A Case Study on Gulf Oil Corporation

Financial statements could be examined with varied degrees, as part of the client acceptance procedures Paige CPA got to perform a horizontal and vertical analysis, and financial ratio analysis of Vinand Petroleum financial statements. These procedures are not as in depth as other procedures used by auditors on financial statements, but these procedures may show areas of concern for auditors. From 2006 to 2007, Vinand’s long term debt tripled and its interest expense paid for the year did not reflect this drastic increase. This could mean that Vinand has taken on a large amount of debt with a low interest rate, which will not bode well for the financial health of the company in the future. In the same breadth,

Explore the benefits and challenges faced by the oil and gas sector of the Gulf region in empowering women. How Aramco stood to gain?

Over the course of this paper information regarding John D Rockefeller 's creation of the Standard Oil company will be showcased. First, information regarding Rockefeller’s entry into the oil industry will be presented. Second, how Standard Oil became the largest oil company in the United States. Next, the innovative products and procedures that Standard Oil creates to keep the company relevant throughout the era . Lastly, how the dissolution of Standard Oil paves the way for a diverse oil market with companies specializing in different productions. Now, John D Rockefeller may have been a cutthroat businessman; however, Rockefeller’s vision for Standard Oil creates a period of innovation and advancement of the none existent oil industry that remains relevant today.

Assignment summary: You are taking the role of a security analyst who recently started following the Oil and Gas industry. The analyst has a task to draw a comparison of several financial indicators for two industry leaders: Exxon Mobil and Royal Dutch Shell, based on their income statements and balance sheets (attached at the end of this document) as well as the information from the notes to the financial

However, investors are becoming increasingly more cautious as the conditions concerning world oil selling prices continue at current levels; potentially creating upward pressure on capitalizations rates as the year progresses. According to this specific Colliers report, Canadian oil producers will be hardest hit, losing around (US) $40 billion in revenues last year, taking a cost on business expenditure and corporate business earnings, with some industry players deciding to cut their growth capital expenditure budgets this

In the year 2050, the whole world notice that oil was starting to become scarce. One thing all the countries saw was all the oil refineries were starting to go out of production which lead to high prices. Although

Also, according to its leverage ratios, the company’s debts are not only very high, but are also increasing. Its decreasing TIE ratio indicates that its capability to pay interests is decreasing. The company’s efficiency ratios indicate that despite the fact that its fixed assets are increasingly being utilized to generate sales during the years 1990-1991 as indicated by its increasing fixed asset turnover ratio, the decreasing total assets turnover indicate that overall the company’s total assets are not efficiently being put to use. Thus, as a whole its asset management is becoming less efficient. Last but not the least, based on its profitability ratios, the company’s ability to make profit is decreasing.

Exxon and Chevron are no doubt some of the leading incorporated oil companies on the globe. Exxon Corp. is the second largest oil firm after Royal Dutch Shell, it is respected for getting the biggest revenue return in 2008 which no company in the U.S. have ever reported before. According to Wilson (2009) Chevron has managed to show a lot of profitability in the market despite the decease in its oil production. It graded as one of firms which made a billion dollars profit within a week in the period of July to September 2008. Regardless of profitability trends set by the two oil firms in the U.S. market, they have been facing financial decline like the rest of the companies in other industries. The two firms are like two sailing ships which are taking longer time to sink. In the last few years, the production capacity of Chevron and Exxon has decreased and their listings on the stock market have become weak. The continuation of construction and drilling which requires billions of dollars in expense of oil production might make them experience a bigger financial crisis (Wilson, 2009).

This report analyses the financial performance of BHP Billiton, a diversified natural resources group, for a potential investor. It uses the financial ratios to analyse the company’s profitability, liquidity, efficiency and investment potential.

This paper focuses on a financial analysis of Chevron from the perspective of a potential creditor. The issue surrounds primarily the creditworthiness of Chevron rather than the type of credit that would be issued. Specifically, the issue is whether "we" would lend Chevron 10% of its net assets. The net assets for Chevron are $209.474 billion, so the amount in question is $20.9 billion in new debt. The report will first analyze the financial statements of Chevron in general terms, focusing on trends and ratios, and drawing conclusions about the overall financial health of the company based on that analysis. The second part of the paper will outline some of the criteria that a lending institution would have for lending to a company, and then that criteria will be applied to Chevron specifically.

Saudi Arabia is the largest oil and natural gas producer of oil in the world attributed to its vast reservoir (Jasimuddin, 2001). The economic growth seen over the years has been dependent upon exploration and production of oil for local and international market (Jasimuddin, 2001). Oil in Saudi contributes up to 40% of its Gross Domestic Product (GDP) and an approximate 80% of its annual revenue (Elachola & Memish, 2016). Largely, the exports that emanate from Saudi Arabia to the tune of 90% are from oil and natural gas products (2016). The country has invested a lot of capital in the exploration and production of oil over the years (2016). Saudi Arabia has enjoyed a competitive advantage over the rest of oil producers for the better part of the 21st century(2016). The world is experiencing a fall in the oil prices now due to a shift in the demand and supply curve. Consequently, Saudi Arabia is beginning to lose its competitive age due to the continuous fall in oil prices (2016). Currently, the world’s oil price is at $42 per barrel and has been fluctuating unpredictably to as low as $30 per barrel (2016). Saudi Arabia is mostly dependent on oil and the continuous fall in prices puts it at risk of economic crisis(2016). Subsequently as the strategy advisor and policy commissioner, by using Porter’s Model of Diamond of National Advantage, it will give the impact oil prices have on the country.

In the last twelve months, the decline in oil and gas activities has not only led to retrenchment of workers in the oil and gas sector in the Niger Delta region in Nigeria, mainly within the International Oil Companies (IOC”s), but has also affected non-related oil and gas sectors such as the contractors and vendors to the Oil and Gas sector; this has triggered several thoughts outside the box to welcome an industry diversification. The Nigerian Government, which solely depends on the oil and gas exports has also been majorly affected by the downfall in oil prices, which has kept other government sectors such as works, healthcare, transportation, and mostly agriculture paralyzed in these twelve months.

The financial system of Qatar depends heavily “on gas and oil, which accounts for half of the gross domestic product, eighty-five percent of export earnings and seventy percent of government revenue” (“Economic Overview,” n.d.). Because of oil, the gross domestic product per capita of Qatar is ranked thirty-four in the world. The proven oil reserves of the country have far surpassed twenty-five million casks aiding in the

According to (Skipper & Kwon, 2007) , in the 1970s, when the Organization of Petroleum Exporting Countries decided to reduce production in order to increase the price, financial risk management became an interesting issue highlighted by firms because the increment in oil price has affected the stability of exchange rates and the inflation rate .

The country produced about 37 MMT of crude oil and total crude processing was at 127 MMT. Thus, 90 MMT of crude oil, representing nearly 70% of the total processing, was imported. The refining industry is fairly consolidated and the country had a surplus in refining capacity and various refineries resorted to exports. High spreads between crude oil and products have made exports a viable option.