Occidental Petroleum

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Type Public Limited Company
Traded as NYSE:OXY
Founded 1920
Headquarters Los Angeles, USA
Key people Ray R. Irani (Chairman), Stephen Chazen (President and CEO)
Revenue US $23.93 billion (2011)[1]
Net income US $ 6.64 billion (2011)[2]
% change on previous year +45.3%[3]
Total assets $60.04 billion (end 2011)[4]
Total equity $37.62 billion (end 2011)[5]
Employees over 40,000 (2011)[6]
Website www.oxy.com

Global Snapshot

Occidental Petroleum, often referred to as "Oxy" due to its abbreviation on the NYSE stock exchange[7] has oil and gas operations are consolidated in three core areas: the US, the Middle East and Latin America.[8] In 2011 the company's US operations accounted for 59% of worldwide production, the Middle East and North Africa 37% and Latin America 4%.[9]

The company was founded in California in 1920. Chairman Ray Irani was elected on the death of Armand Hammer in 1990, who had headed the company since 1957.[10]

At the end of 2011 Oxy held 2.3 billion barrels of oil equivalent (boe) in reserves and average daily production was 428,000 barrels per day (bpd).[11] According to a feature in Forbes magazine, the secret of the company's success is "no wildcatting" and company president Steve Chazen, a former investment banker, commented in 2010 that "we're in the oil recovery business, not the oil discovery business".[12]

Company Report Highlights

Occidental's Annual Report 2010[13] reports that net income in 2010 improved by 55% on 2009 figures, reaching $4.5 billion, and that the company ended 2010 with stock at its highest year-end closing price in company history of $98.10. This surpassed the year-end 2009 closing price by more than 20%. The encouraging financial results were attributed to high commodity prices and increased production volumes. 2010 operating cash flow from continuing operations (excluding Argentina, where operations have been discontinued) saw a 60% increase on the previous year's figures.

Sales of oil and natural gas climbed 3.9% between 2009-10 to 748 thousand barrels of oil equivalent (boe) per day. Proven reserve additions from all sources totalled 409 barrels of oil, 63% of which resulted from improved recovery techniques, 35% from acquisitions and the remainder from extensions and discoveries.

Official Accreditations and Global Perceptions

EITI Supporter Status

As of December 2011, Occidental was not a supporter company of the EITI.

UN Global Compact

As of December 2011, Occidental was not a participant in the UN Global Compact.

CSR Review

Oxy's 2010 Social Reponsibility Report Growth With Responsibility reports the following activities and achievements in corporate governance, labour, human rights and health, environment and safety:[14]

  • Employee Injury and Illness Incidence Rate (IIR) of 0.40 was approximately nine times better than the US industry average and the second lowest in Oxy's history.
  • The company received an overall perfect 10 corporate governance ranking from Governance Metrics International (GMI).
  • The company had seven programs recertified by the Wildlife Habitat Council (WHC) and one new program established in 2010.
  • Oxy was included on Forbes' 2010 list of 'America's 20 Most Responsible Companies' and on Corporate Responsibility Magazine's 12th Annual (2011) 'Best Corporate Citizens List'.

External Coverage

  • In 1995 the US Justice Department and Environmental Protection Agency announced that Occidental was to pay the US government $129 million to cover the costs of the "Love Canal" toxic waste incident, which began in the late 1970s and forced the evacuation of more than 1000 homes, an elementary school and an entire neighbourhood in Niagara Falls, New York.[15]
  • In 1997 US Vice President Al Gore's "reinventing government" program was reported to have helped Occidental become the beneficiary of the largest ever American privatization of an oilfield, when it purchased 78% of the Elks Hills oilfield in California, which had been the Navy's strategic reserve. The fact that the Gore family had holdings in the company worth over $500,000 led to accusations of graft. However it should be noted that Occidental's offer for the property was twice as high as that of the nearest of its 22 competitors.
  • In 2000 the 5,000-strong Colombia U'wa indigenous tribe threatened to commit mass suicide if Occidental were to go ahead with their plans to drill on land they consider sacred.[16]
  • In 2005, Occidental numbered among the 53 organisations that donated the maximum $250,000 towards George Bush's presidential inauguration.[17]

Global Operations by Country

Libya

Main article: Occidental Operations in Colombia

Iraq

Main article: Occidental Operations in Iraq

Libya

Main article: Occidental Operations in Libya

References

  1. Annual Report 2010”. Oxy.
  2. Annual Report 2010”. Oxy.
  3. Annual Report 2010”. Oxy.
  4. Annual Report 2010”. Oxy.
  5. Annual Report 2010”. Oxy.
  6. Annual Report 2010”. Oxy.
  7. Occidental Petroleum Corp Profile”. Reuters,retrieved 06 October 2011.
  8. Annual Report 2010”. ROxy,retrieved 06 October 2011.
  9. Annual Report 2010”. Oxy.
  10. Corporate History”. Oxy, retrieved 19 December 2012.
  11. Annual Report 2010”. Oxy.
  12. Occidental Petroleum's Path to Easy Oil”. Forbes, 3 November 2010.
  13. Annual Report 2010”. ROxy,retrieved 06 October 2011.
  14. OAnnual Report 2010: Social Responsibility”. Oxy, retrieve 06 October 2011.
  15. Financing the Inauguration”. US Justice Department, 21 December 1995.
  16. Gore's Big Oil Connection: An 'Occident' of Birth?”. Time, 25 September 2000.
  17. Financing the Inauguration”. USA Today, 16 January 2005.

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