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ExxonMobil
Domestic Environment
The oil industry in the U.S. serves as the foundation for virtually the whole economy. The U.S. has largely exhausted its own domestic oil supply so it must rely primarily on foreign sources. New technologies have allowed the extraction of the oil that still remains in the U.S. Offshore drilling and oil reserves that are only accessible by hydraulic fracking represent the two best examples of controversial extraction methods. The oil spill in the Gulf of Mexico represents very clearly the risks associated with off-shore extraction. Furthermore, hydraulic fracking and the use of shale reserves have also been meet with a lot of resistance for their environmental risks.
Global Environment
The global environment for oil and gas has changed significantly in just the last few years. The conditions have been created by an increase supply in oil. These supply increases have largely come from technological developments that have allowed for new forms of oil to extract such as shale oil which has in turn reduced the dependence on the cartels and Middle Eastern oil (Doshi & Corrigan, 2015). There have also been changes in the demand due to technology development as well. Engines and efficiencies have reduced the total demand for oil per user...
The fall in oil prices has led companies to experience falling margins and losses. Exxon has not been immune from this trend, even with its massive size. Companies will have to make some tough economic decision in the short-term.
"Exxon Mobil and Chevron on Friday posted their worst quarterly results of the current decade as oil and natural gas prices continued to plunge.
The results of the companies, and those of almost the entire oil patch this week, were disappointing but not all that surprising since the price of oil is now half what it was a year ago." (Krauss, 2015)
Figure 1 - Prices/Production (The Economist, 2015)
Political-Legal Environment
There are two primary political risks to Exxon and other companies in the oil industry. One obvious risk is due to different regulations that could be enacted that deal with environmental or other issues. However, much of the oil and gas industry is heavily subsidized and there is also some risk that these subsidies could begin shrinking…
References
Doshi, V., & Corrigan, J. (2015). 2015 Oil and Gas Trends. Retrieved from Strategy &: http://www.strategyand.pwc.com/perspectives/2015-oil-gas-trends
Krauss, C. (2015, July 31). Exxon and Chevron Report Worst Quarterly Results of Current Decade. Retrieved from The New York Times: http://www.nytimes.com/2015/08/01/business/energy-environment/exxon-mobil-chevron-q2-earnings-oil-prices.html
The Economist. (2015, September 25). The perils of relying on the sticky stuff. Retrieved from The Economist: http://www.economist.com/news/middle-east-and-africa/21663235-persistent-low-prices-threaten-entire-region-perils-relying?zid=298&ah=0bc99f9da8f185b2964b6cef412227be
It remains uncertain, therefore, that the Exxon Valdez spill was not, in fact, larger in scale and scope than the Horizon disaster. Conclusion: The Horizon disaster, as it bears noting, helps to demonstrate how little has truly changed in two decades. Even as environmental concerns grow ever-more pressing, oil companies continue to act with relative impunity. The sheer profitability of the industry keeps it insulated from many of the safety and
Rawl confessed that it was "bad judgement involved in even putting a person with a critical skill back in that kind of work...It is pretty clear we have to tighten those things up" (Loeb pp). When asked what advice he had for other CEOs, Rawl stated that they had better prethink which way they are going to jump from a public affairs standpoint before they have any kind of a
Like most litigations on such complicated issues the company had little to do but show reasonable accommodation, adopt better surface practices and wait out a lengthy period before their liability was reduced substantially by the courts. Ethical analysis: The key ethical issues of the case are pretty clear, did the captain knowingly endanger the environment by continuing to retain his position and navigate tankers through the area and did the company
Additionally the company is increasingly concerned with meeting the energy needs of people and organizations throughout the world ("Company Profile"). To this end Exxon Mobil is committed to "exploration and production of crude oil and natural gas; the manufacture of petroleum products; and the transportation and sale of crude oil, natural gas, and petroleum products ("Company Profile")." In addition Exxon Mobile is a primary producer and marketer of both commodity
Cousins issued right rudder commands to result in the desired course change and took the ship off autopilot. While such efforts did not result in turning swiftly Cousins ordered further right rudder with increasing urgency. The bumpy ride and six very sharp jolts occurred at 12:04 AM. The vessel grounded towards southwest balanced across its middle on a pinnacle of Bligh Reef. Eight of the eleven oil tanks punctured flooding
Community and society are a couple of stakes in the above array of stakeholders that a business is obligated towards directly. Charity schools and hospitals would be a part of direct responsibility to these two stakes but only partly and not completely. Exxon has failed to realize its obligations to the society in which it exists and so issues became so intense that Exxon Mobil had to suspend its