Shell is also engaged in same type of oil business as Mobil did even though their abilities are comparatively less than that of the Exxon Mobil Company. This paper briefly compares Exxon Mobil and Shell in terms of their current policies, the way of operation, marketing strategies and international expansion etc.
Record oil prices for the past few years helped oil companies in general and Exxon Mobil in particular to accumulate huge profits. The financial conditions of Exxon Mobil is far better than Shell. “Exxon Company has nearly $40 billion in cash reserves and another $225 billion in repurchased stock. Thats enough money to pay a nearly 60 percent premium, in cash, for every share of its next largest competitor - Royal Dutch Shell” (Daily News). In short Shell is nothing in front of Mobil as far as the market capitalization or financial abilities are concerned even though Shell is placed second behind the Exxon (see the figure given below for more details).
According to many economical and business analysts, Exxon may buy the Royal Dutch Shell Oil Company in the near future itself in order to establish an absolute monopoly in the oil market. Even though the oil prices were rising up, Shell like oil companies failed to develop new projects to take advantage of the favorable business climate. On the other hand, Exxon Mobil succeeded developing new projects for the maximum exploitation of the higher oil price.
Both shell and Exxon Mobil give more priority to the evaluation of market interests as part of their marketing strategies. The call for energy efficient vehicles and environment friendly energy sources is growing in the world because of the severe environmental problems caused by the burning of fossil fuels. Under such circumstances, it is not advisable for these oil companies to increase their production beyond certain levels. They are closely watching the market trends and making changes in their oil prices