final report oil industry

7/31/2019 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
http://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Barrel_(unit)http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Barrel_(unit)http://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Europe


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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://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

final report oil industry

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