ConocoPhillips

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Type Public Limited Company
Traded As NYSE:COP
Founded 1875 (Conoco Inc.) 2002 (merger with Phillips Petroleum)
Headquarters Houston, Texas
Key people James Mulva (Chairman and CEO)
Products Oil, natural gas, petroleum, lubricant, petrochemicals.
Revenue US $251.23 billion (2011)[1]
Net Income US $12.44 billion (2011)[2]
% change over previous year +9%[3]
Total assets US $153.23 billion (end 2011)[4]
Total equity US $65.73 billion (end 2011)[5]
Employees 29,800 (end 2011)[6]
Website www.conocophillips.com

Global Snapshot

According to Forbes, in 2012 ConocoPhillips was the 27th largest company in the world by market capitalisation.[7] The company's global production in 2011 averaged 1.62 million barrels of oil equivalent (boe) per day and had proven reserves of 8.4 billion boe at the end of 2011. As of 2012 they had operations in almost 30 countries.[8] Conoco has four core activities: petroleum exploration and production; natural gas gathering, processing and marketing (including a 50% interest in DCP Midstream); petroleum refining, marketing supply and transportation; and chemicals and plastics production and distribution (through a 50% interest in Chevron Phillips Chemicals Co).[9]

Despite being formed following a merger with Phillips Petroleum company in 2002, Conoco can trace its beginnings back to 1875 in Utah when it was founded as the Continental Oil Company. Phillips Petroleum was founded 30 years later. When the two companies joined forces in 2002, they created the third largest energy company in the United States.[10]

In July 2011 ConocoPhillips announced that in 2012 it would separate its profitable upstream business from their lower margin downstream activities of refining and marketing. CEO Mulva claimed that 'the integrated structure is no longer creating the value it had done in the past' and argued that this would help to bring a sharper focus to managing both businesses.[11] By splitting in two, ConocoPhillips will become the US' largest pure Exploration and Production (E&P) firm, and will be more than twice the size of its nearest competitor, Occidental Petroleum.[12]

Company Report Highlights

According to ConocoPhillip's Annual Report for 2010[13], as part of a multi-year plan to take decisive actions to create value, the company made the following progress:

The company realized $15.4 billion in proceeds from asset divestments and continued to increase emphasis on Exploration and Production, to which 86% of capital program was dedicated, with 89% planned for 2011. The company also retired $5.1 billion in debt over the year, leaving cash free for share repurchases and small, selective asset acquisitions.

To expand opportunities in North America, they added acreage in shale drilling, also expanded activities in Canadian oil sands and broadened their presence in the global liquefied natural gas (LNG) market through the startup of the Qatargas 3 project in 2010.

The financial results reported for the Second Quarter of 2011 revealed a fall in production of 5.5% to 1.64 million bpd, a result which was attributed to the halt in production caused by the war in Libya and to asset sales.[14]

Official Accreditations and Global Perceptions

EITI Supporter Status

ConocoPhillips is a supporter company of the EITI.

UN Global Compact

ConocoPhillips is not a participant in the UN Global Compact

CSR Review

ConocoPhillips' 2010 Annual Report and the official company website[15] highlight the following activities on the Corporate Social Responsibility front over recent years:

  • Following the Gulf of Mexico oil spill in 2010, ConocoPhillips assisted in response efforts. In order to enhance the industry’s ability to meet the highest standards, they joined with three other major energy companies to form the Marine Well Containment Company, which is designing and building equipment to supplement emergency response capabilities.
  • During 2010 the company broadened their matching gift program, inspiring increased contributions and greater volunteerism by ConocoPhillips employees and retirees.
  • At the Humber Refinery, a 120-acre woodland called Mayflower Wood was created, the largest project of its kind in the country. Since 2005, more than 67,000 trees and shrubs from a variety of native species were planted.
  • ConocoPhillips sponsors the St Andrews Prize for the Environment, an annual competition conducted in conjunction with the University of St Andrews in Scotland.
  • On an annual basis, employees are required to certify their personal compliance with the Company Ethics code. As a condition of employment, employees are also responsible for reporting suspected violations of ConocoPhillips policies or the law to the company.

External Coverage

  • In 2003 ConocoPhillips was among the defendants in a lawsuit filed in the former Soviet republic of Georgia against the construction of the $3 billion Baku-Tbilisi-Ceyhan pipeline. The lawsuit was brought by an environmental group which alleged that foreign oil companies pressured the environment minister into approving the pipeline without an adequate assessment of the environmental impact of the project.[16]
  • ConocoPhillips was ranked 13th among U.S. corporate producers of air pollutions by the PERI (Political Economy Research Institute) and in 1998 were ranked as one of the worst polluters in the world.[17]
  • In February 2010 Conoco, along with fellow oil major BP, pulled out of an influential lobbying group focused on shaping global warming policy. The US Climate Action Partnership had been instrumental in building support in Washington for capping emissions of greenhouse gases.[18]

Global Operations by Country

Libya

Main article: ConocoPhillips Operations in Libya

Syria

Main article: ConocoPhillips Operations in Syria

References

  1. 2011 Annual Report”. ConocoPhillips, 2011.
  2. 2011 Annual Report”. ConocoPhillips, 2011.
  3. 2011 Annual Report”. ConocoPhillips, 2011.
  4. 2011 Annual Report”. ConocoPhillips, 2011.
  5. 2011 Annual Report”. ConocoPhillips, 2011.
  6. 2011 Annual Report”. ConocoPhillips, 2011.
  7. “[http://www.forbes.com/companies/conocophillips/ ConocoPhillips”, Forbes, retrieved 16 January 2013.
  8. Corporate Overview”, ConocoPhillips, retrieved 16 January 2013.
  9. Who We Are”, ConocoPhillips, retrieved 12 October 2011.
  10. Company History”. ConocoPhillips, retrieved 12 October 2011.
  11. Should BP split?”. The Economist, 30 July 2011.
  12. The Two Faces of ConocoPhillips”. Petroleum Economist, 17 August 2011.
  13. 2010 Annual Report”. ConocoPhillips, retrieved 12 October 2011.
  14. The Two Faces of ConocoPhillips”. Petroleum Economist, 17 August 2011.
  15. Sustainable Development”. ConocoPhillips, retrieved 12 October 2011.
  16. ConocoPhillips named as a defendant in environmental lawsuit”. Houston Business Journal, 27 June 2003.
  17. Most Environmental Gas Station?”. Earth's Friends, 27 June 2003.
  18. Defections Shake Up Climate Coalition”. Wall Street Journal, 17 February 2010.