• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 42 mins Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 21 hours Biden about to face first real test. Russia building up military on Ukraine border.
  • 2 days Trump punches back at Fauci and Birx's revisionist history (aka lies)
  • 2 hours America's pandemic dead deserve accountability after Birx disclosure
  • 3 days The coming Cyber Attack
  • 7 hours U.S. and Chinese investors to buy Saudi pipelines , $10 Billion deal.
  • 18 hours Create a new law "Postericide" to prosecute and imprison Climate Change "Deniers"
  • 2 days New Chinese Coal Plants Equal All those in U.S.A
  • 2 days Goldman Betting on Cryptocurrencies
  • 4 days New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 5 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 6 days Forecasts for Natural Gas
U.S. Oil Production Is About To Climb

U.S. Oil Production Is About To Climb

U.S. oil production is likely…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Exxon Mobil Sells Japanese Refining Company for $3.9 Billion

Due to tight rules for petroleum fuels in developed countries, demand growth is expected to decrease. The margins are also small, and as a result many of the oil majors are restructuring and shedding refining operations to concentrate on oil exploration and production in the search of bigger profits.

Marathon Oil sold its refining operations last July, and BP and Shell are selling their refineries in the US and Western Europe. Whilst ConocoPhillips has announced its plans to split itself in two this summer, with the refining operations moving away from its more profitable oil and gas exploration and production business.

Now Exxon Mobil Corp., the world’s largest, publicly traded oil company, is selling its Japanese refining and marketing business to partner TonenGeneral Sekiyu K.K. for $3.9 billion. Sherman Glass, president of ExxonMobil Refining, said that it was just part of a restructuring move in response to a changing global energy market. "What we continue to do is try to restructure — in some cases invest, in some cases divest and in some cases restructure — to make it a strong group of operations in our downstream business.”

The deal will be concluded in June when TonenGeneral Sekiyu will buy 99 percent of the shares of Exxon Mobil Yugen Kaisha, which refines and sells fuel and lubricants. Exxon Mobil’s stake in TonenGeneral will decrease from 50 percent to 22 percent.

The deal will also massively benefit TonenGeneral who will experience increased flexibility and competitiveness in the Japanese market, which has a population that is both ageing and shrinking. Jun Mutoh the managing director said that "The Japanese market is getting tougher. The decision-making within the company will be more effective in the newly integrated production-distribution operation."

Oil and gas exploration and production  offers investors a chance for faster growth than with refining; also, oil prices are expected to remain high, which has helped fund a boom in new exploration.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage



Leave a comment
  • Sib Akhtar on July 09 2014 said:
    Thoughtful article on Exxon Mobils view of the downstream business.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News