Petroleum Companies Through Agility Measurement the Purpose Thesis

  • Length: 15 pages
  • Sources: 7
  • Subject: Energy
  • Type: Thesis
  • Paper: #31095777

Excerpt from Thesis :

Petroleum Companies through Agility Measurement

The purpose of this paper is to evaluate petroleum firms and focus on their agility factors, after that a conclusion can be achieved that specifies which one of the firms are more agile as compared to the rest. In this paper, a questionnaire will be built which will help in analyzing the petroleum companies. The measurement of agility here will be dependent on four main points, these are the Production strategy, the technology, the human resource and the organization structure. Each section will start with brief introduction which will describe the importance as well as the relation of that factor to the agility measurement. It will also seek to describe on how the agility can be derived from the requested information in the questionnaire.

Firstly, there has been some analysis of the oil companies in detail, many factors will be assessed regarding the oil companies such as their revenues, their origins, locations in which they currently conduct their operations and those in which they have extreme interest in, their current strategies and their future prospect. A look at the subsidiaries of these companies will also be covered, this will show that the firms are actively engaged in many different activities besides the regular business such as the heavy investment of many of the petroleum companies in renewable energy sources.

There is a huge effect on global political events by the petroleum companies, since energy requirement of the developed as well as developing economies grow more and more each day, the oil firms have more shares on many of the key political decisions being taken by industrial powers. Here the agility factor of the major oil companies plays a vital role in assuring their survival in an ever tough competitive environment.

Overview and Facts

In this section, there will be an overview of the three oil companies namely Petroleum Development Oman (PDO), Occidental Petroleum and Daleel, spotlight will be put on some of the major facts which surround this industry. The petroleum industry has many different subsidiaries besides the production of main fuel oil and petrol such as the production of various kinds of petroleum related and chemical products like pharmaceuticals, plastics and so on.

The total consumption of oil in the world is about thirty billion barrels in a single year. Here, the U.S. consumed more than twenty percent of the total which was produced in the year 2010. It is the biggest industry in the world taking account of all of its measures such as production, distribution and so on. Venezuela is estimated to have the biggest oil reserves in the world, after that Saudi Arabia has the second biggest reserves.

Now, let's have an overview of PDO. Petroleum Development Oman (PDO) is the biggest oil company in Oman, it is responsible for about ninety percent of Oman's oil production as well as almost all of the country's gas supply. PDO is owned by the Federal Government there who has more than fifty percent stake in it. Other big firms such as Royal Dutch Shell has some one third stake, Total (which is a French Oil firm) has four percent interest. In Oman, the first oil find was done in the 1960's.

The firm PDO searches for oil fields, it then develops these fields into more useful assets by doing many operations such as hydrocarbon treatment. The final product i.e. The crude oil which is made from oil wells is then stored rather than sell out by the firm.

From here on, it is then uploaded to the seagoing tankers which then functions on the commands of the firm's many different shareholders. Therefore, the firm's earnings do not come from the direct sale of oil. The main shareholders then take care of the budgeted operating as well as the capital expenditure. The overall revenues of PDO are increasing on a yearly basis which highly based on the rising oil prices at the market. It has more than ninety percent of Oman's oil fields which enables it to export more than seven hundred thousand barrels per day. Here Oman uses some sixty nine thousand barrels each single day which is considered to be some one third of the country's total energy needs, the rest is fulfilled through natural gas.

PDO is also greatly involved in the development and operations of natural gas fields as well as related production systems with the firm assistance from the Omani government. Here, the PDO gives gas to national gas system that is responsible for much of Oman's power generation plants as well as many of its industries. Some major things which are included in its gas production operations includes the supply of liquid hydrocarbons with more than fifty thousand barrels per day, this is condensed from the natural gas.

PDO is also responsible for many social welfare projects in Oman, it invests heavily in many projects such as in education as well as the development of talented individuals by the means of education and also assists many different sorts of training programs. It has investment in many different business as well as different communities by the source of its very own Business Development Centre.

The Daleel Petroleum Company started off from a combine venture in Oman. This company was created in the later half of 2002. Its main activities include exploration, the development of hydrocarbon reserves and so on. Its main values and principles includes the conduction of its operations in a cost effective as well as responsible manner which allows the usage of oil fields to be more socially and economically beneficial to everyone including the employees, the surrounding inhabitants and the shareholders.

It has done many selective investments from its existence and has shown to be a great emerging technological force regarding oil exploration. It also labels itself very efficient in the management of costs as well as the management of operating procedures, here it tends to maximize its complete economic performance. It also prides itself on providing some of the highest safety and medical standards in the world to its employees.

Daleel Petroleum Company also invests heavily on social projects, it defines itself as a huge contributor towards many projects which aim in serving many different communities wherever it operates especially in Oman. It does so by many financial and other forms of donation towards educational institutes, donation towards different charities which help people in many different ways, donation towards many municipalities and so on. It moves on with the principle that in order to be great, it has to be great with every neighbor, therefore it invests heavily in community infrastructure, the municipal activities, the donation towards children who are suffering from diseases such as Cancer and so on.

Since its start, it has come a long way in a very short span of time, it also has many great ambitions to further increase its operations with the corporation of its major stakeholders.

The firm Occidental Petroleum (Oxy) is an American oil and gas firm which performs its duties mostly in mainland U.S.A, much of the Middle East, Northern Africa region and Southern American region. It is the biggest petroleum producer in the state of Texas as well as the biggest gas producer there. It has many different operations currently in locations such as Kansas, New Mexico and others. It has its main headquarters in California. In the United States, it is among the top five biggest oil companies, this estimation is based on its market capitalization. According to recent estimates, it employed some thirty thousand personnel throughout the globe.

There have been many criticisms on Oxy's overall methods for management in dealing with its oil and gas exploration processes, here they have responded by pledging on their complete commitment towards their responsibilities. They have issued a statement in this regard which says that they are firmly committed in protecting the eco system, keeping safety and having the best standards of corporate and social responsibility in their operations present worldwide. The critics are concerned here on Oxy's past operations in many of its global areas. Oxy has many different subsidiaries like its own chemical manufacturing operation named OxyChem, OxyVinyls and many others. There are many joint ventures between subsidiaries of Oxy and other leading companies like that of OxyChem with UNIPAIR.

By the end of the year 2009, Oxy was measured to be the fourth biggest American oil and gas firm depending on its market capitalization, its total capitalization is measured to be of sixty six billion dollars. This is more than ten times the increment in its net worth since after 1990, at that time it as close to worth five billion dollars.

The main growth plan of Oxy in its oil and gas operations depends on three main operations, the enhanced oil recovery (EOR), the process of exploration and the process of acquisitions. The company's main oil and gas processes are focused at three main places, the Northern American region (U.S.),…

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