Exxon is the largest publicly traded international oil and gas company in the world. It is involved in development, exploration, production, refining, natural gas, lubricants, chemicals and supply. Exxon has been a wise addition to many stock portfolios, but it is not without risks.

History

Exxon began in 1859 when Colonel Edwin Drake and Uncle Billy Smith successfully drilled the company's first oil well in Titusville, Pennsylvania. It was first known as Standard Oil, then Jersey Standard, and changed its name to Exxon in 1977. On Nov. 30, 1999 Exxon and Mobil joined forces to become Exxon Mobil.

Size

As one of the world's largest companies, Exxon is actively traded on the New York Stock Exchange. Its size alone makes it a volatile stock, rising and falling in concert or sympathy with the market and oil commodities.

Considerations

As an oil and natural gas conglomerate, the stock of Exxon often moves in conjunction with the price of oil, the amount of oil and natural gas in reserves, and weather. Climate changes have a positive and negative effect on the company.

Benefits

Cold weather means more fuel is needed for heat, and warm weather increases the need for natural gas used in cooling systems. A healthy economy fuels the use and the for oil and natural gas.

Warning

Environmentalists often target Exxon for harming wildlife, and disrupting waters and land with pipelines. Exxon will forever be remembered for the March 24, 1989, Exxon Valdez oil spill in Alaska. More than 10 million gallons of oil was spilled polluting waters, beaches, habitat, and killing wildlife.

Geography

Geo-political unrest, Middle Eastern wars, oil taxes, embargoes, a cut or an increase in foreign oil production, gas rationing, pricing, hurricanes, natural disasters and environmental risks all impact Exxon and its stock. Exxon is a diverse oil company, but its main business is oil, making it a non-diversified investment.

Source:

Exxon

The Encyclopedia of Earth: Exxon Valdez Oil Spill

Exxon Mobil: Investment Considerations