A Review on the Operation Plan and Future Strategy of an Oil Major: Lessons from ExxonMobil’s

Abstract

The oil exploration and production industry is a representative high-risk high-return business and large-scale companies with vertical and horizontal integration systems like ExxonMobil are at an advantageous position. This study investigates the operation plan and future strategy of ExxonMobil to benchmark Korea's overseas development strategy. ExxonMobil is currently focusing on creating a sustainable growth base by forming a diverse portfolio in the upstream and providing customers with optimized, differentiated products in the downstream. Its strong points according to the results of a SWOT analysis included abundant reserves and an integrated operating system, while its weak points include net working capital deficit. It manages critical indicators in production, returns, and sustainability, establishing an efficient value chain to achieve its goals. It also has the highest technical skills and quality control capabilities. Unlike other major oil companies, ExxonMobil has enhanced its core competence and developed the petrochemical sector, creating synergy.