Total, a successful long-term strategy

Extract

[...] Poincaré asked Ernest Mercier, a graduate of the famous and elitist École Polytechnique, expert in the electric industry, to create a company to "develop oil production under French control". The new company would manage the share in the Iraq Petroleum Company awarded to France as compensation for damages caused by Germany during World War I. Following that request, the Compagnie Française des Pétroles (CFP) was officially created on March The French state was a major stakeholder but Mercier also used his private networks to get the support of 90 Parisian banks. [...]

[...] In Canada, it appears therefore as a safe and reliable operator which assesses risks relative to health, safety and quality. Total is carrying on transparent policies as its numerous sustainability reports prove it to achieve a position of sustainable development in the oilsands. It is especially improving efficiency of operations reduced water and energy use - to minimize environmental effects and maintain biodiversity. Conclusion Total's competitive advantages - that is to say its experience in the business, its technological edge as well as its commitment to achieve sustainability and take socio-economic considerations into account are deeply linked with the company's history, its successes and mistakes and the long-term views of its executives. [...]

[...] On, September the Boards of Directors of Totalfina and Elf Aquitaine proposed a friendly merger of the two companies to shareholders. This merger was approved by the European Commission in February 2000 and TotalFinaElf came into being in March 2000. The merger was designed to create a world oil and gas leader, a larger, stronger, more competitive group on an equal footing with industry giants Exxon Mobil, Chevron Texaco, British Petroleum and Shell. The staff size, the production capabilities and the turnover of the company were indeed multiplied by two. [...]

[...] are entering this booming business, the French-based energy giant wants to become a leader producer in oilsands. position as a leader is due to the good geographic balance of our activities and the diversity of our project portfolio, but also to our sound financial situation and to our ability to resist today's environment while grasping new opportunities and growing stronger. Today, we invest more than billion every month, targeting Refining, Petrochemicals and above all the upstream segment. For the period 2004-2006, our renewal rate for proved plus probable reserves (so-called reserves) stands at nearly 200%. [...]

[...] Total's expansion strategy in Alberta is also a long-term strategy and the Group is investing massively there, thanks to its good financial results. Total has invested $ 2.4 billion in Alberta so far and is expected to spend between $10 billion and $15 billion by 2015 but budget is kept under control by senior management. What's more, it puts an emphasis on which is a key asset for its competitiveness in the future. It is also interesting to see that Total is plowing more money into Alberta oilsands than most of its competitors, even though it entered the business quite late: Company Budget Exxon Mobil Canada $ 5.8 billion Total E&P Canada $10 - $15 billion Syneco Energy Inc. [...]