...ABSTRACT The purpose of this project is to determine multinational corporate sustainability within the oil industry and perform country analysis, industry analysis, and analysis of firm’s international strategies. INTRODUCTION The five oil companies that we chose from the 2010 Global Fortune 500 are ExxonMobil, Sinopec, ConocoPhillips, Petrobras, and Lukoil. In our project, we performed analysis on the 10K report of domestic companies, as in ExxonMobil and ConocoPhillips and the 20F report of foreign companies, as in Sinopec, Petrobras and Lukoil. A comparison was done on the five companies to determine if there exists a corelation between sustainability perspective and financial performance. OIL INDUSTRY ANALYSIS Oil accounts for a large percentage of the world’s energy consumption, ranging from 32% for Europe and Asia, and 53% for the Middle East. The world consumes 30 billion barrels of oil per year, with developed nations being the largest consumers. The United States consumed 25% of the oil produced in 2007. In 2009, world energy consumption decreased for the first time in 30 years (-1.1%), as a result of the financial and economic crisis (GDP drop by 0.6% in 2009). This evolution is the result of two contrasting trends. Energy consumption growth remained vigorous in several developing countries, specifically in Asia (+4%). Conversely, in OECD, consumption was severely cut by 4.7% in 2009 and was thus almost down to its 2000 levels. In North America, Europe and CIS...
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...(Course) (Date) Oil Industry 1. Describe the industry and explain the general pattern of change of the particular market model. The oil industry is a global industry that carries out its activities all over the world. The global community depends on the oil industry for nearly half of its activities (see diagram 1), which shows increasing demand of oil over the past years. Studies by Yizraeli (1) show that between, 1979 and 1985, Saudi Arabia pursued an aggressive and active policy with the intention to shape the world oil market. In the beginning, the company experienced an increase in the oil prices, but this effect was mostly felt by Saudi Arabia because of the market position it occupies. Some of these factors include a pricing policy that is moderate the size of the oil reserves and the company’s position in the world market. The Saudi Arabia government at that instant came up with laws to reduce the possibility of other entrants into the trade. It is not likely that Saudi will ever control the production of oil mainly because of two main factors; one being the role played by the country and impact of oil in the world economy are both experiencing a decline. The development of OPEC back in 1960, however, changed the scene of the oil industry to an oligopoly oil industry characterized by cartels. This is an institution characterized by few productive members who control the product price. When it comes to OPEC, the treaty between the groups controls how much oil each company...
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...UNIVERSITY THE INTERNATIONAL OIL COMPANIES BY AMY MYERS JAFFE WALLACE S. WILSON FELLOW IN ENERGY STUDIES JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY RONALD SOLIGO, PH.D. PROFESSOR OF ECONOMICS, RICE UNIVERSITY RICE SCHOLAR, JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY PREPARED IN CONJUNCTION WITH AN ENERGY STUDY SPONSORED BY JAPAN PETROLEUM ENERGY CENTER AND THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY NOVEMBER 2007 International Oil Companies THIS PAPER WAS WRITTEN BY A RESEARCHER (OR RESEARCHERS) WHO PARTICIPATED IN THE JOINT BAKER INSTITUTE/JAPAN PETROLEUM ENERGY CENTER POLICY REPORT, THE CHANGING ROLE OF NATIONAL OIL COMPANIES IN INTERNATIONAL ENERGY MARKETS. WHEREVER FEASIBLE, THIS PAPER WAS REVIEWED BY OUTSIDE EXPERTS BEFORE RELEASE. HOWEVER, THE RESEARCH AND THE VIEWS EXPRESSED WITHIN THIS PAPER ARE THOSE OF THE INDIVIDUAL RESEARCHER(S) AND DO NOT NECESSARILY REPRESENT THE VIEWS OF THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY NOR THOSE OF THE JAPAN PETROLEUM ENERGY CENTER. © 2007 BY THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY OF RICE UNIVERSITY THIS MATERIAL MAY BE QUOTED OR REPRODUCED WITHOUT PRIOR PERMISSION, PROVIDED APPROPRIATE CREDIT IS GIVEN TO THE AUTHOR AND THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY. 2 International Oil Companies ABOUT THE POLICY REPORT THE CHANGING ROLE OF NATIONAL OIL COMPANIES IN INTERNATIONAL ENERGY MARKETS Of world proven oil reserves of 1,148 billion barrels...
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...develop the gas and oil industry recently. However, the country is still facing a lot of difficulties. This essay will discuss in depth about what are the problems and point out the potential causes for those challenges base on three questions: 1. What are the reasons causing difficulties for the development? 2. What are the effects of these problems for Viet Nam? 3. What are possible solutions to resolve these problems? Definition of oil and gas According to the Vietnam Oil and Gas Law (1993) "Oil and gas" means crude oil, natural gas and hydrocarbons in gaseous, liquid or solid in its natural state except coal, shale, bitumen or other minerals can be extracted oil. "Oil and gas activities" is active exploration, development and mining of petroleum, including direct service activities for these activities. There are many oil and gas activities dividing into different areas. Situation of petroleum industry in Viet Nam The petroleum industry contributed most amount of foreign currency to serve the economy as electricity and gas,...
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...in oil reserves is growing rapidly. To drill or not to drill, this is the question on the minds of the government of Canada and various others around the world. Oil is a fossil fuel which is derived from the remains of prehistoric organisms and with its rapid depletion, the concern of applying an alternative becomes evident. Oil and gas industries provide 7 billion people with 60% of their daily energy needs. From a toddler playing with his plastic toys to an old man with his hearing aid; everyone has some sort of dependency on the oil industry. This is due to the fact that many household items are either...
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...world’s significant oil and gas producers. Malaysia holds the world’s 28th largest crude oil reserves with proven oil reserves of 4 billion barrels. Malaysia is also the world’s 13th largest natural gas reserves with a 33 capacity of 2400 billion cubic meters. Regarding to this, the development of oil and gas industry in Malaysia bring some impact to us. Mining in the past few decades in the oil，it brings some effects on economic, social and environment to some developing countries led to a huge problem. As one of the nation's main commodities, oil and gas has a very strong impact on the Malaysian economy. Our Oil and Gas team with its industry professionals and worldwide capabilities is ideally placed to help companies...
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...slowing in oil and gas rig growth, which indicates that the early skeptics who thought this was a temporary production boom requiring numerous new wells to keep output up were wrong. Rather than drilling in new shale formations, oil and gas producers are finding ways to get more out of the formations they have already found. (U.S. Oil & Gas Production On the Rise Thanks to Fracking) Not everyone forecasts new and lasting supplies of oil and gas. David Hughes of the Post Carbon Institute offers this about availability: “The analysis shows that U.S. tight oil production cannot be maintained at the levels assumed by the EIA beyond 2020. The top two plays—Bakken and Eagle Ford—which account for more than 60% of current production, are likely...
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...Operations Management at Agrotech Pvt Limited (Edible Oil Refining) Group Number A8 I P Sudhir Kumar PGP16/002 Jayashree ML PGP16/024 Megha Jain PGP16/031 Pooja Sharma PGP16/036 Neeraj Kumar PGP16/033 Rohit Kumar PGP16/042 Boby Chaitanya V FPM Piyush Kumar FPM Acknowledgement During the term project for Operations Management (OM-I), we had a great opportunity to learn and apply the various concepts and principles that we have learnt in the course. For a successful and enriching learning experience, we’d like to acknowledge, with utmost sincerity, the efforts of all those who have made the successful completion of our project possible. We are thankful to Prof. Sanjay Jarkharia (Instructor for OM-I course), for his constant guidance and support throughout the period of project. Also, our honest regards for all the staff at Agrotech Pvt Ltd., who made this project experience all the more enriching and enjoying, our fellow classmates who were always at help regarding anything concerned with the project and the wonderful people of Kerala who were always helping and considerate during our field trips. LIST OF DIAGRAMS Title of Diagram | Organizational Structure of Agrotech Private Limited (Refining unit) | Block Diagram of Plant | Process Flow Diagram | TABLE OF CONTENTS S.NO...
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...Analysis of Edible Oil Industry ANALYSIS OF PAKISTAN INDUSTRY PRESENTED BY: HUSNA BADAR(7164) KOMAL SHAHDEV(756) MISBAH SALEEM(4258) SUBMITTED TO: SIR AFTAB ABRO Institute of Business Management, Karachi Table of Contents Brief history about the edible oil industry 8 Present Situation of edible oil industry in Pakistan 8 Consumption 8 Edible oil industry (3 segements) 8 Group 1(Premium Segment) 9 Group 2(Popular Segment) 9 Group 3 (Lower Segment) 9 Market share analysis of the overall industry 10 Branded versus unbranded 11 Analysis of the total market reveals that about 43% of the market is unbranded and the remaining 57% market is branded oil. 11 Market share information of tier 1 segment 11 Manufacturing process 12 The procedure that is adopted by all manufacturers of edible oil is given as follows. However organizations modify the processes to suit their requirements. 12 Step # 1: Blending of different oils in different quantities. 12 Step # 2: Refining the blended oil. 12 Step # 3: Packaging. 12 Step # 4: Marketing and Sales 12 Source of edible oil 13 Important facts regarding oil seeds 16 Categories of oil 17 Product 22 Pricing 23 Placement – distribution network 23 Promotion 23 Positioning – critical success factor 23 Competitive prices 24 Dalda FOODS PVT LTD 25 product: 26 Pricing 26 The price of Dalda is slower than Habib in spite of the fact...
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...Sahabzada Aunuddin Qadri, Muhammad Saad Khan, Hammad Tajalli | Edible Oil Industry | Managerial Policy | 1. Introduction of Product and Service in the World: Cooking oil consists of edible vegetable oils derived from different plants, amongst which the famous are olives, peanuts, and sunflower. Cooking oil is used to prepare food, fry food and also used for salad dressing. It has been around for thousands and thousands of years. The Chinese and Japanese have been using cooking oil since 2000 BC. Many other civilizations have used cooking oil before and after that. Therefore, to track the exact date of the invention is impossible. The Chinese were fond of Soy Cooking Oil and have been using it for a long time. Vegetable oil, a type of cooking oil, began to be processed by old civilizations, utilizing whatever food they had. Early civilizations learned to use the sun, to heat, oily plant until the plant exuded oil that could be collected. In Mexico and North America, peanuts and sunflower seeds were roasted and beaten into a paste and then boiled in water. The oil that rose to the surface was then skimmed off. Africans also grated and beat palm kernels and coconut meat and then boiled the resulting pulp, taking the hot oil off the water. Due to technological advancements, we now have new types of vegetable oil. Corn oil was extracted first in the 1960s. Cotton oil, grapeseed oil, watermelon seed oil, and many others are now considered as beneficial. Earlier, they were...
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...Economic Profile on the Oil and Gas Industry The oil and gas industry is one of the most talked about industries today, at least in my town it is. Everywhere I go I hear people talking about the rise or fall in gas prices or how the cost of a barrel of crude oil has just gone up or down .10 cents. I also hear about how the current hurricane season could pose a threat to the oil industry, as it did last year with hurricane Katrina, putting oil refineries under water or causing extreme damage to them. In this essay I am going to discuss the shifts and price elasticity of supply and demand in the oil and gas industry. I am also going to discuss the oil and gas industry’s positive and negative externalities, wage inequality, and monetary and fiscal policies. Lastly, I will discuss the economic affects and influence on the oil and gas industry. Shifts and Price Elasticity of Supply and Demand The price elasticity is the affect of the price for a good on the demand of that good. If consumers are not affected by the change in price then this good would be referred to as inelastic. If consumers are affected by the change in price then this good would be referred to as elastic. The oil and gas industry is inelastic when the prices rise because, although consumers slightly reduce their consumption of oil and gas, consumers still purchase oil and gas. With gasoline prices in the U.S. approaching an average $3 a gallon, Americans are moaning about the rising cost, but so far they are...
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...MICROECONOMICS TERM PAPER: AN OVERVIEW OF THE CRUDE OIL INDUSTRY Group 3: ASEEM ROHATGI | PGP 14 -010 | DHEER VORA | PGP 14 -015 | KARANVIR SIDANA | PGP 14 -025 | PURBASHISH GANGULY | PGP 14-046 | SIDDHI AGARWAL | PGP 14 -067 | SPREHA KANIKA | PGP 14 -069 | THE CRUDE OIL INDUSTRY Crude oil industry is the largest industry in the world in terms of dollar value. Crude oil or petroleum satisfies almost 33.6% of the world energy needs. It is also the most traded energy resource in the world. The demand side factors are guided by the energy needs of the world which is still dependent on non-renewable sources, while supply is determined by oil rich countries. The prices are fluctuating owing to influence of the spot market. Trends in Demand An above average GDP growth in non OECD countries has significantly pushed the demand for all types of energy in an upward direction. Where the consumption of energy by OECD countries has remained steady with the growth rate of 0.9%, the non-OECD nation’s growth rate reached 5.5% in 2010. Even though there has been a significant upsurge in all types of energy, oil still remains the world’s leading fuel. In the current scenario, where the global oil consumption is surging, the production is unable to match such high growth. In the year 2011, the demand grew by 3.1% whereas the increase in supply was only for 2.1%, attributing to the implementation of OPEC production interruptions since late 2008. Therefore the unmatched...
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...Kristin Robinson Dylan Graham Ruben Doris Sarah Wallace Oil & Gas Equipment and Services Industry Overview: The oilfield services and equipment sector was valued around $152 billion in 2012. The OFS industry “is made up of mature set of companies” and whose success is dependent on the “drilling expenditures of the oil and gas companies”. The OFS industry provides a wide range of services and equipment for oil and gas companies around the world. They aid in the extraction and production of natural resources. OFS companies are involved in all stages of production, from upstream through downstream. The size of these service companies was relatively small until the 1980’s, when the major oil and gas companies outsourced a variety of processes to service companies. OFS companies continued to grow in size and importance with the innovation of new technologies and abilities such as directional drilling and improved 3D seismic imaging. Today, OFS companies play a key part in what is commonly referred to as the “shale revolution” in North America. The industry’s success is dependent on several factors including oil/gas prices, economic stability, and innovation of new technologies. This sector is comprised of four giants that include Schlumberger, Weatherford, Halliburton, and Baker Hughes. These companies are involved in a broad range of services that require intensive capital and R&D. Independent firms typically perform smaller, specialized services with expertise in...
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...monopolistic control of the oil industry for a long time, he was also vilified by many people. Even so, he revolutionized industrialization in America and dramatically changed the oil industry with many inventions and process improvements. His monopoly was so powerful and dominant that the government made laws specifically targeting his company, which still impact how our nation operates today. His monopoly dominated American industries and was constantly expanding, which is why he was responsible for 95% of oil distribution in...
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...Earnings Management Study Oil & Gas Industry Abstract This study mainly focused on the earnings management in oil and gas industry and we used Jones model to detect discretionary accruals in the subject companies. Specifically, we examined three oil and gas sample companies that have been required to restate their financial reports due to the oil reserve overestimation. After running the regression and comparing statistics with other oil and gas companies, we found that the sample companies do revise oil reserves to manipulate the DDA expenses, thus achieving their goals of earnings management. Some recommended auditing guidance to detect such manipulation were given at the end. Introduction/Assumption Earnings management, in accounting, is the act of intentionally influencing the process of financial reporting to obtain some private gain. Earnings management involves the manipulation of company earnings towards a pre-determined target. This target can be motivated by a preference for more stable earnings, in which case management is said to be carrying out income smoothing. Management may also overstate the income for personal interests. Other possible motivations for earnings management include the need to maintain the levels of certain accounting ratios due to debt covenants, boost earnings to beat analyst targets, or intentionally understate the earnings to get rid of the...
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