Mba512 Petro Corporation

Petro Corporation

Darin Dolan

Sarah Weber

Petro Corporation

• Canadian Parliament passed Petro Canada Act in 1974 establishing a crown corporation

• Integrated oil and gas energy company

• Headquarters in Alberta

• Over 5,600 employees

• Currently, Suncor & Petro

market under Sunoco brands

Petro Corp cont.

• Total revenue as of December 2007• $19,882.6 million • 13.8% increase from 2006• Seeing a decline in operating cash flows

• Upstream & downstream business

• Main competitors• Chevron Corporation, ExxonMobil, TOTAL S.A.,

TransCanada Corporation, & Imperial Oil Limited

Petro Corp currently

• 2006 - Purchased a 90% interest for wholly owned subsidiary Marathon Oil Corp

• 2007 – Signed a long term exploration & development agreement

• 2008 – Discovered two international exploration wells off Trinidad & Tobago and UK sector of North Sea

• 2008 – Signed 6 new exploration & production sharing agreements

Gas Station Data

• 90 located by a highway 97 metropolitan area 14 rural

• Of the upper 50• 38 highway, 11 metropolitan, 1 rural

• Of the lower 50 • 18 highway, 28 metropolitan, 4 rural

Gallons sold vs. Location

Right skewed, more gallons are sold along the highways (1) than metropolitan (2) or rural areas (3)

Location vs. Car wash

Only 17 out of the 202 have a car wash

Highways: 8 car washes

Metropolitan areas: 4 car washes

Rural: 5 car washes

Gallons sold vs. Hours open

63% of the Average monthly fuel sales in gallons was at 24 hours of operation gas stations

37% of Average monthly fuel sales in gallons was at 18 hours of operation gas stations

Location vs. Hours of Operation

Majority are 24 hours a day

82 by highway – 80 in a metropolitan area

27 stations are open 18 hours a day (most by metropolitan area)

0 = 18 hours

1 = 24 hours

Car wash vs. Gallons sold

Total of 284,789 gallons of gas sold

Most gallons of gas are sold at stations without a carwash – 56%

With a carwash – 44%

Conclusions• Location affects sales

• Most successful stations according to this sample are highway locations

• Hours of operation affect sales• More gallons sold at 24 hour stations, majority of stations

open 24 hours

• Car wash does not significantly affect sales• Carwash along highways most used• More gallons overall sold at stations without car wash

Recommendations

• Build a location that is easily accessible to a highway

• Hours of operation should be 24 hours a day

• From this data, car wash does not play a significant factor to sales, not many stations have one