Midland Essay

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Midland Energy Overview Midland Energy Resources, Inc. was a global energy company with operations in oil and gas exploration, refining and marketing and petrochemicals. A profitable organization, in 2006 the company registered an operating revenue of $248.5 billion and an operating income of $42.2 billion. Midland had been in existence for more than 120 years and employed more than 80,000 individuals within the company. Midland enjoyed great success within all three divisions, including the industry’s most profitable operation in exploration and production. Midland’s Operation Structure Scenarios Exploration & Production Midland Energy Resources has been incorporated more than 120 years. Oil exploration and Production (E&P) is Midland’s most profitable business, and its net margin was among the highest in the industry over the previous five years before 2007. With the high price of oil in 2007 and fierce competition from other places of the world such as the Middle East, Central Asia, Russia and West Africa, Midland’s capital investment in E&P was expected to be more than $8 billion in 2007 and 2008. Refining and Marketing Midland had ownership interests in 40 refineries around the world. Global revenue from 2006 was $203 billion, the largest of the company. Although the margins had been declining over the previous 20 years, Midland’s capital spending in refining and marketing would remain stable according to the project. Midland is still a market leader in the business owing to its advanced technology and vertical integration. Petrochemicals Petrochemicals were Midland’s smallest but most promising division. Midland owned equity interests in 25 manufacturing facilities and five research centers in eight countries around the globe. Capital spending in petrochemicals was expected to grow in the short-term project. Financial Strategy In 2007, the

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