Our life style would be completely different without petroleum: we would have no cars, airplanes, boats or any mean of transportation as we know it today: we would have to use steam engines, wewould have to use glass-onlybottles and containers, cutourlawnwith hand lawncutter, and treeswithaxesinsteadofsawchains.
Petroleum is a very needed earth resource all right, but it is also the one that damage our planet the most.
Petroleum shape countries strength, governments, the environment (Kuwait), global economy and many other dependent industries, from the car industry, film, ski, airlines, computers, white appliances, and these are only those industries that are represented here today
John D. Rockefeller established Standard Oil (Eventually Exxon) in 1870 and became the richest man in the world.
The map shows the consumption and production of oil in the world in 2012:the orange colored half circles shows the consumption percentage and the gray shows the production. Notice USA for example, where the consumption is significantly bigger than the production, and is the same since 1965. but when we look at the production, we see that between 1965 - 1984 USA was the biggest shark in the sea of oil, while today they are number 3. this is not because they don’t want to produce, this is because there is less amount to produce.
ARAMCO - 50% concessions bought by Texaco (now Chevron) in 1936 .BecameAramco in 1944.The Saudi government takes control: 25% in 1973, 60% in 1974, 15% during the 80’sLUKOIL - former Russian oil deputy minister – own 20% (!)ExxonMobil - Marketing through: Exxon, Mobil & Esso.Involved in oil & gas exploration on all 6 continents
Thesearethe 24 biggest petroleum companies.
And this is howtheylookcompared to the rest oftheworld
SameSame – Saudi aramcoare so bigthey have noneed to changeanything, gottheirownmarketingdaghtercompanies and workonlythroughthem, fleet (VELA) 2nd. Largest in theworld, offshore tankards. Gazprom –getthe monopol ongazexportmatrketing and domesticmarketshareSame Product New market - Lukoil is doingtheirownmarketing, transporting, and selling in theirown gas station. Exxon-mobil 19000 gasolinestations – Exxon Mobil in USA. In Europe under thenames: ESSO.. Selling to Shell
King Khalid foundation – Charity fund. Competitive index award, Partners: ExxonMobil – Domestic violence, community improvement in Saudi Arabia
Lukoil are doing it all in the domestic market. In the international market, they also have Litasco Group to do the marketing for them
Strategy> outsourcing the marketing to independent companies around the globe, making deals with other competitors as well, for ex. Shell market ExxonMobil products in Europe and are obliged to publish ExxonMobil logo in their ads here in Norway.. TRUMF is Shell deal…
Sincethenuclearcatastrophy in Japan, there is a global growing trend to use gas insteadofnuclearpower. ExxonMobil and Gazprom werethe first to see it as an opportunity for thefuture. ExxonMobil is dependedonitschemicalsproduction to keepthe motor going, and whilemoney is beingmade, theenergy is targeted at theexplorationofnewfieldsof gas
Chevron is selling the end products to different countries, on different continents, by different names. The diesel has the same name in New Zeeland and in Africa, but the rest of the products as well as the images were carefully selected to best fit the local culture, life style, and concept. The product is the same but the New Zeelanders who are not poor, need no flashy cars and are economy aware, while the Africans have more choices, bigger cars in the ads (but less “green” mixture.
These are the global oil reserves, taken from British Petroleum and accurate to 2010.
Heard about the Exxon Valdez Catastrophy ? This is one of the most remembered oil spillage in history, but compare to others, this is nothing but a drop of oil in the ocean
Even in the risky, unstable, environment of petroleum, there is a difference in the way the players regard safety and environment> while we do believe Saudi Aramco, who is a known name all over the world for the safety regulation it created, ExxonMobil and Chevron have a very bad reputation and many scandals are connected with both.
CSR is good for the globe as well as to us humans, but it is not enough. In order to reduce usage of petroleum, we should recycle more, use ”green” technologies as much as possible, use bicycle instead of cars, and keep an open eye on these money making unstable giants.
From marketing point of view, the petroleum giants have no problems or special difficulties. The only thing concern them is locating new fields, exploring and drilling new wells, and hiring the best geophysics in order to get there before the others and gain an advantage.
Petroleum industry final
From A Marketing Perspective
Øyvind Hansen, Mickey (Bar) Otterlei
BØK320 Markedsføring, Høst 2013, Høgskolen i Molde
Petroleum Industry Portfolio
We don’t need marketing really;
you will buy our products anyway
▪ No need to prove our products
▪ No need to lure you into buying ▪ It is a supplier’s market
▪ You all need petroleum for transportation, medicine, agriculture,
plastic products, and this is just to start with
▪ You are in our pockets
Do You Have A Driving License?
So What Is Petroleum?
yellow to black
of gaseous, liquid
natural gas, gasoline,
fuel, lubricating oils,
paraffin wax, &
layers for millions
It means that it will run out one day, as all natural
resources when being over exploited
How Long Have We Used It?
The first oil company was established in 1858;
Seneca Oil Company started drilling in Titusville Pennsylvania,
And oil companies started popping out everywhere.
A World Of Petroleum Seekers
The countries who are not in the game, wish they were
Those who are, have a lot of power over the rest
The Petroleum Giants
Biggest oil company in
12,5 mil. barrels a day
Owned by the state of
• 9,7 mil. barrels a day
• Owned by the Russian
• 2,6 mil. barrels a day
• Owned by the Russian
• Largest publicly traded
oil company in the
• 5,3 mil. Barrels a day
• 3,5 mil. barrels a day
involved in exploration
• Private ownership
• 2,2 mil. barrels a day
But there are many more...
The World Leaders
1.9 1.6 1.4
Kuwait Petroleum Corp.
National Iranian Oil Company
Royal Dutch Shell
Abu Dhabi National Oil Co.
Iraqi Oil Ministry
Nigerian National Petroleum
We Control 44% Of The World’s Oil
The rest of the world
The other 18 biggest
companies, and the small
players we do not hear so
How Do We Play The Game?
• We create joint ventures
We all have businesses with the others
• We outsource our marketing
We have companies that do the marketing for us
• By gathering information
We must be updated all the time about what is
going on with the other players in the market
• By thinking of our PR nonstop
We must take the green parties off our backs
Petroleum Supply Chain
A new product is spread
at almost all the markets
means no competitive
advantage to no one
Saudi Aramco Joint Ventures
• 50% shares in Motiva (belongs to chevron), making Saudi Aramco
a Co-Owner with Shell
• 10% shares in Showa Shell Sekiyu K.K., a Royal Dutch/Shell
refining & marketing arm in Japan.
• Developing an integrated refining & petrochemical complex with
Sumitomo Chemical Co. (Japan)
• Agreements with ExxonMobil, Sinopec Corp & the Fujian
Provincial Government of China to form 2 joint ventures:
• Fujian Refining and Petrochemical Co. Ltd. (FRPC)
• Sinopec SenMei (Fujian) Petroleum Co. Ltd. (SSPC), a marketing venture.
• Formed the Sadara company with Dow Chemical Company (USA).
• The Japanese-Saudi Yanbu Aramco sinopec refining company was
SaudiAramco CSR Activities
“We at Saudi
to enhance our
positive impacts on
young people, and Schools, A
energy to the world
is our core
purpose, our sense
of civic duty and
mission extend far
beyond running a
businesses to be
and to deal fair
”we remain committed to reducing
the impact we have on the
Gazprom Joint Ventures
• Gazprom, Rosshelf and Rosneft signed an Agreement on joint
development of the Prirazlomnoye oil field located on the
Pechora Sea shelf.
• Gazprom, Royal Dutch Shell and ExxonMobil signed in Beijing
a Framework Agreement with the Chinese gas company
• Gazprom, Rosneft and Surgutneftegaz signed the Agreement
of cooperation to set up a consortium
• Shareholders Agreement among Gazprom, Total and StatoilHydro
on establishing the special purpose company Shtokman
• Implementation Agreement setting the terms for Gazprom
to acquire a 51 per cent stake in SeverEnergia among
Gazprom, Eni and Enel;
• Agreement on Gas Supply between Gazprom and LUKOIL;
• Agreements with Japanese Far East
Gas, PertroVietnam, Novatek, South Stream Slovenia and
Gazprom Growth Strategies
Existing products, new markets
Rosneft Joint Ventures
• An agreement with CNPC for a joint venture in Russia, with BP
for a development of the Sakhalin shelf, strategic partnership
• Commercial oil production begins in east Siberia, with TNK-BP
• Acquisition of 50% shares on Ruhr Oel GambH was reached with
National Oil Company Of Venezuela
• Agreement with BP regarding 5,66% Rosneft shares
• Strategic cooperation with ExxonMobil and Gazprom for
west Siberia joint venture
• Agreement on ExxonMobil participation in Arctic
research with Gazprom
• Joint venture with PDVSA (Venezuela) for production of
• 25 years contract was signed with INTER RAO ES
Rosneft SWOT Analysis
• Financial Performance
• Assets Portfolio
• Refineries Old & Not
• Restricted Autonomy
• Strong Domestic Rivals
• Under OPEC Governing
• Upgrading Refineries
• Strategic Ventures with
• Joint Ventures in
• Intense Competition
Both Domestic &
Lukoil Joint Ventures
• Acquisition of 11% shares in ERG, making Lukoil owner of
60% shares in the ERG joint venture.
• Agreement with the Romanian national Agency Of
Mineral Resources to research the Black Sea for 80% of
• Long termed partnership agreement signed with Rosneft
for development, research and exploration of Rosneft
sites on the Russian Shelf.
• Strategic partnership with Rosatom
• Aquisition of 46 stations in Holland and 13 in Belgia
• Production in Venezuela as part of the national Petroleum
Aquiring 18,75% shares in Iraq production, from Statoil
Aquiring 100% SAMARA-NAFTA
Joint venture with the french SNF-SAS
Aquisition of 65% shares of production and development
project in Guinea, from a private Nigerian company
ExxonMobil Joint Ventures
• Exxon and Mobil joined to create the ExxonMobil cooperative
• Expanding development in north offshore field in Qatar, as part
of joint venture with Qatar Petroleum
• Finalizing agreement with XTO Energy Inc. for development
and production of unconventional resources.
• Leading a build and deployment response system to discover
and capture contained oil in the gulf of Mexico as part of a
joint venture with Chevron, ConocoPhillips and Shell
• Joint venture with Rosneft for exploration of the Russian
shelf and Siberia
• Cooperation agreement with Rosneft, covering 31 million
acres in the Kara Sea. Exxon Neftegas LTD, cooperation
between ExxonMobil, Rosneft, Japanese company
Sakhalin Oil, RN-Astra and Sakhalinmorneftegas-Shelf;
& the Indian state-owned oil company ONGC Videsh Ltd.
ExxonMobil Growth Analysis
maker: We spend
a fortune over
give us high
the investment is
Gas Exploration &
Gas Exploration &
Refinery & Manufacturing
Power & Coal
Eventually we do
have hopes for
we expect it to
profitable in a
We really don’t
like getting our
hands dirty, so..
Why transport oil
or refine it when
there are others
that can do it for
Chevron Joint Ventures
• Merged with Texaco to create ChevronTexaco Corporation
• Joint venture with Phillips66 “The chevron Corp. & Phillips
• Changed name to Chevron Corporation, acquired Unocal Corp.
(Union Oil Company Of California)
• Joint venture with Los Alamos National Laboratory
• Acquiring Atlas energy for 3,2 billion dollars
• Interest in the joint-venture of Angola LNG, along with
Sonangol with a 22.8% interest and subsidiaries of
Total, BP and ENI, each with a 13.6% interest.
• Joint-venture arrangement with the Nigerian National
Petroleum Corporation (NNPC).
• Chevron’s China subsidiary has entered into production
sharing contracts (PSC) with China National Offshore Oil
Chevron Market Offering
The South African
The New Zealand
What About Norway?
• Statoil has operations in 34 countries, and 23000 employees
• Production of 2,1 million barrels per day, operating 7 pipelines
• The 3rd biggest sales company of crude oil in the world
• 500 retail stations in Norway, with a market share of 34%
• Joint agreement with NAF, which gives 500000 members
discounts on fuel
• Statoil are marketing 2 gasoline types and 1 type of diesel
• They market bioethanol E85 as well, which consists of 85%
ethanol and 15% gasoline
• All the Statoil’s have added up to 5% biofuel to the regular
gasoline and 7% to diesel
Why Is CSR So Important?
In 1989, the Exxon
Valdez spilled 750000
barrels into the
ocean, because of an
20 years after
The Worse Oil Spills In History
1991 - Gulf War –
Kuwait, 10,3 mil.
barrels burned by the
1991 Liberia’s tanker
ABT Summer, next to
Angola, 1,92 mil., an
1980 - Ixtoc I Oil
Well (owned by
PEMEX) – Gulf
of Mexico, 3,3
1983 – Norwuz oil
field, 1,9 mil. colission
with a supertanker.
1979 - Atlantic
Captain, 2,2 mil. After
collision between the 2
ships next to Tobago.
1983 - Castillo de
fire, 1,8 mil.
1992 - Fergana
Valley, Usbekistan, 2,1
1978 – Amoco
Kadiz, 1,6 mil. Crew
lost control of the
While Oil Giants Use CSR:
The petroleum industry is using one of earth’s resources and is a risk to our future
Petroleum is needed in many other industries and we cannot simply stop using it
It is the mean for motoric activities in so many areas, that we must conclude:
We have no choice but to buy it
It is and will be a vendor’s market
CSR, Market Offerings, PR, and any other mean of being «nice» to us does not
matter and is not really needed – they got us in their pockets. The real game is
among themselves, and this is the only thing that matter to them
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Global Gas and Oil Industry, IRC
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23. The gas to liquids GTL markets, 2013 -
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31. THE 20 LEADING COMPANIES IN SHALE GAS
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