The company subject to various risk in many field such as economic, political, legal, social, industry, business and financial condition.
The long term profitability depends on cost effective discovery, acquisition and development of new reserves.
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The most important fact about Total: The average production in Qatar 74,000 barrels of oil equivalent per day in 2007 and they accept this number will rise dramatically, also they activities petrochemicals “in Total website”. Total in 2008 sold 20% of their stake in the Taoudenni Ta7 and Ta8 which is Mauritania to Qatar Petroleum International. In the 2009 they open Gas2 project for natural gas which consists of trains of 7.8 million tons per year and Total hold a 16.7% interest in the second train with Qatar petroleum and ExxonMobil “total website”. Total ownership stake 20% of Qatargas from the company which specialized in refining which is produces gas condensate in North Field, and the global production of LNG” Liquefied natural gas” from Qatargas1 10,000 metric tons 50,000 tons of gas condensate. Total has a 16.7 share of the production line 5 in the Qatargas2 project, which is currently producing 8 million tons of gas condensate.
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Gulf field: Total is the operator of the Gulf field which is an offshore oil field which was discovered in 1991. The field is located within 130 kilometers from northeast of Doha, and its consists of about 58 wells , 47 of them are a petroleum wells, Usually are sent approximately 25,000 barrels of oil per day through the pipeline to the island of Halul. In November 2012 was renewed license field Gulf between Qatar Petroleum and Total for 25 years, and under this conce...
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... Total ”مقالة في جريدة العرب" .
By references of the company’s president reporter, he said: the average production of oil and gas in 2013 about 140,000 barrels per day, and they have to develop their activates in future over the long-term and they proud to work in a country such as Qatar, and they ready to further strengthen relations with Qatar Petroleum through various programs and innovative and finally example is a deal that took place between QPI and Total. “Article by Pratap John in Gulf-times”
In 2014 Total decided that it would cut capital spending in an effort to increase shareholder returns, and the fourth-quarter net profit fall to 19% and the oil prices become less, the main reason for the decline is leaking gas pipe in one state. As well as production fell in the fourth-quarter due to maintenance in the fields producing by 0.5% “Article in Gulf-times”
"United States Oil - Exports - Economy." Index Mundi - Country Facts. Web. 26 May 2011. .
Exxon and Mobil were two big competitors in the oil industry. In the 20th century, Exxon and Mobil operated with relatively low-price, and in low-margin environments. The market in the United States and Europe have grown and matured, allowing them both to grow with great success. The competitiveness has tightened worldwide in the crude oil business. Both companies have continued to advance new technologies, introducing new marketing innovations. They have extend there reach into high-growth markets. The two companies became more efficient, reduced costs, and increased shareholder’s value by there merge.
While studying the industry as well as the Chevron Corporation, I have been able to found a gap between consumption and production capacity which is expected to widen more from now with the demand side for energy exceeding the supply side of them same. Reserves has started to yield lesser outputs, as per the statistics of HIS energy, which claim such case to be applicable nearly 90% of all known energy reserves. In addition to that, the discoveries of new oil fields have slowed down, and studies have revealed that a new groundbreaking discovery of any oil reserve is yet to be made since 2002. These studies can easily provides enough evidence to conclude that the production patterns will only continue to diminish in futures, if dependency is on the existing ones, unless some new discoveries are made, many of the related projects being still in the pipeline, with no reliable or expected date of production start. This usually restricts companies in such industries to organically grow, leaving them with the only financial growth option to merge, horizontally or vertically, with another in the same or related industry.
18. Worldwide Oil and Gas Production and Reserves, Phillips, 2000, U.S. Energy Information Administration, 3 May 2004, <http://www.eia.doe.gov/emeu/finance/mergers/ptprod.html>
Saudi Arabia and Qatar are both independent, Middle Eastern nations located on the Arabian Gulf peninsula. They share the same religion, same ruling style and same ruling religion. They are both Islamic monarchies where Wahhabism—a fundamentalist sect of Islam—is the primary faith among their people and the faith of their ruling families. Their economies follow nearly identical paths, as oil wealth is the primary sector of both of their Gross Domestic Products (GDPs) and largely controlled by the government. Both Saudi Arabia and Qatar are economically oil-driven Wahabist kingdoms; however, Qatar 's lack of reliance on Wahhabism coupled with its acceptance of its own ephemerality has
Since its discovery back in the year 1858 crude oil has been become one of the most sought after resources on the face of the planet. It is due to this fact that the oil industry has fallen into a rather odd category in the case of globalization and seeking out new markets, new labor and new customers. The reason being that the need for crude oil and fuel is always present therefore the product of oil in its basic sense sells itself and the companies do not have to go out and publicly advertise it in the sense that clothing lines and other commodities do. Oil companies must focus more on the matter of why an individual should buy their oil and along with other alternative fuels over their competitors even though in the end the companies products are the same thing. The company ExxonMobil has been the superior company in the oil industry for quite sometime now, and had plenty of success as individual companies before their merger in 1999. The reason for there success is partially due to the power they wield as the most successful company, leading to many new refineries around the world, making deals with smaller companies to gain access to new markets and are leading the world in alternative fuel research. However these things all come naturally to the biggest oil company in the industry, the real question is how they became the powerhouse they are now. That question can be answered by the way in which the company has not focused in globalizing their product of fuel and oil, but globalizing the image of the company company. This is achieved by focusing on charity in which they donate hundreds of millions of dollars, Foreign Direct Investment in areas in which they wish to expand by attempting to provide these impoverished areas wit...
... The Middle East has about 1,000,000,000,000 barrels of oil equivalent. Right now, the leaders in hydrocarbon energy are Russia, Saudi Arabia, and then the United States.
OPEC was established in the 1960's and ever since, Saudi Arabia gained a reputation of being the major power of the organization. Saudi Arabia has the biggest oil reserves in the world and production costs lower than any country. (economist.com 2003)This means that it is a natural monopoly and economies of scale arises; when the long run average total cost falls as the quantity of output increases as illustrated in figure 1. (Gans, J. King, S., Mankiw, N., 2003) Saudi Arabia is the undisputed leader of OPEC.
MSCI, a budgetary investigation firm with extraordinary aptitude in surveying the estimation of intangibles like carbon hazard, examined the petroleum business ' execution in five key classifications: operations, wellbeing and security; capacity to get to assets in developing markets; carbon discharges; interest in option vitality; and interest in unpredictable fossil powers like oil sands and oil shale, coal bed methane and coal crease gas, and both gas-to-fluid and coal-to-fluid energizes.
Over the past 200 years, mankind discovered the fossil fuels and they used this source to produce hug energy. This affects the environment in many negative ways and caused many issues worldwide such as urban air pollution and acid rain, oil spills and the high temperature of earth. Saudi Arabia has the biggest oil reserves in the world by 19.66% (the world factbook, 2011) and the second oil producer country in the world with roughly 10.121 million barrels a day – which account for 12% of the total world production of oil in 2010 (Fontinelle,2011). Moreover, the country relies heavily on oil industry. And the most successful companies in the country are thus whose work in oil industry such as ARAMCO Company. The reason behind this success is because most of these companies get financial support and attention from the Saudi government and sometimes the government owes these companies. Because of the massive reserve of oil and the high income that generated from oil, the country has less attention to seek for other sources of clean energy such as solar energy and wind energy which leads to the increase of air pollution in the country. However, oil is expected to last in the next 50 to 100 years (Hubbert, 1956). Furthermore, the International organizations have made many decisions to protect the environment and environmental resource such as Kyoto Protocol which decided to raise the use of solar energy to 50%of the total global energy use by 2020 (UNFCCC ,2005 ). Recently, these issues lead the Saudi government to realize problems, such as air pollutions, and start to invest in clean energy area but not as expected. These days many people in Saudi Arabia argue the uses of clean energy and replace with the fossil fuels. And they d...
...Arabia is a petrostate. Oil dominates the national economy, international exports, and the nation’s politics. It has greatly shaped what the kingdom is today. Having started out as somewhat of a tourist economy, the kingdom has become a world, monetary power. From their massive amounts of oil and extremely cheap production, the country has been able to gain large amounts of affluence and political power. With its large abundance of oil, the country has been able to profit immensely on sales and spur diplomatic outcomes to their benefit due to the great need of the resource. Without the discovery oil, Saudi Arabia would be of little importance in the modern world, having the Grand Mosque be the extent of its importance. But because of its discovery of oil, Saudi Arabia became of international importance, coming to be one of the greatest assets to world superpowers.
The oil and gas industry, today, striving to discover a harmony between climbing worldwide request and lessening assets, and keep up control and circulation of working expenses. In the oil and gas industry today, most organizations are looking to expand the productivity of their worldwide portfolios during a period of developing questionable matter. Keep up superior ¬ pleasant pussy against high expenses, high costs, and expanded rivalry were never all the more testing.
...al Exploration and Production and Merge and Acquisition by values and deals are given below in the graph
There is no doubt that, Qatar now is one of the most advanced countries not only in the Arab world but, also in the world. Qatar faced many difficulties to be one of the most advanced nations since the second world war when the pearl price collapsed and exports had been harmed(P:1), but the Qatari people did not yield to that situation. Most of the Naim left Qatar decades before the oil boom(P:3). A similar pattern of tribal groups being incorporated into the state while also losing some of their formal power. Qatar is a stable country and many political scientist at one time predicting its fall, now predict a long- term future for Qatar's existing political system(p:5).
The largest world supplier oil company is Saudi Aramco. It is the most profitable company on the earth. Since it is the most powerful oil company, it has a great impact on the world economy. As a result, a strong international relationship was built with the Kingdom of Saudi Arabia. In addition, the strong developing of international relationship with other industrial countries resulted in massive contributions to the politics, economy, and many different aspects. In 1933, Saudi government bestowed oil concession to California Arabian Standard Oil Company (Chevron). The main factor for this grant was to explore the oil in the eastern region of the Kingdom of Saudi Arabia. After discovering a huge amount of oil, part of the grant was sold to other American oil companies in order to cooperate with each other to do more exploration and to deal with such a big job. In 1948, all these American companies were incorporated into Arabian American Oil Company (Aramco) shared 50% of its profits with Saudi government. Furthermore, the company’s shares had been acquiring by Saudi government to gain 100% of its ownership. In 1988, the name changed to Saudi Aramco. The Headquarter of Saudi Aramoc is located in Dhahran, a city in eastern region of Saudi Arabia. Saudi Aramco produces 10 million barrels of oil each day. The history of Saudi Aramco went through three major periods: exploring oil, interconnecting with the USA, and contributing to other many universal events.