OCCIDENTAL PETROLEUM

Analysis of Occidental Petroleum share price

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Are you planning to invest in the petroleum sector through shares on the stock markets? In this case then maybe you are interested in the Occidental Petroleum Group. In this dedicated article you will find useful information as well as economic and stock market data about this company that will assist you in completing comprehensive and reliable analyses of its share price. You will notably find information on this company’s activities, a presentation of its competitors on the market as well as recent partnerships. Of course, you will also be able to learn about the factors you should monitor to complete a comprehensive fundamental analysis of this asset.

Elements that can influence the price of this asset:

Analysis N°1

Firstly, you should closely monitor any expansion of this group’s operations in the Middle East that could enable it to expand its position on an international level.

Analysis N°2

The American natural gas market should also be closely followed relating to the demand as any increase in this sector would enable this group to increase its turnover.

Analysis N°3

We strongly suggest you monitor any strategic initiatives undertaken by the group such as the development of new oil fields or the construction of new refineries that could enable the company to further diversify its activities and increase its revenue.

Analysis N°4

It is also important to closely follow the exploratory operations of the group and their success or failure that could lead to significant profits or losses for the company.

Analysis N°5

You will clearly also need to monitor the government actions and political stability of the countries where this group exercises its activities, notably as related to the disposal of solid waste materials, environmental responsibilities, clean water laws and other regulations of this type that could increase the company’s operating costs.

Analysis N°6

Of course, it is also important to follow the news and events of this group’s major competitors in its activity sector.

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General presentation of Occidental Petroleum

We shall now pass on to a presentation of the Occidental Petroleum Corporation. It is in fact essential that you have a clear and full understanding of this company and its activity sector as well as its principal sources of revenue to be able to understand this company’s future challenges and possibilities for growth and expansion.

The Occidental Petroleum Corporation is an American group specialised in the oil and gas sector. More precisely, it is one of the leaders in the petroleum sector in the United States.

To better understand the activities of this group we can divide them into different sectors according to the turnover generated by each activity and how:

  • Firstly, the exploration and production of crude oil and natural gas generates over 62% of this group’s turnover with 580,000 barrels of crude oil, 174,000 barrels of natural liquefied gas and 41.1 million m3 of natural gas produced every day in 2019.
  • Then we find the hydrocarbons storage, transport and distribution activities which generate 19.1% of this group’s turnover.
  • We then find the manufacturing of chemical products which generates the remainder of the group’s turnover representing 18.9% through basic chemical products such as chlorine, caustic soda, ethylene and other high performance chemical products such as PVC, pigments and plastics.

 

It can be equally advantageous to know the geographical distribution of this group’s revenue which currently generates 76.9% of its turnover in the United States, 18.5% in the Middle East, 4.3% in Latin America and 0.3% from other countries around the world.

Analysis of Occidental Petroleum share price
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The major competitors of Occidental Petroleum

It is also important to understand the operating environment of the Occidental Petroleum Group and its activity sector and know its major competitors. Here therefore is a presentation of this company’s three principal competitors at present.

BG Group Plc

Firstly, the BG Group Plc is a fuel production and distribution company based in England. It is specialised in the exploration and extraction of natural gas, natural liquefied gas and crude oil. Its clients are mainly gas suppliers and electricity producers and the group also owns pipelines as well as being involved in energy supply projects. This company exercises its operations on an international level.

Conoco Phillips

Another major competitor to this group is the American company Conoco Phillips which is also specialised in the extraction, transport and refining of crude oil. This group also operates a chain of service stations in various countries and is based in Texas.

Continental Resources

Finally, the American company Continental Resources is specialised in the exploration and production of oil and natural gas and is one of the leaders in this sector in the United States and indeed worldwide.


The major partners of Occidental Petroleum

The Occidental Petroleum Group also has certain strategic allies and regularly implements strategic partnerships such as the two following examples:

Sonatrach

In 2020 the group strengthened its partnership with the Sonatrach group in the hydrocarbons sector. It should be remembered that the group has holdings in Algeria since the Anadarko share purchase.

Total 

Another partnership was signed with Total in 2019 through a contract worth 8.8 billion dollars for the African assets of Anadarko. These Anadarko assets were valued at an estimated 1.2 billion barrels of oil and gas reserves. This agreement also included Mozambique with over 2 billion boe (barrels of oil equivalent) in natural gas resources over the long term.

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Frequently Asked Questions

When and how was the Occidental Petroleum Company created?

The Occidental Petroleum Group was created in 1920 in Los Angeles in the United States. Over time it has become the fourth largest group in the oil and gas sector in the United States in terms of stock market capital. The group is currently the primary producer of crude oil in Texas and the largest producer of natural gas in California as well as producing chemical products and derivatives.

On which stock markets is the Occidental Petroleum share price quoted?

Occidental Petroleum shares are of course quoted on the American market on the New York Stock Exchange or NYSE, more precisely on the Main Market or principal market of this financial marketplace. However, we also find this asset quoted on the Tokyo stock exchange on the Japanese market. This asset is also included in the composition of the S&P 500 stock market index.

How to complete a technical analysis of the Occidental Petroleum share price?

To implement a comprehensive technical analysis of the Occidental Petroleum share price you should ideally use a number of different indicators including those relating to trend and volatility. Among these indicators you could use the MACD indicator, the moving averages, the Bollinger Bands, pivot points or support and resistance levels. The online brokers generally enable the possibility of displaying various indicators directly and simultaneously on their stock market charts.

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