Why buy a big oil company?

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• Why buy a big oil company?
• Demand for oil is increasing all over the world
• Demand for alternative energy is increasing all
  over the world
• Big oil companies like Exxon Mobil and British
  Petroleum (BP) produce both

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• XOM
• Sector Energy
• Market Cap 439.76 B
• Explores for oil and gas on six continents
• Produces, transports and sells crude oil, natural
  gas and petroleum products.
• Interests in electric power generation
• Develops more energy-efficient diesel, hydrogen
  and solar technology

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• Promising future contract
• Reuters reported that Gazprom OAO announced that
  between April 2008 and May 2008, it will sign a
  contract to buy the entire annual gas output of
  11 billion cubic meters from the Sakhalin-1 field
  of an oil company, Exxon Mobil Corporation, based
  in the United States. Further details were not
  disclosed.

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• More recent news
• Exxon Mobil's 41.7 percent stake in a heavy oil
  project in Venezuela's Orinoco Belt region had a
  net-book value of about 750 million, according
  to a September filing with the U.S. Securities
  and Exchange Commission. Exxon Mobil is
  challenging the Chavez government's
  nationalization of one of four heavy oil projects
  in the Orinoco River basin, one of the world's
  richest oil deposits.
• Irving, Texas-based Exxon Mobil is the world's
  largest oil company and last year was the
  most-profitable U.S. corporation in history.

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• 2007 results
• Capital and exploration project spending
  increased to 20,853 million in 2007, up 5 from
  2006.
• The Corporation distributed a total of
  35.6 billion to shareholders in 2007 through
  dividends and share purchases to reduce shares
  outstanding, up 3.0 billion from 2006.
• Net income was up 3 from 2006.
• Earnings per share excluding special items
  increased 11 to 7.28, reflecting strong
  business results and the continued reduction in
  the number of shares outstanding.

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• New, Greener Technology
• ExxonMobil Chemical and ExxonMobils Japanese
  affiliate, Tonen Chemical, introduced new battery
  separator film technologies that are expected to
  significantly enhance the safety, power and
  reliability of lithium-ion batteries for use in
  hybrid and electric vehicles.
• Global energy management system reduces energy
  consumed at refineries and chemical complexes.
• Working with Toyota and Caterpillar to design
  low-emission, high-efficiency gasoline and deisel
  fuel/engine systems.
• Interests in 85 cogeneration (simultaneous
  production of energy and steam using natural gas)
  power facilities in 30 locations worldwide.
• Research programs for hydrogen and solar power.