Exxon Mobil Introduction Exxon mobile had promised to incur more in capital costs even as similar giants like BP and Royal Dutch Shell planned to withhold their liquidities until the persisting impact of recession is erased by recovering markets. In 2008 it made a profit of $45 billion of which it paid its shareholders $40 billion dollars. Since 2004 it has paid $146 billion as dividends which exceed combination of what the three arch rivals have paid their shareholders during the same period. It had some other plans to invest over $150 billion within a period of six years. (New York Times 6th March 2009) Since his take over in 2006 Mr. Rex W.Tillerson as chief executive, he has taken a different approach in addressing the global climate concerns by leading the company in supporting the imposing of tax to make companies respond to environmental policies. When it comes to spending money to lobby groups Exxon has been termed œmore dangerous than BP. (Webb S 2010) Financial status The company made earnings of $39.5 billion last year and is expected to invest $20 billion each year to increase its oil output up by one billion barrels within a time span of three of three years. Exxon’s quarterly profit for the period between January and March 2011 was $7.48 billion from $5.78 billions the same period last year. Revenues increased to $380 billions in 2010 from $310 billion in 2009. (New York Times 2011) The company has survived the recession period with slight decline in earnings and they are picking up again. The company’s major choice seems to be future contracts as it tries to spend capital in the Middle East and the rest of the world. It has prospects to increase its output by 1 billion barrels. The increases in earnings are attributed to the high fuel costs. The future remains bright as the Chairman Rex claims supplies cannot be changed over periods of less than 10 years and alternatives to ease demand can also not be developed over a short period. It means the high prices are sustainable. Peak oil; a condition a state in which the demand is rising against a supply that has reached its peak is evident. The company predicts a total growth of 35% for energy demand which will ensure there will always be a market with fossil fuels becoming more costly than all other sources. Exxon image in the press is an ambitious company that is doing well. In 2010 it reduced liquidity by purchasing $11.2 billion worth of stock from its own shareholders while also paying $8.5billion as dividends. The next that is almost denting the image of Exxon is its expenditure of millions of dollars to finance groups that are vicious to the climate bill like the American Council for Capital Formation and the Republicans. The groups could be about ten and they have the common perception which had been called œright wing policy groups. (Webb S 2010) The nature of its products, in that oil and gas are scarce, has ensured the company to have financial gains despite an image of hindrance to the climate bill. The fact that it is majorly known as an extractive company and the products thereof are under different trademarks makes it hedged against negative public response to its products. When it comes to stocks it cannot perform poorly while paying the highest dividends compared to its counterparts. Exxon financial concept is to resist pollution costs before they become a liability by ensuring the lobby groups against an effective pollution costs and taxes are given incentives to thwart the process of such laws. If the bill becomes law the company and other major players will have it in their financial statements each year amounts paid to the federal government as pollution costs. This would mean increased expenses and operating costs. For now they can give donations to support the fight against climate change. The company’s concept of investing in new sources of oil and gas has benefits which are long term in nature. For example it has put on sale the natural gas extraction stakes in Ireland so that it can fund a more promising Dunquin North and Dunquin South oil and gas prospects. The use of lobby groups and politicians instead of engaging the media directly ensures they are shielded from direct media attacks. Their voice is heard without themselves speaking. Conclusion The company’s performance is alright as per the previous years after 2009. Its new capital expenditure has been productive, since it was able to recover 22% of its capital expenditure in 2010. As oil fields in Brazil and Mexico have affirmed the trend that output from wells will continue diminishing until they become dry, Exxon search for new places is strategic. When the old wells reduce output, the new sources shall pick up. Paying high dividends ensures that more shareholders are willing to hold the company’s shares, which is good as it stabilizes its share value on stocks market. References Susan Webb June 28thhttp://peoplesworld.org/why-exxon-mobil-is-more-dangerous-than-bp/ New York Times 6th March 2009 and April 20th 2011