ConocoPhillips Internal Business Analysis Essay

ConocoPhillips Internal Business Analysis - Essay Example ConocoPhillips Corporation was founded in 1875 as Continental Oil and Transportation Co. which at that time was one of the first Petroleum makers (ConocoPhillips, 2007). The company has grown a lot in 132 years and in 2006 it had annual sales of over $188 billion, operates in over 40 countries and employees nearly 38,000 people. It is a publicly traded fortune 500 company that has achieved tremendous growth during the 21st century. Its main line of business includes petroleum production and refining, natural gas, chemicals and plastics. The company is recognized worldwide for its technological expertise, deepwater exploration and production, reservoir management and exploitation, 3D seismic technology, high-grade petroleum coke upgrading and sulfur removal (ConocoPhillips, 2007). The company has a very strong crude oil, natural gases and liquid gases operation. It is its strongest line of business. In 2006 the company produced 976,000 barrel of crude oil per day (DB), 4.97 billion cubic feet of gas per day (BCFC), and 136,000 DB of gas liquids daily (Annual Report, 2007). The company has a competitive advantage in this market because they control all sides of the supply chain. They explore, produce, refine, distribute and market the product. They have great logistics which is helped by its physical presence in 40 nations. They own 69.5 million net developed and underdeveloped acres of land in 23 countries for production and exploration purposes (Annual Report, 2007). ConocoPhillips Corporation extended its market share in the natural gases market by acquiring Burlington Resources. The move was also extremely beneficial because it allowed the company to gain access to life-long reserve of natural gases in the North American market. The company has some weakness and faces certain threats related to industry conditions. As a publicly traded company ConocoPhillips Corporation has lost access to direct foreign investments funds