A NEW STANDARD? OIL MERGER UNLIKELY TO HIT PUMPERS.Byline: Eric R. Quinones Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. If Exxon and Mobil merge to form the world's biggest oil company, don't expect higher prices at the pump. Even though a combination of the nation's two biggest oil and gas companies would have 22 percent of the U.S. gasoline market and refine more oil than any other company, it wouldn't have the power to reverse slumping prices caused by a worldwide oil glut glut pronounced as rut, slut Vox populi An excess of a service or skilled labor in a particular area. See Physician glut. . But while drivers may not be affected, an Exxon-Mobil marriage could leave as many as 20,000 employees out of work as the companies seek to slash costs, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. one analyst. Exxon Corp. and Mobil Corp. announced Friday that they are in merger talks, confirming reports that surfaced this week. At a price near Mobil's current value of $67 billion, it would be the richest merger ever. A combined Exxon-Mobil would vault past Royal Dutch-Shell Group of Cos. as the world's biggest energy company, with 47,000 gas stations and operations in more than 100 countries. It also would surpass General Motors Corp. as the largest U.S. company of any kind, with combined revenue of $203 billion last year. ``The last thing either party would have considered is the effect on the consumer, but as it happens it's pretty benign,'' said Alan Marshall, an energy analyst with Robert Fleming Robert Fleming is the name of:
Oil prices are hovering near 12-year lows, hammered by a plentiful global supply and an Asian economic crisis that has crippled demand from that region. The Energy Department predicts that prices will remain depressed well into the next decade. Even as the industry's biggest player, a combined Exxon-Mobil would only account for 4 percent of world oil production capacity, according to George Gaspar, an analyst with Robert W. Baird Robert Wilson Baird (born April 1, 1883) helped found the financial services firm that bears his name and led it for more than 40 years. Baird’s father was a professor of Greek literature at Northwestern University in Evanston, Illinois, where Baird grew up. & Co. in Milwaukee. In their short joint statement, Mobil and Exxon said they could not guarantee a deal would be reached and declined further comment. The talks are driven by a desire to boost profits by reducing expenses in a time of slumping oil markets. Analysts predict thousands of layoffs from the companies' overlapping operations. Marshall projected cuts of up to 20,000 - about 16 percent of the companies' combined work force. Most of the cuts would come in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , followed by Asia, he said. The merger would intensify consolidation in the energy industry that has quickened since British Petroleum announced its surprising $49 billion takeover of Amoco Corp. in August. Oil stocks jumped Friday on confirmation of the Exxon-Mobil talks and anticipation of even more deals. Mobil stock rose $7.625, or by nearly 10 percent, to close Friday at $86 a share as the second-most actively traded issue on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . Exxon shares climbed $1.6875, or by more than 2 percent, to $74.375 on the NYSE NYSE See: New York Stock Exchange , the fourth-most active. Chevron Corp., Texaco Inc., Unocal Corp. and Atlantic Richfield Co. are among the major players likely to find merger partners, said Gaspar. Exxon, based in Irving, Texas Irving (pronounced 'er-ving') is a city located in the U.S. state of Texas within Dallas County. According to the 2000 U.S. Census, the city population was 191,615; the 2006 estimate was 201,927 according to the North Central Texas Council of Governments, and 196,084 according to , ranks only behind Royal Dutch-Shell among the world's oil companies. Mobil, based Fairfax, Va., is the second-largest U.S. oil and gas group after Exxon and the fourth-largest in the world. The companies are children of Standard Oil Trust, John D. Rockefeller's oil monopoly, which was broken up by the government in 1911. Exxon is the former Standard Oil of New Jersey, while Mobil was once Standard Oil of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . But a reunion of the two does not necessarily pose significant antitrust concerns, said Robert A. Burka, a partner at Washington law firm Foley & Lardner and a former official in the Federal Trade Commission's bureau of competition. ``The merged entity will have nothing like the market power or the ability to injure To interfere with the legally protected interest of another or to inflict harm on someone, for which an action may be brought. To damage or impair. The term injure is comprehensive and can apply to an injury to a person or property. Cross-references Tort Law. consumers that its predecessor did,'' Burka said. WHO THEY ARE Vital statistics of Exxon Corp. and Mobil Corp.: EXXON SIZE: Largest U.S. oil company, second-largest in the world CHIEF EXECUTIVE OFFICER: Lee R. Raymond HEADQUARTERS: Irving, Texas SALES (1997): $137.2 billion PROFIT (1997): $8.5 billion SERVICE STATIONS: 32,000 EMPLOYEES: 80,000 MOBIL SIZE: Second-largest U.S. oil company, fourth-largest in the world CHIEF EXECUTIVE OFFICER: Lucio A. Noto HEADQUARTERS: Fairfax, Va. SALES (1997): $65.9 billion PROFIT (1997): $3.3 billion SERVICE STATIONS: 15,000 EMPLOYEES: 42,700 CAPTION(S): 3 Photos, Box PHOTO (1--Color) A motorist in Falmouth, Maine Falmouth is a town in Cumberland County, Maine, United States. The population was 10,310 at the 2000 census. This northern suburb of Portland borders Casco Bay and offers one of the largest anchorages in Maine. , chooses Exxon over Mobil, while he still has the option. Robert F. Bukaty/Associated Press (2--Color) Lee R. Raymond (3--Color) Lucio A. Noto BOX: WHO THEY ARE (see text) |
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