In a book called Private Empire – ExxonMobil and American Power, Steve Coll, the Penguin Press, 2012, Mr. Coll takes a look at Exxon and how it operates. Mr. Coll examines how foreign policy is mixed with oil and Exxon. By any financial standards Exxon is a tremendous success story – it is profitable, well run, has tight standards, high internal rates of return, continues to deliver dividends and for vast majority of people the stock should be a core stock holding. As the largest and most profitable oil company, Exxon has an interesting role to play in the world and US economy. Often times the Management Team thinks it is a world corporation without borders, however to the an outsider looking in, ExxonMobil is a successful US corporation. To the outsiders, which include the White House, Exxon is asked to do roles which benefit the US, sometimes in roles which Exxon would prefer not to do. However, when Exxon has a problem, it turns to the government and the White House to help it . It seems from Mr. Coll’s book it is very hard to be seen as a worldwide corporation rather than a US one.

Linking to dividend paying stocks, as a successful profitable company, the organization will have many conflicting demands put on it, including asking to be a leadership position to all kinds of events. It is important for the company to decided what it can and can not do. In the case of Exxon, they try to live by the contract with the government, supplying oil revenues, but has no desire to be the government. Outsiders looking in, seeing the profitable revenues the company makes, often assume more could go to the government, so the government can do more for its citizens. It is a tough balancing act.  For shareholders, making profits to pay dividends should be the first priority.

There are more questions than answers, till the next time – to raising questions