http://www.cbc.ca/news/background/oil/gfx/titlephoto2.jpg
MAJOR OIL
PRODUCING
CORPORATIONS
CANADA
BOLIVARIAN REPUBLIC OF
VENEZUELA
SAUDI ARABIA
CANADA
Imperial Oil
Company Profile
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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
http://www.livingcanvas.com/exxonmobil.jpg
• Natural resources
• Petroleum products
• Chemicals
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 PresidentResource Division
• Paul A. Smith, Senior Vice PresidentController
• Independent directors
*Source: Mercer Human Resources Consulting
http://www.uofaweb.ualberta.ca/camp
aign/images/HearnTim.JPG
DIRECTORS, SENIOR
MANAGEMENT, AND OFFICERS
Picture taken from page 6 of the 2005 Annual Report at www.limperiale.ca/CanadaEnglish/Files/Investors/2005-AR-investors.pdf
Stock/Financial Condition
Stock Condition
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Traded on the American Stock Exchange and Toronto Stock Exchange
• Stock trader symbol: IMO
• Stock price as of March 31, 2006: $107.56*
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Shares have tripled between 1992 and 2002
Largest stockholder is ExxonMobil with 69.6% of shares
► Stockholders consist of more than 65,000
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Financial State
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First Quarter of 2006
• Posted a net income of $591 million
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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 Oil paid over $3 billion in taxes
► In 2002, contributed $6.7 million to charities and universities
*American dollars USD
Graph: http://www.limperiale.ca/CanadaEnglish/Files/Investors/2005_AR_YearInReview.pdf
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
Graph: http://www.eia.doe.gov/emeu/cabs/Canada/Oil.html
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
BOLIVARIAN REPUBLIC OF
VENEZUELA
PdVSA
• 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
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Argentina
Brazil
United Kingdom
Holland
Cuba
• PdVSA is responsible for 50-60% of Venezuela oil
production
http://www.worldpress.org/images/0203pil.jpg
STRUCTURE
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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
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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/y1
16/angryeddy/chavez.jpg
ECONOMICS
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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
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Investing $26 billion in expanding hydrocarbon reserves
and production between 2004 and 2009
Major exporter to the U.S.
Source: http://www.eia.doe.gov/emeu/cabs/Venezuela/Oil.html
OPERATIONS AND FUTURE
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PdVSA opened oil sector to private investment in
1990.
• Established 32 operating service agreements (OSA)
with 22 separate foreign oil firms
http://www.venezuelanalysis.com/images
/people/felix-rodriguez-citgo.jpg
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Chevron
B.P.
Total
• These companies operate oil fields for a fee paid by the
PdVSA
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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
Citgo CEO Felix
Rodriguez
SAUDI ARABIA
Profile
• 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
STRUCTURE
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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
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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."
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
Source: http://www.eia.doe.gov/emeu/cabs/saudi.html
MAJOR ECONOMIC CONCERNS
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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
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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.”
REFERENCES
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"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/CanadaEnglish/ThisIs/Profile/TI_P_CorporateProfile.asp>
“Corporate Governance.” This is Imperial Oil. Imperial Oil. 5 May 2006 <http://www.imperialoil.ca/CanadaEnglish/ThisIs/Governance/TI_G_CorporateGovernance.asp>
“Quarterly Report 1.” Investors. Imperial Oil. 5 May 2006 <http://www.imperialoil.ca/CanadaEnglish/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>