...Production and Operations Management Introduction Improving the operations of a company that will enhance productivity and product quality may not only certainly benefit a company’s bottom line, but can also benefit national interests. Marathon Oil, for example, is the United States’ “fifth largest transportation fuel refining company and the largest in the Midwest” (“Corporate Profile”). This Findlay, Ohio based company’s operations “include a six-plant refining network, a comprehensive terminal and transportation system, and extensive wholesale and retail marketing operations” (“Corporate Profile”). Marathon’s six refineries have a total refining capacity of 1.142 billion barrels per day and provide the United States with approximately seven percent of its total capacity (“About MPC”). Marathon sells 4.1 billion gallons of gasoline each year that are then distributed to over five thousand independently owned and operated Marathon locations (“About MPC”). Marathon owns Speedway, the fourth largest convenience store chain in the U.S. Speedway not only sells gasoline but also sells food and beverages and a variety of other products in one of its 1350 locations scattered throughout the Midwest (“About MPC ”). To be sure, examining Marathon’s overall product process and identifying those phases which might be improved could result in more efficient refining and distribution of the United States’ life blood: transportation fuels. Efficiency improvements to Marathon’s...
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...FACULTY OF ECONOMICS AND BUSINESS UNIVERSITAS GADJAH MADA 2015 I. Introduction Hydrocarbon or popularly known as oil and gas, is widely used in almost all aspect of human needs, such as fuel in transportation and electricity, lubricants for machines, asphalt for road and also fertilizer in agriculture industry. Because of the importance of the oil and gas, the need of a drilling company’s services become increasing from time to time to support the upstream oil companies in exploring and also exploiting oil from the earth. In doing its business, a drilling company uses a lot of high technology during the exploration and exploitation phase. As we know, technology becomes one of key success factors within all companies. For drilling company, the use of technology is very important because drilling process involving high risk and also high cost process. High risk because the drilling operation is usually conducted in a remote area and it has high potential to explode if overall process goes wrong. Also sometimes, after drilling process has conducted, oil and gas cannot be found in that area. High cost because drilling process entails all of the consequences to focus giant machines and resources to certain area, usually an isolated area, to get the oil and gas. By virtue of its characteristics as non-renewable energy sources and with declining oil and gas fields, nowadays technological change in the industry primarily concerns new ways of accessing new oil and gas reserves (Pierrakakis...
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...Current ethical issues on Oil Spill Today, with the continual and rapidly growing need of energy demand by big nations like United States and China continuing to furnish their domestic consumptions of oil have led to increased prices of gasoline whereby alternative forms of energy production are sought. With this in mind, offshore drilling can be a viable option for satiating the need of oil and also to boost the economy of the nation. In this report, I am going to discuss how the current Deepwater Horizon rig explosion has led to disastrous oil spill into the Gulf of Mexico causing environmental problems and also discuss how the oil spill if resolved and with safe and secure drilling techniques, the economic impact of offshore drilling can outweigh the environmental issues. Concerning the Deepwater Horizon rig explosion on April 20, 2010, which escalated into a massive amount of oil spillage from the well reservoir as the oilrig sunk killing eleven crewmembers on board. The key players related to the rig explosion are British Petroleum (BP), Transocean, rig owner, and Halliburton. BP is one of the world's largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items. (“BP at a glance,” 2010) Transocean, the world’s largest offshore drilling contractor and the owner of Deepwater Horizon rig, provides the most versatile fleet of mobile offshore drilling units to help...
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...Royal Dutch Shell PLC RDS.A [pic][pic][pic][pic][pic] [pic][pic] [pic] | | |[pic][pic] | |[pic] | |[pic] | |[pic] | | | | | | | |[pic] | |[pic] ...
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...part of the course curriculum, the second year MBA students are required to undertake a study on macro analysis of a particular industry and thereby, prepare a project report on the chosen industry. The objective behind preparing this project report is to relate the management subjects taught in the classroom to their practical application and to get insight into practical situation. Petroleum Industry is considered to be the back bone of an economy because this is the main source of energy till date. Any economy around the world would fail to advance a single step in the absence of Petroleum Industry. The Petroleum Industry is divided into two segments namely Upstream Sector consisting of Exploration and Production of crude oil while the Downstream Sector consists of Refining, Processing, Storing, Marketing and Distribution of petroleum products. The most important part of the Petroleum Industry is the Petroleum Refining Industry which refines the crude oil to convert it to the usable fuel. It also derives many derivative products out of the crude petroleum like natural gas, naphtha, etc which can be used in various ways. Hence, for these reasons, we have chosen the Downstream Sector of the Indian Petroleum Industry for our Macro Analysis project. As this is a Macro Analysis project, we have concentrated on the Indian Petroleum Industry and that too focusing on the Downstream Sector for our study and not gone into the in depth analysis of the various players and their...
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...STRATEGIC PROFILE ONGC is not only the number one Exploration and Production Company in Asia today, but is also the number 3 E&P Company in the world. It is in the Oil and Gas Drilling and Exploration Industry. In the oil and gas industry ONGC does a lot of research and development as well as refining and marketing. In 2007 they entered the energy field researching and developing alternative fuels. The company is currently recognized as the “Best Oil and Gas Company in Asia”, by the ‘Global Finance’ magazine. In 2007 it was ranked 369th by the Fortune Global 500 list of largest corporations by turnover. This is only a small measure of their performance thus far. By looking at this and many other achievements it is obvious that ONGC is not slowing down any time soon. When taking into account that it is doing business in what will soon be the most populated country in the world, they will only be growing from here. Our analysis will look at the internal and external factors that affect the business. It will show how strong they are in the Oil Industry but also focus on what they need to do to stay competitive. Strategic Profile ONGC is not only the number one Exploration and Production Company in Asia today, but is also the number 3 E&P Company in the world. It is in the Oil and Gas Drilling and Exploration Industry. In the oil and gas industry ONGC does a lot of research and development as well as refining and marketing. In 2007 they entered the energy field...
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...Analysis of Chevron Introduction Chevron Corporation is a multinational energy company that is based in the United States. It is the second largest U.S oil company after Exxon Mobil Corporation, and is also the fourth largest oil company in the world. Chevrons mission statement is “At the heart of The Chevron Way is our vision… to be the global energy company most admired for its people, partnership and performance.” Chevron was first founded in 1876 as Pacific Coast Oil Company in California. At that time oil started to gain a market and have a higher value. Pacific expanded dramatically after the discovery of oil in Saudi Arabia. Twenty years later, the company merged with Iowa Standard, forming Standard Oil California (Socal) as the new company. Socal successfully gained a market in the United States and Asia. In the 1970’s, the rise of the Organization of Petroleum Exporting Countries (OPEC) cast Socal out of the Middle East region, which caused a great loss to the company. In 1984 Socal purchased Gulf Corporation for $13.2 million, which, at the time, was the largest oil producer and distributer in the Middle East. Acquiring Gulf Corporation doubled Socal’s oil and gas reserves. As a result it generated great profit to the company by the late 1990’s because of the increase of gasoline prices. Socal also changed its name to Chevron during that period of time. Chevron grew and expanded because of the amount of subsidies and mergers that it gained from every region they operated...
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...Genting Bhd Company Profile Publication Date: 22 May 2007 www.datamonitor.com Datamonitor USA 245 5th Avenue 4th Floor New York, NY 10016 USA Datamonitor Europe Charles House 108-110 Finchley Road London NW3 5JJ United Kingdom Datamonitor Germany Kastor & Pollux Platz der Einheit 1 60327 Frankfurt Deutschland Datamonitor Hong Kong 2802-2803 Admiralty Centre Tower 1 18 Harcourt Road Hong Kong t:+1 212 686 7400 f:+1 212 686 2626 e:usinfo@datamonitor.com t:+44 20 7675 7000 f:+44 20 7675 7500 e:eurinfo@datamonitor.com t:+49 69 9754 4517 f:+49 69 9754 4900 e:deinfo@datamonitor.com t:+852 2520 1177 f:+852 2520 1165 e:hkinfo@datamonitor.com Genting Bhd ABOUT DATAMONITOR Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation...
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...Benefits of sustainable sourcing Sustainable procurement is a high profile matter for businesses today. It can help to save money, reduce waste, improve competitiveness and build a business’ reputation. As part of their sustainability programmes, many oil companies have invested in local transportation networks or built schools. They provide jobs and by sourcing supplies locally help to develop the local economy. The global oil industry has a responsibility to the countries in which it operates to manage its operations in as sustainable way as possible. A purchasing manager might want to consider whether the supplier behaves responsibly, for example, adhering to ethical standards or sourcing raw materials in an ethical way. For example, Shell is working with its existing suppliers to implement the Shell Supplier Principles. These set out the minimum standards which Shell suppliers need to meet. These include using energy and natural resources as efficiently as possible to minimise impact on the environment and covering health and safety issues. Efficiency Other aspects of sustainable business include managing waste effectively and reducing the company’s carbon footprint. This can be improved by choosing suppliers who also take their responsibilities towards environmental impact seriously. For example, Marks & Spencer made £70 million of efficiency savings during 2010/11. Alongside reductions in waste and packaging and increased energy efficiency, the company is working...
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...Running Head: VENEZUELAN OIL MARKET 1 Analysis of the Venezuelan Oil Market BINT 6311 – International Business Management University of the Incarnate Word VENEZUELAN OIL MARKET 2 Table of Contents Abstract ............................................................................................................................................3 Review of Venezuela .......................................................................................................................4 Geographic Location ....................................................................................................................4 Demographics ...............................................................................................................................5 Economic Indicators .....................................................................................................................5 Politics and Economic Freedom ...................................................................................................6 Analysis of Entry Modes .................................................................................................................7 Government’s Role ......................................................................................................................8 Joint Ventures ...............................................................................................................................8 Recent Events in Entry ....
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...Summary……………………………………………………………………………………………….3 Executive Summary 1.0 Background The divestiture of Conoco by DuPont also reflected changing conditions in the energy industry. As noted in a May 12, 1998, article in the New York Times: DuPont bought the oil company in 1981 as insurance against the pricing and supply tactics of the Organization of Petroleum Exporting Countries. But oil prices have been far less volatile than it feared, and DuPont continues to de-emphasize the petrochemical side of its business, so having Conoco as a captive source of raw material is of less strategic importance. (“DuPont to Spin Off 20% of Conoco, the Rest to be Sold Later,” p. D4.) The divestiture of Conoco by DuPont also entailed a two-stage transaction. The equity carve-out in October 1998 represented 30% of Conoco’s shares. The remaining 70% was subsequently divested in August 1999. The divestiture was accomplished via a variant of a spin-off called an exchange offer whereby DuPont shareholders had the choice of either maintaining their DuPont shares or exchanging their stock in the parent for shares in the subsidiary. Q1. WHY HAS DUPONT DECIDED TO SEPARATE CONOCO FROM THE REST OF DUPONT? As part of our increased focus on our materials and life sciences businesses, in September 1998 our board of directors approved a plan to separate our oil and gas business, operated through Conoco, from our other businesses. We believe that separating Conoco from DuPont will: - allow each company to independently...
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...forty-three gas lamps in Los Angeles, California. At that time the company made the gas from asphaltum, a tar like substance and then later on from oil (History of SOCalGas, 2012). Throughout its 140 year history there have been a series of acquisitions and mergers. The gas lighting business was a promising venture, “until Thomas Edison introduced his new electric light in 1879” (History of SOCalGas, 2012). However, this did not stop SCGC from selling its product; they modified their target market by promoting gas stoves and heaters. In the beginning of the 20th century natural gas was gaining attention, since it was twice as efficient as manufactured gas. The decision was made to, “convert its system to natural gas and build pipelines throughout the state” (History of SOCalGas, 2012). Headquartered in Los Angeles, California, SCGC is the largest supplier of natural gas in the United States. It distributes natural gas to 5.8 million residential, commercial, and industrial meters (20.9 million customers) in more than 500 communities throughout the southern half of California. SoCalGas owns and operates about 97,000 miles of gas distribution mains and service lines, as well as about 4,000 miles of transmission and storage pipeline. The utility also owns gas transmission compressor stations and underground storage facilities (Southern California Gas Company, 2012). It maintains a positive corporate imagine with their motto, “Glad to be of service” (Company Profile, 2010). Additionally...
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...for a country to progress, it is important for the country to have adequate economic growth and development and this growth is determined mainly by macro-economic factors such as Gross domestic product, money supply, foreign exchange rates, rate of inflation etc. This detailed project analyses the Macroeconomic indicators of two economies namely United Arab Emirates and United Kingdom. The report is a comparative analysis of the two countries over a timeframe of 10 years (2003 -2012). Section 1 deals with country profiles that briefly mention their geography, people, production followed by the next section that contains the respective countries macroeconomic indicators. Under this the major indicators will be explained...
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...Exxon Mobil External Analysis By: Travis Smith, James McKiernan, Tom Johnson, and Peter Ackley Analysis of the industry This industry is controlled by several large corporations, and many smaller organizations. It is difficult to enter into this market because of the high entry barriers. There are many small exploration companies that contract out to the big players of this industry such as ExxonMobil and the members of the strategic group. Some small exploration companies are Continental Energy Corporation, Atlantic Petroleum, and Anadarko Petroleum Corporation. Anadarko Petroleum Corporation works hand in hand with Beyond Petroleum, and was indirectly involved with the oil spill in the Gulf of Mexico. The members of Exxon’s strategic group consist of Beyond Petroleum, Conoco Phillips, and Chevron. These members are a part of the strategic group because they explore, produce, refine and market oil and gas. A reason why we didn’t pick Royal Dutch Shell is because we found that they have a joint venture with Exxon Mobil. With the recent hunches of more regulation in the oil industry, these corporations are investing in natural gas companies. In order for these companies to remain competitive they need to always be innovative and creative. This is another reason why we picked these three members as a part of the strategic group. Conoco Phillips is the smallest one in the strategic group bringing in only $16.99 million in net income at the end of 2008 (ConocoPhillips, 2008)...
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...men and setting off the largest oil disaster in U.S. history. Its impact would reverberate well beyond the Deepwater Horizon and the families of the eleven men who died, and even beyond the people and places of the Gulf of Mexico. Known as the BP spill, this tragedy seemingly was not an isolated incident. According to Juhasz (2011), “BP was not a lone actor; rather, this tragedy was the predictable outcome of an industry that has pushed well beyond its own technological capacity and beyond the government’s ability to regulate it” (p. 2). This oil well disaster has had important ramifications for the future of our country. In order to tackle the nation’s energy crisis, there must be an establishment of an orderly transition from crude oil to an affordable, sustainable energy future. The purpose of this paper is to explore ways of converting crude oil to consumer fuels. The paper will examine Marathon Oil’s product process and give a determination as to which phase shows a need for the greatest efficiency improvements. In addition, the paper will address the retail price of gasoline and its relation to the world’s demand for crude oil, as well as what Marathon can do to keep the gas prices the same without losing profits even if global crude production is decreased by 10%. Finally, the impact of a continuation of a deep-water drilling moratorium on U.S. gas prices will be addressed. Marathon Crude Oil Supply: Phase 1 Marathon Oil Corporation is a global corporation...
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