Essays on Canadian Natural Resources Limited Case Study

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Content and Analysis of Canadian Natural Resources LimitedBrief HistoryThe company’s main line of business is in oil and natural gas discovery as well as expansion and manufacture. Major operations are centered in the west side of Canada, the Northern sea and Africa particularly the west side. In 2009, the company was ranked 251st in the famous 2000 global list of Forbes (Passi, 34). However, back in 1989, the company was chiefly an oil and natural gas corporate operating only in Alberta relying on her Shallow gas basin which was and continues to be the company’s base of success (cnrl. com).

During this time, it had about 9 employees and it had a daily oil production of about 1,650 barrels coupled with a market capitalization of about $1.5 million. In 1991 the company entered into the Northeast British Columbia natural gas basin and later turned out to be a major natural gas producer in this region. Thereafter in 1993 the company tried its hands on heavy crude oil operations following the acquisition of primary heavy crude oil lands; this was a new thing (cnrl. com).

The subsequent years saw the company involving itself in thermal in situ, acquisition of international offshore properties, deep gas basin, oil sands mining including synthesis of crude oil known as synthetic crude oil (SCO). Through growth and acquisitions, the company has grown to roughly over five thousand with a daily oil production of about 580, 000 barrels coupled with a market capitalization of about $45 billion (Passi, 45). Current situationCurrently the company markets its present production of SCO in all traditional product markets and refineries. Reliable and consistent growth prospects of SCO are expected in the coming financial years with major targets from Horizon and the Côte d’Ivoire offshore production sites (2011 Annual Report).

As regards in situ production, the Kirby oil sand was recently approved in order to expand the portfolio for crude oil. The company targets that in the next two years, its phase one of first steam-in production be about 45,000 at a cost of $1.3 billion. The Company concluded several pertinent transactions in the regular course to get hold of and dispose of indulgence in crude oil and natural gas properties for a comprehensive net expenditure of $2.0 billion (2011 Annual Report).

The obtained properties are situated in the Company’s main operating regions and are consisted of producing and non-producing leases as well as related facilities. As has been mentioned above, the company’s product market has experienced remarkable growth whereby it currently competes with other major oil and gas producing companies both locally and internationally. The market performance and outlook never used to be this way several years back. It current strong financial position and better profit margin continue to cement its listing in the Toronto Stock Exchange which is a sure baseline of investor confidence in the company.

The company currently has a plan of increasing assets which is predicated on controlling its evenhanded and varied range of possessions, through apportioning funds to the most rewarding projects, in so doing making the most of its possession significance for investors irrespective of product price sequence (2011 Annual Report). The company’s current tactic of sturdy area and infrastructure custodianship together with its elevated point of operatorship provides it management and suppleness in the way it allocates funds.

The company has the ability to react speedily to the ever-changing economics of its business mainly because of its obligation to upholding a sturdy balance sheet and an elevated amount of funds suppleness.

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