By 1958, the Socony Mobil Oil Company had reached approximately $2.8 billion dollars in revenue, which, by 1968, was$6.5 billion. Throughout the 1960s, Mobile expanded its drilling into the Middle East, the southern United States, the North Sea, and Alaska. In this time, however, the Organization of Petroleum Exporting Countries (OPEC) expanded to develop its quickly growing global cartel, which, of course, negatively affected the course of the corporation’s business throughout the world. During the Oil Crisis of the 1970s, Mobil’s profits soared dramatically. OPEC’s embargo caused the price of oil to quadruple overnight, and energy awareness came in vogue.
Mobil’s oil sales tripled between the years of 1973 and 1977, the peak years of trouble during the crisis. 1974’s extraordinary profits brought Mobil to the center of public and congressional criticism, as the public continued to suffer the effects of a weakened global economy. After the success of the 1970s, Mobil found itself locked into contracts with the ever increasingly expensive price of Saudi crude in the 1980s. This resulted in substantial losses and cuts to reduce debts. These challenges for Mobil continued into the 1990s, as the Persian Gulf War and instability in the Middle East threatened the company’s relationship with the Saudis.
The recession continued into 1992, which brought further losses and negative estimates. However, by 1994, the company’s position stabilized, putting it in a good position to consider offers for a merger and a restructuring of its business organization. The 1990s had brought a substantial expansion in the company’s retail presence. Like the history of Mobil, the history of Exxon is one of numerous challenges and successes.
John D. Rockefeller’s Standard Oil came into existence in 1839, and by 1870, had formed a monopoly on the oil sector in the United States. Standard Oil Company continued its growth into a major player in the oil sector both within and without the United States. It maintained a number of smaller subsidiaries to create a mix of refined products that invariably catered to and advanced social and technological changes throughout the world, such as the use of kerosene in the 1950s, the sale of gasoline in the 1960s, and the proliferation of retail gasoline distribution centers throughout the 1980s and 1990s.
In 1972, Standard Oil changed its name to Exxon, and, with the burgeoning oil crisis, faced a number of issues. Corporate sales skyrocketed, with revenue doubling between 1972 and 1974 from $20 billion to $40 billion, and then to $100 billion in 1980.
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