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XOM AT A GLANCE

P/E ► 8.82 AVG EV/EBITDA ► 4.60 AVG ROA ► 16.5% AVG ROE ► 33.9% HIGH Debt to Equity ► 1.08 AVG Current Ratio ► 1.31 AVG Interest Coverage Ratio ► 110 HIGH

 

 

 

 

 

 

Revenue, Net Income, and Net MarginRevenue, Gross Profit, and Gross MarginOperating IncomeEbitIncome Before TaxesNet Income from Continuing OpsInterest vs Continuing IncomeInterest CoverageOperating ExpensesSG&AAmortization & Depreciation

ExxonMobil (NYSE: XOM) is the largest of the vertically integrated oil majors, as well as the largest publicly-traded corporation in the world by market cap and revenue.^[1] The company was valued at over $500 billion at its peak, and had a 2008 net income of $45.2 billion, the highest in the world's corporate history.^[2] Exxon's successes stemmed from a steady rise in oil prices due to increasing energy consumption worldwide, a decreased oil supply because of heated geopolitical conflict in oil-rich regions, and a persistent lack of widely adopted mass-market alternatives to petroleum energy. The Financial Crisis of 2008 and ensuing recession has turned the picture upside down, with demand growth for petroleum falling and oil prices plummeting. Nevertheless, Exxon pumped out its oil at an average cost of $8.72 per barrel in 2008, which is well below 2009 prices of around $40-60 a barrel.^[3]

Exxon generated the majority of its earnings from upstream exploration and production (E&P) activities, producing 3.92 million barrels of oil equivalent (MMBOE) every day in 2008.^[4] The geographical diversity of Exxon's E&P activities makes it less vulnerable to the regional production uncertainties that plague the industry. The company is also an international leader in the downstream refining industry, with 10,516 retail stations^[5] and over 6.2 million barrels per day of refining capacity.^[6]

ExxonMobil leads a pack of six global "supermajor" petroleum companies which explore for, produce, refine, and market oil and gas. Of these six (including BP (BP), ChevronTexaco (CVX), Total (TOT), ConocoPhillips (COP), and Royal Dutch Shell), ExxonMobil has consistently produced the highest revenue, income, and returns on capital employed (38.53%).^[7]

Despite these strengths, Exxon remains at the mercy of market maker OPEC, an organization of petroleum-producing nations that controls global oil prices by holding about 40% of the world's crude oil supply.^[8] And while oil & gas hold a monopoly over the world's supply of energy, alternative energies such as biofuels pose a long-term threat to the industry. Nevertheless, forecasts that fossil fuels will account for 70% to 80% of global energy supply in 2100 ensure the short to medium-term profitability of Exxon's business model.^[9]

[edit] Business and Financials

Although oil prices have, as of March 2009, declined around $100 dollars from the peak the year before, they nevertheless averaged around $100 in 2008.^[10] That's why, despite falling production, net income for Exxon rose $4,610 million from 2007 to 2008.^[4] The company is involved in producing, refining, and transporting oil, natural gas, and petrochemicals, although the bulk of its revenues come from international drilling and exploration.

Upstream: Exxon’s upstream segment is involved in the exploration & production (E&P) of oil and natural gas, and earned 78% of the company’s net income in 2008.^[4] The majority of its reserves are in the U.S. and Russia and Caspian Sea region, with 28% of the company’s total reserves each.^[11]

Downstream: Exxon’s downstream segment is involved in the refining and marketing of oil and natural gas, and earned 18% of the company’s net income in 2008.^[4] The company has a refining capacity of 6.2 million BPD,^[6] which it uses to turn crude oil into gasoline, which is sold through 10,516 owned or leased retail stations and 18,158 distributors and resellers using one of Exxon’s brands.^[5] The company also produces diesel oil, jet fuel, and heating oil.

Chemicals: Exxon’s chemicals segment uses oil to manufacture and market commodity petrochemicals, like plastics, and earned 6.5% of the company’s net income in 2008.^[4]

On April 11th, 2008, Exxon announced that it would join a partnership with ConocoPhillips and Chevron to build a pipeline that would span from the North Slope of Denali in Alaska through Canada and into the U.S. The total cost of the project is estimated at $20 billion, and will require over 1000 government permits in both countries, but the returns will likely be massive if the project is successful, as the gas shipped by the line has the potential to meet 8% of total U.S. gas demand^[12].

3Q08: For the third quarter of 2008, net income rose $5.42 billion year-on-year, to $14.8 billion^[13] The high price of oil continued to increase downstream expenses, 41% higher than in Q3 2007, as well as increase upstream revenues, 74% higher over the same time period.^[13] Production decreased 8% year-on-year.^[14]

4Q08: With oil prices at levels half that in 3Q, quarterly income fell 33% YOY and 47% QOQ, to $7,820 billion.^[15] Low oil prices boosted downstream earnings by about $800 million, but damage repairs and lower volume due to hurricanes Gustav and Ike cost the company $570 million.^[15] That, in tandem will falling margins pushed down quarterly income in Exxon's chemicals segment 86% YOY, and 31% YOY in Exxon's upstream segment.^[15] Production volume as a whole fell 3% YOY.^[15]

1Q09: With oil prices half what they were in 1Q08, quarterly income fell 58% YOY. Higher margins in the company’s downstream segment boosted earnings by $700 million, but was not enough to counteract the loss of $4.4 billion from lower crude oil prices and $500 million from lower natural gas prices in its upstream segment, and $300 million from lower margins and volume in the company’s chemicals segment. Further, increased CapEx increased expenses by about $300 million. ^[16]

[edit] Exxon is Making Large Investments, Despite Falling Profits

Despite the falling price of oil, the company intends to increase its capital expenditures (investment spending) by 11% in 2009, to $29 billion, and will spend up to $150 billion over the next 5 years.^[17] In the first quarter of 2009 alone, when earnings fell 58% YOY, the company increased CapEx by 5%, to $5.8 billion.^[16]

[edit] Exxon Likes Buybacks

Exxon spent $29 billion of its cash flow on repurchases in 2006, $28 billion in 2007,^[18] and $32 billion in 2008,^[19] which when added to past purchases puts it's treasury stock at almost $150 billion.^[20] Buybacks have two purposes:

1. Reducing the number of shares in circulation improves per share ratios, like earnings per share (EPS). Executive Compensation is often tied to measures like that.
2. When a firm believes that it is unable to return more value to its investors in the form of additional spending for things like E&P over what its shareholders could earn by themselves.

The second is true for Exxon, as it hasn't given out stock options since 2001.^[21] At the same time, buybacks are preferable over dividends because they can be used more flexibility. Once the level of dividend payouts have increased, investors expect similar or higher payouts in the future. At the other end, buybacks are regarded as one-time actions, so if cash flows are weak the company doesn't have to sacrifice retained earnings to maintain expectations. Further, dividend earnings are taxed twice, while buybacks are only taxed once.^[21] Nevertheless, it's true that money spent on buybacks is money unavailable for investment spending, like for boosting production or researching alternative energy. Short term or not, the buybacks are considered a factor in buoying the company's share price during oil's collapse in Q408.^[22]

[edit] Exxon Has No Concrete Plans to Develop Renewable Energy Sources

Rex Tillerson is both CEO and Chairman of the Board for Exxon Mobil. On April 30th, 2008, a majority of the Rockefeller family, the oldest group of the company's shareholders, voiced concerns about the company's focus on oil and gas in a "changing energy environment",^[23] and called for an independent Chairman to be hired in order to take the company in a direction that would maximize long-term shareholder value. The family is concerned with the diversification of other oil companies into renewable energy sources, and Exxon's decisions thus far to remain in traditional energy.

On May 28th, 2008, at the annual shareholders meeting for the company, nearly 60% of the votes passed were against splitting the CEO/Chairman position.^[24] Investors rejected the Rockefeller's proposal because, no matter how bad the company's environmental record, Exxon has remained profitable, and the industry’s market size is expected to increase, not decrease, over the next 30 years.^[9]

[edit] Trends and Forces

[edit] Oil Prices

Exxon’s E&P revenues depend on how much oil it produces, and for how much it can sell it. At the same time, Exxon’s refining and chemicals improve their bottom-line when the price of their greatest input, oil, goes down. As a whole, Exxon benefits when oil prices increase, as it makes more from E&P than it does from refining and chemicals, and a drop off in oil prices is often caused by a slowdown in economic growth, which causes demand destruction for all of its products. Factors affecting demand include:

• Economic growth, especially in underdeveloped economies like China
• Economic contractions, like the global recession that began in 2008
• Development of oil-substitutes, like electric cars and ethanol, which is itself driven by high oil prices

Factors effecting supply include:

• Production cuts, like those made by OPEC to buoy falling oil prices
• Peak oil, which means that oil production has reached a plateau or is declining
• Technological developments, which can increase the amount of economically recoverable oil

Light sweet crude oil futures (US$/barrel) with an August, 2009 delivery date:

[edit] Demand Growth Forces Prices Up

Demand for oil, as well as demand for energy in general, is closely tied to the global economic cycle. In periods of economic growth, new factories consume energy, shipping companies transport more goods and consumers take more trips. Burgeoning underdeveloped economies like China are expected to make the Asia Pacific natural gas market grow faster than any other regional gas market in the world. China's demand for oil is lower than other countries' at 2 barrels per person per year (bpy)—America’s is 25 bpy and Japan’s 16 bpy.^[27]

The long-term trend is clear – energy consumption is going to increase. However, these projections were made in June of 2008; a slight downward revision is likely in the next release in May of 2009.

[edit] Demand Destruction

Demand for oil, as well as demand for energy in general, is closely tied to the global economic cycle. During periods of economic contraction such as recessions, demand for oil and other types of energy tends to fall, leading to reductions in price. Demand destruction - primarily in the United States - is likely responsible for most of the drop in oil prices that occurred during the third quarter of 2008^[29]

In 2008 world oil consumption of liquid fuels was 85.45 million barrels per day (bbl/d),^[30] 3% less than forecasts made by the International Energy Agency at the end of 07.^[31] World oil consumption was forecasted in April of 2009 by the EIA to fall 1.35 million bbl/d in 2009.^[32]

Much of this demand destruction is likely rooted in the 2007 Credit Crunch, the 2008 Financial Crisis, and the resulting recession; when unemployment rises, people stop spending and start saving. When people stop spending, companies stop producing. When companies stop producing, demand for energy falls. When demand for energy falls, the price of oil falls. Hence, it is likely that oil prices will remain lower than before until the world economy recovers from its recession.

[edit] Production Cuts

The global oil supply is dependent on the ability of oil companies to produce and the willingness of oil-exporting countries to export. Historically, periods of oil price spikes have been caused by oil-exporting countries placing embargoes on certain countries. In 1973, for example, the world's largest oil cartel, OPEC, placed an embargo on oil exports to the Netherlands and the United States, in response to the countries' support of Israel in the Yom Kippur War; the price of oil acquired by refiners increased by approximately 100%, and the U.S. experienced widespread shortages.^[33] In 2007, however, despite a 57% increase in prices, the amount of oil exported by the world's top exporters fell 2.5%. Demand for oil in the world's six largest exporters (Saudi Arabia, United Arab Emirates, Iran, Kuwait, Iraq and Qatar) increased by more than 300,000 barrels, while their exports fell by over half a million barrels.^[34] In this case, growing demand in each company acted as a natural embargo, forcing them to meet their own needs before exporting to the rest of the world.

The Financial Crisis of 2008 has laid waste to oil prices, by causing a recession so deep even expectations of large supply cuts can't force prices up. In December 2008, OPEC announced a production cut of 2.2 million barrels - it's largest ever - and oil futures actually fell, as traders ignored decreasing supply and focused on decreasing demand.^[35]

[edit] Peak Oil – Falling Production

Peak oil refers to the "peak" on the graph of global oil production. Oil must first be discovered, then produced, and will eventually be depleted. Oil production has already peaked in the USA and more than 50 other oil producing countries.^[36] Once the halfway point "peak" has been passed, production begins to fall and oil prices will rise. This is not good for Exxon. Although oil prices will rise, production costs will also rise, as traditional oil producing basins dry and reliance on expensive deepwater reserves increases. Production will also likely fall for Exxon, just like with any other oil company. Worse, as demand further outstrips supply and oil prices skyrocket, alternative energies will become increasingly competitive.

[edit] Production Costs

Exxon’s bottom line depends on how much it costs to produce the oil that it eventually refines and/or sells. About 30% of its oil came from expensive, nonconventional reserves in 2008. As its traditional oil-basins mature, that percent is expected by the company to rise to 40% by 2013.^[37]

[edit] Nonconventional Reserves

Nonconventional reserves include arctic and deepwater reserves, heavy oil, tight gas, and liquefied natural gas.^[37] Even in the low price environment of 2008 and 2009, producing from nonconventional reserves makes sense for Exxon, as does increasing its CapEx. For new projects it can take up to 10 years for actual production to begin, meaning that the future price of oil determines profitability, not the current price. Also, Exxon is locked into many long-term contracts with rig operators, under which terms it costs almost as much to idle as it does to produce. ^[38] However, if Exxon spends billions on setting up new production and oil prices do not rise as expected, the company’s margins will shrink.

[edit] Deepwater Oil E&P

Exxon expects that by 2010, deepwater oil and gas will account for more than 20% of its total production.^[39] New deepwater production costs $95 a barrel or more.^[40] The higher cost of production comes predominantly from the $20-50 million plus that must be spent on drilling and setting up a new well.^[41]

[edit] Oil Sands

One-third to half of the world’s petroleum reserves may rest in the form of oil sands.^[42] Exxon’s leases in the Kearl oil sands, located in Alberta, Canada, have proven reserves of 1,137 million barrels,^[43] which represents 15% of the company’s total oil reserves^[44], but will, with the development of better extraction and refining technology, double or triple into reserves of two to four billion barrels.^[45] However, oil from sand deposits is very thick, and must be highly processed before it can flow and be distributed for use. These nonconventional reserves cost, on average, $35/barrel to pump and convert into synthetic fuel,^[46] and release three times as much CO2 as during conventional production.^[47] That means that the implementation of a carbon tax or carbon trading scheme would make oil sands production even more expensive. More troubling for the company, the cost of new production can exceed $75 a barrel, as production in easy to reach places has already been set up. At the same time, Exxon has taken a long-term perspective on its CapEx. It expects oil prices to be higher in 2012, by which time production from its expanded program will begin. ^[45]

[edit] Global Presence: Blessing or Burden?

While Exxon is less at risk than some of its US competitors from restrictive legislation because Exxon is not focused only in the US, this global presence brings problems from foreign politics and exchange rate risk as well. About 60% of the world’s supply of oil comes from geopolitically unstable countries including Saudi Arabia and Venezuela.^[48] High oil prices in 2007 and 2008 gave these oil exporting countries greater power to demand contract changes and tax raises, and greater incentives to nationalization private oil holdings, like Venezuela did of Exxon's holdings in 2007.^[49] In 2009, with oil prices back to historical levels, many countries are providing more favorable contracts in hopes of attracting much needed development money.^[50]

• Note to socially responsible investors: The company's operations in politically unstable countries often force Exxon to hire mercenaries or request a country's soldiers to guard refineries and oil fields. The actions these mercenaries or soldiers take while working for Exxon sometimes come under fire by human rights groups, as in 2001 when Indonesian mercenaries allegedly kidnapped, tortured/abused, and killed separatists on the grounds of the company's natural gas plant in the Aceh province of the country. Exxon is being sued in U.S. federal court by public interest groups for its role in these human rights violations, and in June 2008 the Supreme Court rejected an appeal that will allow the case to go forward.

[edit] Exchange Rate Risk Looms Large

Whenever a company does business in multiple countries, it is subject to exchange rate risk - the risk that exchange rates will change in the future. For Exxon, cashflows going back to its headquarters in the U.S.A. need to be converted into dollars. In 2007, when the dollar was weak, more favorable exchange rates allowed the company to gain $1.8 billion.^[51] In 2008, as the dollar strengthened against other currencies, the company lost $2.5 billion.^[51] The company does not hedge away this risk because it feels that, on average, the net gain or loss will be small.

[edit] Venezuela and Nationalization of Exxon's Assets

In 2007, Hugo Chavez of Venezuela nationalized Exxon's holdings in the country.^[49] The company has filed for international arbitration of the dispute, but the process will be costly and time-consuming.

On February 7th, 2008, a U.K. court ordered the freezing of $12 billion worth of assets currently owned by Petroleos de Venezuela SA, that were previously owned by Exxon.^[52] This followed a similar, $12 billion freeze-order by a Netherlands court, as well as a $300 million freeze by a U.S. court.^[53] Then, in late March, a British judge canceled the freeze order, setting Exxon's efforts back.^[54]

On February 10th, Venezuelan President, Hugo Chavez, publicly stated that if Venezuelan assets were frozen and the Venezuelan business was harmed, he would freeze oil exports to the United States; given that Venezuela accounts for 12% of the United States' oil imports^[55], this threat appears to have very sharp teeth - though the idea that Chavez would halt sales to his biggest customer is one that many analysts scoff at. In another retaliatory move, on February 13th, Petroleos de Venezuela SA cut off crude sales to Exxon, in an attempt to stop the oil giant from pushing its case in other courts; with so much of its business focused on exploration and production, however, and with an international crude purchasing arm that buys oil in 35 different varieties^[56], no one expects any negative effects to Exxon from Chavez's embargo.

In early 2009 Venezuela invited tender offers to develop over 10 billion barrels of oil in a minority stake with a joint-venture with PDVSA. Exxon did not participate.^[57]

[edit] Environmental Legislation

Fossil fuels, though highly cost-efficient forms of energy, are heavy polluters when burned. Increasing environmental concern over environmental degradation and global climate change is fueling a consumer-driven push away from dirty forms of energy toward cleaner forms like wind energy and solar power. These concerns are also causing political movements, which are leading to increased regulation in the fossil fuels market. Government regulations like emissions caps, renewable energy subsidies, and carbon trading schemes all facilitate transitions away from dirty, nonrenewable fuels.

[edit] Carbon Trading

An increasingly popular response to global warming is carbon trading. Markets have been implement in the EU and through the Kyoto Protocol, and may soon find a home in the U.S. How much do they cost Exxon? The average barrel of oil that passes through U.S. refineries produces about 100kg of CO2 emissions.^[58] The cost of permits for polluting one ton of CO2 in Europe has ranged from €30/tonne to €0.03/tonne. ^[59]That translates into only $.004/barrel to $4/barrel. In a properly functioning carbon trading market (or tax equivalent) it’s estimated that the cost/tonne should hover around $20-$40 dollars, which is $2/barrel - $4/barrel.^[60] Only a portion of that cost was and will be borne by Exxon, although the resulting higher price of oil does reduce demand (which translates into lower revenues). Taking the hypothetical case that Obama is able to push through Congress to create a carbon trading market in the U.S., Exxon’s largest market, the company would lose a couple billion dollars a year.^[61]

[edit] Access to ANWR

The quantity of economically recoverable oil underneath the Arctic National Wildlife Refuge (ANWR) is estimated to be at around 10 billion barrels.^[62] Concerns over the area’s wildlife has prevented competitor Shell from drilling in its ANWR blocks. Gaining control of even one-tenth of the area’s oil would boost Exxon’s oil reserves by 14%.^[62][44]

[edit] Renewable Energy Is Not a Serious Threat, For Now

Can renewable energy replace oil? Yes. The only question is by when, and if Exxon will be prepared. Over two-thirds of oil in the U.S. is used for transportation.^[63] In the future, that gasoline could be replaced with ethanol or electric or hybrid fuel cells. So why hasn’t Exxon invested in ethanol or renewable energy? That future is a long way off, and Exxon isn’t doing nothing.

[edit] The Future for Fossil Fuels Remains Bright

Alternative energy challenges like low production volume, low production efficiency, and lack of infrastructure (some new fuels require distribution infrastructure separate from existing oil pipelines) all have yet to be overcome. That in mind, Nature forecasts that fossil fuel use with increase 45% by 2030.^[9] Studies by MIT, the Pacific Northwest National Laboratory and the University of Maryland, and Stanford University and the Electric Power Research Institute forecast that fossil fuels will supply 70% to 80% of the worlds energy in 2100, down from 90% in 2007.^[64] That’s more than enough to keep Exxon running.

[edit] Exxon’s Response to Renewable Energy

Exxon is more worried about rising costs in the form of carbon trading or taxation, than in demand being stolen by renewable energy.^[64] That’s clear both from statements made by its CEO, and by its investment strategies.

1. The company has invested more than $100 million in Controlled Freeze Zone (CFZ) technology, which can make carbon capture and storage more affordable.^[65] That would reduce the environmental impact of oil and gas.
2. The company has developed a lithium-ion battery for use in electric and hybrid cars^[65]
3. Hedging against the development of a hydrogen economy, the company has developed an on-vehicle hydrogen generation system^[65]
4. The company is also researching non-food based biofuels, but its $100 million investment over ten years^[66] is little compared to BP’s $500 million^[67]

As of early 2009, Exxon’s only notable renewable investments are its lithium-ion battery and carbon capture technology, places where the company can build off of its experience.

[edit] Natural Disasters

Natural disasters can significantly disrupt Exxon’s oil production operations. For instance, hurricane activity can damage and destroy refineries, oil rigs, pipelines, and other equipment. In 2005, production declined 15% and Exxon lost 33 MBOED (million barrels oil equivalent per day) of production due to the impact of Hurricanes Katrina and Rita on Gulf Coast oil production operations owned by the company.^[68] In 2008, production declines and repair expenses attributed to the damage caused by Hurricanes Gustav and Ike lowered fourth quarter earnings by $570 million.^[69]

[edit] Competitors

Exxon Mobil is the biggest of the supermajors, the six largest public energy companies in the world - Royal Dutch Shell, Chevron, BP, Total S.A., and ConocoPhillips. Exxon's efficiency is attributable to several advantages over its competitors:

• Production operations and reserves are large, diverse, and firmly established in the major petroleum basins (North America, Europe, West Africa, the Middle East, and Asia Pacific).
• Exxon has one of the largest E&P portfolios, allowing the company to selectively choose investments and lower technical and political risks.
• Technological advances increase efficiency and allow the development of resources such as tight gas, heavy oil, and liquified natural gas.

But unlike some of its foreign competitors, the American ExxonMobil is constrained by economic sanctions that ban it from doing business with some of the world's largest oil states, including Iran, estimated to have the second largest reserves of conventional crude oil in the world.

Another growing concern for public energy companies worldwide is the increasing competition coming from national oil companies like Saudi Aramco and NIOC of Iran.^[70]

(1) Latest data is for 2007 (2) Does not include reserves of equity affiliates

(1) Latest data is for 2007

[edit] Global Oil Industry Operational Data

[edit] Notes

1. ↑ Social Picks - Index of Market Cap Leaders by Nation Posts Decline
2. ↑ France 24 - Exxon claims world's highest annual profits for 2008
3. ↑ XOM 2008 10-K, Item 15, Page 88
4. ↑ ^{4.0 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8} XOM, 2008 10-K, Item 6, Page 36
5. ↑ ^{5.0 5.1 5.2} XOM 2008 10-K, Item 2, Page 25
6. ↑ ^{6.0 6.1 6.2 6.3} XOM 2008 10-K, Item 6, Page 43
7. ↑ Yahoo! Finance - XOM: Key Statistics
8. ↑ Wien International - OPEC – 40 Years in Vienna
9. ↑ ^{9.0 9.1 9.2} [ http://robertkyriakides.wordpress.com/2009/02/24/peak-oil-peak-coal-peak-gas-and-projected-fossil-fuel-use/ Peak oil, peak coal, peak gas and projected fossil fuel use]
10. ↑ St. Louis Fed - OILPRICE, Spot Oil Price: West Texas Intermediate
11. ↑ ^{11.0 11.1} XOM 2008 10-K, Item 2, Page 6
12. ↑ MarketWatch: "BP, Conoco team up on major Alaska gas pipeline"
13. ↑ ^{13.0 13.1} XOM, 3Q08 10-Q, Item 1, Page 3
14. ↑ XOM, 3Q08 10-Q, Item 1, Page 10
15. ↑ ^{15.0 15.1 15.2 15.3} XOM 4Q08, Quarterly Report
16. ↑ ^{16.0 16.1} ExxonMobil – Investor Relations: 1Q'09 Press Release
17. ↑ Topix - Exxon Mobil plans to invest $29 billion in 2009; announces 5-year plan of as much as $150B
18. ↑ Oil Watchdog - Exxon: 'Pumping Cash, Not Oil'
19. ↑ iStockAnalyst - Exxon (NYSE: XOM) And Chevron ( NYSE: CVX): Available Alternatives
20. ↑ Yahoo! Finance - XOM: Balance Sheet
21. ↑ ^{21.0 21.1} Seeking Alpha - Why Exxon Still Denies Peak Oil
22. ↑ Seeking Alpha - Exxon Continues to Make the Best of a Bad Situation
23. ↑ MarketWatch.com: "Rockefeller Family Members Urge ExxonMobil to 'Reconnect With Founder's Vision' by Appointing Independent Chairman to Tackle Changing Energy Realities"
24. ↑ Environmental Leader - Proposal To Split Exxon Chairman, CEO Roles Defeated
25. ↑
26. ↑ Energy Information Administration - Oil Price Projections to 2011
27. ↑ Oil Crash - Oil prices, economic growth and adjustment
28. ↑ Energy Information Administration - International Energy Outlook 2008
29. ↑ IU: "Crude Oil Prices: Are "Oily Characters" Behind the Move?"
30. ↑ Energy Information Agency - World Liquid Fuels Consumption
31. ↑ [ http://www.forbes.com/feeds/afx/2007/11/13/afx4331657.html Forbes - IEA lowers 2007, 2008 world oil demand forecast UPDATE]
32. ↑ Energy Information Administration - Short-Term Energy and Summer Fuels Outlook
33. ↑ Wikipedia: "1973 oil crisis"
34. ↑ The Wall Street Journal: "Oil Exporters Are Unable To Keep Up With Demand"
35. ↑ SeekingAlpha: "OPEC's Power to Influence Oil Price Slips Away"
36. ↑ Future Pundit - Will Sun Cooling And Oil Depletion Prevent Global Warming?
37. ↑ ^{37.0 37.1} [ http://www.sec.gov/Archives/edgar/data/34088/000119312509040966/d10k.htm#tx91974_07 XOM 2008 10-K, Item 15, Page 43]
38. ↑ Seeking Alpha - Deepwater Drillers: Not in a Very Deep Hole
39. ↑ ExxonMobil - Newsroom: ExxonMobil’s world of deepwater exploration & production
40. ↑ CNNMoney - Why oil won't fall below $100
41. ↑ Energy Plan USA - Drilling Deep in the Gulf of Mexico
42. ↑ [ http://en.wikipedia.org/wiki/Tar_sands#cite_ref-8 Wikipedia – Oil Sands]
43. ↑ [ http://www.sec.gov/Archives/edgar/data/34088/000119312509040966/d10k.htm#tx91974_01 XOM 2008 10-K, Item 2, Page 23]
44. ↑ ^{44.0 44.1 44.2 44.3} XOM 2008 10-K, Item 1, Page6
45. ↑ ^{45.0 45.1} Government of Alberta - Kearl Oil Sands Project Description
46. ↑ Canada's National Energy Board - Canada's Oil Sands Opportunities and Challenges to 2015: An Update
47. ↑ National Geographic - The Canadian Oil Boom
48. ↑ Institute for the Analysis of Global Security - The Geopolitics of Oil
49. ↑ ^{49.0 49.1} XOM 2008 10-K, Item 2, Page 16
50. ↑ Alaska Journal of Commerce - Hard times mean new opportunities for big oil companies
51. ↑ ^{51.0 51.1} XOM 2008 10-K, Item, 15, Page 46
52. ↑ Seeking Alpha - Exxon Wins Battle to Freeze $12 Billion in Assets of Venezuela's Oil Company
53. ↑ Reuters - Courts freeze $12 billion Venezuela assets in Exxon row
54. ↑ Political Affairs - Exxon Must Undo False Accusations Against Venezuelan Oil Company
55. ↑ http://www.marketwatch.com/news/story/story.aspx?guid=D98A199D298543E6AC4154C9484ACA12&siteid=nbs
56. ↑ http://www.marketwatch.com/news/story/story.aspx?guid=E5856E8FBA1942258516C46BCB464C22&siteid=nbs
57. ↑ Petroleum World - Elio Ohep : Exxon-Conoco: Emotional or rational ?
58. ↑ [ http://numero57.net/?p=255 The Quiet Blog - Carbon dioxide emissions per barrel of crude]
59. ↑ Carbon Capital - Kyoto and Carbon Trading
60. ↑ [ http://nordhaus.econ.yale.edu/Balance_2nd_proofs.pdf Yale University - William Nordhaus: A Question of Balance]
61. ↑ [3,607 million barrels/year x $2-4$/per barrel x 10%-100%(percent of costs borne by Exxon)]
62. ↑ ^{62.0 62.1} United States Geological Survey - Arctic National Wildlife Refuge, 1002 Area, Petroleum Assessment, 1998, Including Economic Analysis
63. ↑ Minnesotans For Sustainability - Wind Energy Will Not Reduce US Oil Dependence
64. ↑ ^{64.0 64.1} [http://money.cnn.com/magazines/fortune/fortune_archive/2007/04/30/8405398/index.htm CNNMoney - Exxon = oil, g*dammit! ]
65. ↑ ^{65.0 65.1 65.2} ExxonMobil – Newsroom: Global Climate and Energy Project Advances Energy Innovation
66. ↑ [ http://money.cnn.com/magazines/fortune/fortune_archive/2007/04/30/8405398/index2.htm NYTimes - The defiant one (cont.)]
67. ↑ NYTimes - BP to Invest $500 Million on Biofuels at a Research Center
68. ↑ XOM 2005 10-K, Item 6, Page 34
69. ↑ XOM, 2008, November 4, XOM, 10-Q, Item 2, Page 16
70. ↑ Financial Times - The new Seven Sisters: oil and gas giants dwarf western rivals
71. ↑ COP 2008 10-K, Item 8,Page 149
72. ↑ COP 2008 10-K, Item 8,Page 152
73. ↑ ^{73.0 73.1} RDS’A 2008 20-F, Supplementary Information, Crude oil and natural gas liquids
74. ↑ ^{74.0 74.1} CVX 10-K 2009, Item 1, Page 7
75. ↑ ^{75.0 75.1} BP 2008 20-F, Item 1, Page 16
76. ↑ Lukoil Investor Relations – Fact Book 2008, Page 11
77. ↑ ^{77.0 77.1 77.2 77.3} ENI S.p.A. – Fact Book 2007, Page 11
78. ↑ ^{78.0 78.1} TOT 2008 20-F, Item 4, Page 10
79. ↑ COP 2008 10-K, Item 8, Page 151
80. ↑ ^{80.0 80.1} RDS’A 2008 20-F, Supplementary Information, Natural gas
81. ↑ Lukoil Investor Relations – Fact Book 2008, Page 12
82. ↑ ^{82.0 82.1} COP 2008 10-K, Item 6, Page 42
83. ↑ ^{83.0 83.1} CVX 2008 10-K, Item 1, Page 5
84. ↑ ^{84.0 84.1} BP 2008 20-F, Item 1, Page 14
85. ↑ Lukoil Investor Relations – Fact Book 2008, Page 13
86. ↑ ^{86.0 86.1} TOT 2008 20-F, Item 4, Page 12
87. ↑ Lukoil Investor Relations – Fact Book 2008, Page 14
88. ↑ E 2007 Annual Report
89. ↑ SUN 2008 10-K, Item 7, Page 35
90. ↑ ^{90.0 90.1} CVX 10-K 2009, Item 1, Page 24
91. ↑ VLO 2008 10-K, Item 1, Page 3
92. ↑ RDS’A 2008 20-F, Results, Refining Data
93. ↑ Sinopec Investor Relations, Operational Statistics for 2008
94. ↑ WNR 2008 10-K, Item 7, Page 34
95. ↑ ^{95.0 95.1} COP 2008 10-K, Item 1, Page 16
96. ↑ ^{96.0 96.1} BP 2008 20-F, Item 1, Page 29
97. ↑ Lukoil Investor Relations – Fact Book 2008, Page 15
98. ↑ Conversion factor is 1 BPD = 50 tonnes per year
99. ↑ ^{99.0 99.1 99.2} TOT 2008 20-F, Item 4, Page 36
100. ↑ SUN 2008 10-K, Item 1, Page 1
101. ↑ ^{101.0 101.1} VLO 10-K 2008, Item 1, Page 1
102. ↑ RDS’A 2008 20-F, Results, Manufacturing
103. ↑ Sinopec Refining Overview
104. ↑ WNR 2008 10-K, Item 1, Page 19
105. ↑ Lukoil Investor Relations – Fact Book 2008, Page 16
106. ↑ SUN 2008 10-K, Item 1, Page7
107. ↑ CVX 10-K 2008, Item 1, Page 25
108. ↑ CVX 10-K 2008, Item 1, Page 26
109. ↑ RDS’A 2008 20-F, Results, Marketing
110. ↑ Sinopec 2008 Annual Report, Business Review and Prospects, Page 20
111. ↑ WNR 2008 10-K, Item 1, Page 3
112. ↑ COP 2008 10-K, Item 1, Page 18
113. ↑ BP 2008 20-F, Item 1, Page 30
114. ↑ Lukoil Investor Relations – Fact Book 2008, Page 60

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