{"id":55513,"date":"2020-11-02T21:14:21","date_gmt":"2020-11-03T02:14:21","guid":{"rendered":"https:\/\/olduvai.ca\/?p=55513"},"modified":"2020-11-02T21:14:21","modified_gmt":"2020-11-03T02:14:21","slug":"the-fall-of-an-empire","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=55513","title":{"rendered":"The fall of an empire"},"content":{"rendered":"<div class=\"story__meta col-1-13 flex flex-col items-start mb-12 sm:col-3-11 sm:mb-20 sm:space-y-12 space-y-8\">\n<h3 class=\"font-regular leading-tight mb-0 text-h5 sm:text-h3\"><a href=\"https:\/\/www.axios.com\/the-fall-of-an-empire-56b9a744-aef6-4f33-b6d3-3d774bbd5c86.html?utm_campaign=organic&amp;utm_medium=socialshare&amp;utm_source=facebook&amp;fbclid=IwAR1Vq6hfj16jccBRjhk9HMW4nEa5FdKHA_3N2ARBDKh2HFY26h_52UbwDuM\">The fall of an empire<\/a><\/h3>\n<\/div>\n<div class=\"cbbc7v-0 iNrCiz col-1-13 sm:col-3-11\">\n<div class=\"dm9ls1-0 bIqTEE\"><img decoding=\"async\" class=\"i-amphtml-fill-content i-amphtml-replaced-content\" src=\"https:\/\/images.axios.com\/HXLN6Jnvi24XvBxpTlMJi7Ryoz4=\/0x0:1920x1080\/1920x1080\/2020\/10\/30\/1604076945060.jpg\" alt=\"Illustration of a gas pump with the hose forming a descending stock trend line. \" data-testid=\"amp-tag\" \/><\/div>\n<p style=\"text-align: center;\">Illustration: A\u00efda Amer\/Axios<\/p>\n<\/div>\n<div class=\"col-1-13 sm:col-3-11 \">\n<div class=\"b0w77w-0 fkYfFL mt-12 mb-20 sm:mt-20 gtm-story-text p\">\n<p>The decline of ExxonMobil has been remarkable in its magnitude and unexpectedness.<\/p>\n<p><strong>Why it matters:<\/strong>\u00a0While all major oil companies are facing troubles, Exxon has fallen the farthest, in large part because it has made the biggest bets on oil and gas \u2014 and the smallest bets on renewable energy.<\/p>\n<ul>\n<li><strong>While rival BP<\/strong>\u00a0has recently promised to get to zero net emissions by 2050, Exxon has been doubling down on fossil fuels with moves like a\u00a0<a class=\"gtm-content-click\" href=\"https:\/\/www.spglobal.com\/marketintelligence\/en\/news-insights\/latest-news-headlines\/how-not-to-do-m-a-a-look-back-at-exxon-s-deal-for-xto-10-years-later-55076990\" target=\"_blank\" rel=\"noopener noreferrer\" data-vars-link-text=\"spectacularly ill-timed\" data-vars-click-url=\"https:\/\/www.spglobal.com\/marketintelligence\/en\/news-insights\/latest-news-headlines\/how-not-to-do-m-a-a-look-back-at-exxon-s-deal-for-xto-10-years-later-55076990\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\">spectacularly ill-timed<\/a>\u00a0$41 billion acquisition of XTO energy in 2009 and its\u00a0<a class=\"gtm-content-click\" href=\"https:\/\/corporate.exxonmobil.com\/News\/Newsroom\/News-releases\/2017\/0117_ExxonMobil-to-acquire-companies-doubling-Permian-Basin-resource-to-6-billion-barrels\" target=\"_blank\" rel=\"noopener noreferrer\" data-vars-link-text=\"major expansion\" data-vars-click-url=\"https:\/\/corporate.exxonmobil.com\/News\/Newsroom\/News-releases\/2017\/0117_ExxonMobil-to-acquire-companies-doubling-Permian-Basin-resource-to-6-billion-barrels\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\">major expansion<\/a>\u00a0in the Permian Basin in 2017.<\/li>\n<\/ul>\n<p><strong>Driving the news:\u00a0<\/strong>Exxon\u00a0<a class=\"gtm-content-click\" href=\"https:\/\/corporate.exxonmobil.com\/-\/media\/Global\/Files\/investor-relations\/quarterly-earnings\/earnings-announcements\/2020-earnings-announcements\/3q-earnings-release.pdf\" target=\"_blank\" rel=\"noopener noreferrer\" data-vars-link-text=\"reported\" data-vars-click-url=\"https:\/\/corporate.exxonmobil.com\/-\/media\/Global\/Files\/investor-relations\/quarterly-earnings\/earnings-announcements\/2020-earnings-announcements\/3q-earnings-release.pdf\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\">reported<\/a>\u00a0a loss of $680 million in the third quarter of this year, bringing its losses for 2020 as a whole up to $2.37 billion. (In 2008, by contrast, it made a profit of $46 billion.)<\/p>\n<ul>\n<li><strong>The company\u00a0<\/strong>also\u00a0<a class=\"gtm-content-click\" href=\"https:\/\/www.thestreet.com\/investing\/exxonmobil-posts-680-million-q3-loss-tops-revenue-forecast\" target=\"_blank\" rel=\"noopener noreferrer\" data-vars-link-text=\"announced\" data-vars-click-url=\"https:\/\/www.thestreet.com\/investing\/exxonmobil-posts-680-million-q3-loss-tops-revenue-forecast\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\">announced<\/a>\u00a0it would shed up to 15% of its workforce over the next two years, including roughly\u00a0<a class=\"gtm-content-click\" href=\"https:\/\/corporate.exxonmobil.com\/News\/Newsroom\/News-releases\/2020\/1029_ExxonMobil-plans-reduction-to-US-staffing-levels\" target=\"_blank\" rel=\"noopener noreferrer\" data-vars-link-text=\"1,900\" data-vars-click-url=\"https:\/\/corporate.exxonmobil.com\/News\/Newsroom\/News-releases\/2020\/1029_ExxonMobil-plans-reduction-to-US-staffing-levels\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\">1,900<\/a>\u00a0U.S. layoffs, mostly at its Houston HQ.<\/li>\n<li><strong>By the numbers:\u00a0<\/strong>Exxon and Mobil combined had 390,000 employees in 1980. By 2017, that number had shrunk to less than 70,000.<\/li>\n<\/ul>\n<p><strong>Losses and layoffs<\/strong>\u00a0notwithstanding, Exxon is still spending roughly $15 billion on sending a $3.48-per-share dividend to shareholders this year.<\/p>\n<ul>\n<li><strong>Few if any analysts\u00a0<\/strong>believe such a payout is sustainable. \u201cWe have doubts about the sanctity of the dividend longer-term,\u201d Edward Jones analyst Jennifer Rowland told\u00a0<a class=\"gtm-content-click\" href=\"https:\/\/www.reuters.com\/article\/us-exxon-mobil-dividend\/exxon-mobil-to-keep-dividend-flat-for-first-time-since-1982-idINKBN27D3B0\" target=\"_blank\" rel=\"noopener noreferrer\" data-vars-link-text=\"Reuters\" data-vars-click-url=\"https:\/\/www.reuters.com\/article\/us-exxon-mobil-dividend\/exxon-mobil-to-keep-dividend-flat-for-first-time-since-1982-idINKBN27D3B0\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\">Reuters<\/a>.<\/li>\n<\/ul>\n<p><strong>Flashback:\u00a0<\/strong>The oil giant was the largest company in the world, measured by market value, as recently as\u00a0<a class=\"gtm-content-click\" href=\"https:\/\/mashable.com\/2013\/01\/25\/apple-most-valuable-company-exxon\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-vars-link-text=\"2013\" data-vars-click-url=\"https:\/\/mashable.com\/2013\/01\/25\/apple-most-valuable-company-exxon\/\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\">2013<\/a>.<\/p>\n<ul>\n<li><strong>A 700-page\u00a0<a class=\"gtm-content-click\" href=\"https:\/\/smile.amazon.com\/Private-Empire-ExxonMobil-American-Power\/dp\/0143123548\" target=\"_blank\" rel=\"noopener noreferrer\" data-vars-link-text=\"corporate biography\" data-vars-click-url=\"https:\/\/smile.amazon.com\/Private-Empire-ExxonMobil-American-Power\/dp\/0143123548\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\">corporate biography<\/a><\/strong>\u00a0by Columbia University journalism dean Steve Coll was entitled &#8220;Private Empire&#8221; and compared the company&#8217;s power and reach to that of the United States itself.<\/li>\n<li><strong>When CEO Rex Tillerson<\/strong>\u00a0became U.S. Secretary of State in 2017, it was not obvious that he was gaining power or influence.<\/li>\n<\/ul>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The fall of an empire Illustration: A\u00efda Amer\/Axios The decline of ExxonMobil has been remarkable in its magnitude and unexpectedness. Why it matters:\u00a0While all major oil companies are facing troubles, Exxon has fallen the farthest, in large part because it has made the biggest bets on oil and gas \u2014 and the smallest bets on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[16979,2268,4095,30539],"class_list":["post-55513","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-axios","tag-british-petroleum","tag-exxon-mobil","tag-felix-salmon"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55513","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=55513"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55513\/revisions"}],"predecessor-version":[{"id":55514,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55513\/revisions\/55514"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=55513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=55513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=55513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}