DOCSLIB.ORG

PBF Energy Inc. 2016 Annual Report the PBF Energy Refining System At-A Glance

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
PBF Energy Inc. 2016 Annual Report the PBF Energy Refining System At-A Glance PBF Energy Inc. 2016 Annual Report The PBF Energy Refining System At-a glance PADD 4 Tolededoed Paulsboro PADD 2 PADD 5 Delaware City PADD 1 Torrance PADD 3 Chalmette Chalmette Refinery The Chalmette refinery, in Louisiana, is a 189,000 barrel per day, dual-train coking refinery with a Nelson Complexity of 12.7 and is capable of processing both light and heavy crude oil. The facility is strategically positioned on the Gulf Coast with strong logistics connectivity that offers flexible raw material sourcing and product distribution opportunities, including the potential to export products. Delaware City Refinery The Delaware City refinery has a throughput capacity of 190,000 bpd and a Nelson complexity rating of 11.3. As a result of its configuration and petroleum refinery processing units, Delaware City has the capability to process a diverse heavy slate of crudes with a high concentration of high sulfur crudes making it one of the largest and most complex refineries on the East Coast. Cover: Torrance Refinery PBF Energy (“PBF”) is a growth-oriented independent petroleum refiner and supplier of unbranded petroleum products. We are committed to the safe, reliable and environmentally responsible operations of our five domestic oil refineries, and related assets, with a combined processing capacity of approximately 900,000 bpd and a weighted average Nelson Complexity Index of 12.2. PBF Energy also owns approximately 44% of PBF Logistics LP (NYSE: PBFX). PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented, publicly-traded, master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products, terminals, pipelines, storage facilities and similar logistics assets. Paulsboro Refinery The Paulsboro refinery has a throughput capacity of 180,000 bpd and a Nelson complexity rating of 13.2. The Paulsboro refinery is located on the Delaware River in Paulsboro, New Jersey, just south of Philadelphia, and is approximately 30 miles north of the Delaware City refinery. The Paulsboro and Delaware City refineries are the only two operating petroleum refineries on the East Coast with coking capacity. Toledo Refinery The Toledo refinery has a throughput capacity of 170,000 bpd and a Nelson complexity rating of 9.2. Toledo processes a slate of light crude oils from Canada, the Mid-continent and the U.S. Gulf Coast. Toledo produces a high volume of finished products including gasoline and ultra-low sulfur diesel, in addition to a variety of high- value petrochemicals including nonene, xylene, tetramer and toluene. Torrance Refinery The Torrance refinery has a throughput capacity of 155,000 barrels per day and is PBF’s most complex refinery with a Nelson Complexity index of 14.9. The refinery receives its crude oil primarily through a pipeline connection to central California and also has access to waterborne feedstocks through the Ports of Los Angeles and Long Beach. The refinery produces approximately 1.8 billion gallons of gasoline per year, which represents approximately ten percent of the gasoline consumed in California. To Our Shareholders 2016 was a year of highs and lows for PBF. Operationally, we did not capture all that our refineries are capable of delivering and this is reflected in our reported results. Despite the operational headwinds, it is the nature of our business that even in a year such as 2016, our refining system generated more than $650 million in cash from operations. As part of our longer term strategy of growing our business, we took another major step along that path by increasing our refining capacity and geographic diversity with the acquisition of the Torrance refinery and its associated logistics assets located in the Los Angeles Basin. In 2016, excluding special items, PBF generated EBITDA of approximately $201 million and an operating loss of $22 million for the year, resulting in an adjusted fully-converted net loss of $1.41 per share, on a fully-exchanged and fully-diluted basis. We invested $1.6 billion in the business through turnarounds, capital expenditures and acquisitions, of which the Torrance acquisition totaled $972 million including working capital. We finished 2016 with a cash balance of $746 million, total liquidity of approximately $1.3 billion and a net debt to capitalization ratio of 32%, excluding special items. In recognition of the earnings potential of our assets, our board and management continue to support a regular annual dividend, paid quarterly, of $1.20 per share. In 2016, PBF paid out $123 million in four separate non-tax distributions. Our logistics partner, PBF Logistics (or the “Partnership”) had a record 2016 and continued to grow its operations and increase distributions to its unit holders. PBF Logistics completed its first third-party transaction with the acquisition of more than four million barrels of East Coast storage capacity in the greater Philadelphia region. Additionally, through the fourth drop-down transaction with PBF Energy, PBF Logistics acquired a 50 percent interest in the Torrance Valley Pipeline Company, comprised of an extended crude oil gathering and delivery system directly connected to the Torrance refinery, for $175 million. On a combined basis, the Partnership grew its revenue base by almost 70 percent through these two transactions. Since the time of its initial public offering, PBF Logistics has increased its EBITDA more than two-fold and has supported a compound annual distribution growth rate of approximately 18 percent through the end of 2016. PBF Energy continues to be a strong sponsor for the Partnership and currently owns approximately 44 percent of PBF Logistics and 100 percent of the incentive distribution rights and the general partner. PBF Logistics continues to provide PBF Energy with a valuable partner for growth. Growth is a crucial element of our past success and a guiding strategy for realizing our future potential. Late in 2015, we added the Chalmette refinery on the Gulf Coast to our increasingly diverse asset base. In 2016, we began the work of increasing the reliability and profitability of Chalmette by installing new leadership and identifying margin enhancement opportunities. In the first months of 2017, we conducted the first turnaround at Chalmette under PBF’s ownership. We are also undertaking a number of projects at Chalmette that, when complete, will improve our margin capture opportunities. We are restarting a reformer, and other related units, which will increase our high-value product yield and we are building, through PBF Logistics, a new 625,000 barrel crude oil tank which will improve our dock logistics and increase our ability to export products. In July of 2016, we acquired the Torrance refinery in California and this plant has the potential to become the strongest asset in our portfolio over time. In order to get to that point, we must improve Torrance’s reliability and this is an effort from the ground up. We put in place a new refinery management team and we are adding additional internal and external resources to ensure that this effort remains a top priority for the company. We have two significant turnarounds ahead in the first half of 2017 and executing these important overhauls will be significant steps in improving Torrance’s reliability. Focusing on refinery safety and reliability is the long-term route to profitability. As merchant “ Focusing on refiners, we operate very complex assets under increasingly stringent regulations and we must refinery safety do this safely and reliably in order to be successful and, ultimately, reward our shareholders. There are many aspects of our business that we cannot control but operational excellence is and reliability is within our control and the bedrock of our company. the long-term As we look forward in 2017, our top priority remains the safe, reliable and environmentally route to responsible operations of all our assets. We are continuing the integration of Chalmette and profitability.” Torrance and we expect that these assets will become the engines that drive our results. We Tom Nimbley are focused on improving the reliability of all five of our refining assets by allocating resources Chairman and and promoting best practices with the renewed goal of surpassing the standards that are set Chief Executive Officer for our industry in both safety and environmental performance. We remain focused on the health of our balance sheet and positioning the company for further accretive growth. Before closing, I would like to thank our former Executive Chairman of the Board, Thomas D. O’Malley, for his service to PBF and his mentorship of our executives. I would also like to thank Eija Malmivirta for her insights and counsel as a Director of PBF and wish her well in her next endeavor. I also thank our Board of Directors for their continued stewardship and guidance. Additionally, I would like to thank all of PBF’s employees for their dedication and commitment; they are the foundation of our company and the source of any successes we may enjoy. Finally, we thank our shareholders for your continued support. We will continue to work diligently to reward the trust and investments that you have placed with us. Sincerely, Tom Nimbley Chairman and Chief Executive Officer PBF Energy Inc. PBF Energy Board of Directors (left to right) Eija Malmivirta Edward Kosnick Member of Compensation Lead Director and Chairman Committee, Member of Health, of Audit Committee Safety and Environmental Gene Edwards Committee Member of Nominating and Wayne A. Budd Corporate Governance Committee, Chairman of Nominating Member of Health, Safety and and Corporate Governance Environmental Committee Committees Spencer Abraham William Hantke Chairman of Compensation Member of Audit Committee Committee, Member of Nominating and Corporate Governance Dennis Houston Committees Chairman of Health, Safety and Environmental Committee, Robert J.
Load more

Recommended publications
  • Doe V. Unocal Decision
    Volume 1 of 2 FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT JOHN DOE I, individually & as Administrator of the Estate of his deceased child Baby Doe I, & on behalf of all others similarly situated; JANE DOE I, on behalf of herself, as Adminstratrix of the Estate of her deceased child Baby Doe I, & on behalf of all others similarly situated; JOHN DOE II; JOHN DOE III; JOHN DOE IV; JOHN DOE V; JANE DOE II; JANE DOE III; JOHN DOE VI; JOHN DOE VII; JOHN Nos. 00-56603 DOE VIII; JOHN DOE IX; JOHN DOE 00-57197 X; JOHN DOE XI, on behalf of D.C. No. themselves & all others similarly CV-96-06959- situated & Louisa Benson on RSWL behalf of herself & the general public, Plaintiffs-Appellants, v. UNOCAL CORPORATION, a California Corporation; TOTAL S.A., a Foreign Corporation; JOHN IMLE, an individual; ROGER C. BEACH, an individual, Defendants-Appellees. 14187 14188 DOE I v. UNOCAL CORP. JOHN ROE III; JOHN ROE VII; JOHN Nos. 00-56628 ROE VIII; JOHN ROE X, 00-57195 Plaintiffs-Appellants, D.C. No. v. CV-96-06112- UNOCAL CORPORATION; UNION OIL RSWL COMPANY OF CALIFORNIA, OPINION Defendants-Appellees. Appeal from the United States District Court for the Central District of California Richard A. Paez and Ronald S.W. Lew, District Judges, Presiding1 Argued and Submitted December 3, 2001—Pasadena, California Filed September 18, 2002 Before: Harry Pregerson, Stephen Reinhardt, and A. Wallace Tashima, Circuit Judges. Opinion by Judge Harry Pregerson; Concurrence by Judge Reinhardt 1Judge Paez initially authored the orders granting in part and denying in part Defendants’ Motions to Dismiss.
    [Show full text]
  • CNOOC's Failed Bid to Purchase Unocal Michael Petrusic
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by University of North Carolina School of Law NORTH CAROLINA LAW REVIEW Volume 84 | Number 4 Article 9 5-1-2006 Oil and National Security: CNOOC's Failed Bid to Purchase Unocal Michael Petrusic Follow this and additional works at: http://scholarship.law.unc.edu/nclr Part of the Law Commons Recommended Citation Michael Petrusic, Oil and National Security: CNOOC's Failed Bid to Purchase Unocal, 84 N.C. L. Rev. 1373 (2006). Available at: http://scholarship.law.unc.edu/nclr/vol84/iss4/9 This Note is brought to you for free and open access by Carolina Law Scholarship Repository. It has been accepted for inclusion in North Carolina Law Review by an authorized editor of Carolina Law Scholarship Repository. For more information, please contact [email protected]. Oil and the National Security: CNOOC's Failed Bid To Purchase Unocal On August 2, 2005, the China National Offshore Oil Company ("CNOOC") withdrew its bid to purchase U.S. oil company Unocal in response to significant political opposition.! CNOOC's bid aroused intense opposition from Members of Congress and outside observers. Within weeks of the bid's announcement, the House of Representatives urged the Bush administration to review the bid on national security grounds.2 The House based its arguments on the Exon-Florio Amendment to the Omnibus Trade and Competitiveness Act of 1988 (the "Amendment"),3 legislation designed to provide for the review and restriction of foreign direct investment in
    [Show full text]
  • Chevron 2006 Annual Report
    2006 Annual Report LETTER TO STOCKHOLDERS 2 EMERGING ENERGY 10 OPERATING HIGHLIGHTS 18 FIVE-YEAR OPERATING SUMMARY 85 THE ENERGY PORTFOLIO: EFFICIENT ENERGY 12 GLOSSARY OF ENERGY FIVE-YEAR FINANCIAL SUMMARY 86 CONVENTIONAL ENERGY 6 HUMAN ENERGY 14 AND FINANCIAL TERMS 24 BOARD OF DIRECTORS 1 0 1 UNCONVENTIONAL ENERGY 8 CHEVRON PERSPECTIVES 16 FINANCIAL REVIEW 25 CORPORATE OFFICERS 102 Demand for energy continues to rise, posing a clear challenge for our industry: how to develop new and better ways to produce, process, use and deliver all forms of energy — from conventional crude oil and natural gas to the emerging sources of the future. At Chevron, we recognize the world needs all the energy we can develop, in every potential form. We’re managing our energy portfolio to deliver that energy — and to create growth and value for our stockholders, our customers, our business partners and the communities where we do business. The energy portfolio CONVENTIONAL UNCONVENTIONAL EMERGING EFFICIENT HUMAN ENERGY ENERGY ENERGY ENERGY ENERGY 6 8 10 12 14 TO OUR STOCKHOLDERS 2006 was an exceptional year for our company. We continued to deliver value to our stockholders and to make strategic investments that will drive sustained, superior performance over the long term. We reported record net income of $17.1 billion on sales and other operating revenues of approximately $205 billion. For the year, total stockholder return was 33.8 percent, which was more than double the rate of return delivered by the S&P 500. Return on capital employed was a strong 22.6 percent. We continued to return cash to stock- holders through our stock buyback program, purchasing $5 billion worth of shares in the open market, and we increased our annual dividend for the 19th year in a row.
    [Show full text]
  • How to Improve U.S.-China Relations in the Wake of CNOOC
    63 How to Improve U.S.-China Relations in the Wake of CNOOC James A. Dorn Abstract The increasingly confrontational approach the U.S. Congress is taking toward China, as witnessed by the surge of anti-China legislation and by the excessive politicization of the proposed merger between CNOOC Ltd., a subsidiary of state-owned China National Offshore Oil Company, and Unocal is leading to “creeping protectionism,” often in the guise of protecting U.S. national security. Although it is proper to criticize China for its human rights violations and its lack of a transparent legal system, we should not ignore the substantial progress China has made since it embarked on economic liberalization in 1978. A policy of engagement—or what Hu Jintao, president of the People’s Republic of China, calls “peaceful development”—is a necessary condition for constructive U.S.-China relations. Although China’s competitiveness does pose a threat to certain U.S. economic interests, it also benefits American consumers and exporters. Protectionism would harm both the United States and China and would increase the likelihood of conflict. Hardliners would gain at the expense of more reasonable voices. To avert the risk of conflict, the United States needs to treat China as a normal great power, not as an adversary, and ensure that only those commercial transactions that genuinely threaten national security are blocked. The Korean Journal of Defense Analysis, Vol. XVII, No. 3, Winter 2005 64 How to Improve U.S.-China Relations in the Wake of CNOOC James A. Dorn 65 Introduction Such fears are evident in the flurry of anti-China resolutions and bills introduced by members of Congress around the time of the In its 2005 Annual Report to Congress on the Military Power of the CNOOC-Unocal bid.
    [Show full text]
  • Toward an Expanded Use of Rule 10B-5
    SECURITIES LAWS AND CORPORATE SOCIAL RESPONSIBILITY: TOWARD AN EXPANDED USE OF RULE 1OB-5 RACHEL CHERINGTON* 1. INTRODUCTION As U.S. companies expand overseas, in search of a larger cus- tomer base and the cheaper labor available in developing coun- tries, there has been concomitant concern that such transnational corporations ("TNCs") are subordinating human rights and other social responsibilities to the pursuit of higher corporate profit. Numerous corporations have been accused of violations of la- bor rights, such as the use of forced and child labor.' More egre- gious human rights violations include those alleged against Royal Dutch Petroleum ("Royal Dutch Shell") and Unocal Corporation. Royal Dutch Shell has been accused of complicity in the execution of Nigerian dissidents who protested the company's environ- mental policies. 2 Unocal Corporation has been sued in California for hiring the military of Myanmar (formerly Burma) to provide security for its pipeline project there, despite allegedly knowing that the military had tortured Burmese citizens in order to compel 3 their labor on the Unocal pipeline project. *J.D. Candidate, 2005, University of Pennsylvania Law School. I would like to thank Adam Bochenek for his insightful comments, Laura Leitner for her support during the writing of this Comment, and the editors of the University of Pennsyl- vania Journal of International Economic Law. Finally, I would like to thank my family for their love and support. 1See Beth Stephens, The Amorality of Profit: TransnationalCorporations and Hu- man Rights, 20 BERKELEY J.INT'L L. 45, 51-2 (2002) (giving examples of corporations, including Enron Corporation, Royal Dutch Shell, and Unocal, who participate in human rights abuses in pursuit of profits).
    [Show full text]
  • Complaint Filed Against Different Companies of The
    April 29, 2003 VIA FACSIMILE and U.S. MAIL Mr. Wesley Scholz Director, Office of Investment Affairs and National Contact Point for the OECD Guidelines for Multinational Enterprises Department of State 2201 C Street NW Washington, DC 20520 Dear Mr. Scholz: Friends of the Earth-United States is raising a specific instance against Unocal Corporation, ConocoPhillips, and Amerada Hess Corporation (the “U.S. Companies”) for breaching the OECD Guidelines for Multinational Enterprises (the “Guidelines”) with respect to the Baku-T’bilisi- Ceyhan oil pipeline1 (the “BTC”). The specific areas of concern we raise here relate to the BTC Consortium, of which the U.S. Companies are a part. It is held that the Consortium: y exerted undue influence on the regulatory framework; y sought or accepted exemptions related to social, labor, tax and environmental laws; y failed to operate in a manner contributing to the wider goals of sustainable development; y failed to adequately consult with project-affected communities on pertinent matters; and y undermined the host governments’ ability to mitigate serious threats to the environment, human health and safety. Applicability of the Guidelines to the U.S. Companies As a signatory to the Guidelines, the U.S. government has committed itself to encouraging multinational companies operating on its territory to observe the Guidelines wherever they operate. The U.S. companies’ operations in Azerbaijan, Georgia and Turkey are therefore subject to the Guidelines by virtue of the fact that each enterprise is incorporated and headquartered in the United States and has its primary securities’ listing on the New York Stock Exchange.
    [Show full text]
  • Chevron Unocal Analysis
    ANALYSIS OF PROPOSED CONSENT ORDER TO AID PUBLIC COMMENT IN THE MATTER OF CHEVRON CORPORATION AND UNOCAL CORPORATION, FILE NO. 051-0125 I. Introduction The Federal Trade Commission (“Commission” or “FTC”) has issued a complaint (“Complaint”) alleging that the proposed merger of Chevron Corporation (“Chevron,” formerly ChevronTexaco Corporation) and Unocal Corporation (“Unocal”) (collectively “Respondents”) would violate Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18, and Section 5 of the Federal Trade Commission Act, as amended, 15 U.S.C. § 45, and has entered into an agreement containing consent order (“Agreement Containing Consent Order”) pursuant to which Respondents agree to be bound by a proposed consent order (“Proposed Consent Order”). The Proposed Consent Order remedies the likely anticompetitive effects arising from Respondents’ proposed merger, as alleged in the Complaint. II. Description of the Parties and the Transaction A. Chevron Chevron is a major international energy firm with operations in North America and about 180 foreign countries in Europe, Africa, South America, Central America, Indonesia, and the Asia-Pacific region. Its petroleum operations consist of exploring for, developing and producing crude oil and natural gas; refining crude oil into finished petroleum products; marketing crude oil, natural gas, and various finished products derived from petroleum; and transporting crude oil, natural gas, and finished petroleum products by pipeline, marine vessels, and other means. The company operates light petroleum refineries for products such as gasoline, jet fuel, kerosene and fuel oil at Pascagoula, Mississippi; El Segundo, California; Richmond, California; Salt Lake City, Utah; and Kapolei, Hawaii. Chevron is a major refiner and marketer of gasoline that meets the requirements of the California Air Resources Board (“CARB”).
    [Show full text]
  • Unocal 2001 Annual Report
    Un ocal Corporation Unocal Unocal Corporation 2001 ANNUAL Corporation Rosecrans Avenue Suite 2001 El Segundo, California ANNUAL REPORT www.unocal.com REPORT Printed entirely on recyclable and recycled papers. Unocal at a Glance STOCK AND TRANSFER AGENT CORPORATE RESPONSIBILITY AT UNOCAL Please contact Mellon Investor Services for information about: A Progress Report: - Unocal is one of the world’s leading independent natural gas and crude oil exploration and production companies, with principal operations •the Dividend Reinvestment and Common Stock Purchase Plan This new brochure has been posted on our web site and is also available in North America and Asia. A strong base of sustaining businesses is the foundation for near- and mid-term earnings and growth. High- • direct deposit of dividends by request to Stockholder Services. potential, longer-term opportunities are keys to significant future success. These include a well-balanced, focused exploration portfolio •consolidation of multiple accounts •lost certificates and, for future development in Asia, discoveries of more than 13 trillion cubic feet of natural gas (gross resource potential), in which Unocal’s •change of address WWW.UNOCAL.COM working interests average about 60 percent. • other matters regarding your stock ownership Unocal’s web site provides frequently updated information about the company and its activities. SUSTAINING BUSINESSES (OIL AND GAS PRODUCTION) MID- TO LONG-TERM OPPORTUNITIES Mellon Investor Services LLC • Unocal news releases, including quarterly earnings results Challenger Road North America Three major deepwater exploration plays • Unocal Annual Report Ridgefield Park, NJ Gulf Region USA (shelf and onshore Gulf of Mexico) Gulf of Mexico • Unocal Proxy Statement www.melloninvestor.com •Quarterly Fact Book Pure Resources, Inc.
    [Show full text]
  • Mapping Pakistan's Internal Dynamics
    the national bureau of asian research nbr special report #55 | february 2016 mapping pakistan’s internal dynamics Implications for State Stability and Regional Security By Mumtaz Ahmad, Dipankar Banerjee, Aryaman Bhatnagar, C. Christine Fair, Vanda Felbab-Brown, Husain Haqqani, Mahin Karim, Tariq A. Karim, Vivek Katju, C. Raja Mohan, Matthew J. Nelson, and Jayadeva Ranade cover 2 NBR Board of Directors Charles W. Brady George Davidson Tom Robertson (Chairman) Vice Chairman, M&A, Asia-Pacific Vice President and Chairman Emeritus HSBC Holdings plc Deputy General Counsel Invesco LLC Microsoft Corporation Norman D. Dicks John V. Rindlaub Senior Policy Advisor Gordon Smith (Vice Chairman and Treasurer) Van Ness Feldman LLP Chief Operating Officer President, Asia Pacific Exact Staff, Inc. Wells Fargo Richard J. Ellings President Scott Stoll George F. Russell Jr. NBR Partner (Chairman Emeritus) Ernst & Young LLP Chairman Emeritus R. Michael Gadbaw Russell Investments Distinguished Visiting Fellow David K.Y. Tang Institute of International Economic Law, Managing Partner, Asia Karan Bhatia Georgetown University Law Center K&L Gates LLP Vice President & Senior Counsel International Law & Policy Ryo Kubota Tadataka Yamada General Electric Chairman, President, and CEO Venture Partner Acucela Inc. Frazier Healthcare Dennis Blair Chairman Melody Meyer President Sasakawa Peace Foundation USA Honorary Directors U.S. Navy (Ret.) Chevron Asia Pacific Exploration and Production Company Maria Livanos Cattaui Chevron Corporation Lawrence W. Clarkson Secretary General (Ret.) Senior Vice President International Chamber of Commerce Pamela S. Passman The Boeing Company (Ret.) President and CEO William M. Colton Center for Responsible Enterprise Thomas E. Fisher Vice President and Trade (CREATe) Senior Vice President Corporate Strategic Planning Unocal Corporation (Ret.) Exxon Mobil Corporation C.
    [Show full text]
  • GAO-04-96 Energy Markets: Effects of Mergers and Market Concentration in the U.S. Petroleum Industry
    United States General Accounting Office Report to the Ranking Minority Member, GAO Permanent Subcommittee on Investigations, Committee on Governmental Affairs, U.S. Senate May 2004 ENERGY MARKETS Effects of Mergers and Market Concentration in the U.S. Petroleum Industry a GAO-04-96 May 2004 ENERGY MARKETS Effects of Mergers and Market Highlights of GAO-04-96, a report to the Concentration in the U.S. Petroleum Ranking Minority Member, Permanent Subcommittee on Investigations, Industry Committee on Governmental Affairs, U.S. Senate Starting in the mid-1990s, the U.S. Over 2,600 mergers have occurred in the U.S. petroleum industry since the petroleum industry experienced a 1990s. The majority occurred later in the period, most frequently among wave of mergers, acquisitions, and firms involved in exploration and production. Industry officials cited various joint ventures, several of them reasons for the mergers, particularly the need for increased efficiency and between large oil companies that cost savings. Economic literature also suggests that firms sometimes merge had previously competed with each to enhance their ability to control prices. other. For example, as shown in the figure, Exxon, the largest U.S. oil company, acquired Mobil, the Market concentration has increased substantially in the industry, partly second largest, thus forming because of these mergers. Concentrated markets can enable firms to raise ExxonMobil. prices above competitive levels but can also lead to cost savings and lower prices. Evidence suggests mergers also have changed other factors that GAO was asked to examine the affect competition, such as the ability of new firms to enter the market.
    [Show full text]
  • BTR Companies
    UK Beyond the Rhetoric Measuring revenue transparency: company performance in the oil and gas industries UK JACOB SILBERBERG/PANOS PICTURES SILBERBERG/PANOS JACOB Beyond the Rhetoric Measuring revenue transparency: company performance in the oil and gas industries Oil and gas companies have generated enormous wealth. But rather than improving the lives of ordinary people, these revenues have often fuelled wars and corruption, weakened economic development and worsened poverty. Children are the most vulnerable to the devastating impact of these conflicts, and the resulting chronic under-investment in health and education. There has been growing recognition that the way to improve the responsible use of these revenues is to increase the accountability of governments and companies. This has resulted in initiatives such as the Publish What You Pay campaign and the Extractive Industries Transparency Initiative (EITI). But beyond the rhetoric, how much progress is really being made? Who is being transparent and who is not? This report focuses on company performance. It compares the revenue transparency of oil and gas companies, identifying leaders and laggards across six countries. It also presents a measurement framework that points the way towards a ‘gold standard’ for company disclosure. It should be read in conjunction with another report, Home government requirements for disclosure in the oil and gas industries, which applies a similar framework to home countries in which these companies are registered or raising capital. Save the Children 1 St John’s Lane London EC1M 4AR UK Tel +44 (0)20 7012 6400 You can download this publication at www.savethechildren.org.uk Beyond the Rhetoric Measuring revenue transparency: company performance in the oil and gas industries Save the Children fights for children in the UK and around the world who suffer from poverty, disease, injustice and violence.We work with them to find lifelong answers to the problems they face.
    [Show full text]
  • The Failed CNOOC-Unocal Merger and Its Implications for Exon-Florio
    CHINA'S LATEST 'THREAT' TO THE UNITED STATES: THE FAILED CNOOC-UNOCAL MERGER AND ITS IMPLICATIONS FOR EXON- FLORIO AND CFIUS Joshua W. Casselman* INTRODUCTION The United States has long encouraged an open investment policy, with nearly every U.S. president since Herbert Hoover taking such a stance.' Yet with an increasingly interdependent and connected world came the need to place limitations on a purely open-door investment policy. 2 President Reagan exemplifies this necessity in his statement describing the general policy on foreign direct investment in the United States: The United States seeks to ... foster a domestic economic climate in the United States which is conducive to investment, ensure that foreign investors receive fair and equitable treatment under our statutes and regulations, and maintain only those safeguards on foreign investment which3 are necessary to protect our security and related interests. The Exon-Florio provision of the Defense Production Act of 1950 currently embodies this important limitation to the United States' free trade and investment stance. 4 Exon-Florio authorizes the President or his designee to investigate a proposed or completed foreign acquisition and the President to prohibit such an acquisition if he determines that it poses a threat to national 5 security. Since its implementation, Exon-Florio has been the source of considerable criticism, and numerous proposals for amendment have been suggested. 6 Recently, proposals for change in Exon-Florio have been spurred * J.D. candidate, May 2007. B.A. Albion College 2004. The author would like to express his appreciation to Prof. Antony Page for his assistance with this Note.
    [Show full text]