Oil and Gas Industry

Exxon Mobile Analysis Industry Background Exxon Mobile operates in the oil and gas industry which is one of the most valuable industries in the world. Oil fuels much of our modern lives and allows us the mobility granted by the automobile and the infrastructure that allows for easy transportation. Within the industry, ExxonMobil is the world's largest publicly traded international oil and gas company (ExxonMobil, N.d.).

The industry is multifaceted and is composed of many different segments -- everything from the exploration of oil, the refinement process, and the transportation via ship, tanker, or pipeline. The industry as a whole can be thought of as containing three primary components: upstream, midstream, and downstream. The oil and gas is of critical importance to the world's economy because there are many other industries are directly dependent upon these fuels. For example, oil can be used as a raw material to produce many other goods.

Furthermore, much of the world's population is dependent upon fuels for their energy consumption needs. Domestic Environment The oil industry in the United States is one of the country's most critical industries. Currently, the country is dependent upon foreign oil supplies to meet its energy demand as the country has depleted the majority of its domestic supply. The reserves of oil that are still available in the United States are generally difficult to extract and are often considered environmental threats.

Offshore drilling and oil reserves that are only accessible by hydraulic fracking represent the two best examples of controversial extraction methods. Therefore, regions such as the Middle East play a vital role in the country's future energy sources. Once the oil reaches domestic soils, the industry is subject to countless rules, regulations, and tax mechanisms. Government Regulations Oil is a toxic and dangerous substance that also contributes significant amounts of pollution when burned.

Therefore there are many safety procedures that must be followed that are mandated by agencies such as OSHA for working conditions as well as environmental regulations that are maintained by agencies such as the EPA for pollution procedures. For example, when there was an oil spill in the Gulf of Mexico, OSHA conducted its own independent air monitoring, both on shore and on the cleanup vessels, and reviewed data from BP, the Environmental Protection Agency (EPA) and the National Oceanic and Atmospheric Administration (NOAA) (OSHA, N.d.).

ExxonMobil Industry Recommendations One of the dominant themes in the oil industry's future will undoubtedly be the response by civilization to attempt to mitigate anthropogenic climate change. Multinational oil companies have formulated varying climate strategies and one extreme among them has been ExxonMobil, which has not fully acknowledged the potential impact of GHG emissions and remains opposed to the Kyoto Protocol (Saeverud & Skjareseth, 2007).

Not only has ExxonMobil been slow to officially recognize the fact that climate change is real, but they have also been accused of funding propaganda campaigns to the public (Kolmes, 2011). On 1 July 2009, The Guardian reported: "The world's largest oil company is continuing to fund lobby groups that question the reality of global warming, despite a public pledge to cut support for such climate change denial, a new analysis shows. Company records show that ExxonMobil handed over hundreds of thousands of pounds to such lobby groups in 2008.

These include the National Center for Policy Analysis (NCPA) in Dallas, Texas, which received $75,000 (£45,500), and the Heritage Foundation in Washington DC, which received $50,000." It is likely that ExxonMobil will have to quickly diversify its energy portfolio to include more renewable energies. Exxon Mobil was originally the Standard Oil Company that was started by John D. Rockefeller, however it is now a publically traded company. Members of the Rockefeller family have challenged the Exxon Mobil Corp. to.