ExxonMobil

Financial performance

2023

2022

Take-off profits to a record $59 billion amid conflict in Ukraine

In February 2023, the White House expressed indignation over Exxon Mobil's record net profit in 2022, which amounted to $59 billion.

Against the backdrop of high prices and increased demand for oil, large NKs are expected to update their annual profit records, and their total profit will approach $200 billion, which is why the industry is criticized and faces calls to impose taxes on companies' windfall profits.

Oil majors are making record profits as the world suffers from high fuel prices.

Exxon Mobil Corp.,, Chevron, and Shell TotalEnergies BP make even more money than in 2008, when world oil prices jumped to $147 per dollars barrel.

Share of 11.2% of oil production in Kazakhstan

2021: Record production decline

In the second quarter of 2021, Exxon Mobil Corp. production fell below 3.6 million barrels per day, the lowest since the merger in 1999.

2020: First loss in 40 years - $22.44 billion, revenue - $181.5 billion

In 2020, ExxonMobil received revenue of $181.5 billion, which is significantly less than a year ago at $264.94 billion.

At the same time, the company received a loss for the first time in 40 years - it amounted to $22.44 billion. In 2019, the net profit of the oil and gas giant was measured at $14.34 billion.

ExxonMobil's financial problems are associated with the negative impact of the COVID-19 coronavirus pandemic on demand, which led to an oversupply of supplies and unprecedented pressure on commodity prices. The pandemic has led to falling oil demand and asset impairment in the shale gas sector.

Due to a sharp deterioration in financial performance, Exxon Mobil refused to raise dividends for the first time since 1982. She was also excluded from the Dow Jones Industrial index, which reduced demand for the company's shares among investors. As a result, Exxon Mobil shares fell by more than a third in 2020.

It follows from the financial statements that in 2020, net production of crude oil, bituminous oil, natural gas and synthetic oil amounted to 2.35 million barrels per day against 2.39 million a year earlier. In the United States, the figure increased from 646 to 685 million barrels per day, in Europe production decreased from 108 to 30 million, in Africa - from 372 to 312 million, in Asia - from 748 to 742 million barrels per day.

Exxon Mobil's global natural gas production was 8.47 billion cubic feet per day, compared to 9.39 billion in 2019. In the U.S., the company's natural gas production declined from 2.78 billion to 2.69 billion cubic feet per day. In Europe, a decline was registered from 1.46 billion to 789 million, in Asia - from 3.58 billion to 3.49 billion. The company's oil equivalent production amounted to 3.7 million barrels per day.

Capital expenditures of ExxonMobil at the end of 2020 amounted to $21 billion, which is $2 billion less than the volume of planned costs.^[1]

2019

History

2023

Sale of latest project in Iraq to Basra Oil Company

On November 9, 2023, the American company ExxonMobil signed an agreement to transfer the remaining 22.7% in the West Qurna-1 oil field development project to the Iraqi state oil company Basra Oil Company (BOC). The leading contractor for this site is the Chinese oil and gas corporation PetroChina.

Western Qurna-1 in southern Iraq is one of the world's largest oil fields, with recoverable reserves estimated at more than 20 billion barrels. As of November 2023, production is approximately 550-560 thousand barrels per day. Iraq planned in 2023 to increase production at this field to 600 thousand barrels per day, and by 2026 - to 800 thousand barrels per day. In 2022, Indonesian state-owned oil and gas company Pertamina bought ExxonMobil's 10 percent stake in the West Qurna-1 field, increasing its participation to 20 percent.

ExxonMobil Iraq Limited has signed certain agreements with Basra Oil Company allowing it to transfer 22.7% in West Qurna-1, which is expected to happen by the end of [2023], the US company said in a statement.

West Qurna-1 in Basra province is the only asset owned by ExxonMobil in Iraq after it abandoned its exploration blocks in Kurdistan. The sale means ExxonMobil will no longer have a presence in this country and will exit the Iraqi energy sector. The sale agreement includes an obligation to determine in further negotiations the amount of tax ExxonMobil must pay to sell its stake in the field.

The tax issue has not yet been resolved, and according to the sale agreement, we have two options: either reach a tax settlement, or resort to arbitration, the message says.[2]

Agreement to buy Pioneer Natural Resources for $59.5 billion

On October 11, 2023, Exxon Mobil Corp. agreed to purchase Pioneer Natural Resources Co. for $59.5 billion, the company's largest takeover in 20 years since merging with Mobil Corp. in 1999 and the world's largest corporate takeover announced this year.

If the deal is completed, Exxon will become the largest player in the Permian Basin in Texas and New Mexico, and the company's daily production will reach almost 4.5 million barrels of oil equivalent per day, which is 50% more than the next largest supermagnat.

Exxon Mobil unit chief arrested on sexual assault charges

On October 5, 2023, David Scott, senior vice president of Exxon Mobil, was arrested at the low-cost La Quinta Inn & Suites in Magnolia, Texas. A top manager who oversees the entire shale business of the named oil company is suspected of sexual crimes. Read more here.

2022

ExxonMobil sues EU over oil companies' super profit tax

In December 2022, the American ExxonMobil sued the European Union over the introduction of a tax on the excess profits of oil companies.

The company disputes the EU's authority to impose such a levy, noting that this right usually belongs to individual countries. ExxonMobil believes that this measure "will undermine investor confidence and alienate them from further investment," as well as increase the region's dependence on energy imports.

Using surplus natural gas to mine cryptocurrencies

In March 2022, it became known that ExxonMobil, one of the largest oil companies, USA uses surplus natural gas for mining in North Dakota fields.

The launch of similar projects is being considered in Alaska, Nigeria, in the shale fields of Argentina, offshore Guyana, as well as in Germany.

2021: Developing, together with IBM, quantum algorithms to control cargo ships around the world

In mid-February 2021, research ExxonMobil and IBM groups developed quantum algorithms to control cargo ships around the world. About 90% of global trade relies on shipping, and more than 50,000 ships, each carrying up to 200,000 containers, traverse the water expanses every day to transport goods totaling $14 trillion, so for classic computers the task is overwhelming. Read more here.

2020

Reduction of 10% of the state

On October 5, 2020, the American oil giant ExxonMobil announced its intention to cut up to 1,600 jobs (10% of the state) in Europe. The company is forced to take such measures due to problems caused by the COVID-19 coronavirus.

ExxonMobil said that the impact of the COVID-19 coronavirus on the demand for the company's products accelerated the urgency of reducing costs in the company, so it was decided to reduce more than 1,000 employees involved in ExxonMobil's European enterprises.

The company noted that the job cuts process will be completed by the end of 2021, but did not provide any additional details. ExxonMobil noted that the company's activities in a particular country will depend on local market performance and market conditions.

ExxonMobil, which employs 75,000 employees worldwide and 14,000 in Europe, said the EU still plays a key role in its operations.

However, significant action is now needed to improve price competitiveness and ensure that the company copes with these unprecedented market conditions, the company said.

The decline in oil demand caused by the COVID-19 coronavirus pandemic, as well as the active transition of enterprises to clean energy, affected the value of ExxonMobil shares on Wall Street. In 2020, their value fell by more than half. In early October 2020, the American clean energy producer NextEra Energy overtook ExxonMobil in terms of capitalization.

ExxonMobil is not the only company in the energy industry that is suffering from the COVID-19 crisis and a changing market. The British-Dutch oil and gas company Royal Dutch Shell also announced its intention to cut 9,000 jobs by 2022, more than 10% of the workforce.^[3]

Exclusion from DJIA Index

In August 2020, its oldest participant, the oil company ExxonMobil, was excluded from the Dow Jones Industrial Average. She has been on this list since 1928.

2019: Plans for gas production and LNG infrastructure in Mozambique

On October 8, 2019, it was announced that US energy giant Exxon Mobil would invest in a gas production project in Mozambique.

According to the project, the northeast coast of Mozambique will create infrastructure for the production and sale of LNG. According to Exxon estimates, the development of deposits will cost $30 billion.

The gas fields are located in the province of Kabu Delgadu, where extremist groups have been active for the past two years.

2008: Profit record in global market history

In 2008, due to peak oil prices, ExxonMobil recorded a net profit of $45.2 billion. This record in the history of the world market lasted until 2015, when the American Apple achieved an even more impressive value - $53.4 billion.

2007: Drilling the World's Longest TVD Well in Russia

Exxon Neftegas Limited (a subsidiary of Exxon Mobil Corporation) is completing drilling of Well Z-11, the world's longest ERD well. The total measured depth of the Z-11 well drilled on Sakhalin Island off Russia's east coast is 37,016 feet (11,282 meters) or more than seven miles.

2005

Participation in the development of the largest free gas field in the world

ExxonMobil and Qatar Petroleum, together with other participants in the joint venture, are expanding the development of the giant North field off the coast of Qatar, which is the largest free gas field in the world.

Opening of Michelson-ExxonMobil College of Education

ExxonMobil, together with professional golfer Phil Michelson and his wife Amy, is opening the Michelson-ExxonMobil College of Education, in which future teachers in grades three and five will be taught to form motivation among students to choose a profession related to natural and accurate sciences.

2002: Science Program Launch at Stanford University

ExxonMobil, together with other sponsors, is launching the Global Climate and Power Program (GCEP) at Stanford University. The program provides for research to find new technologies that can meet energy demand and significantly reduce greenhouse gas emissions.

Within the framework of GCEP, research is carried out in the following areas: the use of solar energy, hydrogen, biofuels and the improvement of vehicles.

2001: SCANfining developed to remove sulfur from gasoline

ExxonMobil Research and Engineering Company (EMRE) has developed the SCANfining method, which, based on the use of a new patented catalyst, selectively removes more than 95 percent of sulfur from gasoline with a minimum decrease in the octane number of gasoline.

1999: Merger of Exxon and Mobile into Exxon Mobile

On November 30, 1999, Exxon and Mobile merged into Exxon Mobile Corporation. "This merger will enhance our competitiveness amid the volatility of the global economy and growing competition in the oil and gas industry," said Lee Raymond and Lou Noto, chairmen of the boards and top officials, respectively, of Exxon and Mobile.

1986: Three-dimensional microtomography method invented at Exxon

Exxon Research and Engineering Company has invented a powerful new imaging technique, called 3D microtomography, designed to study the internal structure of opaque objects without destroying them.

1980: "Exxon" opens its own environmental research center

Exxon is opening its own environmental research center in East Millstone, New Jersey. Exxon Biomedical Sciences, Inc conducts research to further ensure the safety of Exxon and its products.

1976: "Mobile" invents method to convert methanol to high-octane gasoline

Mobile has invented a method of converting methanol to high-octane gasoline using its universal ZSM-5 catalyst.

1975: Participation in the staffing of the world's first concrete mining platform

Mobile is involved in staffing the world's first Beryl A concrete production platform. The 50-story structure was the prototype for other concrete platforms for deep-sea drilling in the North Sea.

1974: Mobil 1 Synthetic Motor Oil

Mobile produces Mobil 1 synthetic motor oil.

1972

Jersey Standard changes its name to Exxon Corporation

Jersey Standard officially changes its name to Exxon Corporation. This renaming is approved at an extraordinary meeting of Jersey Standard shareholders.

Mobile patents a zeolite catalyst ZSM-5

In 1972, Mobile patented the zeolite catalyst ZSM-5, obtained in the late 1960s.

1966: "Mobile" changes name to "Mobile Oil Corporation"

In 1966, Mobile celebrates 100 years since Vacuum Oil was founded and changes its name to Mobile Oil Corporation. The company begins a large-scale program to popularize the new corporate name - "Mobile."

1963: Three-dimensional seismic technology invented at Humble

Humble has invented a revolutionary 3D seismic technology that has completely changed the methods used in the industry for finding oil and gas deposits. In the 1980s, this technological breakthrough, combined with the use of powerful computers for parallel processing of seismic images, helped the company's geologists sharply reduce the cost of finding oil and gas and provided an increase in new reserves.

1959: The slogan "Launch a tiger into your gas tank"

A Chicago-based advertising specialist offers the advertising slogan "Launch a tiger into your gas tank."

"Launch a tiger into your gas tank" An orchestra plays behind the scenes Driver: Sorry, what does this tiger mean? Gas station employee: What tiger, sir? Driver: Well, here's this tiger leaning on a column! Gas station employee: You see, refueling with our new petrol with the enhanced formula Enco Extra, you launch a tiger into your gas tank. Driver: OK, then let's put a tiger in there! Gas station employee: Of course, sir. Driver: M-m, what is this tiger doing? Gas station employee: Well, you will see several results: firstly, soft engine operation. The enhanced Enco Extra formula provides the high octane number of gasoline required for many cars, as well as additional power. You see, this new gasoline cleans the carburetor, destroys the deposits in the engine and helps restore the power of your car. Driver: Fantastic! And where is he now? Gas station employee: Who? Driver: Tiger! Gas station employee: Of course, in your tank! Tiger: R-r-r. Driver: Damn me! Well, it's necessary!

1955: Foundation to Assist Universities

Jersey Standard creates the Esso Educational Foundation to provide financial assistance to private colleges and universities.

1952: Uniflo - the first all-season engine oil

Jersey Standard brings Uniflo motor oil to market, the first all-season oil recommended for use in summer and winter.

1942: World's first fluid catalytic cracking unit

The world's first fluid catalytic cracking unit was commissioned at the Jersey Standard Refinery in Baton Rouge, Louisiana. The process, developed by four Jersey Standard researchers known as the Four Horsemen, was an improvement on Goodry catalytic cracking, and eventually the method became the industry standard for gasoline production. Fortune magazine called it "the most revolutionary achievement in chemical technology in the last 50 years."

1938: First industrial production of alkylate

At the Humble plant in Bayton, Texas, the first industrial production of alkylate begins. Alkylation made it possible to release the isooctane used to raise the octane number of aviation gasoline to 100 units.

1937: Preparation of synthetic rubber - butyl

Jersey Standard researchers obtain synthetic rubber - butyl. Today, butyl is used in the production of automotive tires, boiler belts, protective coatings, etc.

1936: First catalytic cracking unit

The first industrial catalytic cracking plant was commissioned at the Soconi Vacuum refinery in Polsboro, New Jersey. The installation used a method developed by the French scientist Eugène P. Goudry with the financial support of Soconi Vacuum. To increase the yield and octane number of gasoline, clay catalyst was introduced during cracking.

1928: Mobiloil in engines of aircraft flying across the Atlantic

Amelia Earhart uses Mobiloil in the engine of her aircraft Friendship during a historic solo flight across the Atlantic Ocean. A year earlier, Charles Lindbergh uses Mobiloil on the Spirit of St. Louis plane on the first solo flight across the Atlantic.

1927: First Seismic Field

Humble Oil geophysicists, having conducted seismic exploration using the refracted wave method, are discovering a new oil field in Sugarland, Texas. This field was the first field in the United States to be discovered using seismic exploration, with the first fairly deep salt dome discovered by geophysical methods.

1926: Fuel called Esso

Using the alphabetical name of the capital letters "C" and "O" in the words "Standard Oil," "Jersey Standard" brings new fuel to the market under the brand name Esso.

1920: Medical alcohol obtained - the first commercial petrochemical product

Researchers from Jersey Standard obtained medical (isopropyl) alcohol, which became the first commercial petrochemical product.

1919: Jersey Standard buys 50% stake in Humble Oil

Jersey Standard acquires a 50 percent stake in Texas refinery Humble Oil. In the same year, Humble Oil, headed by its chief geologist Wallace E. Pratt, used micro-paleontology methods to search for oil, which consisted in the study of microscopic fossils contained in sludge and drilling samples.

1916: Rockefeller becomes first billionaire in history

On September 29, 1916, at the height of World War I, John Rockefeller, founder of Standard Oil, became the world's first billionaire.

1911: Standard Oil Trust split into 34 companies with John Rockefeller retaining control

By decision of the US Supreme Court, the Standard Oil Trust was divided into 34 separate companies, including Jersey Standard, Soconi and Vacuum Oil.

At the same time, John Rockefeller retained a controlling stake in each of the new companies.

This year was also marked by the fact that Jersey Standard for the first time sold more gasoline than kerosene, although in past years gasoline was often neglected as something insignificant.

1906: Sokoni Company Develops in China's Kerosene Market

Sokoni is gaining a strong position in the vast kerosene market in China by developing low-consumption lamps for kerosene, which was burned more efficiently. These lamps became known as Mei-Foo, ("beautiful trust"), from the Chinese characters for the company "Sokoni."

1903: The Wright Brothers use fuel companies for the first ever flight

Brothers Wilbur and Orvil Wright use Jersey Standard fuel and Mobiloil lubricants (Vacuum) to make the first ever flight over Kitty Hawk, North Carolina.

1885: Relocation of trust headquarters to New York

The headquarters of the Standard Oil Trust is transferred to New York, where it is located on Broadway in house number 26. The nine-story office building becomes a city landmark.

In the same year, Vacuum Oil developed Gargoyle Arctic engine oils for generators and new generation engines at speeds up to 1,000 rpm.

1882: Establishment of the Standard Oil Trust

Standard Oil lubricants are used in Thomas Edison's first central power generation plant. In the same 1882, the Standard Oil trust was created, which included Standard Oil of New Jersey (Jersey Standard) and Standard Oil of New York (Soconi).

1879: Standard Oil acquires 3/4 of Vacuum Oil shares for $200K

Standard Oil acquires three quarters of Vacuum Oil shares for $200,000. As a pioneer in the field of lubricants, Vacuum Oil launches a number of popular products on the market, including the revolutionary Gargoyle 600-W steam engine cylinder oil.

1870: John Rockefeller with partners create Standard Oil

John Rockefeller with partners creates Standard Oil (Ohio), which has become the world's largest complex oil refining company. The Standard name is selected as a symbol of constant high quality.

John D. Rockefeller

1866: Vacuum Oil Foundation

In 1866, having patented a new method for producing a high-quality lubricant through vacuum distillation of kerosene, Matthew Ewing and Hiram Bond Everest founded Vacuum Oil.

1859: First productive well. The beginning of the boom

Col. Edwin Drake and "Uncle" Billy Smith drill the first production well in Taitusville, Pa. The discovery of oil by the colonel marked the beginning of a boom, which is comparable to the gold rush that arose ten years before.

Edwin Drake and "Uncle Billy" against the backdrop of the first productive oil well.

Notes