The year 2014 was indeed an excellent year for the stock exchange but there is one segment that has not performed well due to a number of reasons. The segment in discussion here is the oil and gas sector. The prime reason for not performing well is the falling oil prices. While the customers are on cloud nine due to the falling prices, oil companies are not having the time of their life. One company that falls in to this segment is Exxon Mobil Corp. (NYSE:XOM).

Exxon Mobil Corp. (NYSE:XOM) is one of the world’s largest oil company and has been affected adversely due to the drop in oil prices. Currently Exxon Mobil Corp. (NYSE:XOM) is trading at around the $90 bracket and for the year 2014 had a return of -6%. It is safe to say that the negative return was due to a drop of almost 50% in oil prices. Exxon Mobil Corp. (NYSE:XOM) is not the only company that has suffered from a downfall in oil prices.

Another giant in oil sector, “Chevron Corp. (NYSE:CVX)” has also suffered from the same fate. Chevron Corp. (NYSE:CVX) posted a return of – 7% for the year ended 2014 which is almost equal to Exxon Mobil Corp. (NYSE:XOM). Yet both the oil companies have a dividend yield of over 3%. A drop in oil prices mean that both Exxon Mobil Corp. (NYSE:XOM) and Chevron Corp. (NYSE:CVX) will be facing a tough year. Over the years, the companies have established a system where the operating costs are very high and since the revenue will be slashed by 50%, it would be very difficult for Chevron Corp. (NYSE:CVX) and Exxon Mobil Corp. (NYSE:XOM) to cut costs.

It is a clear cut indication that 2015 would be a gloomy year. With the drop in oil prices, it would be very difficult for Exxon Mobil Corp. (NYSE:XOM) and Chevron Corp. (NYSE:CVX) to maintain their international operations. The risk at the international installations of Chevron Corp. (NYSE:CVX) and Exxon Mobil Corp. (NYSE:XOM) is very high and the company has to bear a lot of expenditure. Not to mention any sanction on the company can result in pulling out of the region.

Exxon Mobil Corp. (NYSE:XOM) has treasury shares that are worth more than $350 billion and they can help the company to sustain. However, the point here is that will it be a good idea for Exxon Mobil Corp. (NYSE:XOM) to actually rely on its treasury bonds. Treasury bonds are a powerful tool to acquire companies but using it for sustainability is indeed a bad idea. Till the oil prices started to rise, big companies like Exxon Mobil Corp. (NYSE:XOM) should formulate long term strategies of operating with a minimum operating cost so that they are prepared for another oil fiasco in future. If they work along these lines, they would be able to not only survive but make profit as well.

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