Page 28 - Cost_Competitiveness
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The Institute of Cost Accountants of India
Chevron has spent a signifcant amount gas exploration and production
in capital projects with unwavering B. Invest in technology that would
commitments to oil. ConocoPhillips, on enable the company to explore, produce
the other hand, is divesting its non-core and refne heavy crude effciently
assets to build necessary capital to invest C. Invest in renewable energy
in liquids. Competitors are stepping up sources to assert its corporate and social
their oil investments, and ExxonMobil responsibility
should not see itself at a competitive
advantage by not acting swiftly. D. Continue to improve ethical
operating standards to be the recognized
ExxonMobil is a long-term oriented leader in the industry
company, and as such, it is not unusual
for ExxonMobil to invest in a long-term
prospect like XTO, where it can acquire Author can be reached at :
growth cost effectively, especially in light sir_ashish@rediffmail.com
of the company’s strategic intent to be
the leading supplier of global energy.


Our analysis suggests that the recent
move of focusing on oil for next fve years
is well aligned with ExxonMobil’s energy
outlook and investments in natural gas.
They both are part of a wellbalanced
strategy that caters to short-term as well
as long-term strategic needs.


5.3 Final Recommendation


The following short-term actions are
recommended:


1. Increase investments in oil
exploration, production and refning

2. Expand chemical operations,
especially in emerging markets
3. Focus on increasing commercial
sales and retrenching retail sales

We also recommend the following long-
term actions:


A. Increase investments in natural
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