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This case study is about Exxon Mobil Corporation faced with crisis. Exxon Valdez spilled approximately 11 million gallons of crude oil into Alaskaâ€™s Prince William Sound. Lot wildlife such as brown bear, harbor seals, sea birds, bald eagles, sea otters and cormorants suffered a great loss in their population. Those species are affected by spilled oil disaster. The Exxon Mobil Corporation oil spilled case greatly affected the Alaskaâ€™s fisheries life, environment of national parks, beaches and forests. All Alaskaâ€™s tourism spices are greatly affected by oil spilled due to Exxon Mobil Corporation worst management or slow response.
A lot crude oil trading cooperation in the world, like one of the trading Companies Exxon mobile Corporation or Exxon Mobil is an American multinational oil and gas corporation, headquarter of Exxon Mobil are founded on 1870 and located in Irving, Texas. Exxon Mobil Corporation is one of the largest publicly traded companies in the world and ranked on top 5 corporations. ExxonMobil is the largest of the oil or energy industrial with daily high productivity more than 3.5 million barrels of oil equivalent. Exxon Mobil Corporation produces 3 main products such as fuels, lubricants and petrochemicals.
On March 24, 1989, Exxon Mobil Corporationâ€™s Vessel the oil tanker Exxon Valdez, this oil tanker was control by shipmaster Jeffrey Hazelwood. The oil tanker was sailing the shipping lane from Valdez, Alaska to Los Angeles, California, ran aground on Bligh Reef in Prince William Sound, Alaska. The oil vessel Exxon Valdez was sailing inbound shipping lane due to outbound lane obstructed with small icebergs. Before the tanker arrive the destination, the Exxon Valdez spilled approximately 11 million gallons of its 55 million gallon crude oil. The oil would eventually spill more than 1,100 square miles of ocean in Alaska. This oil spilled disaster was making the Exxon Valdez the largest oil spilled case in worldwide.
The crisis to the Exxon Valdez involved a lot personnel and equipment over a longer period of time than did any other spill in America State history. This oil disaster involving the problems in providing fuel, berthing, meals, waste management, response equipment and other resources were one of the largest challenges to response management team. The Oil spilled case was involving lot personnel, vessels and aircraft to support the cleanup operation. The Exxon Mobil Corporation spends the cleanup cost approximately more than 2.1billion dollar in cleanup operation. Until now, some of the shoreline still did not fully cleanup or recover. These oil disasters due to the Exxon Mobil Corporationâ€™s management did not show fast response on tanker oil spilled case.
Examine the aim and objectives of Exxon Mobil Corporation.
3.1 The aim by Exxon Mobil Corporation
The Exxon Mobil Corporation was still continuously achieving superior financial and operating results while simultaneously adhering to high ethical standards. The reason is the Exxon Mobil Corporation was committed want to being the world's famous petroleum and premier petrochemical company.Â The following committed such as shareholders, customers, employee and communities.
The Exxon Mobil Corporation is committed to enhancing the long term value of the investment and expands the global market.Â The Exxon Mobil Corporation are believe that, there shareholders will be rewarded with greatly return due to the business profitably and responsibly. The Exxon Mobil Corporation are implementing the aim and achieve their commitment to shareholder.
The successful of the Exxon Mobil Corporation are ability to consistently satisfy every changing customer preferences.Â Responsive, Innovative, offering high quality products and greatly services at competitive prices and market, those actions are committed by Exxon Mobil Corporation.
Exxon Mobil Corporationâ€™s workforce provides a valuable competitive edge. The advantage will build by Exxon Mobil Corporation so that will strive to retain and hire the most qualified manpower available and to maximize employeeâ€™s opportunities for success through training and development.Â The Exxon Mobil Corporation has a safety policy to maintaining the safe working environment provide to employee.
The Exxon Mobil Corporation is committed that will be a good corporate citizen in worldwide.Â There also will maintain high ethical standards, follow all applicable laws, respect local and national cultures, rules and regulations.
3.2 The objectives by Exxon Mobil Corporation
The ExxonMobil Corporation is committed to the pursuit of operational excellence. The Exxon Mobil Corporation will deliver safe, reliable operations, improving energy efficiency, and maintaining strong business controls. The Exxon Mobil Corporation can gain greatly rewarded through disciplined investments, developing breakthrough new technologies, quality improvement processes, integrated operations and global marketing.
One of the Exxon Mobil Strategy is identify, pursue and the capture the highest quality resource with low cost in industrial. The Exxon Mobil used 4 opportunities such as new exploration plays and concepts, unconventional resource, further exploration and discovered fields. Those 4 opportunities allows Exxon Mobil Corporation explore for and capture all resource types.
Exxon Mobil Corporation focuses on stabilized investment decisions and industry leading project execution to deliver superior returns from upstream projects. Exxon Mobilâ€™s project scale and complexity increases across industry, it comprehensive enhancing the business and project execution tools also can ensure to maximum value is delivered to resource owners and to Exxon Mobil Corporation shareholders.
Exxon Mobilâ€™s operation line able maximizes the commercial recovery of hydrocarbons from companyâ€™s asset through effective technologies and operation management systems.
3.2.4 Refining and Supply
Refining and Supply is one of Exxon Mobil objective, that purpose or function is operates a global integrated network of reliable and efficient refineries, pipelines, marine vessels, and distribution centers that provides transportation fuels, lubricants, and high value products to worldwide.
3.2.5 Fuels Marketing
Exxon Mobilâ€™s fuels marketing served the worldwideâ€™s customer with high quality product, provided a secure and ratable product to creates the long term business.
Carefully observe the oil and refinery industrial processes and operations.
Exxon Mobil Corporationâ€™s crude oil (raw material) is not generally useful for customers. Only the refining processes able to increase the oil value, quality and purpose. The refining process is separating the many compounds present in crude oil. This refining process is called fractional distillation, the bottom will be heating the crude oil, the several of the compounds boil at different temperatures and change to difference products. Change the crude oil to finished products must produce with three major refinery processes. Those are separation, conversion and purification.
The figure shown the difference temperature and processes will produces the difference finished product.
Exxon Mobil Corporation have technologies to run the separation process. Separation process is accomplished by applying heat through a process called distillation as above figure shown. Separation is performed in a series of distillation towers, with the bottom product from each tower feeding the next. The feed section is the hottest point in the bottom of distillation tower and can reach as high as 399 Degree Celsius. The top of distillation tower can reach as low around 32 Degree Celsius. Crude oilâ€™s component still in liquid type because this elevated temperature becomes the towerâ€™s bottom product. The crude oilâ€™s heated by burner, this process changed the component in vapour form and rise up the tower through a series of distillation stage. The vapour formâ€™s temperature decreased and flow to top section. Difference boiling point will separate to specification section. Products from the distillation tower range from gases at the top to very heavy, viscous liquids at the bottom. Those product came out from streams are still considered unfinished product, that still require further processing to become useful and value products.
Finished the distillation process, the crude still is unfinished or value product to the customer. The crude oil occurring molecule will not naturally exist in same proportions molecule as per customer demand. The crude oil occurred too little gasoline and too much heavy oil, that not value product and not as per customer requirement. Exxon Mobil ran the conversion process purpose is convert low valued heavy oil into high valued gasoline.
Conversion process is transforming the output of distillation towers into streams that eventually become finished products. Some products emerge from the distillation process as ready to use products. Others require further conversion. One method of conversion is called hydrocracking. Heat and pressure are applied in the hydrocracking unit to break heavy hydrocarbon molecules into lighter molecules. Hydrocracking is used to convert gas oils into motor gasoline, jet fuel, and diesel fuel.
In the alkylation unit, a catalyst is added under high temperature and low pressure to crack heavy molecules into lighter gasoline and liquefied petroleum gas molecules. A catalyst is something that is added to the process to achieve a chemical reaction but is not consumed by the reaction. Applied the heat and moderate pressure is used to convert process residues into industrial fuel, and products that can be further refined through other conversion processes such as alkylation
Once the crude oil ran through separation process and conversion process, the resulting product are ready for purification. The purification purpose is principally sulfur removal and this process done by hyrotreating, this hydrotreating process are similar to hydrocracking but without convert the heavy molecule to lighter molecule. Sulfur removal is essential to meeting the product quality specification and environmental standards.
Evaluate the risks in all areas that lead to the oil spill disaster and pollution.
5.1 The third mate failed to properly maneuver the vessel, possibly due to fatigue and excessive workload
Exxon Mobil Corporationâ€™s vessel Exxon Valdez does not have enough manpower to run the tanker cause to employee need to worked more than 12 hours to support the shipment. The third mate did not watch the shipping lane environment properly, that also did not inform the ship master the lane status or condition in first time.
5.2 The master failed to provide a proper navigation watch, possibly due to impairment from alcohol
The shipmaster did check the equipment properly before the tanker starts leave the port. The Exxon Valdez shipmaster was under the influence of alcohol during working time and could not give the proper directions to his crew.
Exxon Shipping Company failed to supervise the master and provide a rested and sufficient crew for the Exxon Valdez
Exxon Mobil Corporation was not providing sufficient training and rest to the tank crews. Exxon Mobil also was not installing the availability of inadequate equipment on the ship.
The U.S. Coast Guard failed to provide an effective vessel traffic system
The United State Coast Guard should not provide the permission to Exxon Valdez. The Coast Guard should be stop the ship immediately and order the ship wait until morning due to eveningâ€™s sight was not clear and there should not take the risk used the inbound shipping lane.
Effective pilot and escort services were lacking.
The Exxon Mobil Corporation did not provide the cleanup training to employee annually. When the disaster happened, the crews could not take the action immediately. Unfavorable weather cause the service crew cannot clean up the oil smoothly.
6.0 Critically identify the consequences of all the hazards of the oil spill disaster.
6.1 Company image/management
The Oil Spilled case showed that Exxon Mobil did not have a good management to manage the crews and preventive action to environment. This case wills indirectly made customer lost confidence on Exxon Mobil Corporation.
6.2 Litigation and cleanup costs
The Exxon Mobil Corporation spends more than 2.1 billion for clean up purpose. There also spends more than billion on litigation fee for oil spilled case.
6.3 Wildlife affected by oil spilled
The wildlife carcasses of more than 35,000 birds andÂ 1,000 sea otters were found after the oil spilled case.
What are the improvements and changes in the management systems so to prevent the disaster from happening?
The Exxon Mobil Corporation should be implementing Quality Management System (QMS) on company. This QMS to guide their operation management, at same time can operate the production smoothly.
7.1 Co-operation with Coast Guard
The Exxon Mobil Corporation must fully co-operate with coast guard for every shipping ship. The United Sate Coast Guard must monitors fully laden tankers via satellite as they pass through Valdez Narrows, cruise by Bligh Island, and exit Prince William Sound
7.2 Escort Team
The Exxon Mobil must implementing two escort vessels accompany each tanker while passing through the entire Sound. They not only watch over the tankers, but are capable of assisting them in the event of an emergency, such as a loss of power or loss of rudder control.
Exxon Mobil must provide the specially trained marine pilots, with considerable experience in Prince William Sound, board tankers from their new pilot station at Bligh Reef. Dispersants are now stockpiled for use and systems are in place to apply them from other shipping transport.
The environment crisis by human can be prevent, if the company have implementing the good management and provide to the production and the employees or crews. The Exxon Mobil must have good communication with Coast Guard.