ExxonMobil: Oil Industry Analysis and Climate Strategy
This paper examines ExxonMobil within the broader context of the global oil and gas industry. It outlines the industry's three primary components — upstream, midstream, and downstream — and discusses the United States' dependence on foreign oil and the controversies surrounding domestic extraction methods such as offshore drilling and hydraulic fracturing. The paper also addresses the regulatory environment governing oil operations, including OSHA and EPA oversight. Finally, it evaluates ExxonMobil's contested stance on climate change, its alleged funding of climate-denial lobbying groups, and recommendations that the company diversify into renewable energy sources to adapt to an evolving regulatory and environmental landscape.
- Industry Background: Global oil and gas industry structure and importance
- Domestic Environment: U.S. energy dependence, extraction controversies, foreign oil
- Government Regulations: OSHA, EPA oversight and oil spill regulatory response
- ExxonMobil's Climate Strategy and Industry Recommendations: Climate denial funding, Kyoto opposition, renewable energy recommendations
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What makes this paper effective
- The paper moves logically from macro to micro — beginning with the global industry, narrowing to the U.S. domestic environment, then zooming into regulatory specifics before arriving at company-level strategic recommendations.
- The inclusion of a direct quotation from a primary news source (The Guardian) adds credibility and specificity to the claim that ExxonMobil funded climate-denial groups even after pledging to stop.
- The paper draws on multiple citation types — company sources, academic journals, government agencies, and news articles — demonstrating breadth of research for its scope.
Key academic technique demonstrated
This paper effectively uses the industry analysis framework to contextualize a single company's behavior. By first establishing the upstream-midstream-downstream structure of the oil industry, the author gives readers the conceptual tools needed to understand why ExxonMobil's climate posture carries such significant strategic and reputational risk. The Rockefeller family example is used as an insider critique, strengthening the recommendation for portfolio diversification without requiring the author to rely solely on external advocacy.
Structure breakdown
The paper is organized into four sections. The first two sections establish the industry and national context. The third section addresses the regulatory environment through a concrete example (the Gulf of Mexico oil spill). The fourth and longest section pivots to strategic analysis, presenting evidence of ExxonMobil's climate stance and concluding with actionable recommendations. This funnel structure — broad to narrow, descriptive to prescriptive — is a hallmark of business and environmental policy analysis papers.
Industry Background
ExxonMobil operates in the oil and gas industry, one of the most valuable industries in the world. Oil fuels much of modern life, enabling the mobility granted by the automobile and the infrastructure that supports 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 to the refinement process and the transportation of product via ship, tanker, or pipeline. The industry as a whole can be thought of as containing three primary components: upstream, midstream, and downstream. Oil and gas are of critical importance to the world's economy because 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 depends on these fuels to meet its 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 it has depleted the majority of its domestic supply. The reserves of oil that remain available in the United States are generally difficult to extract and are often considered environmental threats. Offshore drilling and oil reserves accessible only through hydraulic fracturing 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 supply. Once oil reaches domestic soils, the industry is subject to countless rules, regulations, and tax mechanisms.
References
ExxonMobil. (N.d.). About Us. Retrieved from ExxonMobil:
Kolmes, S. (2011). Climate change. Environment, 33–37.
OSHA. (N.d.). OSHA's efforts to protect workers. Retrieved from United States Department of Labor:
Saeverud, I., & Skjareseth, J. (2007). Oil companies and climate change: Inconsistencies between strategy formulation and implementation? Global Environmental Politics, 42–45.
White, E. (2008). Rockefeller family urges Exxon Mobil to plan for future. Taproot Journal, 29–30.
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