Exxon-An Example Of Success

Exxon-An Example Of Success

Exxon Mobil, is one of America’s biggest oil companies and has just reported yesterday a huge fifty-three percent profit increase in 2010’s fourth-quarter.  This is due to the world’s slowly recovering economy and the increase in crude oil prices per barrel.  This was their best reported profit in over 2 years.  This shows the trend of the oil market since 2007 when it was up, then crashed in 2009 before making its way back up by the end of last year.   This is not uncommon results in the oil industry as this profit margin can be seen all across the board in other refinery businesses.  

Exxon’s earnings climbed to over $7 billion in 2010’s last quarter from $5 billion in the same quarter of 2009.  Exxon’s refining company reported a loss of earnings in 2009 of over $1 billion due to the larger margins in refining.  The second largest oil company in America is Chevron.  They also reported a huge increase in 2010’s last quarter compared to 2009’s quarter, at 72%.   ConocoPhillips, number 3 in America‘s conglomerates and had a 46 percent increase over the same two quarters.  

Egyptian Affect on Oil Prices

Egypt is not considered a chief oil producer but climbing national demands in the last few years has transformed it into a major importer. Many of the western world’s companies function in Egypt and they contribute over 650 thousand barrels of crude oil to that country’s production.  Egypt’s conflicts have created a fear of another shortage of oil being a possibility if these political conflicts extending to Saudi Arabia.  This reflects in the price of crude oil gradually crawling back up.  Although crude oil is increasing in price, natural gas remains lower.  These prices are just as vital to the oil conglomerates as crude oil prices.  Climbing political stresses blended with resumed increase in demand customarily leads to increased price in energy.  As of the writing of this article,  no interruption of gas or oil had been reported.

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