Occidental Petroleum Company (OXY)

Occidental Petroleum Company (Oxy) is a company listed in New York Stock Exchange. Its main business is to explore, develop, produce and distribute natural gas and crude oil. The corporation is also engaged in production and marketing of chemicals. The Chief Executive Officer of the company is known as Stephen Chazen while the Vice Chairman is Edward Spencer. Apart from the President and Vice Chairman, the company’s management is also made up of directors heading Finance, Operations, Strategy and Development and Business Support departments. Oxy markets its products in Texas, California, North Dakota, New Mexico and Colorado. In terms of employees, the company has over 40,000 dedicated, skillful and qualified workers worldwide. The Company’s management structure, employees, strategies and operations have successfully enabled the company to improve its performance and become successful in the oil and gas industry.

In terms of financial performance, the company is considered as one of the strongest oil and gas producing companies in United States. For instance, the company was ranked fourth in terms of market capitalization in America’s oil and gas industry. For the year 2013, market capitalization for the company was $76 billion. The Standard and Poor’s 500 already ranked the company at position 51. Market capitalization for the company has been increasing significantly since 2005, rising from $32.112 in 2005 to $75.699 in 2013. Income before interest and tax for the company also increased significantly from $7.133 in 2005 to $9.282 in 2013. This indicates a great financial performance of the company over the years.

Being engaged in an environmentally sensitive business, Oxy engages in corporate social responsibility to enhance a sustainable environment and a safe community. The company respects the environment and promotes social responsibility and safety in all its operations across the world. To achieve this commitment, Oxy participates in various programs aimed at environmental and community safety and protection. For example, the company participates in the Wildlife Habitat Council (WHC) in order to protect the natural habitat through sustainable operations and extraction activities. However, there are certain critics and complaints about the operations of the company. In Columbia, the locals feared environmental damage and resisted the company’s operations between 1992 and 2001.

In conclusion, the main business strategy of the company to produce, process and distribute crude oil and natural gas with great social responsibility has led the company to perform well financially and become of the leading U.S. manufacturers of oil and gas. The management structure composed of President, Vice President and directors has also boosted the business strategic performance and operations; hence leading to higher performance.


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