Transcript TEXACO (Gr. Pink).pptx

TEXACO
by
Texaco
ABUBAKAR ZAKARI MUKHTAR
VIVIAN AJAYI
ABDULBAKI IBRAHIM
SADIQ ABDU ALI
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OVERVIEW
O About Texaco
O Risks Faced By Texaco
O Management
O Conclusion
O Questions
Texaco
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About Texaco
O Texaco meaning the Texas Company is an
American oil founded in Beaumont, Texas
115 years ago.
O It was founded by Joseph S. Cullinan,
Thomas J. Donoghue, Walter Benona Sharp
and Arnold Schlaet.
O Texaco has its headquarters at San Roman,
California, U.S. with other 2000+ locations.
Texaco
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About Texaco(cont.)
O Texaco can also be seen worldwide.
O It was among the companies that
dominated the global petroleum
industries from mid 1940s-1970s
O Texaco was an Independent company
until 2001.
Texaco
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About Texaco(cont.)
O The products are:
O Petroleum
O Natural gas
O Other petro - chemicals
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RISKS FACED BY TEXACO
O Legal risks
O Political risks
O Financial and market risks
O Operational risks
O Environment and health
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LEGAL RISKS
O Legal risks
O Pennzoil November 19, 1985 won an
$10.53billion dollars law suit against
Texaco
O In 1996 Texaco paid $170milion to
settle racial discrimination law suit
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POLITICAL RISKS
O Multinational companies are more
prone to political risk
O One way politics affect oil companies
(TEXACO) is in the regulatory sense
O Political instability
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MANAGEMENT OF
POLITICAL AND LEGAL RISK
O Careful analysis
O Building sustainable relationship with
its international oil and gas partners
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FINANCIAL AND MARKET
RISKS
O Fluctuation in prices
O Supply and demand risk
O Texaco faces competition from other
oil and energy producing companies
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MANAGEMENT OF
FINANCIAL AND MARKET
RISK
O Investment in alternative business
O Reaction to other firms action
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OPERATIONAL RISKS
O Drilling operation
O Manufacturing risk
O Development of natural gas from
shale
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MANAGEMENT OF
OPERATIONAL RISKS
O Managing risk in manufacturing:
O They have rigorous programs in place
identify, manage and reduce risk which
includes:
O Frequent routine equipment inspections
O System and process hazard identification
evaluations
O Extensive personnel training
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Management of development
of natural gas from shale
O Development requires hydraulic
fracturing
O Fracturing is done thousands of feet
beneath groundwater aquifers
O Designing proper wells and control
system is a form of risk prevention
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DRILING OPERATIONS RISK
O Texaco has extensive processes and
procedures in place to manage and evaluate
the risks of oil and gas production
O Rigorous in-house training for our drilling
personnel
O Fully compliant and dependable systems to
reduce drilling operations risk
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ENVIRONMENT AND
HEALTH RISKS
O Oil spillage
O Pollution: In 1993 Ecuadoran Amazon filled
O
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O
Texaco
a billion dollars class action against Texaco
Climate change
Health
Storm severity
Fire outbreak
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Management of environmental
and health risks
O Personal safety
O Identifying hazards and taking actions to
O
O
O
O
Texaco
reduce them
Personal safety performance
Provides support program & services to help
employees have a better life
Combination of processes policies, benefits
and environmental support
Self insurance
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Conclusion
O Texaco’s Risk Management is responsible
for reviewing and managing risks for Texaco
Inc.
O It protects Texaco’s operations from undue
financial exposure caused by unforseen
circumstances.
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Thank You for listening
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