Global Oil Companies Research Articles

How does Shanghai crude oil futures affect top global oil companies: The role of multi-uncertainties

The international influence of Shanghai crude oil futures (INE) has been increasing year by year. This study adopts the connectedness network method to construct a risk spillover network between INE and the top 20 global oil companies and measures the static characteristics and dynamic trends of return and risk spillovers. wMoreover, the core factors affecting the systemic risk are identified from the dimensions of crude oil implied volatility, geopolitical risk, US economic policy uncertainty, and climate concern. The results reveal that the overall connectedness between INE returns and global oil company stock price returns is high, with oil companies located in the Americas and at the upstream end of the chain experiencing greater spillovers in the system. Furthermore, INE is a net recipient of risk spillovers in the system, being subject to spillovers from most oil companies. In a dynamic scenario, the total system spillover index is susceptible to unexpected events, and there is asymmetry in the system risk spillover between INE and oil company returns. Meanwhile, crude oil implied volatility and geopolitical risk are the main influences on the systematic risk of INE and oil company returns.

Financial Performance Of Pertamina Indonesia Against Saudi Aramco, Petro China And Exxon Mobil Usa In Price’s Turmoil Years

This year, PT Pertamina (Persero) has re-emerged as the only Indonesian company to be included in the Fortune Global 500 list. PT. Pertamina managed to increase its ranking from position 287 last year to position 223 this year. While several global oil companies are considered to have performed better so that they are in a position far above Pertamina, namely, SAUDI ARAMCO is ranked 18th, Petro China is ranked 19th and Exxon Mobil is ranked 23rd. and last situation. Longer historical data is needed to assess the performance of these companies more fairly, not only looking at the profitability aspect but also other aspects such as liquidity, solvency and productivity of these companies. This study aims to compare the financial performance of the four oil companies based on data for 2017-2021. This type of research is descriptive quantitative, using a purposive sampling technique with certain considerations. The sample used is the 2017-2021 financial performance of 24 samples. Data processing uses SPSS 25, with the Kruskall Wallis test. Variables compared are Liquidity Ratio (Current Ratio /CR), Solvability (Debt-Equity Ratio /DER), Activity (Total Asset Trurn Over /TATO), Profitability (Net Profit Margin / NPM), Dupont Ratio (Return On Investment / ROI ) and Return On Assets / ROE). The results show that there are significant differences in the Liquidity Ratio (CR), Solvency Ratio (DER). Activity Ratio (TATO) and Dupont Ratio (Return On Investment/ROI) on the company's financial performance between Pertamina and Saudi Aramco, Petro China and Exxon Mobil. Meanwhile, the Profitability Ratio (NPM) and the Dupont Ratio (Return On Equity / ROE) are not significantly different.

Reference Significance of Foreign Offshore Oil and Gas Cooperation Model Experience to China

For a long time, the oil exploration and development business of Chinese oil enterprises is mostly limited to China, and the international cooperation of transnational oil and gas started late. Therefore, compared with foreign companies, there is still a big gap in understanding the business model of overseas oil and gas industry. Therefore, it is necessary to summarize and learn from the past business model. This paper summarizes the main modes of offshore oil and gas cooperation among global oil companies, compares various modes, and studies the cooperative development mode of offshore oil and gas resources. The research shows that under the lease contract mode, foreign oil companies have greater management rights, but with the continuous development of international oil industry, the government of resource countries has gradually increased its control over foreign oil companies.

DIFFERENTIATION OF OIL PRODUCTION BREAK-EVEN LEVEL AMONG WORLD OIL COMPANIES

The issue of modern development in the oil industry has become extremely urgent. In 2020, for the first time in history, the exchange price of oil crossed the negative threshold, radically changing the understanding of economic processes in the industry. This paper examines the consequences of this stressful situation in the context of the financial stability of global oil companies in conjunction with ensuring the budgetary balance for resource-exporting countries. In the course of the study, the factors that influence the pricing in the oil market have been clarified. The authors have calculated break-even oil prices for the world’s largest oil companies Saudi Aramco (SAU), ExxonMobil (USA), British Petroleum (GBR), and Rosneft (RUS). An analysis of the fiscal break-even of oil prices has shown that Russia, compared to the Gulf countries, has a greater margin of budgetary stability, since the break-even price of oil is several times lower than in Iran, Iraq, and Saudi Arabia. Based on the assessment of the operating leverage of the oil companies, a limit was set for the decline in profits as a result of the drop in oil production. The calculation of the target price for large global companies has shown that Rosneft has the highest price level due to high variable costs, and the target price for Saudi Aramco is approximately at the same level. ExxonMobil and BP’s target price levels are lower. The results obtained confirm the need to continue searching for solutions to optimize costs to lower the breakeven level of oil production. Keywords: oil, break-even price, prime cost, pricing factors, budget balance, oil market, price shocks. JEL Classifications: L21, G31, Q49 DOI: https://doi.org/10.32479/ijeep.11260

Comparative Studies of Green Bonds Investment in the United States and Europe: Responding to Social Concern on Climate Change

The oil and gas industry’s responsibilities regarding climate change are still debated on both sides of the Atlantic. Despite this debate, two-thirds of carbon dioxide emissions into the atmosphere are released from oil and gas related industries. In order to keep rising temperature down to Paris climate targets, global oil companies face numerous difficulties because they require larger investments to develop new technologies for a broader energy mix. Studies show that climate change is the biggest risk in terms of impacts on the global economy. Realizing the truth, some countries have already managed to break the link between economic growth and carbon dioxide emissions, but more decisive policies are needed to break the link by capable economies such as the United States and Europe. In that context, this paper explores the recent green investment trends in the US and Europe to see how public opinion influences green investment to reduce climate change risks. This study focuses on green bond investment, describing its progress and variation from 2016 to 2019in the United States and Europe. I use Excel spreadsheets to give graphical and numerical output in descriptive analysis. In conclusion, I found that public opinion on climate change significantly influenced green bond investment in both the US and Europe.

Co-development strategy of gas and electricity in developing countries

ABSTRACTThere have been significant changes in global energy initiatives following the shale gas developments, predominantly in North America. Due to the over-supply of shale gas, local gas prices are steadily declining in North America. In the case of continuous decreasing prices of gas, it is expected that the increase in the economic efficiency of gas power generation will lead global oil companies to enter the gas power generation sector in developing and under-developed countries possessing gas reserves. Global oil companies co-develop natural gas and electricity concurrently in developing/under-developed countries. Global oil companies now feature electricity generation as a key business area. Global electric utilities respond to global oil companies’ entry into electricity production by cross-enter into gas development. This paper examines recent industrial dynamics that could considerably influence future natural gas and power generation markets due to the co-development strategy of global oil companies and electric utilities. This paper shows the boundary of energy business concerning electricity and gas is blurring.

The rise of governments in global oil governance: Historical dynamics, transaction cost economics, and contemporary implications

In this paper, I aim to explain why global oil companies created different governance structures to deal with similar challenges. I test several hypotheses derived from transaction cost economics. These hypotheses link movements in asset specificity and uncertainty to changes in the level of hierarchy and political involvement of governance structures. To test these hypotheses, I conduct a crisp-set Qualitative Comparative Analysis of seven important governance changes. The analysis leads to the following preliminary theory: increasing and highly volatile global oil production as well as declining market positions for important actors create long-term pressure for governance change. But they do not trigger this change, nor do they predetermine the form it will take. Actors actually change governance structures in reaction to more recent events. They will try to increase government involvement, if they face a more uncertain environment or contradictory market trends. They will more likely prefer stronger hierarchy at a given level of government involvement, if they have to deal with an increasingly diverse market environment.

The relevance of accounting and supplementary information in the valuation of global oil companies

This research investigated the relevance of information related to proven reserves of oil and accounting information (net income and book value) in the valuation of global oil companies. Regressions were applied considering the technique of Panel Data on a sample of 15 oil companies integrated and listed on the New York Stock Exchange (NYSE) during the period from 2001 to 2012, totaling 180 firms-year. Eight models were tested, each of them having the Naperian or natural logarithm (ln) of the average share price as dependent variable, considering the closing prices of November, December, January and February. Equity (PL), net income (LL), capitalized costs (CC), volume of gas and oil reserves (RPO&G), components of the change in reserve value, and discounted future cash flow (FCD) of the reserves were tested as independent variables. The results indicated that the market value of an oil company is a function of the PL variable and accounting information related to proven oil and gas reserves. This finding reinforces the idea that the accounting data are incomplete for determining the value of an oil company, and information related to proven oil and gas reserves contributes to increase the relevance of accounting variables measured at historical values. As a result, additional information in the notes on the oil reserves is relevant and necessary, besides traditional information already disclosed in the financial statements. Keywords: oil and gas, value relevance, disclosure.

Navigating the ethical maze through design action research

Purpose– The purpose of this study is to identify how ethical stances can be used to develop a frame set in the design of a web-based decision support system (DSS) for ethical decision-making and to test both the efficacy of these frames and the potential of such a tool for individuals and groups in both leadership development situations and organisational practice. Unethical behaviour by executives is a frequently cited reason for erosion of trust with other stakeholders.Design/methodology/approach– Utilising action research, by choosing ethics frames such as heuristics, a web-based ethics DSS designed to enable users to explore ethical issues from multiple perspectives was constructed and this was beta-tested with a major UK bank and a global oil company.Findings– In orchestrating constant revisions of the ethics frames in the tool, learning from each research cycle was identified, a new form of action research, a design action research, which emphasises the importance of collaboration in the design of such decision-making tools, was offered and the tool for management development and other applications was successfully beta-tested.Originality/value– It was demonstrated to management developers how web-based systems might be designed by non-information technology professionals; the framing literature was added by demonstrating the value of engaging in dialogue about ethical issues of concern to managers and their organisations and thus improving decision-making; and additions were made to the literature on ethics and Information systems (IS) and contribution toward action research in the fields of IS and ethics was done.

Management of change in a multinational company

PurposeThe paper is based on leading a management of change simulation involving trainee managers in a global oil company who were tasked with preparing a proposal for senior management regarding the management of change to face future challenges. The purpose of the paper is to comment on models of change management, overcoming resistance to change, the necessary skills and commitment to implement change and stages in the planning. It concludes with the key outcomes of the simulation exercise.Design/methodology/approachThe paper is based on a management of change simulation exercise from which guidelines for good practice are deduced.FindingsThe paper identifies key factors necessary for successful change management, including anticipation of the need for change, communication at all levels, overcoming resistance, skills required and the planning stages to implementation.Practical implicationsThe learning outcomes of the simulation and the discussions reflect accepted models of change management.Originality/valueThe paper provides examples of good practice arising from a two‐day simulation exercise.

Implications of WTO on Oil Exports

This study aims at establishing the extent to which the world trade organisation has protected oil exports against unfair practices of trade. The main investigation also looks at the extent to which WTO Agreements improved the challenges faced by oil exporters. The WTO serves as the most effective and legitimate channel in regulating and opening world trade. This is so because it takes the interests of all participants not to mention its modern system in settling disputes. The main objective of the Organisation of Petroleum Exporting Countries (OPEC) is to ensure that its member states obtain fair shares with respect to the value of oil. It also stimulates economic development as well as improving the standard of life of the people. OPEC was established in 1960 where it has created a balance between large global oil companies including large exporters of oil. OPEC and WTO have different purposes, for instance, the latter provides a base for the regulation as well as negotiation for oil market including the prices while the latter deals with trade in general.

The oil price exposure of global oil companies

This study investigates the impact that global oil market risk factors have on the oil price risk of oil company stock prices. Results indicate that oil prices and market risk are both positive and statistically significant priced risk factors. Oil price risk is negatively impacted by increases in oil reserves. Oil price risk is positively impacted by increases in oil production. Oil price risk is more sensitive to changes in production rates than to changes in reserve additions rates.

Factors associated with a positive attitude towards change among employees during the early phase of a downsizing process

Most research on organizational changes in working life, including downsizing, focuses on the negative attitudes and negative consequences of the change. The aim of this study was to evaluate if the employee's previous learning experience and characteristics of the working environment were associated with positive attitudes towards organizational change. The 467 employees (73.5% males) working in a global oil company in the early phases of a downsizing process were asked to answer a questionnaire with demographic variables, perception of the working environment, and attitude to change (93% response rate). Corporate social responsibility (CSR), involvement and participation, team leadership and team effectiveness were important factors related to positive attitudes towards organizational change. Non-leaders and older employees were positive to change. We conclude that employees' perceptions of their psychosocial working environment, in particular the CSR, were highly related to their attitude to organizational change.

Seeing Like an Oil Company: Space, Security, and Global Capital in Neoliberal Africa

In this article, I seek to identify a limitation in the analysis James Scott offers in Seeing Like a State (1998) by asking to what extent his account of the follies of schemes for planned improvement by states provides critical leverage on the present world of neoliberal global capitalism. Scott has claimed that a dynamic of standardization, homogenization, and grid making applies not only to developmentalist states but also equally to the contemporary world of downsized states and unconstrained global corporations. I contest that claim by tracing how recent capital investment in Africa has been territorialized, and some of the new forms of order and disorder that have accompanied that selectively territorialized investment. Because such investment has been overwhelmingly in mineral resource extraction—particularly in oil—a contrast will become visible between the homogenizing, standardizing state optic Scott analyzed and a rather different way of seeing, proper to the contemporary global oil company.

TOTALFINA + ELF = CHEMICAL GIANT

TotalFina is starting life with a bang. The new oil and chemical company, formed just weeks ago from the merger of France's Total and Belgium's PetroFina, has launched a takeover bid for rival French firm Elf Aquitaine. If successful, the takeover will create the number four global oil company and a Top 10 player in the chemical industry. It will also yield France's largest company in terms of stock-market capitalization. TotalFina wants to exchange four of its shares for every three Elf shares, paying a 15% premium over Elf's July 2 closing stock price and establishing Elf's value at almost $43 billion. However, Elf quickly deemed the offer hostile and not in the best interests of its shareholders. TotalFina Chairman and Chief Executive Officer Thierry Desmarest initiated the bid after what he said were unsuccessful efforts to convince his Elf counterpart, Philippe Jaffre, of the need for action in a ...

Politics and Petroleum in Ecuador.

In 1972 Ecuador began to produce and export petroleum in the Amazon interior, and the formulation and execution of the petroleum policy became central to the political life of the nation. The nation's armed forces seized political power that same year and continued to rule until the reestablishment of democratic pluralist government in 1979. In this book, D. probes the differences and similarities between military authoritarianism and democratic pluralism through an analysis of the politics of petroleum in Ecuador. The Ecuadorian experience provides an ideal laboratory to test the policymaking characteristics and the overall performances of the two regimes ideal-types. uses a textured and detailed analysis of global oil companies and nationalist politics to trace the growth and evolution of Ecuador's petroleum industry. The course of partisan and sectoral politics and the internal workings of military politics are also examined. Against this interplay of politics and the nationalistic struggle against multinational pressures, compares policymaking under military and civilian government. John D. Martz is a professor of political science at Pennsylvania State University. He is the author and editor of more than a dozen books on American politics and was the editor of the Latin American Research Review from 1975 to 1980.