Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 28 pages
Data source: Published sources
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https://casecent.re/p/66474
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Abstract
In late 2005, ConocoPhillips (the number three integrated US oil company) has acquired Burlington Resources (one of the prominent independent oil companies of the US) for $35.6 billion. This is one of the major deals in the wave of consolidation that is sweeping the US oil industry since the 1970s. Analysts rationalise that as finding new sources and setting up facilities have become expensive, acquiring assets would save capital investment for major companies. The current consolidation is nothing new for the US oil industry, which has witnessed benefits of consolidation during John D Rockefeller''s time. While executives of ConocoPhillips say that acquisition would help them in saving operational costs, experts opine that the deal is overpriced. This case study triggers a discussion on the benefits of the consolidation in the US oil industry and will also help in debating how Burlington Resources would help ConocoPhillips.
About
Abstract
In late 2005, ConocoPhillips (the number three integrated US oil company) has acquired Burlington Resources (one of the prominent independent oil companies of the US) for $35.6 billion. This is one of the major deals in the wave of consolidation that is sweeping the US oil industry since the 1970s. Analysts rationalise that as finding new sources and setting up facilities have become expensive, acquiring assets would save capital investment for major companies. The current consolidation is nothing new for the US oil industry, which has witnessed benefits of consolidation during John D Rockefeller''s time. While executives of ConocoPhillips say that acquisition would help them in saving operational costs, experts opine that the deal is overpriced. This case study triggers a discussion on the benefits of the consolidation in the US oil industry and will also help in debating how Burlington Resources would help ConocoPhillips.