Internationalization of exxonmobil activities

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Internationalization of Exxon mobil activities

VA Chukayeva, student

Abstract

In this article the author considers the world-famous oil and gas company ExxonMobil and tries to measure the level of its internationalization using information about its subsidiaries and affiliated companies. As a result, the author demonstrates the example of reproduction process implemented by this company and counts a precise figure to characterize the level of internationalization.

Key words: internationalization, interaction, subsidiaries, petroleum, reproduction process.

ExxonMobil, the largest publicly traded international oil and gas company, uses technology and innovation to help meet the world's growing energy needs. They hold an industry-leading inventory of resources and are one of the world's largest integrated refiners, marketers of petroleum products and chemical manufacturers. ExxonMobil was ranked 2 in Forbes Global 500 list in 2015 [1]. The Headquarter office is in Irving, Texas, United states.

Exxon Mobil Corporation was formed in 1999 by the merger of two major oil companies, Exxon and Mobil. Both Exxon and Mobil were descendants of the John D. Rockefeller corporation Standard Oil, which was established in 1870.

ExxonMobil operates facilities or market products in most of the world's countries and explore for oil and natural gas on six continents.

Worldwide, ExxonMobil markets fuels and lubricants under three brands: Exxon, Esso and Mobil. These three brands are known for performance and innovation, they are recognized for their advanced technology in fuels, lubricants and services.

ExxonMobil has more than 100 branches in 53 countries, however to see the level of internationalization it will be enough to consider only 17 subsidiaries (table 1). Due to their interaction appears an internationalized system of reproduction process (figure 1)[ 2].

As we can see from the map (figure 1), ExxonMobil has it influence on 5 continents and it continues building relationships with such countries like Nigeria, Qatar and Malaysia (they are not mentioned in the table 1). [3]

Table 1. Information about subsidiaries of the ExxonMobil Company [3]

It is obvious from the map that ExxonMobil has high level of internationalization and to prove it we will find the index of internationalization which is calculated as a percentage ratio of the number of foreign branches to the total number of branches of the company [4]:

Фз - the number of the foreign branches

Фо - the total number of the branches of the company

According to the information on the official site ExxonMobil has more than 120 branches in 53 countries and 43 in US.

In conclusion we can say that indeed, ExxonMobil is the largest oil company in the world with the level of internationalization of 76%. It means that due to Exxon's size and diversification it can insulate itself from the oil price volatility thanks to its strong refining and chemicals businesses. That is why, when a worldwide oil glut cut crude prices by more than half, than it did a year earlier, Exxon saw less severe revenue decline in 2014 (6.1%) than other oil companies.

References

1. Fortune 500 [Electronic source] - access liberate http://fortune.com/fortune500/exxon-mobil-2/ (19.10.2015)

2. Wikipedia - Free Encyclopedia [Electronic source] - access liberate: https://ru.wikipedia.org/wiki/ExxonMobil (19.10.15)

3. ExxonMobil Official site in English [Electronic source ] - access liberate: http://corporate.exxonmobil.com/en/company/worldwide-operations/locations (19.10.15)

4. E.D Frolova, T.V.Kuprina. World Economy and International economic relations: guidelines for self-study. - Federal State Educational Standard of Higher Professional Education, №747, 21 December, 2009.

5. ExxonMobil Official site in Russian [Electronic source] - access liberate: http://www.exxonmobil.ru/Russia-Russian/PA/about.aspx (19.10.15)

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