reatha King, former chairman, Board of Trustees, General Mills Foundation
Philip Lippincott, retired Chairman of the Board, Scott Paper Company and Campbell Soup Company
Henry McKinnell, Jr., Chairman of the Board and CEO, Pfizer
Marilyn Nelson, Chairman and CEO, Carlson Companies
Samuel J. Palmisano, Chairman of the Board, President and CEO, IBM Corporation
Walter Shipley, retired Chairman of the Board, Chase Manhattan Corporation

[edit] Organization

ExxonMobil is organized functionally into a number of global operating divisions. These divisions are grouped into three categories for reference purposes:

Upstream
Downstream
Chemical

Operating divisions by category are as follows:

Upstream
- ExxonMobil Exploration Company
- ExxonMobil Development Company
- ExxonMobil Production Company
- ExxonMobil Gas and Power Marketing Company
- ExxonMobil Upstream Research Company

Downstream
- ExxonMobil Refining and Supply Company
- ExxonMobil Fuels Marketing Company
- ExxonMobil Lubricants & Specialties Company
- ExxonMobil Research and Engineering Company
- ExxonMobil Global Services Company

Chemical
- ExxonMobil Chemical Company

Upstream and Chemical operations are headquartered in Houston, Texas, and the downstream operations are headquartered at the heritage-Mobil headquarters in Fairfax, Virginia.

[edit] Largest shareholders

As of June 30, 2006:

Owner	Percent
Barclays Global Investors	4.0
State Street Global Advisors	3.1
Vanguard Group	2.6
Fidelity Management and Research	1.5
Northern Trust Company	1.4
AllianceBernstein	1.4
JPMorgan Chase	1.3
Wellington Management Company	1.1
Capital Research & Management Company	1.0
Merrill Lynch Investment Management	0.9
Bank of America	0.8
TIAA-CREF Investment Management	0.7
Mellon Financial	0.6
Goldman Sachs	0.6
State Farm Insurance	0.6

[edit] Criticism

ExxonMobil draws a wide range of criticism, from its economic to environmental to geopolitical actions. Allegations levied against the company include:

Contributing to global warming as the largest (non-government) producer of combustible fuels which generate greenhouse gases;
Providing several million dollars in funding to a range of organizations that opponents believe spread climate change disinformation and attempt to show the fallacies of the global warming argument. [4]
Unethical business practices; [5]
Intentional negligence and indifference to the environmental consequences of the Exxon Valdez oil tanker spill; [6]
Underfunding its employee pension plan despite having enough cash on hand to fully fund the plan if it chose to; [7]
Price gouging in the United States at a retail level; [8]
Shortchanging retail fuel marketing and lubricants marketing partners (The marketers won a $1.4 billion judgment against ExxonMobil for anticompetitive practices in federal court in 2003); [9]
Abuse of U.S. corporation law and perpetration of clever marketing schemes to avoid proper responsibility for its actions (For example, after the Valdez disaster, the company took the name "Exxon" out of its tanker shipping subsidiary, renaming it "SeaRiver Maritime," and giving it a separate (but wholly Exxon-controlled) corporate charter and board of directors. The former Exxon Valdez is now the "SeaRiver Mediterranean" and is legally owned by a small, allegedly under capitalized, stand-alone company, which would have minimal ability to pay out on claims in the event of a further accident;[10]
Human rights violations in the Indonesian territory of Aceh. In June 2001, ExxonMobil became the target of a lawsuit in the Federal District Court of the District of Columbia, under the Alien Tort Claims Act. The suit alleged that the company knowingly assisted human rights violations, including torture, murder and rape, by employing and providing material support to Indonesian military forces, who committed the alleged offenses in Aceh. Human rights complaints involving ExxonMobil's relationship with the Indonesian military first arose in 1992; the company denies these accusations and has filed a motion to dismiss the suit, which is still pending as of 2005; [11]
Callous treatment and prejudicial termination of former Mobil employees in favor of their Exxon counterparts during and after the Exxon & Mobil merger;^{[citation needed]}
Violation of the Bribes & Foreign Corrupt Practices Act (ExxonMobil controls concessions covering 11 million acres (44,500 km²) off the coast of Angola that hold an estimated 7.5 billion barrels (1.2 km³) of crude; [12] Questions have been raised about ExxonMobil's actions in securing these concessions—Forbes Magazine alleging that "ExxonMobil handed hundreds of millions of dollars to the corrupt regime of President José Eduardo dos Santos in the late 1990s". [13]; and
Trade in violation of economic sanctions against regimes hostile to the United States (In 2003, the Office of Foreign Assets Control reported that ExxonMobil engaged in illegal trade with Sudan and along with dozens of other companies had to settle with the United States government for US$50,000 [14].)

[edit] See also

Criticism of the petroleum industry

[edit] External links

Image:Commons-logo.svg	Wikimedia Commons has media related to: ExxonMobil

[edit] General information

[edit] ExxonMobil responses to issues

[edit] Funding given by ExxonMobil

[edit] Anti ExxonMobil Websites

Exxonmobil entry at Knowmore.org
Greenpeace UK's page on Esso
Exxon's anti-global-warming propaganda expenditures
ExxposeExxon
Stop Esso (dead link 10/28/06)
Exxonsecrets.org
- List of organizations funded by Exxon Mobil
As the World Burns, a Mother Jones special report on Exxon and global warming
http://www.worldoutofbalance.org New documentary released which exposes ExxonMobil's impact on Climate Change

[edit] Bibliography

Bender, Rob, and Tammy Cannoy-Bender. An Unauthorized Guide to: Mobil Collectibles — Chasing the Red Horse. Atglen, Pennsylvania: Schiffer Publishing Company, 1999.
Exxon Corporation. Century of Discovery: An Exxon Album. 1982.
Gibb, George S., and Evelyn H. Knowlton. The Resurgent Years, 1911-1927: History of Standard Oil Company (New Jersey). New York: Harper & Brothers Publishers, 1956.
Hidy, Ralph W., and Muriel E. Hidy. Pioneering in Big Business, 1882-1911: History of Standard Oil Company (New Jersey). New York: Harper & Brothers Publishers, 1955.
Larson, Henrietta M., and Kenneth Wiggins Porter. History of Humble Oil & Refining Company: A Study in Industrial Growth. New York: Harper & Brothers Publishers, 1959.
Larson, Henrietta M., Evelyn H. Knowlton, and Charles S. Popple. New Horizons, 1927-1950: History of Standard Oil Company (New Jersey). New York: Harper & Row, 1971.
McIntyre, J. Sam. The Esso Collectibles Handbook: Memorabilia from Standard Oil of New Jersey. Atglen, Pennsylvania: Schiffer Publishing Company, 1998.
Sampson, Anthony. The Seven Sisters: The 100-year Battle for the World's Oil Supply. New York: Bantom Books, 1991.
Standard Oil Company (New Jersey). Ships of the Esso Fleet in World War II. 1946.
Tarbell, Ida M. All in a Day’s Work: An Autobiography.. New York: The MacMillan Company, 1939.
Tarbell, Ida M., and David Mark Chalmers. The History of the Standard Oil Company. New York: Harper & Row, 1966.
Wall, Bennett H. Growth in a Changing Environment: A History of Standard Oil Company (New Jersey) 1950-1972 and Exxon Corporation (1972-1975). New York: McGraw-Hill Book Company, 1988.
Yergin, Daniel. The Prize: The Epic Quest for Oil, Money, and Power. New York: Simon & Schuster, 1991.