Exxon Mobil’s (NYSE:XOM) refining and chemical operations have grown in stature in recent years, delivering steady earnings compared to its oil and gas production. An Exxon reorganization of these facilities may be coming. Exxon operates 22 refineries in 14 countries, processing nearly 5 million barrels of oil per day. The firm builds chemical and refining plants in the same location, allowing managers to shift production between fuels or chemicals based on demand. We have learned that Chief Executive Darren Woods is reorganizing the company’s refining and chemical operations, part of a push to boost profits amid volatile oil and natural gas prices. Let us discuss the Exxon reorganization
The changes at the world’s largest publicly traded oil producer are the most sweeping to date by Woods, who became chief executive in January after former chief Rex Tillerson resigned to become U.S. secretary of state.
Woods has moved first to reshape the businesses he knows best, according to sources familiar with the matter. Before taking the helm at Exxon, Woods ran Exxon’s refining operations and earlier in his career was a senior executive in its global chemicals unit.
The Exxon reorganization aims to squeeze more profits from the fuel and chemicals businesses as the company works to improve its exploration and production operations, which have struggled since 2014 to adjust to lower oil and gas prices.
The restructuring, disclosed internally last month, will combine the fuels and lubricants division with the supply and refining divisions.
Financial responsibility for the merged operation will rest with country and regional chiefs who report to Exxon’s Irving, Texas, headquarters rather than divisional bosses as previously, according to people familiar with the matter.
The Exxon reorganization changes are designed to simplify operations and increase accountability for profitability.
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