1. Introduction Based on proved reserves and production, ConocoPhillips is the world’s largest independent exploration and production company of oil and natural gas (Conocophillips.com, 2014). This company only develops, produces, and explores for crude oil and natural gas globally. With operations in 27 countries worldwide including the USA, Colombia, Qatar, Indonesia and Australia, ConocoPhillips is headquartered in Houston, Texas, USA (Conocophillips.com, 2014). This report will analyse the global energy industry but it will be focused in the oil production sector, and how ConocoPhillips positions itself in the market for global competition compared to other multinational corporations in this industry. 2. Overview of energy industry The business of the Oil industry will be explained using the PESTLE model and Porters Five forces model. These analyses will enable us to comprehend the competitive environment of the oil industry. 2.1 Pestle Analysis From the PESTLE model it can be seen that in the political analysis world energy markets are becoming more volatile due to the threat of geopolitical instability. Greater climate destabilizations from CO2 emissions are also …show more content…
ConocoPhillips is in the strategic stage where they integrate the societal issue into their core business strategies. Companies in this stage learn “how realigning its strategy to address responsible business practices can give it a leg up on the competition and contribute to the organization’s long-term success” (Zadek, 2004). ConocoPhillips is implementing “high environmental standards in order to ensure that their actions today will not only provide the energy needed to drive economic growth and social well being, but also secure a stable and healthy environment for tomorrow” (ConocoPhillips,
With forward movement in society, it is important to consider not just what will propel most toward success, but also what will help to sustain the environment along the way. What may have been considered appropriate decades ago, may no longer be socially acceptable due to the changes observed in both the business world and the environment (Fiske, 2010). Therefore, it is important for organizations thriving in today?s economy to consider how they may capitalize most effectively from their product or service of choice while minimizing or eliminating any damages along the way (Knoke, 2012).
America is dependent on other nations for their ability to create energy. The United States is the world’s largest consumer of oil at 18.49 million barrels of oil per day. And it will continue to be that way for the foreseeable future considering the next largest customer of oil only consumes about 60% of what the U.S. does. This makes the U.S. vulnerable to any instability that may arise in the energy industry. In 2011, the world’s top three oil companies were Saudi Aramco (12%), National Iranian Oil Company (5%), and China National Petroleum Corp (4%). The risk associated with these countries being the top oil producers is twofold. One, they are located half way around the world making it an expensive to transport the product logistically to a desired destination. And two, the U.S. has weak, if not contentious,...
With annual revenue of US $19.02 billion, Chevron Corporation is the 16th largest integrated oil and gas energy company in the world. Globally they account for a workforce of approximately 62,000 (Forbes 2011). In 2010, the company produced 2.763 million barrels of oil per day (Chevron 2012). Corporations as large as Chevron owe a great amount of responsibility towards the society and environment above and beyond the economic and legal obligations. The industry is strongly linked to environmental scandals and companies make various efforts to address these issues (Farache and Perks 2010, 235). The following thesis will review the Environmental performance of Chevron in terms of fulfilling social needs within society and stakeholders.
One of the biggest strengths of ConocoPhillips is its huge size standing as second largest American oil company. With its operation expanded to more than 30 countries, the company owns about 10,000 outlets to distribute gasoline. This huge size financial size of the company also allows it to explore, extract, produce, refine, market and distribute at various sites thereby giving rise to the increasing income.
18. Worldwide Oil and Gas Production and Reserves, Phillips, 2000, U.S. Energy Information Administration, 3 May 2004, <http://www.eia.doe.gov/emeu/finance/mergers/ptprod.html>
Occidental petroleum utilize strategy growth by vertical integration that including seeking and integration with conduct to diverse level of companies and its opportunity for the company to increase influence noteworthy on the supplier chain. Moreover, Occidental petroleum has develop capacity on the technology has high efficiency than before.
The industry is divided into three distinct sectors including the upstream, midstream and downstream sectors. The upstream sector includes the exploration and production of crude oil as well as the exploration and production of natural gas. This sector has experienced the largest amount of deals in terms of mergers and acquisitions, which will be further discuss in section III. The midstream sector involves the transportation of extracted petroleum from the upstream sector through pipelines, rail, barge, truck as well as storage. Finally, the downstream sector connects the end consumers through derived products such as gasoline, liquefied natural gas (LPG), liquefied natural gas (LNG), kerosene (aircrafts), and diesel…
Stuart Hart, in a business article, discusses the tough task for companies to make a sustainable global ec...
In conclusion, the supply and demand of oil is a complex issue that depends on several factors. Geopolitical affairs are the major issues that affect supply and demand of oil. Geopolitical factors include wars, uprisings and political inconsistencies in the world. Other factors that influence the demand and supply of oil include market domains, availability of oil, recession and the world GDP. Since 1859, the price of oil has been inconsistent. Despite the fact that oil prices increased and fell, there has been a considerable rising trend in those prices. In most cases, the falling of the price reaches the previous price level. However, increase of prices goes beyond earlier prices. This trend has seen oil prices rise over the years. With this in mind, it is clear that by 2020 the real price of oil will be more than 200 dollars.
MSCI, a budgetary investigation firm with extraordinary aptitude in surveying the estimation of intangibles like carbon hazard, examined the petroleum business'execution in five key classifications: operations, wellbeing and security; capacity to get to assets in developing markets; carbon discharges; interest in option vitality; and interest in unpredictable fossil powers like oil sands and oil shale, coal bed methane and coal crease gas, and both gas-to-fluid and coal-to-fluid energizes.
Furthermore met more than 60% of worldwide vitality request by the oil and gas industry. Advancement undertakings and foundation as far and wide as possible, depend on the business. The oil and gas industry is a basic industry globally. The business might be isolated into five parts:
Most corporations are working on being responsible for their actions regarding the company’s employees, customers, and society in general. Each organization has its own power and the ability to impact and influence the economy and the government. Protecting the environment from any harm and giving to charities are a couple of ways to help an organization be more socially responsible. Timberland and Ecolab Corporations that fail to behave respectfully and responsibly toward the society, in the long run, will lose the power the company was given. By exercising the corporation’s powers, Timberland and Ecolab were able to act in a socially responsible way that enhances the society.
The focus of the upper tier of the business world is to generate as much profit as possible with a disregard to the environment. The advertisements of Cenovus, Exxon, and many other large oil companies prove that their goal is
‘How has Globalization shaped Energy Systems in Emerging Economies and the Global South? Illustrate your answer in reference to your chosen case study country.’
middle of paper ... ... g the Energy Revolution." Foreign Affairs. Nov/Dec 2010: 111. SIRS Issues Researcher.