How ExxonMobil Company was formed
ExxonMobil Oil Corporation is the world’s largest oil corporation. It produces and sells oil and gas. The reserves of raw materials are located in different regions of the world, including Asia, Australia, the United States, and Europe.
The modern history of the company began in 1999 when two of the largest U.S. businesses in oil production announced their merger – Exxon and Mobil. The companies were once part of the energy giant Standard Oil, which belonged to billionaire John Rockefeller. Standard Oil appeared in 1870 and for only 10 years of its existence was controlling almost the whole industry of oil refining in the United States. In 1882, Standard Oil consisted of 30 companies, which accounted for 80% of the country’s oil refineries. The main business was the Standard Oil Company of New Jersey, and just as its successor became ExxonMobil.
The ancestor of the Mobil Corporation was Socony-Vacuum, which was also part of Standard Oil. By 1966, the business was completely independent, with some of its oil production activities in the Middle East. The company was supplying Japan and Germany, which were promising destinations for exporters at the time.The situation changed in 1973 when OPEC members restricted crude supplies to the U.S. for 6 months. This caused a surge in prices, thanks to which Mobil achieved record profits. But in the 1980s, oil prices went down again, forcing the company to cut production in Saudi Arabia and look for new regions. Mobil managed to get out of the crisis with minimal losses, and in the 1990s it concentrated its efforts on gas production.
Exxon was called Jersey Standard until 1972. Like Mobil, the OPEC embargo brought it high profits. Despite its leadership in the world market, a tanker accident and oil spill in 1989 led to serious expenses for compensation to victims and the elimination of the disaster. The situation was exacerbated by the crisis in 1997, which led to a decline in oil prices. It affected all the companies, and in order to maintain their position, the two competitors decided to merge their assets. The merger amounted to nearly $74 billion, and as a result, ExxonMobil appeared, which became the world market leader.
Thanks to the deal, the companies were able to cut their costs and gradually expand their assets. ExxonMobil acquired XTO Energy in 2010, which specialized in gas production. In 2012, the corporation began work on fields in Iran. The company continues to increase the production of raw materials, increasing its turnover around the world.