ExxonMobil trading

Just wondering what you guys' thoughts were on the above.

Will they be successful or give up in a few years?
Can they really get anywhere near BP/Shell/Vitol etc?
Seems their culture is still very engineer orientated which can be both an advantage and disadvantage.

Wonder if anyone has any experience dealing with them. Couple old articles below
https://www.bloomberg.com/news/articles/2022-08-1…
https://www.bloomberg.com/news/articles/2023-07-0…

 
Most Helpful

Ex-ExxonMobil employee here....they will never be able to compete in the long-term until the company culture dramatically shifts. Exxon in all of it's business lines runs an extremely conservative/risk-averse business model. They are also trying to build the trading org by poaching people from the shops you mentioned, where they are allowed relative autonomy with wider risk constraints. So you have a culture mismatch from day 1 that XOM tried solving by providing above average comp when you walk in the door, but the upside in the XOM machine is always limited. 

Every couple years or so there is an article like this where XOM talks about their progress building out their trading org and the reality is they've been treading water for the last 10 years. Any time there is an aggressive money making opportunity, the red tape that has to be broken through to take advantage usually causes the opportunity to pass by if it's not just rejected by management anyway. Case in point, when crude went negative in April 2020, XOM had sufficient excess storage to get paid to take the delivery of product on that date, store for 24-48 hours, and then resell once the roll forward of the contract occurred....as close to a pure arbitrage opportunity that you'll ever find in the real world. But there was some archaic risk parameter that the trade violated so the XOM traders weren't given the approval to move on the idea and missed out on potentially tens of millions of dollars of profit. That team packed up and quit pretty soon after.

 

Thanks for the reply. Do you see the expansion causing a slight upgrade in their trading division but still getting nowhere near Shell/BP etc or do you think it will have little to no long-term impact on their division?

 

I can give some context as well, was there for less than a year before leaving for a better opportunity.

The other poster is 100% right on the culture thing, ton of red tape and not a lot of risk appetite. You spend half the time fighting political battles/ making slide shows vs trying to generate PNL lol

I think the bigger piece then that is comp. They still don’t pay bonuses for traders. They have a pension program as incentive for people to stick around so after 10+ years you’re basically married to the firm but otherwise you can make much more money at any other shop that will pay a bonus

 

They started experimenting with bonuses as a % of book, but only for a very select few...could count them on 1 hand. Bonuses have a long vesting schedule (3 yrs for half, then an incremental 3-4 years after)....the $$ amount isnt really going to impress most in the industry

 

Think as a junior you can still join to get risk/ops experience, get a trading seat and experience and then leave for better pay. I know a number of people who entered fresh and then went to other places as traders.

When you're new it does not really matter where you are getting your experience since once you get a seat its easier to go to another seat then getting into a seat from a on trading role. I would say EM is now the training ground for other players to get younger guys from since they don't need to retrain them in the basics.

 

Id eos debitis vero laborum. Mollitia neque atque ut qui. Et nemo eos consequatur sed sed. Quia magni quasi sunt facilis distinctio. Officiis ullam ut porro quam odit enim ad asperiores. Architecto perferendis doloremque nesciunt vitae et.

Repudiandae enim sed hic iste. Reprehenderit nesciunt officiis ut sunt aliquam harum. Aut quo odio laboriosam quasi perspiciatis in. Eveniet eius debitis ex. Eaque officiis consectetur praesentium voluptas exercitationem. Praesentium accusamus dolores ut amet. Et hic aut ex est et.

Vero ipsam quia sed. Dolores placeat soluta quis. Id tenetur rem animi. Rerum quod alias illum quia quas minima ullam.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Perella Weinberg Partners New 98.9%
  • Lazard Freres 01 98.3%
  • Harris Williams & Co. 24 97.7%
  • Goldman Sachs 16 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.9%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 05 97.7%
  • Perella Weinberg Partners New 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.9%
  • Perella Weinberg Partners 18 98.3%
  • Goldman Sachs 16 97.7%
  • Moelis & Company 06 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (21) $373
  • Associates (91) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (68) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (148) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”