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MAJOR OIL PRODUCING CORPORATIONS

http://www.cbc.ca/news/background/oil/gfx/titlephoto2.jpg. MAJOR OIL PRODUCING CORPORATIONS. CANADA BOLIVARIAN REPUBLIC OF VENEZUELA SAUDI ARABIA. CANADA Imperial Oil. Largest integrated oil company 5,100 employees Owned and operated by ExxonMobil

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MAJOR OIL PRODUCING CORPORATIONS

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  1. http://www.cbc.ca/news/background/oil/gfx/titlephoto2.jpg MAJOR OIL PRODUCING CORPORATIONS CANADA BOLIVARIAN REPUBLIC OF VENEZUELA SAUDI ARABIA

  2. CANADAImperial Oil • Largest integrated oil company • 5,100 employees • Owned and operated by ExxonMobil • Founded in 1880 by Frederick A. Fitzgerald • Largest refiner and marketer of petroleum products • Three distinct operating segments • Natural resources • Petroleum products • Chemicals Company Profile http://www.livingcanvas.com/exxonmobil.jpg

  3. COMPANY STRUCTURE • CEO is Timothy J. Hearn • Appointed April 23, 2002 • Also holds position of Chairman and President • Graduate of University of Manitoba • Total direct compensation is $4,731,383* • One of 50 Best Paid Executives* • Board Consists of Eight (8) Members • Randy L. Broiles, Senior Vice President- Resource Division • Paul A. Smith, Senior Vice President-Controller • Independent directors http://www.uofaweb.ualberta.ca/campaign/images/HearnTim.JPG *Source: Mercer Human Resources Consulting

  4. DIRECTORS, SENIOR MANAGEMENT, AND OFFICERS Picture taken from page 6 of the 2005 Annual Report at www.limperiale.ca/Canada-English/Files/Investors/2005-AR-investors.pdf

  5. Stock/Financial Condition Stock Condition • Traded on the American Stock Exchange and Toronto Stock Exchange • Stock trader symbol: IMO • Stock price as of March 31, 2006: $107.56* • Shares have tripled between 1992 and 2002 • Largest stockholder is ExxonMobil with 69.6% of shares • Stockholders consist of more than 65,000 Financial State • First Quarter of 2006 • Posted a net income of $591 million • Up from previous year but still failed to meet expectations • Issued cash dividends of $80 million • Liabilities and shareholders’ equity totaling almost $14.985 billion • In 2004, Imperial Oilpaid over $3 billion in taxes • In 2002, contributed $6.7 million to charities and universities *American dollars USD

  6. Graph: http://www.limperiale.ca/Canada-English/Files/Investors/2005_AR_YearInReview.pdf

  7. DEMAND AND DISTRIBUTION • 2100 Service Stations • Known for the brand Esso • 295 bulk plants • 30 distribution channels • Four (4) refineries • Over 99% of oil is exported to the U.S. • In 2005, ADP was 358,000 oil-equivalent barrels of crude oil, natural gas liquids, and natural gas • U.S. demand from Canada and Imperial Oil is growing

  8. Graph: http://www.eia.doe.gov/emeu/cabs/Canada/Oil.html

  9. OIL SANDS • Oil sands are the future of oil production • Oil sands contain “bitumen” - heavy, viscous oil • Difficult to extract and produce, requires new technology • Expensive production costs, which are passed down to the consumer • “Canada had a reported 178.8 billion barrels of proven oil reserves as of January 2006, second only to Saudi Arabia” • EIA’s International Energy Outlook(IEO) estimates that Canadian oil sands operators will produce 3.5 million bbl/d of synthetic crude by 2025

  10. BOLIVARIAN REPUBLIC OF VENEZUELAPdVSA • Venezuela nationalized its oil industry in 1975-76 • Established state-run agency PdVSA (Petroleos de Venezuela, S.A.) • PdVSA is the state-run oil and natural gas company • Largest employer in Venezuela • Five (5) corporate locations in • Argentina • Brazil • United Kingdom • Holland • Cuba • PdVSA is responsible for 50-60% of Venezuela oil production http://www.worldpress.org/images/0203pil.jpg

  11. STRUCTURE • Venezuelan President is Hugo Chavez • State-run agency is the Ministry of Energy and Petroleum • Chavez appointed Raphael R. Carreno to Chairman in November 2004 • Essentially, head of the PdVSA • Mechanical engineer • Graduate of Los Andes University in 1989 • Luis Vierma is Vice President • Alejandro Granado is Vice President http://i4.photobucket.com/albums/y116/angryeddy/chavez.jpg

  12. ECONOMICS • Finances mixed and inconsistent with OSA organizations • PdVSA spends $3 billion each year just to maintain production in existing oil fields • PdVSA accounts for 33% of Venezuela’s GDP • 50% of revenue • 80% of export earnings • Investing $26 billion in expanding hydrocarbon reserves and production between 2004 and 2009 • Major exporter to the U.S.

  13. Source: http://www.eia.doe.gov/emeu/cabs/Venezuela/Oil.html

  14. OPERATIONS AND FUTURE • PdVSA opened oil sector to private investment in 1990. • Established 32 operating service agreements (OSA) with 22 separate foreign oil firms • Chevron • B.P. • Total • These companies operate oil fields for a fee paid by the PdVSA • Puchased U.S. owned Citgo in 1990 • Controls 734,000 bbl/d of crude oil refining in the U.S. • Three (3) product refineries • 14,000 service stations http://www.venezuelanalysis.com/images/people/felix-rodriguez-citgo.jpg Citgo CEO Felix Rodriguez http://www.romarinfo.com/CITGO%204c.jpg

  15. SAUDI ARABIAProfile • Monopolized by state corporations • Saudi Aramco • SABIC • Corporations are controlled by the government with limited services contracted to private firms • More than half of its oil reserves are located in eight oil fields • Ghawar is the world’s largest oil field • Saudi King is King Adullah • Largest net oil exporter in the world http://news.bbc.co.uk/olmedia/820000/images/_820118_kuwait_oil300.jpg

  16. STRUCTURE • Saudi Oil Minister is Al Naimi • Two companies dominate the country and the economy • The Supreme Petroleum Council governs the oil industry which is nationalized • Recently started allowing limited privatization • Current deals with Shell (Japan) and India • Oil industry is Saudi Arabia is thriving • Al Naimi: “cost of adding...capacity - that is, all the infrastructure, producing and transportation facilities - necessary to produce one additional barrel of oil per day in Saudi Arabia is, at most, $5,000 compared to between $10,000 and $20,000 in most areas of the world." http://www.saudiaramco.com/bvsm/JSP/content/channelDetail.jsp?BV_SessionID=@@@@1621821498.1146942515@@@@&BV_EngineID=cccdaddhjlmgdmdcefeceefdfnkdfhl.0&datetime=05%2F06%2F06+22%3A13%3A22&SA.channelID=-1073750829

  17. SAUDI ARAMCO • Saudi Aramco • Controls 98% of country’s oil reserves • More than 54,000 workers • Recently awarded contracts to Italy totaling more than $630 million • CEO/President is Abdullah S. Jum’ah • Appointed November 1995 • Graduate of the American University of Beirut • Completed the Program for Management Development at Harvard University in 1976. • Estimates that the average total depletion for oil fields is 28% • Aramco has 25% interest in a new plant in China

  18. Source: http://www.eia.doe.gov/emeu/cabs/saudi.html

  19. MAJOR ECONOMIC CONCERNS • Security Issues • Saudi Aramco is responsible for approximately 1.5 million square kilometers of oil fields • Difficult to protect and provide security • There are roughly 3,000 western workers in Saudia Arabia with many working for Saudi Aramco • Saudi Aramco employs 5,000 security guards • Terrorism • Five staff members were killed in an attack on the U.S. consulate in Jeddah in December 2004. • Major economic concern for foreign companies with interest and large amount of investment • Westerners have been kidnapped and beheaded • A recent quote from al-Qaeda • “strike all foreign targets and the hideouts of the tyrants to rid the peninsula of the infidels and their supporters.”

  20. REFERENCES • "Canada." Energy Information Administration. Department of Energy. 10 Apr. 2006 <http://www.eia.doe.gov/emeu/cabs/Canada/>. • "Iraq." Energy Information Administration. Department of Energy. 10 Apr. 2006 <http://www.eia.doe.gov/emeu/cabs/Iraq/>. • "Mexico." Energy Information Administration. Department of Energy. 10 Apr. 2006 <http://www.eia.doe.gov/emeu/cabs/Mexico/>. • "Saudi Arabia." Energy Information Administration. Department of Energy. 10 Apr. 2006 <http://www.eia.doe.gov/emeu/cabs/Saudi/>. • "U.S. Natural gas Imports by Country." Energy Information Administration. Department of Energy. 10 Apr. 2006 <http://tonto.eia.doe.gov/dnav/ng/ng_move_impc_s1_m.htm >. • "U.S. Imports by Country of Origin." Energy Information Administration. Department of Energy. 10 Apr. 2006 <http://tonto.eia.doe.gov/dnav/pet/pet_move_impcus_a2_nus_ep00_im0_mbbl_a.html >. • “Imperial Oil LTD-IMO.” American Stock Exchange. 5 May 2006 <http://www.amex.com/> • “Corporate Profile.” This is Imperial Oil. Imperial Oil. 5 May 2006 <http://www.imperialoil.ca/Canada-English/ThisIs/Profile/TI_P_CorporateProfile.asp> • “Corporate Governance.” This is Imperial Oil. Imperial Oil. 5 May 2006 <http://www.imperialoil.ca/Canada-English/ThisIs/Governance/TI_G_CorporateGovernance.asp> • “Quarterly Report 1.” Investors. Imperial Oil. 5 May 2006 <http://www.imperialoil.ca/Canada-English/Files/Investors/2006_Q1_IMO_WholeReport.pdf> • “Venezuela." Energy Information Administration. Department of Energy. 5 May. 2006 <"Canada." Energy Information Administration. Department of Energy. 10 Apr. 2006 <http://www.eia.doe.gov/emeu/cabs/Venezuela/Oil.html> • “Board Committee.” About PdVSA. PDVSA. 6 May 2006 <http://www.pdvsa.com/index2.html> • “Corporate Management.” At a Glance. Saudi Aramco. 6 May 2006 <http://www.saudiaramco.com/bvsm/JSP/home.jsp>

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