INTERNATIONALIZATION OF EXXONMOBIL ACTIVITIES | ЭКОНОМИКА И БИЗНЕС: теория и практика

Chukayeva V.A. Internationalization of EXXONMOBIL activities // Экономика и бизнес: теория и практика. – 2016. – №1. – С. 152-155.

INTERNATIONALIZATION OF EXXONMOBIL ACTIVITIES

VA Chukayeva, student

Ural state university

(Russia, Yekaterinburg)

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]

Name of subsidiary	Type of activity		Year of the foundation / elimination	Location (country)	Additional information
affiliated undertaking
Esso Australia	Oil and gas exploration and production, petroleum refining and supply of fuels and lubricants		1895	Australia	ExxonMobil has invested around $19 billion in Australia
Imperial Oil	Upstream, downstream and chemical business		1880	Canada	ExxonMobil Canada formed in 1999, when Exxon acquired Mobil Canada
branch officies
ExxonMobil	Petrochemical production		1900	Brazil
ExxonMobil Investment Co. Ltd.	Upstream, downstream and chemical business		2010	China
ExxonMobil Egypt	Provides quality fuels from the well-known Mobil retail network to motorists as well as channels quality products to industrial, aviation and wholesale clients in the country		1900	Egypt
ExxonMobil Finland	Import, manufacturing, distribution and marketing of lubricants, as well as the sale of chemicals			Finland	Lubricant oil-blending plant (LOBP) in Naantali blends 80 different grades and packages and approximately 250 different products
ExxonMobil Germany	ExxonMobil markets fuels and lubricants that touch every European’s daily life in the form of packaging wraps, tires and other end products			Germany and Central Europe	Central Europe includes Switzerland, Austria, Poland, Czech Republic, Slovakia and Hungary
ExxonMobil India	Import of base oils, lubricant oil blending, packaging, and distribution and marketing of Mobil-branded lubricants and specialties			India	A business support center has been established in Bengaluru to provide a range of business and technical support services for company operations around the globe
Mobil Cepu Ltd. (MCL) and Ampolex (Cepu) PTE. LTD	Market of lubes and petrochemicals		1900	Indonesia
ExxonMobil Iraq Limited	In January 2010, EMIL signed an agreement with the South Oil Company of the Iraq Ministry of Oil to rehabilitate and redevelop the West Qurna I field in southern Iraq		2010	Iraq
ExxonMobil Japan (EMJ)	Butyl, specialty elastomers, polyolefin, synthetics and catalyst chemicals production		1893	Japan	ExxonMobil has a broad range of collaborations and engineering partnerships with Japanese companies
ExxonMobil Mexico	Lubricant blending plant in Vallejo and chemical terminal in the port of Tuxpan		1890	Mexico	ExxonMobil is a strong participant in the lubricants market through its network of distributors, that reaches automotive, industrial, marine and aviation customers
Mobil Oil New Zealand Ltd.	MONZ operates six coastal bulk plants and one major pipeline		1896	New Zeland
Exxon Neftegas Ltd. (ENL)	Sakhalin-1 develops three oil and gas fields- Chayvo, Odoptu, and Arkutun-Dagi— located in extreme sub-Arctic conditions off the northeastern coast of Sakhalin Island in the Russian Far East		1995	Russia	Offices in Moscow, Yuzhno-Sakhalinsk, St. Petersburg, Yekaterinburg, Novosibirsk and Vladivostok; in August 2011, OAO NK Rosneft and ExxonMobil concluded a strategic cooperation agreement to establish the framework for joint oil exploration and production in Russia, the United States and other countries
ExxonMobil South Korea		Gas and Power Marketing support for liquefied natural gas (LNG) sales and contract implementation	1875	South Korea	Deals with sales and licensing of chemical products
Esso Production U.K. Ltd., Advanced Elastomer Systems Ltd.		Chemicals manufacturing plant, ethylene manufacturing plant, thermoplastic elastomer products manufacturing plant	1888	UK
ExxonMobil UAE		World’s largest offshore oil fields	1939	United Arab Emirates

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Fig. 1. Construction of internationalized reproduction process of ExxonMobil

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)

ИНТЕРНАЦИОНАЛИЗАЦИЯ ДЕЯТЕЛЬНОСТИ КОМПАНИИ EXXONMOBIL

В.А. Чукаева, студент

Уральский федеральный университет

(Россия, г.Екатеринбург)

Аннотация. В этой статье автор рассматривает деятельность международной нефтяной компании ExxonMobil и пытается измерить уровень ее интернационализации, используя информацию о ее дочерних предприятиях и филиалах. В качестве результата, автор демонстрирует пример воспроизводственного процесса, который может быть использован компанией, а также рассчитывает точное значение, характеризующее уровень интернационализации деятельности компании.

Ключевые слова: интернационализация, взаимодействие, дочерние компании, нефть, воспроизводственный процесс.