Tuesday, April 18, 2006
Exxon plays hardball -- and Hebron one example
Pretty good break down of ExxonMobile AKA ESSO and whats going on in the world of Oil. Analysis by Shawn Mccarty
Follow link to read the rest of the analysis.
NEW YORK -- Propelled by soaring world oil prices, ExxonMobil Corp. has become the world's largest corporation by revenue. But more important, says its chairman Rex Tillerson, is its industry-leading return on capital that he refuses to squander on the demands of politicians such as Newfoundland and Labrador Premier Danny Williams.
From Atlantic Canada to Venezuela to Indonesia to eastern Russia, Exxon is used to playing hardball, refusing to proceed with developments where governments insist on conditions that would lower the corporation's return on capital below what it considers to be an acceptable level.
ExxonMobil is the world's most successful oil company. It boasted a 31-per-cent return on capital employed last year, a full 50 per cent higher than its nearest competitor. It did so, Mr. Tillerson says, by sticking to its long-term strategy of investing in only the most profitable developments and strictly controlling costs.
Follow link to read the rest of the analysis.
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