Tomahawk, WI 8/20/2013 (Basicsmedia) – All over the world, Exxon Mobil Corporation (NYSE:XOM) has become a major brand where it is synonymous with petrochemicals. Within the company, there are several affiliates and divisions which are used to drive XOM’s interests forward, and make it the success it has become. While it is based in the U.S, its operations, products and services are spread all over the world. The principal business, or bread and butter, of XOM is the energy industry, where it explores and crude oil and natural gas. The demand for crude oil and natural gas is still high.

Future Demand for XOM Products May Suffer

Although the demand for XOM’s main products, oil and natural gas, is still high, things might be about to change. The changes may not take place soon, or even in our lifetime, but things appear to point to a direction which is radically different from what Exxon has been manufacturing. The world has suddenly realized the need for alternative sources of energy. This could lead to a cessation of its overreliance on what fossil fuel companies have been selling. Some of the blame for damage on the environment has been directed fossil fuel companies like XOM.

This is the kind of environment which XOM expects to continue competing or thriving under. The appreciation for electric vehicles, made by companies such as the Tesla Corporation, has started improving. The demand for electric vehicles is taking a turn for the best, thus threatening traditional cars which use the sort of products which XOM produces. If this demand for alternative sources of energy will continue increasing, the likelihood of oil and natural gas being overtaken as the primary sources of energy is not far fetched and is a threat to XOM’s future.


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XOM Is Not The Only One to Be Blamed for Climate Change

I’m of the view that if fossil fuel companies like Exxon are to be blamed for climate change, then those who use these products must not be let off the hook. Exxon is a supplier, and there is already a demand for its products. Currently, it may appear as if Exxon is fighting a lost cause and that it won’t win this one. However, if it is to remain viable for its investors, it will need to find ways of diversifying into other products which will make it as profitable as oil and natural gas have done throughout the ages.

It is not lost on observers that the clarion call for lifestyle changes has already gone out and people are starting to change their ways. This means XOM ahs no choice but to find ways of adapting in order to keep its place as one of the major companies globally, with an impressive market cap, and an equally admirable cash flow as well as revenue targets each year. Its financial results haven’t suffered yet, but the picture seems to be changing. The work which Exxon Mobil is faced with is quite massive and it needs the support of its investors.

As at this moment, I believe that XOM is one of the best stocks to add onto your portfolio both for the short and long term.

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