Final Report Oil Industry
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Transcript of Final Report Oil Industry
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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 firms 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 worlds 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,
consumptions shrank by 4.5%, 5% and 8.5% respectively due to the slowdown in economic activity.
China became the world's largest energy consumer (18% of the total) since its consumption surged
by 8% during 2009 (up from 4% in 2008). Oil remained the largest energy source (33%) despite the
fact that its share has been decreasing over time.
EIA expects that world crude oil and liquid fuels consumption will continue growing from its
record-high level of 87.1 million barrels per day (bbl/d) in 2010 and reach 88.4 million bbl/d on 2011
and 89.8 million bbl/d in 2012 . Consumption in OECD countries is projected to decline in both 2011
and 2012, while China and other emerging economies account for all projected oil consumption
growth through 2012.
Major oil companies once dominated the industry. With the development of OPEC and state-backed
firms, the landscape of the oil industry over the last several decades has changed significantly. While
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corporate energy companies continue to grow and maintain strong profits, production and supply of
government owned energy entities are becoming more efficient and competitive. According to a
recent Economist article, State-owned energy companies hold 80% of the total oil reserves. This
leaves the corporate oil giants entirely out of the top ten oil reserve holders. Faced with increased
competition from smaller firms and state-backed companies, super-major oil companies must
continue to hold reserves and partner with smaller companies to effectively continue efficient
exploration and oil production.
Petroleum Intelligence Weekly this week published its annual ranking of the world's 50 largest oil
companies.The main trend in the latest survey is the greater predominance of national oil
companies, and, particularly, the substantial gains by Chinese and Russian companies.
In contrast to national oil companies, the major oil companies and other private sector firms
generally lost ground, especially in the top tiers. However, unlike other super majors, Exxon Mobil
held on to its number three position. A comparison with results from 10 years ago shows that the
top major oil companies, as a group, now account for a smaller global share of the six ranking criteria
than they did prior to the mega-mergers that created them.
OVERVIEW OF COMPANIES
1. EXXONMOBILExxonMobil Corporation (NYSE: XOM) is the largest energy corporation in the world. It wasestablished in New Jersey in 1882. Exxon is headquartered in Irving, Texas and currently
employs nearly 84,000 people worldwide. At 440 Billion dollars of revenue in 2010, Exxon is
the second largest Fortune 500 Company and largest energy company in the world.
Operations are held in almost every country in the world and exploration takes place on six
continents. As the largest energy company, Exxon holds oil reserves equivalent to nearly 25
billion barrels, the 11th largest reserve worldwide. Operations consist of Energy exploration,
specifically oil and natural gas, Production and refining, consumer delivery and processed
petroleum products. It reaches consumers through, Exxon, Mobil and Esso stations. Its
presence and the continued demand growth for energy position Exxon to play a significant
role in the US and world economies.
2. CONOCOPHILLIPSConocoPhillips Company(NYSE: COP) is an American multinational energy corporation with
its headquarters in Houston, Texas. It is also one of the Fortune 500 companies and 22nd on
Forbes Global 2000. ConocoPhillips is the fifth largest private sector energy corporation in
http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=cophttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Energyhttp://en.wikipedia.org/wiki/Houston,_Texashttp://en.wikipedia.org/wiki/Fortune_500http://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/Fortune_500http://en.wikipedia.org/wiki/Houston,_Texashttp://en.wikipedia.org/wiki/Energyhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://www.nyse.com/about/listed/quickquote.html?ticker=cophttp://en.wikipedia.org/wiki/New_York_Stock_Exchange -
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the world and is one of the six "supermajor" vertically integrated oil companies. It sells fuel
under the Conoco, Phillips 66 and Union 76 brands in North America, and Jet in Europe.
ConocoPhillips was created through the merger ofConoco Inc. and the Phillips Petroleum
Company on August 30, 2002. ConocoPhillips employs approximately 29,600 people
worldwide in nearly 40 countries. ConocoPhillips is the second-largest refiner in the United
States. It has over $198 Billion dollars and a Net Income of over $11 Billion dollars as of
December 31, 2010.
3. SINOPECSINOPEC (NYSE: SHI) China petroleum and chemical corporation is a large scale integrated
energy and chemical company with upstream, midstream and downstream operations, strong
oil and petrochemical core businesses and a complete marketing network. The company was
incorporated on February 25, 2000. The scope of its business mainly covers oil and gas
exploration and production, extraction, marketing, storage and transportation of
petrochemicals. It is the second largest oil and gas producer in China. Sinopecs refining
capacity and ethylene capacity are ranked second and fourth globally. The company has the
largest sales and distribution network of oil and chemical products in China. It has the 2nd
highest number of service stations in the world. Sinopec holds true to its mission of
Enterprise development, contribution to the country, shareholder value creation, social
responsibility and employee wellbeing. Sinopecs groups vision is to become a globallycompetitive energy corporation
4. PETROBRASPetrobras (NYSE: PBR) is the largest company in Latin America by market capitalization and
revenue. It was founded in 1953 and the headquarters is in Rio de Janeiro, Brazil. It is
significant oil producer, with output of more than 2 million barrels of oil equivalent per day, as
well as a major distributor of oil products. Business scope includes Natural gas, oil exploration
and production, well drilling and seismic services etc. It controls significant oil and energy
assets in 18 countries in Africa, North America, Europe and Asia. Petrobras has the fourth
largest oil reserves among petrochemical companies with publicly traded shares.
5. LUKOILLukoil (PNK: LUKOY.PK) is a major energy company located in Moscow, Russia. Established
in 1991 as a private corporation following the fall of the Soviet Union, Lukoil has expanded
operations to over 30 companies and maintains around 150 thousand employees. Lukoil
http://en.wikipedia.org/wiki/Supermajorhttp://en.wikipedia.org/wiki/Vertical_integrationhttp://en.wikipedia.org/wiki/Conocohttp://en.wikipedia.org/wiki/Phillips_66http://en.wikipedia.org/wiki/Union_76http://en.wikipedia.org/wiki/Mergerhttp://en.wikipedia.org/wiki/Conoco_Inc.http://en.wikipedia.org/wiki/Phillips_Petroleum_Companyhttp://en.wikipedia.org/wiki/Phillips_Petroleum_Companyhttp://en.wikipedia.org/wiki/Phillips_Petroleum_Companyhttp://en.wikipedia.org/wiki/Phillips_Petroleum_Companyhttp://en.wikipedia.org/wiki/Conoco_Inc.http://en.wikipedia.org/wiki/Mergerhttp://en.wikipedia.org/wiki/Union_76http://en.wikipedia.org/wiki/Phillips_66http://en.wikipedia.org/wiki/Conocohttp://en.wikipedia.org/wiki/Vertical_integrationhttp://en.wikipedia.org/wiki/Supermajor -
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holds 1% of the world oil reserves and 2.2% of total oil production. In addition to oil
exploration, refining and delivery; Lukoil produces petrochemical products and natural gas.
The majority of the oil in its reserves is held within Russia, mostly in western Siberia. Lukoil
currently has over $100 billion in revenue and $9 billion in profits. Its revenue continues to
increase as Lukoil expands into new markets with consumer filling stations and increases
exploration and energy delivery.
COUNTRY ANALYSIS (See Figures 5-7 in Appendix A)
The U.S. Energy Information Administration (EIA) is the statistical and analytical agency within the
U.S. Department of Energy. EIA's provides in-depth analyses of energy production, consumption,
imports, and exports for more than 50 individual countries and regions. The country analysis of
China, Brazil and Russia has been included in this research project.
CHINA
China is the second largest oil consumer behind the United States. China emerged from
being a net oil exporter in the early 1990s and became the worlds third-largest net importer of oil in
2006. Chinas oil consumption growth accounted for about a third of the worlds oil consumption
growth in 2009. China consumed an estimated 8.3 million barrels per day (bbl/d) of oil in 2009. EIA
forecasts that Chinas oil consumption will continue to grow during 2010 and 2011, with oil demandreaching almost 9.6 million bbl/d in 2011. In the longer term, EIAs International Energy Outlook
projects Chinese demand of liquids fuels to rise to around 17 million bbl/d by 2035. According to Oil
& Gas Journal(OGJ), China had 20.4 billion barrels of proven oil reserves as of January 2010, up over
4 billion barrels from the prior year. Chinas total oil production reached 4.0 million bbl/d in 2009.
This was primarily due to new offshore production growth. Sinopecs Shengli oil field produced
about 558,000 bbl/d of crude oil during 2009, making it Chinas second-largest oil field.
BRAZIL
Brazil is the ninth largest energy consumer in the world. Increasing domestic oil production
has been a long-term goal of the Brazilian government, and recent discoveries of large offshore, pre-
salt oil deposits could transform Brazil into one of the largest oil producers in the world.
According to the Oil and Gas Journal (OGJ), Brazil has 12.9 billion barrels of proven oil
reserves in 2011. In 2010, Brazil produced 2.7 million barrels per day (bbl/d) of liquids, of which 75
percent was crude oil. Brazils oil production has risen steadily in recent years, with the countrys oil
production in 2010 about 150,000 bbl/d (6%) higher than in 2009.
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Based on its January 2011 Short-Term Energy Outlook, EIA forecasts Brazilian oil production
to reach 2.9 million bbl/d in 2011 and 3.0 million bbl/d in 2012. Brazils liquids consumption
averaged 2.52 million bbl/d in 2009. As a result of this rising oil production and flat consumption
growth, Brazil became a net oil exporter in 2009. State-controlled Petrobras is the dominant
participant in Brazils oil sector, holding important positions in up-, mid-, and downstream activities.
RUSSIA
Russia holds the world's eighth largest crude oil reserves. Russia is a major exporter of oil
and natural gas and its economic growth over the past decade has been driven primarily by energy
exports, given the increase in Russian oil production and relatively high world oil prices during the
period.Russia was the largest producer of crude oil in 2009, surpassing Saudi Arabia. According tothe Oil and Gas Journal, Russias proven oil reserves were 60 billion barrels as of the beginning of
2010. In 2009 Russia produced an estimated 9.9 million bbl/d of oil, and consumed roughly 2.9
million bbl/d. Russia exported around 7 million bbl/d in 2009 including roughly 4.0 million bbl/d of
crude oil and the remainder in products. During 2009, Russia exported 7 million bbl/d of oil. Russia
has 40 oil refineries with a total crude oil processing capacity of 5.4 million bbl/d, according to OGJ.
CONTENT ANALYSIS OF OIL INDUSTRY(See Figures in Appendix B)
As stated by Dr. Riad Ajami, in Chapter 2 of Multinational Corporate Sustainability: A Content
Analysis Approach in the book titled Organizational Data Mining: Leveraging Enterprise Data
Resources for Optimal Performance, In addition to providing a reflection of current corporate
performance, content analysis of corporate annual reports allows internal and external stakeholders
to better determine the corporations future direction and strategic orientation. Content analysis is
useful for examining trends and patterns in corporate mission statements and annual reports in
order to make inferences about what corporations hold and value as their primary reason for
existence and to help develop action plans and strategies. Content analysis simply means doing a
word-frequency count. It is assumed here that the words mentioned most frequently are the ones
that reflect the greatest level of corporate concern
Organizational data mining and a content analysis approach is an effective process of sorting
through volumes of data within a companys reports and used to spot trends and patterns in the
perspective of the company and is useful in determining the overall strategic plan (Ajami, Bear &
Norreklit, 2004). A word-frequency count of various sustainability perspectives of each of the 5
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companies 10K and 20F reports was used to assist in determining which values, issues, trends and
perspectives are most important to these companies. As the chart below shows, the word-
frequency count of the sustainability perspective was measured by including the words or concepts
in the content analysis as follows:
Each of sustainability perspective words and concepts were examined, counted, categorized
and used to develop a sustainability score for each company. Figures in Appendix B Content
Analysis shows the results of the content analysis. Shown are total word counts and percentages as
they relate to each sustainability perspective. A ranking among the five companies is made within
each sustainability perspective and the overall total company perspective.
BALANCE SCORECARD APPROACH (See Figures in Appendix D)
The balance scorecard (BSC) developed by Kaplan and Norton in 1990 is a multidimensional
framework that uses measurement to describe an organizations strategy. This instrument is
designed to measure both current operating performance and the drivers of future performance.
Creating a BSC requires translating a companys strategy and mission into specific goals and
measures; managers then track those measures as they work towards their goals.
Specifically, the BSC supplements a corporations financial measurements with nonfinancial
measurements. For example, it translates the vision and strategy of a business unit into objectives,
and measures variables in four different areas: financial, customer knowledge, internal business
process, and learning and growth. First, the financial perspective emphasizes wealth maximization
for its shareholders. Second, the customer knowledge perspective determines how the company
SUSTAINABILITY PERSPECTIVE CONCEPTS USED IN THE CONTENT ANALYSIS
Shareholders Shareholder, investor, risk
Customers Customer, consumer, client, services, quality, delivery
Internal Processes Flexibility, cost, time, improvement, performance
Human Capital Human capital, employees, workforce, empowerment,
personnel, education, people and knowledge
Technology and Growth Innovation, technology, growth and learning, information,
International Scope Global, multinational, international, transnational and
national culture
Others Environment, competitors, alliance, outsourcing,
merger and acquisition
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wishes to be viewed by its customers. Third, the internal business process perspective describes the
business processes that the corporation has to be particularly adept in so as to satisfy its
shareholders and customers. Fourth, the organizational learning and growth perspective involves
the changes and improvements the company needs to realize if it is to make its vision come true.
ExxonMobil BSC
ExxonMobil is dedicated to maintaining its position of strength in the energy industry.
Financially it has proven its commitment to providing shareholder profits. In the last decade through
continued efforts to purchase outstanding shares, Exxon has created more earnings per share. In
addition to its interest in increasing shareholder earnings, Exxon practices disciplined investment
decision making to ensure it maintains its strong financial position and maintain steady cash flows
into its future.
Through expanded exploration and improved extraction techniques, Exxon is setting up to
continue to meet the growing energy demands into the future. It utilizes a rigorous project
screening process in order to make strong investment decisions. To maintain operating excellence,
Exxon developed a global information management system in order to adhere to the highest
industry standards. Exxon views safety as one of its largest concerns, in light of recent events in the
gulf, Exxon has implemented to new systems to identify and manage potential risks.
People are of great importance in continuing the success of Exxon. It invests heavily in the
development and retention of the brightest minds. To continue growing, Exxon has spends over a
billion dollars annually in research and development. To reduce impact on the environment, Exxon
will continue efforts to reduce greenhouse gas emissions and fresh water consumption. Exxon is on
track to meet its plan to reduce emissions by 10% by 2012 and recycle most freshwater used in the
production process.
ConocoPhillips BSC
ConocoPhillips strategy is focused on a disciplined approach to capital investment,
maintenance of a strong balance sheet and growing distributions to shareholders. They prioritize
their investments
On the highest-returning projects to improve their return on capital employed (ROCE) and capital
efficiency.
ConocoPhillips expects to deliver long-term value and compete effectively throughout all
market cycles specifically, sell $10 billion in non-core assets over two years, Sell LUKOIL stock,
Reduce debt and improve financial flexibility, Increase shareholder distributions and Improve capital
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efficiency. Several key accomplishments were recorded, that will facilitate future value accretion and
growth. Among them were record safety performance, oil and gas production volumes that met
operating targets, and replacement of 138 percent of production with proved reserve additions on
an organic basis at competitive finding and development costs. ConocoPhillips 2011 plans include
continued development of major projects, exploitation of unconventional shale resources in the
United States, Canada. ConocoPhillips is developing advanced technologies to find and produce oil
and gas, and transform them into the fuels needed to power the world into future generations. At
the same time, we are developing technologies to reduce the environmental impact of energy
production. For more than a century, ConocoPhillips consumers across the United States have come
to rely on the companys branded fuels and services. The companys domestic brands, Phillips 66,
Conoco and 76, offer consumers reliable, high performance petroleum products and excellent
customer service.
Lukoil Oil BSC
The mission of Lukoil is to Harness natural energy resources for human benefit. To
accomplish this, Lukoil works to maintain long term economic growth, social stability, and encourage
progress and prosperity for the areas it operates in.
From a financial prospective, Lukoil wants to increase shareholder dividends and continue
growth in capital investment. Lukoil must continue to maintain profitability by increasing
exploration and building efficiencies. Increasing exploration meets the need to increase the oil
reserve holdings of Lukoil. Also, implementing new technology to increase the utilization rate of
energy products allows Lukoil to produce more effectively.
To improve the internal process within Lukoil, it looks to improving information technology
and integrating a complete corporate system to improve process controls while adhering to
government regulations. Lukoil is also concerned with protecting its assets through insurance
policies and risk management analysis. Employees are a significant asset to Lukoil. It is committed
to its investment in its people, with the goal of bringing professional employees to their full potential
in line with the goals of the organization. Lukoil intends to continue maintaining its compliance with
international regulations protecting the environment. To do so, it is implementing cutting-edge
information systems and technical diagnostics to reduce emissions throughout its production cycle.
To ultimately achieve its goals, Lukoil looks to continued technological development, a strong work
force, and smart capital investment. In the end, it must continue to expand its operations through
exploration and effective implementation of controls through Information systems.
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Sinopec BSC
Sinopec Corporate Culture Outline based on research and study, which clarified the
companys unified core value and the perception of Developing the company, Contributing to the
country, Creating value for shareholders, Dedicating to the society and Benefiting the employees,
proposed the vision of Build a multinational energy and chemical company with global
competitiveness, reiterated the spirit of Love our motherland and vitalize the petrochemical
industry, elaborated on the fine working style of Prudent, Precise, Practical and Innovative and
established the business philosophy of Honesty & Integrity for Win-Win Cooperation for an all-
round development of the corporate culture. Sinopec has been promoting and implementing the
outline throughout the company in a highly-frequent, content-rich, all-round and multi-channeled
manner. In combination of the management model with Sinopecs characteristics, the whole
company is cultivating a cultural atmosphere adaptable to the healthy growth of the modern
corporate system and a globalized company by integrating the concept of value with its
management system and improving the systems effectiveness and efficiency.
The core value concept of the Company is that all of the staffs actively constructs and develops
Sinopec Corp. The Company always cultivates and forms the culture foundation and atmosphere for
building a modern and internationalized corporation.
Enterprise mission:
Develop the enterprise, Contribute to the country, Reward our shareholders, Serve the society and
Benefit our staffto respect and protect the interests of stakeholders.
Enterprise vision:
Construct a multinational energy and chemical company with international competitiveness
aiming at constructing a top-ranking enterprise in the world
Petrobras BSC
Petrobras, the Brazilian state energy, has a sophisticated human resource management
system that is shaped by the strategy, values and goals of the organization, with the HR unit
reporting directly to the CEO. HRM is well integrated with the companys other business
management systems and there is internal integration of the different elements of HRM, such as
recruitment, employee development, performance management and compensation. Competency
management is a key HRM system. Petrobras has defined eight organizational competencies, such as
market orientation, technological innovation and managing personnel, and has linked these to nine
individual competencies, such as creativity and innovation, teamwork, learning and sharing know-
how, and the ability to make decisions. Staff are trained at the Petrobras University in both technical
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skills and competencies. Competencies are used in recruitment and career management as well as
for performance management and compensation.
Mission: Operate in a safe and profitable manner in Brazil and abroad, with social and environmental
responsibility, providing products and services that meet clients needs and that contribute to the
development of Brazil and the countries in which it operates.
Vision: We will be one of the five largest integrated energy companies in the world and the
preferred choice among our stakeholders.
Corporate strategy: Integrated growth, profitability, and socioenvironmental responsibility are the
keywords in the corporate strategy.
FINANCIAL ANALYSIS (See Figures 1-4 in Appendix C)
Comparing all five companies through some financial ratios, we can determine how well
each multinational performs against its industry peers. In total, Petrobras and showed the highest
total rate of return, while ConocoPhillips and Sinopec showed the lowest. However, ConocoPhillips
is showing the greatest percentage increase in return over time. ROA or return on assets is an
indicator of how well the corporation is utilizing its assets. Lukoil, the smallest of the five companies
performs best, however all the companies perform well compared. ROE or return on investments
compares earnings to the amount shareholders have invested. ExxonMobil has the highest return
on equity. Notably one of ExxonMobils financial goals is a reduction in shares outstanding,
essentially increasing total return on equity. Statistically, Exxon is the only one above the industry
average of 18.1%. ROI or return on investment compares return to the total amount of capital
invested, similar to ROA, this compares how effectively each company is utilizing capital invested.
Once again, ExxonMobil holds the highest percentage return on investment.
CONCLUSION
When comparing the ROE to the total sustainability perspectives, it is obvious the best
performer, ExxonMobil has the lowest reference to sustainability in its annual report. Petrobras
shows the lowest ROE, yet the most reference to sustainability. Lukoil appears to be an outlier in
that it is ranked 4th in both. In total, the analysis shows a slight negative correlation between ROE
and sustainability (See Appendix B for the graphical comparison). As the oil industry is proven to be
generally profitable, reference to sustainability plays little role in how well a company might
perform.
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http://www.scielo.br/scielo.php?pid=S1807-76922009000400006&script=sci_arttext
http://ww.petrobras.com.br/ri/Show.aspx?id_canal=trJGyMN868DjvK6YWzNhXA==&id_canalpai=QsHWEXhHxpu+r1q2h24GkQ==&ln=en
http://money.cnn.com/magazines/fortune/global500/2011/http://money.cnn.com/magazines/fortune/global500/2011/http://www.balancedscorecard.org/http://www.balancedscorecard.org/http://www.mergentonline.com.ezproxy.libraries.wright.edu:2048/basicsearch.phphttp://www.mergentonline.com.ezproxy.libraries.wright.edu:2048/basicsearch.phphttp://www.eia.gov/countries/http://www.eia.gov/countries/http://finance.yahoo.com/q?s=SNPhttp://finance.yahoo.com/q?s=SNPhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_IndName_14.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_IndName_14.htmlhttps://www.cia.gov/library/publications/the-world-factbook/rankorder/2178rank.htmlhttp://www.businesswire.com/news/home/20081201005860/en/Petroleum-Intelligence-Weekly-Ranks-World%E2%80%99s-Top-50http://www.businesswire.com/news/home/20081201005860/en/Petroleum-Intelligence-Weekly-Ranks-World%E2%80%99s-Top-50http://www.businesswire.com/news/home/20081201005860/en/Petroleum-Intelligence-Weekly-Ranks-World%E2%80%99s-Top-50http://www.lukoil.com/http://www.lukoil.com/http://www.exxonmobil.com/Corporate/http://www.exxonmobil.com/Corporate/http://www.economist.com/node/21534794http://www.economist.com/node/21534794http://www.petrobras.com.br/rs2009/en/relatorio-de-sustentabilidade/resultados-e-contribuicoes-para-a-sociedade/contribuicoes-para-a-sociedade-e-impactos-indiretos/investimento-social/http://www.petrobras.com.br/rs2009/en/relatorio-de-sustentabilidade/resultados-e-contribuicoes-para-a-sociedade/contribuicoes-para-a-sociedade-e-impactos-indiretos/investimento-social/http://www.petrobras.com.br/rs2009/en/relatorio-de-sustentabilidade/resultados-e-contribuicoes-para-a-sociedade/contribuicoes-para-a-sociedade-e-impactos-indiretos/investimento-social/http://www.reuters.com/finance/stocks/companyProfile?symbol=SNP.Nhttp://www.reuters.com/finance/stocks/companyProfile?symbol=SNP.Nhttp://www.scielo.br/scielo.php?pid=S1807-76922009000400006&script=sci_arttexthttp://www.scielo.br/scielo.php?pid=S1807-76922009000400006&script=sci_arttexthttp://ww.petrobras.com.br/ri/Show.aspx?id_canal=trJGyMN868DjvK6YWzNhXA==&id_canalpai=QsHWEXhHxpu+r1q2h24GkQ==&ln=enhttp://ww.petrobras.com.br/ri/Show.aspx?id_canal=trJGyMN868DjvK6YWzNhXA==&id_canalpai=QsHWEXhHxpu+r1q2h24GkQ==&ln=enhttp://ww.petrobras.com.br/ri/Show.aspx?id_canal=trJGyMN868DjvK6YWzNhXA==&id_canalpai=QsHWEXhHxpu+r1q2h24GkQ==&ln=enhttp://ww.petrobras.com.br/ri/Show.aspx?id_canal=trJGyMN868DjvK6YWzNhXA==&id_canalpai=QsHWEXhHxpu+r1q2h24GkQ==&ln=enhttp://ww.petrobras.com.br/ri/Show.aspx?id_canal=trJGyMN868DjvK6YWzNhXA==&id_canalpai=QsHWEXhHxpu+r1q2h24GkQ==&ln=enhttp://www.scielo.br/scielo.php?pid=S1807-76922009000400006&script=sci_arttexthttp://www.reuters.com/finance/stocks/companyProfile?symbol=SNP.Nhttp://www.petrobras.com.br/rs2009/en/relatorio-de-sustentabilidade/resultados-e-contribuicoes-para-a-sociedade/contribuicoes-para-a-sociedade-e-impactos-indiretos/investimento-social/http://www.petrobras.com.br/rs2009/en/relatorio-de-sustentabilidade/resultados-e-contribuicoes-para-a-sociedade/contribuicoes-para-a-sociedade-e-impactos-indiretos/investimento-social/http://www.economist.com/node/21534794http://www.exxonmobil.com/Corporate/http://www.lukoil.com/http://www.businesswire.com/news/home/20081201005860/en/Petroleum-Intelligence-Weekly-Ranks-World%E2%80%99s-Top-50http://www.businesswire.com/news/home/20081201005860/en/Petroleum-Intelligence-Weekly-Ranks-World%E2%80%99s-Top-50https://www.cia.gov/library/publications/the-world-factbook/rankorder/2178rank.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_IndName_14.htmlhttp://finance.yahoo.com/q?s=SNPhttp://www.eia.gov/countries/http://www.mergentonline.com.ezproxy.libraries.wright.edu:2048/basicsearch.phphttp://www.balancedscorecard.org/http://money.cnn.com/magazines/fortune/global500/2011/ -
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APPENDIX A
Figure 1- Ranking of Oil companies in Global Fortune 500 2011
Figure 2- Worlds biggest public companies in Oil & Gas Industry
Figure 3- Country Comparison :Oil proved reserves
Rank Company Country Previous Rank
3 ExxonMobil United States 3
5 Sinopec-China Petroleum China 7
12 ConocoPhillips United States 17
34 Petrobras-Petrleo Brasil Brazil 54
69 Lukoil Holding Russia 93
Rank Company Country Sales($bil)
Profits($bil)
Assets($bil)
Market Value($bil)
5 ExxonMobil UnitedStates
358.60 40.61 242.08 465.51
22 ConocoPhillips UnitedStates
171.50 11.89 177.76 129.15
29 Petrobras-Petrleo Brasil Brazil 87.52 11.04 129.98 236.67
52 Sinopec-China Petroleum China 133.79 6.90 77.44 186.38
108 Lukoil Holding Russia 54.11 7.69 47.88 62.25
Rank Country Barrels(bbl)
8 Russia 60,000,000,000
13 United States 20,680,000,000
14 China 20,350,000,000
15 Brazil 12,860,000,000
http://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Company.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Company.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Counrty.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Counrty.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank.htmlhttp://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2326618http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2326618http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=6373728http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=6373728http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2685717http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2682365http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2682365http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=4560588http://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Company.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Company.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Counrty.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Counrty.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Sales.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Sales.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Sales.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Prof.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Prof.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Prof.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Assets.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Assets.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Assets.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_MktVal.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_MktVal.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_MktVal.htmlhttp://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2326618http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2326618http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2685717http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2685717http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2682365http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2682365http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=6373728http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=6373728http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=4560588http://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Counrty.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Counrty.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Counrty.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank.htmlhttp://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=4560588http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=6373728http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2682365http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2685717http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2326618http://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_MktVal.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_MktVal.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Assets.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Assets.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Prof.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Prof.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Sales.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Sales.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Counrty.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Company.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank.htmlhttp://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=4560588http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2682365http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2685717http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=6373728http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2326618http://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Counrty.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Company.htmlhttp://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank.html 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Figure 3- The Oil Value Chain
Figure 5- Country Analsis of China
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Figure 5- Country Analsis of China(cont)
Figure 6- Country Analsis of Brazil
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Figure 7- Country Analsis of Russia
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APPENDIX B (CONTENT ANALYSIS)
Figure 1Word Count from 10K/20F Report
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Comparison of Sustainability perspectives of 5 companies
ROE versus Total Perspective of 5 companies
0.00000
0.00100
0.00200
0.00300
0.00400
0.00500
0.006000.00700
0.00800
0.00900
Shareholder
Customer
Process
Human
Tech
Internatl
Env
0
5
10
15
20
25
0
0.002
0.004
0.006
0.008
0.01
0.012
0.014
0.016
0.018
0.02
Total
ROE
Figure 2- Graphical Comparison
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APPENDIX C (FINANCIAL ANALYSIS)
Figure 2- Comparison of ROA% of the 5 companies for three consecutive years
Figure 3 -Comparison of ROE% of the 5 companies for three consecutive years
Figure 1- Comparison of Rate of Return(Revenue) of the 5 companies for three consecutive years
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Figure 4- Comparison of ROI% of the 5 companies for three consecutive years
Appendix D (Balance ScoreCard)
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Figure 1- ConocoPhillips BSC
Figure 2- Sinopec BSC
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Figure 3 - Petrobras BSC
Figure 4- ExxonMobil BSC
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Figure 5- Lukoil BSC