#oilandgas

ExxonMobil Is Rewiring Its SAP Enterprise For The Energy Future

By Judith Magyar,Brand Contributor.
Nov 04, 2025, 07:59am EST

Harmonized data is becoming ExxonMobil’s new gold standard — the foundation for predictive analytics, AI, and faster decision-making.

“Digital transformation often gets mistaken for an IT upgrade,” said Kurt Aerts, business venture executive at ExxonMobil. He was speaking at the ASUG Best Practices event for Oil, Gas and Energy in Houston, Texas. “Our ongoing transformation is a powerful reminder that true change means transforming the business at scale. It’s not about implementing new systems — it’s about fundamentally changing how an enterprise operates and creates value.”

Not just another systems project
This philosophy underpins the company’s multi-year transformation that integrates people, processes, systems, and data across an organization with $350 billion in annual revenue, about 60,000 employees, and operations spanning upstream, chemicals, fuels, lubricants, and low-carbon solutions.

One of the key steps in ExxonMobil’s journey, which began in 2017, was to reframe the mindset. “We don’t want to optimize, we want to transform,” said Aerts.

Process transformation requires challenging deeply ingrained ways of working and prioritizing adoption of industry standards for each process area and service offering such as Record-to-Report, Source-to-Pay or Order-to-Cash, to drive globally consistent execution. This takes a governance model designed for clarity and speed of decision making — two prerequisites for meaningful transformation and to prevent the common trap of consensus-driven optimization.

Transforming the core
Aerts went on to describe ExxonMobil’s three core pillars of transformation:

Processes are now harmonized to industry standards enterprise-wide versus being executed differently by business or geography.

Systems are modernized from 12 heavily customized ERPs to a unified, cloud-based platform on SAP S/4HANA.

Data is being turned from fragmented, trapped information into harmonized consistently defined enterprise assets.

In the past, answering a simple question such as ‘how much do we sell to Walmart’ required hours of aggregating and reconciling across 12 ERPs. Real-time, enterprise-wide visibility will speed up the process considerably. “Harmonized data is becoming ExxonMobil’s new gold standard — the foundation for predictive analytics, AI, and faster decision-making,” Aerts explained.

Managing scale and risk
Large-scale transformation requires effective risk management. ExxonMobil’s approach balances value capture and risk mitigation.

Deployments are phased by the existing ERP ecosystem, not geography or function, to manage complexity and provide business continuity. A layered governance structure — from a sponsor committee of senior executives to operational design boards — supports accountability, transparency, and alignment at every level.

Aerts shared some lessons from the frontline, stressing the importance of foundational principles. When challenges arise, these principles help keep decisions aligned with strategic intent. Next, he reiterated that data matters most, because clean, consistent data is the real enabler of transformation. And finally, the team learned early on that an out-of-the-box approach really works. Industry-standard configurations deliver agility and prevent the drift toward customization that burdens future upgrades.

“We were able to achieve significant simplification,” he said. “For instance, we reduced about 1,400 company codes to under 1,000, and profit centers from more than 15,000 to fewer than 500. This has eliminated significant complexity while increasing transparency across financial reporting.”

ExxonMobil’s key metrics reflect the disciplined execution of the transformation, and is exceeding its targets on its two principal objectives:

80% target on Fit to Standard: a testament to the commitment to adopt industry standard processes.

90% target on Clean Core: enabling instant upgradeability and system resilience.

Ultimately, ExxonMobil’s enterprise transformation is about creating competitive advantage. By harmonizing data, simplifying systems, and standardizing processes across business lines and geographies, the company is positioning itself for faster innovation and improved experiences for employees, suppliers and customers.

Shaping the future
Transformation is also about visionary leadership in an industry that is adapting to societal needs on how energy is produced, distributed, and consumed. ExxonMobil has a long history of collaboration with SAP to address functionality gaps and ensure the solution is optimized for the oil and gas industry. In essence, ExxonMobil’s journey offers a blueprint for global organizations facing the same challenges, especially lack of agility caused by legacy systems, fragmented data, and decentralized processes.

Aerts concluded: “A successful transformation isn’t about replacing tools; it’s about redesigning processes, data and systems to deliver industry leading performance in efficiency, effectiveness and the experience of our employees and customers, while ensuring agility for adjustments required due to changes in the market.”

https://www.forbes.com/sites/sap/2025/11/04/exxonmobil-is-rewiring-its-enterprise-for-the-energy-future/

I only see a few options.

1 - Keep under performing as a smaller, poorly managed Oil & Gas company?
2 - Buy something, incurring more debt?
3 - Sell all or part of Ovintiv now that Anadarko is closed and add in a heavy haricut to reduce headcount?

Good luck everyone.

Scott Sheffield of Pioneer wants to get a job as an ExxonMobil board member

https://www.federalregister.gov/documents/2025/04/17/2025-06562/petition-of-scott-sheffield-to-reopen-and-set-aside-order

can any of the people who are in a union at a refinery tell their union rep that Houston engineers want to unionize and have the union get something started ASAP!!!!

No surprise there. I've been trying to make a job switch for months. The job market right now is as bad as I've ever seen it. What does that tell you?

Someone said recently that anyone working Permian assets will have to move to Midland and all of the other Basins will be run out of OKC. Is this true?

Nothing says ‘competitive advantage’ like posting the Permian well logs, 1533’ core spacing, and perforation clusters. This is what winning looks like.

Thank you ST for posting that to LinkedIn

Chevron threatening to shut down El Segundo and Richmond is giving tremendous hope to decommissioning and remediation firms since there is way too much land to simply turn them into terminals. SJV will be on the accelerated hit list again too, I imagine.

Or maybe Chevron will accelerate the complete move to India and say sc--w you EPA. Bye bye Houston.

https://www.msn.com/en-us/money/economy/chevron-threatens-to-shut-down-california-refineries-warning-of-a-dangerous-game-for-gas-prices/ar-AA1ZtZWn

You cannot tweet you way out of 23% of world oil, 48% nat gas, and 4.5/5.0% 10 yr bond rate.

“.. US government officials and Wall Street analysts are starting to consider the prospect that oil prices might surge to an unprecedented $200 a barrel.”

https://www.bloomberg.com/graphics/2026-iran-war-hormuz-closure-oil-shock/

“… US government officials and Wall Street analysts are starting to consider the prospect that oil prices might surge to an unprecedented $200 a barrel.”

Source:
https://www.bloomberg.com/graphics/2026-iran-war-hormuz-closure-oil-shock/

ExxonMobil's breakthrough in fully automated offshore drilling in Guyana has significant implications for its shareholders. The automation system not only enhances drilling efficiency and execution but also offers potential cost savings and improved well economics. This shift towards automation may lead to a more consistent and reliable production profile, which is crucial for maintaining shareholder value. Additionally, the successful deployment of this technology could influence capital allocation for ExxonMobil's offshore projects, potentially protecting well economics amid volatile oil price cycles.

While the automation system introduces new risks, such as software failures and cyber vulnerabilities, the long-term benefits of increased efficiency and operational consistency are likely to outweigh these risks for ExxonMobil's shareholders. The company's ability to demonstrate the effectiveness of its automation technology in Guyana could serve as a blueprint for future field developments, potentially impacting capital allocation for other offshore projects and beyond.

Overall, ExxonMobil's automation breakthrough in Guyana represents a significant step forward for the company's upstream operations and could have a positive impact on its shareholders by enhancing operational efficiency and potentially protecting well economics.

https://energynews.africa/2026/03/18/exxonmobil-pioneers-fully-automated-offshore-drilling-in-guyana-redefining-future-project-economics/

This is from Barron's, link below:
Mike Wirth, CEO of Chevron, warned that energy markets are underestimating the severity of the oil supply shock caused by the Iran conflict. He said millions of barrels per day are already offline, with losses expected to grow, creating what experts describe as an “availability crisis.” Disruptions in the Strait of Hormuz, a key global shipping route, are tightening supply, especially for Asia, while futures markets still project relatively moderate prices. Despite recent volatility, with oil briefly spiking above $100 before falling, Wirth believes current pricing does not fully reflect the real physical shortages.

The situation is further complicated by uncertainty around how long the conflict will last and how quickly damaged infrastructure can be restored. Goldman Sachs has already raised its oil price forecast for 2026, anticipating prolonged disruption in supply flows. Even if the war ends soon, experts say it could take weeks, months, or longer to bring production fully back online, meaning supply constraints may persist. Overall, the article suggests that oil markets may be too optimistic, and prices could rise further if the supply shock proves more sustained than expected.

https://www.barrons.com/articles/chevron-ceo-crude-oil-prices-futures-f65915b8

No paywall:
https://archive.is/MHNek

IT SVP "Chay Chinsethagid" is asked to leave H&P as part of Re-org in March 2026.
Kane Ramasamy who is IT Senior director, let go from the Service in March 2026, Several other individuals also impacted by recent layoffs after the new President took the charge.

You would be smart to quit your Oracle job in California and move to find a job in either St Louis Missouri, Detroit Michigan or Cook County Illinois which is Chicago. Gas in all three cities is cheaper but you’re going to have to dodge all the bustin caps going along with the natives. As far as schools go, forget it.

It's my first job and I'd hate to lose it before I even properly started.

What will Chevron do now that Trump is planning to restart ops offshore California?

How much longer will this outfit last till its bankrupt or bought out? 5 years, 10, ???

What happened to our wood river refinery? Don’t tell me we sold it at a low price?!?

Does anyone see any positives or negatives for Shell (besides $100/b oil) with all of the chaos in the ME region?

OVV has assembled the weakest and most incompetent Executive Team in the history of Oil and Gas! Doug, please come back and clean this mess up!

• Nine vessels attacked since U.S.-Iran conflict began
• BP evacuates foreign staff from Iraqi oil field due to drones
• Putin considers halting gas exports to Europe

Any concerns about Leviathan and Tamar? Glad I am not on location.

With the big jump in oil price, I expected stock price of the oil majors (particularly the ones that don’t ship through the strait) to jump proportionately. They are actually flat or slightly down. Thoughts?

With the Gulf crisis that exploded yesterday, meaning O&G is cool again, will EM not relax its PIP season harvesting?

Trump Pushed for Lower Gas Prices and Got Them. The Oil Industry is Paying the Price.

Jake Conley · Breaking Business News Reporter
Updated Thu, February 26, 2026 at 3:45 AM MST

During his State of the Union address on Tuesday night, President Trump touted an energy industry strengthened by the success of his "Drill, baby, drill" policy, a dual mandate of more hydrocarbon drilling and lower gas prices.
A year into Trump's second term, oil and gas production is at or near all-time highs, and gasoline prices average below $3 per gallon nationally.
But for the US oil and gas industry, the president's ambitions have come at a cost.
"Capital efficiencies and returns drive our investment decisions," said an oil and gas operator responding to the Dallas Federal Reserve's fourth quarter energy survey.
"If economic conditions worsen, drilling and completion activities will cease in 2026."
The US produced 13.78 million barrels per day of oil in November, according to the most recent government data, just barely off the record high recorded in October. Daily dry gas production also hit its highest level on record in November after advancing nine straight months.
At the pump, where crude oil accounts for roughly 50% of the cost of a gallon of gas, Americans are seeing the lower prices Trump campaigned on.
But that record production and those low pump prices have come just as the global oil market has entered a period of deep oversupply of between 2 million and 3 million barrels per day — fundamentals that saw crude oil prices drop roughly 20% through 2025. Prices are up through the start of 2026, driven by geopolitical factors and an improved demand outlook. But they remain several dollars per barrel lower than they were a year ago, and as one respondent to the Dallas Fed survey said, "actual industry costs continue in one direction: up."
"Decreasing oil prices are making many of our firm’s wells noneconomic," another respondent noted. The same dynamic is playing out in the natural gas sector, where the energy product is "becoming an expense to operators," one survey respondent said. "Last month, we paid our gas purchaser to take our gas because prices fell below contract price, and we paid the difference to the purchaser. Never in my 50 years in the oilfield has this ever happened."
Activity in the oil and gas sector — which measures a variety of metrics such as employment figures and capex spending — has now declined for three straight quarters, according to the Dallas Fed, even as production has increased.
The effect is not confined to smaller independent oil and gas drilling firms, which are highly exposed to oil price fluctuations.
Even as Exxon Mobil (XOM) and Chevron (CVX), the country's largest integrated oil and gas operators, increased their production and beat analyst estimates on top-line revenue, both companies recorded year-on-year declines in annual profit as the oil glut depressed prices, shrinking their margins.
One sign that business is struggling in the US: Oilfield services firms such as Halliburton (HAL) and Calfrac Well Services (CFWFF) are increasingly sending their fracking equipment overseas, where demand is stronger, according to data from Primary Vision, first reported by Bloomberg.
The fracking bo-m of the early 2000s made the US the world's largest producer of oil and gas, but the shale industry has been struggling amid declining commodity prices. Nearly one-fifth of the fracking equipment deployed in Texas's Permian Basin has now been shipped overseas, the Primary Vision data shows.
"I think there's incentives to move equipment outside the US, which we're doing in some cases," Halliburton president and CEO Jeffrey Miller said during the company's fourth quarter earnings call in January. "I think the bias is towards, there's not investment in the [US] market in terms of more equipment and equipment is wearing out, which we know, and equipment, in some cases, is moving outside the US."
For the broader energy industry, the picture isn't all gloomy.
The US is about to enter the heavy driving season, when gasoline demand spikes, driving crude oil prices up, and January jobs data far exceeded expectations in another sign of transportation demand.
The federal government's Energy Information Administration now expects natural gas production to grow as new pipelines come online in the Permian basin, with prices expected to increase and incentivize more activity.
Yet, the count of drilling rigs in the US has decreased by roughly 7% year on year, according to data collected by the drill-field services firm Baker Hughes in late February. For US oil and gas upstream producers — the centerpiece of Trump's "Drill, baby, drill" ambitions — more drilling and lower gas prices may push their business the wrong way.

https://finance.yahoo.com/news/trump-pushed-for-lower-gas-prices-and-got-them-the-oil-industry-is-paying-the-price-100021352.html

They have done it before and WILL do it again. Then they will throw a party to congratulate themselves for doing it.

https://www.nytimes.com/1986/04/26/business/exxon-move-for-slash-in-staff-called-startling.html

The long term goal is for every operating unit including the grassroots upstream oil & gas projects to be operated by 3rd party contract companies who pay far less in health care benefits, pensions, and salaries.

The Guyana offshore upstream operations business model is a textbook example of how ExxonMobil wants to operate our facilities in the future.

This weekend I had the privilege of joining over 1,000 Port Mourant residents, government officials, along with the team from ExxonMobil Guyana and our coventurers for the official opening of GTTCI.

Seeing the newest cohort of trainees, particularly the several young women, who will be the first to complete their full training right here in Guyana was truly remarkable. Their achievements will mark yet another important milestone worth celebrating.

GTTCI will play a critical role in preparing many to operate the oil and gas assets safely and reliably, while also equipping individuals with skills that create opportunities beyond the sector. I look forward to witnessing the continued impact that this institution will have on its students and the development of Guyana’s workforce for years to come.

With the Guyana Energy Conference & Supply Chain Expo starting tomorrow, it’s another exciting week in Guyana!

https://www.linkedin.com/showcase/exxonmobilguyana

OKC based oil companies companies are exiting the city and state for Houston Texas. Ovintiv has divested Anadarko holdings. 10 years ago the investment world couldn’t get enough of the SCOOP and STACK. Now the investment community is far less interested in any OK investment. What factors are at play and what will OK oil industry look like in the near future.

Publish Date: 27th June 2025

ExxonMobil, the world’s largest publicly traded oil & gas supermajor, was formed via the $73.7 billion merger of Exxon and Mobil in 1999. As of 2023, it employs around 72,000 people worldwide, with annual revenue of approximately $334 billion and total assets worth about $340 billion. The company operates across upstream (oil & gas exploration and production), downstream (refining and chemicals), and chemical sectors, with a growing portfolio in LNG, carbon capture, and advanced chemicals. It manages vast upstream assets in the U.S., Guyana, and Indonesia, and downstream assets in 20 countries. Growth initiatives focus on the Permian Basin, Guyana offshore development, and LNG projects.

Historical M&A Deals (Chronological, up to 2023)

Year Target Type Value (approx)

1919 Humble Oil & Refining Acquisition –
1928 Creole Petroleum (Venezuela) Acquisition –
1984 Superior Oil Co. Acquisition $5.7 bn
1999 Mobil Corp. Merger $81 bn
2009 XTO Energy Acquisition $36 bn + $11 bn debt
2011 Phillips Resources, TWP Acquisition $1.69 bn
2012 Land swap with Denbury (Bakken) Swap $1.6 bn
2012 Celtic Exploration (Canada) Acquisition $2.6 bn
2013 Esso Card & BOPP films Divestiture –
2014 HK pumped storage stake Stake sale $33 m USD hong kong currency
2015 Chalmette Refining Divestiture $322 m
2017 InterOil Corp. Acquisition $2.5 bn
2018 Federal (Indonesia lubricants) Acquisition $436 m
2019 Norway oil & gas assets Divestiture $4 bn
2021 Santoprene polymers Divestiture $1.15 bn
2021 UK & North Sea upstream Divestiture $1 bn
2022 Billings Refinery & assets Divestiture $310 m
2022 Nigeria MPNU sale (Seplat) Divestiture $800 m
2023 Denbury Inc. Acquisition $4.9 bn
2023 Pioneer Natural Resources Merger ~$60 bn ($64.5B incl. debt)
This list encompasses 20+ key transactions illustrating ExxonMobil’s strategic expansion, divestiture, and portfolio shaping moves.

Recent M&A Activity (2024–2025)

Pioneer Natural Resources
Completed in May 2024, the $60 bn all‑stock merger doubled Exxon’s Permian footprint, pushing production to ~1.3 → 2 MM boe/d by 2027. Expected synergies exceed $3 bn/year, $1 bn above initial projections.

Esso France Sale
As of May 2025, Exxon is negotiating to divest its 82.9% stake in Esso France to Canada’s North Atlantic Groupe, valued at €149/share (€63 distribution prior) with deal closing expected late 2025.

Thai Gas Assets
In Q1 2025, Exxon sold stakes in the E5, E5N, and EU1 onshore blocks in Thailand to Horizon Oil for ~$30 m plus contingent payments.

European Refining/Chemical Divestitures
Closed late 2024, Exxon sold Fos-sur-Mer refinery and Gravenchon chemical plant to Rhône Energies for undisclosed billions, exiting aging European assets.

Divestiture Strategy & Notable Deals
European Exit: Norway assets ($4 bn), UK North Sea ($1 bn), French refinery/chemicals (late 2024), exiting high-cost, regulated markets to streamline operations.
Emerging Markets: Sale of Nigeria MPNU ($800 m) to Seplat to exit less profitable or complex jurisdictions.

Asia Onshore Gas Small-scale Thai assets sold to focus on higher-return offshore and unconventional development.

What Worked & What Didn’t?
Successes

Permian Expansion via Pioneer – strategic consolidation, operational synergies, and cost savings ($3 bn/yr). Rapid integration established Exxon as shale powerhouse.

XTO Acquisition (2010) – foundational pivot into U.S. shale gas, increasing production and positioning Exxon in unconventional plays.

Carbon Capture via Denbury (2023) – strengthened Exxon’s CCS portfolio, aligning with evolving regulatory and investor pressures.

Divestitures – consistent capital recycling (e.g. Europe, Nigeria) fueling investment in high-return projects and preserving financial discipline.

Missteps
Legacy asset rationalization—exiting older assets was prudent, but slower than some competitors, raising concerns about timing.

Scale risk – mega-merger with Pioneer increases integration complexity and debt exposure; long-term commodity price risk remains.

Strategic Rationale
ExxonMobil’s M&A strategy hinges on focusing on advantaged assets, divesting underperforming or noncore operations, and diversifying into emerging arenas:

Upstream deepen shale footprint for scale synergies (Pioneer), enhance technology leadership (XTO).

Carbon strategy build CCS capacity via Denbury.

Portfolio optimization free cash from divestitures reallocated to Permian, LNG, Guyana offshore (Whiptail), and advanced chemicals (IPA for semiconductor grade).
These moves support financial discipline, long-term shareholder returns, and energy transition resilience.

Outlook
Integration priority: ensuring smooth assimilation of Pioneer & Denbury operations without cost overruns.

Divestiture momentum continued sales in low-growth regions; proceeds will fund Guyana development, Permian drilling, and LNG expansion.

Transition alignment investment in CCS, chemical diversification, and possibly lithium upstream (non-M&A) suggests shifting capital mix.

Conclusion
From its monumental 1999 merger to the transformative 2024 Pioneer deal, ExxonMobil has leveraged M&A to transition from an integrated oil giant to a strategically focused energy leader. Its approach—acquire scale and expertise in cores, divest noncore assets, and reinvest in next-gen capabilities—has so far paid off, enhancing production capacity and portfolio strength. However, as the energy landscape evolves, bold bets must be matched with meticulous execution and further strategic clarity.

https://mandaequilibrium.com/exxonmobils-strategic-ma-evolution/

Pleased to hear we are acquiring FANG.

What’s going on with Egypt? Is it on the market?

Watch the development funding for kaparuk and alpine get significantly reduced in 2027 as COP moves towards an exit from Alaska. Only selling point will be Willow.

Anything to do with oil seems to be going quickly to Venz. A race for the money. Chevr. already in the game.

Story by Danielle Smith

Shell is reportedly struggling to recoup its massive investment in Pennsylvania’s petrochemical sector, with weak fourth-quarter returns renewing concerns the project has underdelivered on jobs, growth and profits.

The company is seeking a buyer or partner for its Shell Polymers Monaca plant and may never fully recover its $14 billion investment in the venture, according to a report from the Ohio River Valley Institute.

Kathy Hipple, research fellow at the institute and the report's co-author, said data show Shell received a major state tax subsidy intended to build a regional petrochemical hub. The company has already collected about $90 million and could keep receiving roughly $60 million to $65 million a year if the company continues to purchase and process more than a billion gallons of ethane annually.

She pointed out Shell has begun to sell off tax credits intended to support the local petrochemical industry.

"By law, they are able to sell these tax credits," Hipple acknowledged. "So far, they seem to have sold 100% of the tax credits that they have received to other companies that are not in the manufacturing industry. They're usually in the insurance industry. Sometimes they're not even in the region."

Hipple noted the Pennsylvania Resource Manufacturing Tax Credit’s “lookback provision,” set to trigger in 2028, could allow legislators to reevaluate the flow of tax credits to Shell Polymers Monaca. Lawmakers can assess whether the facility has met its original objectives and if it has not, consider modifying the incentive.

Anne Keller, also at the institute, said the state’s tax credit structure was unusually generous. The program effectively gave Shell a five‑cent discount on every gallon of ethane feedstock the plant uses. She spoke with an industry analyst who explained lawmakers initially discussed capping the subsidy at 30,000 barrels per day but the limit never made it into the final legislation.

"The bottom line was that the plant use it, and that is a very, very significant discount for a plant like this," Keller emphasized. "These are big commodity manufacturing facilities and feedstock is one of the critical cost elements that allows them to be profitable."

The report stated Shell has not fulfilled its commitments for job creation or local economic development. Since the 2012 announcement of its ethane cr--ker project, Beaver County’s GDP has fallen 12%, the local population has dropped by 3%, and employment has declined more than 13%.

https://www.msn.com/en-us/money/markets/shell-failing-promises-as-it-seeks-exit-from-pa

Wondering how the next few months usually go during this time of year.

I was a contractor at Exxon a few years on a year long contract. When they got rid of me after I got their project done faster than expected they told me I was more than welcome to come back.

I have had at 4 instances where I was the right person for the job and right when things get moving in the right direction i get ghosted. Apparently I am not the right person to play in their dollhouse, which is fine. THEN STOP CALLING ME!!!!!!!!!!!!!!!!!

Just because you like wasting your time doesn't mean others like it. And judging by the posts on this site, a lot of others don't like it either.

So instead of prank calling people to come play at your unrewarding shitehole, just grow up and do something productive like seggs work on 45!

Taking into account layoffs as well as your own intentions.