ENGINEERING ECONOMY & GEO-RESOURCE EVALUATION AND INVESTMENT ANALYSIS Term Paper

ENGINEERING ECONOMY & GEO-RESOURCE EVALUATION AND INVESTMENT ANALYSIS - Term Paper Example Highlight of the events in the stock vs. commodity graph 8.4. Explanation of each of the 10 key events 9. Summary 10. Conclusions 1. Abstract (summary of the report) This project is about reporting the performance of a company’s events versus its variation in stock value. It studies ten key events in Exxon Mobil, which is the company of choice. This study is done through the history of Exxon Mobil, highlighting the ten events and then narrowing down into five of the events (Coll, 2012). The events are about the important management of the Economy of the company and the behavior of the company stock in the stock market. The report will culminate into data analysis in which it will show the values of the stock found during the semester. It will have the inclusion of the discussion supporting this pattern of behavior of the stock price during the same period and in the previous year. 3. Introduction Exxon Mobil Oil Company is the largest among the major oil companies vertically i ntegrated in the New York Stock Exchange. Its stock is the second best in the global domain and hence it is the second largest revenue contributor in the region. In the year 2010, Exxon Mobil generated total revenue of 30.50 billion US Dollars, growing by 57 percent from the previous year 2009 (Okada & Adelman, 2012). Its Stock Exchange name is XOM. ExxonMobil is a collection of six global major oil-trading organizations, which does oil exploration, production, refinery and sales of gas and oil. The six companies in the group include ChevronTexaco, Royal Dutch Shell, BP, ConocoPhillips and Total. ExxonMobil has been consistent in its production of the largest revenue returns on invested capital and income. In 2009, it produced return on investment of 63% (Russell and Angel, 2011). It diversifies its revenues and continues to expand by introducing its natural gas capacity. It does this through the acquisition of shale deposits, exploration of oil sands increasing its geographical cov erage. Even though ExxonMobil has all these strengths, its performance is highly determined by the market performance and the decisions by Organization of Petroleum Exporting Countries (OPEC). OPEC controls the oil prices of all oil trading countries by keeping the base (40%) of oil crude oil stock in the whole world (Okada & Adelman, 2012). It is also affected by the environmental factors affecting the production of natural gas and oil. Its geographical coverage is also very expensive to create and maintain. The other factors include threats from alternative energy supply including bio-fuels. 3.1. History and Background of the company In 2010, ExxonMobil generated revenue of 30.5 billion US Dollars, which was an increase of 57% from the previous year 2009. The dramatic increase was because of the massive crude oil supply and the realization of natural gas. Additionally, ExxonMobil recorded a capital of 32.2 billion US Dollars including exploration costs. It distributed more than 19 billion US Dollars to its shareholders in form of dividends and buy back of shares. At the end of the year 2010, ExxonMobil had a reserve base of oil of 24.8 billion barrels. It had upstream revenue of 75.1 percent. This segment was involved in the E and P program (Exploration and Production). The total revenue from gas and oil in 2010 was 24.1 billion US Dollars (Coll, 2012). In the same year, it had a downstream earning of 11.1 percent. The downstream segment was used in the refinery and marketing of natural gas as well as oil. It earned a total of 3.6 billion US