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Exxonmobil

Macro-Economic Forces
Macroeconomic forces will allow ExxonMobil to better forecast global economic trends in order to make better economic decisions for the enterprise. With ExxonMobil being a global company, its business operations will be impacted by government policies’ effect on global trade and the flow of international capital. There are a number of basic parameters to measure the health of the global economy in relation to the Oil and Gas Industry: supply, demand, and economic growth.
Most researchers have concluded that oil and gas reserves are nearly impossible to measure. The data that exists today is interpretations based on estimates. However, most researchers will agree that global demand is growing at a faster rate than supply. Figure 1 illustrates the world supply of primary energy by fuel type. In order to sustain growth in world economies, the efficient supply of oil will be critical to improve the standard of living for all nations. It is estimated that by 2030, oil supply must increase by at least 40% to keep up with growth.
Figure 1:

Although the supply of alternative energy will increase in the future, oil will remain the #1 source of energy for the near future. However, coal may become almost as dominant as oil, especially in China. Coal is used to generate nearly 40% of the world’s electricity. China, which is estimated to be the top energy consuming country by 2030, views coals as a favorable alternative to oil. In addition to coal, countries around the globe are focused on climate control. In result, the supply of cleaner energy is expected to increase. However, the cost of clean energy is much higher than oil based products, which is expected to leave demand flat until costs are reduced.
In regards to the worlds oil supply, the Organization of Petroleum Exporting Countries (OPEC) produces about 46% of the world's oil; however, its exports are nearly 60% of oil traded internationally. In result, OPEC has a...