Exxon Mobil Corporation is registered in the New
York Stock Exchange under the stock
share symbol of XOM. Formed in 1999 ExxonMobil is located in U.S Irving,
Texas is the third largest oil company in the world by revenue and second
largest publicly traded company by market capitalization. The company was
ranked 5th globally in Forbes Global 2000 list in 2013. Exxon stock chart shows a flat line
increase in their stock share price since
2012 as they have moved from roughly $75 a share towards almost $100 per share.
From November till today Exxon stock
has been fluctuating between the lines of $90 per share to $100 per share.
Exxon Mobil faces stiff competition from their
counterparts Chevron and ConocoPhillips as Chevron now plan to invest in
Argentina a gold mine for oil and natural gas drillers, a face a dip in their stock prices was seen due to the fact that their costs have
increased because Exxon lost out to Chevron in the Argentina market. However, the
Latin American region is a volatile one and in a state of constant flux. This
provides Exxon an opportunity to outperform their competition to a certain
degree if they are able to capitalize on the passing of Hugo Chavez and the
opening up of Venezuelan market to foreign investment as well as oil companies.
However
last month Exxon Mobil announced that it would become the first oil and gas
producer to issue carbon asset risk report. Some celebrated this as a victory
for Exxon stocks, however it was a
bitter sweet victory as pointed out by various pundits the limited impact of
the agreement being: It doesn’t require carbon emissions reporting, nor does it
contain a commitment to reduce emissions.
Exxon Mobil however are vary of this as they issued a statement on 7th April 2014 saying that, “none of its oil reserves will be stranded, neither now nor in the future” and claim that a low carbon scenario is “highly unlikely”. Since Chevron Corporation is investing heavily in Argentina, the battle is all but won for ExxonMobil unless they pull a rabbit out of a hat, especially considering Hugo Chavez’s death, ExxonMobil now have the chance to seize this opportunity even though their previous issues with Hugo Chavez and Venezuela’s nationalization may prove to be a barrier but they were heavily compensated for those issues as they received roughly $300 million. Exxon stock may benefit only if Exxon can somehow rebuild their ties with Venezuela especially considering that they are still fighting a lawsuit with the Venezuelan government and have them on the ropes. Henceforth, the ball is in ExxonMobil’s court and they can capitalize on this situation as well as provide stiff competition for Chevron and ConocoPhillips or rather become the one big powerhouse in the industry of oil and gas. XOM stock can benefit from this in majestic fashion, and ExxonMobil may reach levels which would be beyond anyone’s expectations. XOM may well turn itself into a monopoly if it gets through this temporary rough patch.
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