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ConocoPhillips

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ConocoPhillips Company
Company typePublic company
IndustryEnergy (Oil and gas exploration and production)
PredecessorContinental Oil and Transportation Company, Phillips Petroleum Company
Founded1875 in Ogden, Utah, United States
Headquarters
Houston, Texas
,
United States
Area served
Worldwide (15 nations including United States, Norway, Australia, Canada, Qatar, Indonesia, Malaysia, Libya, China)
Key people
Steinar Våge (President of Europe, Middle East, and North Africa)
ProductsHydrocarbons (crude oil, natural gas, natural gas liquids, bitumen)
Websitewww.conocophillips.com

ConocoPhillips Company is a global energy enterprise based in Houston's Energy Corridor, Texas, with a primary focus on the exploration and production of hydrocarbons.

The corporation operates across 15 nations, with its 2019 output predominantly sourced from the United States (49%), Norway (10%), Australia (12%), Canada (5%), Qatar (6%), Indonesia (4%), Malaysia (4%), Libya (3%), and China (3%). Within the U.S., operations concentrate on regions such as Alaska, the Eagle Ford Group, Permian Basin, Bakken Formation, Gulf of Mexico, and Anadarko Basin. Approximately one-third of the American production is derived from Alaskan fields including Cook Inlet, Alpine, Kuparuk, and Prudhoe Bay.

By 2023, ConocoPhillips reported proved reserves totaling 6.758 billion barrels of oil equivalent. These reserves comprise 46% crude oil, 34% natural gas, 14% natural gas liquids, and 6% bitumen.

In 2023 rankings, ConocoPhillips was positioned 156th on the Fortune 500 list and 83rd on the Forbes Global 2000. The company is noted for its significant industry presence and growth trajectory. Additionally, it has been acknowledged on Forbes' diversity and best employer lists within both the United States and Canada.

Nevertheless, in a 2019 report by The Guardian, ConocoPhillips was identified as the 14th largest global polluter, accountable for 0.91% of worldwide industrial greenhouse gas emissions between 1988 and 2015.

1875 to January 1993

Isaac Blake established the "Continental Oil and Transportation Company" ("Conoco") in Ogden, Utah in 1875. By 1885, Conoco had become part of Standard Oil. After the Supreme Court ordered Standard Oil's breakup in 1913, Conoco reemerged as an independent entity.

By 1929, Conoco had transformed into a fully integrated oil corporation distributing coal, oil products such as kerosene and grease, as well as candles throughout the Western United States. That year also saw a merger with Marland Oil Company, originally founded by E. W. Marland. Marland Oil had previously acquired Continental Oil's assets and adopted the Continental Oil Co. name in 1899 while relocating its headquarters to Fargo, North Dakota. This merger introduced the red bar-and-triangle logo to Conoco’s branding, which remained until replaced by a red capsule logo in 1970. The company relocated its headquarters from Ponca City to Houston in 1949.

1998

In 1998, Conoco broadened its international footprint by acquiring interests in 10.5 blocks of the Kashagan Field located in the Caspian Sea under the North Caspian Sea Production Sharing Agreement (NCSPSA). This move significantly strengthened its upstream asset base within a critical emerging market.

Later, in November 2012, ConocoPhillips sold its 8.4% share in Kashagan to ONGC Videsh for about US$5 billion. This transaction represented one of the company’s largest divestitures and aligned with a strategic shift toward optimizing its asset portfolio.

2002

On August 30, 2002, Conoco Inc. merged with Phillips Petroleum Company, headquartered nearby in Bartlesville, Oklahoma, forming ConocoPhillips.[1] By January of that year, Houston was selected as the consolidated corporate headquarters. This union combined both companies’ capabilities to pursue large-scale projects involving distant natural gas sources.<ref>Governor of Oklahoma Frank Keating publicly expressed disappointment over relocating the headquarters to Houston.<ref>

September 2004 to January 2009

In September 2004, ConocoPhillips committed $2 billion to Lukoil, broadening its international reach.

By March 2006, the company had acquired Wilhelmshavener Raffineriegesellschaft mbH, a refinery located in Germany. Prior to this, it finalized a $35 billion transaction involving cash and stock to acquire Burlington Resources, substantially boosting its asset portfolio.

On May 10, 2006, Richard Armitage, the former U.S. Deputy Secretary of State, joined ConocoPhillips' board of directors, strengthening the company’s strategic governance.

July 2011 to January 2017

On July 14, 2011, ConocoPhillips revealed its intention to separate its upstream and downstream operations into two distinct publicly traded entities aimed at enhancing shareholder returns. Subsequently, on May 1, 2012, the downstream, midstream, marketing, and chemical segments were spun off as Phillips 66, with headquarters in Houston. Following this divestiture, ConocoPhillips concentrated solely on upstream exploration and production activities.

In April 2012, the company divested the Trainer Refinery to Monroe Energy LLC, a subsidiary of Delta Air Lines. That same year, it initiated the sale of Nigerian assets including a 17% share in Brass LNG and interests in Oil Mining Lease OML 131, thereby exiting a market where it had operated for over four decades.

January 2013 saw the sale of Rocky Mountain assets to Denbury Resources for $1.05 billion. In July 2016, ConocoPhillips agreed to transfer a 35% interest in three deepwater exploration blocks off Senegal’s coast to Woodside Petroleum for about $350 million.

In November 2016, plans were announced to relocate corporate headquarters to Energy Center Four by 2018, consolidating operations within Houston’s Energy Corridor.

February 2017 to January 2021

In February 2017, Ecuador was mandated to compensate ConocoPhillips with $380 million for the illegal expropriation of oil investments.

The following month, ConocoPhillips sold its interests in Foster Creek Christina Lake Partnership and Western Canada Deep Basin Gas assets to Cenovus Energy for $13.3 billion, resulting in nearly a 30% reduction in proved reserves. In June 2017, Barnett Shale assets were sold for $305 million, followed by the August divestiture of San Juan Basin holdings for $2.5 billion.

In May 2018, ConocoPhillips seized Venezuelan PDVSA assets located in Curaçao to recover $2 billion owed since a court ruling from 2007. Then in March 2019, the World Bank ordered Venezuela to pay $8.7 billion as compensation for expropriated oil properties.

April 2019 included the sale of a 30% interest in the Greater Sunrise Fields to Timor-Leste’s government. Later that year in September, the company sold its UK operations for $2.675 billion.

During the Norwegian continental shelf Awards in Predefined Areas (APA) in 2019, ConocoPhillips obtained three operatorships and stakes in five production licenses across both the Norwegian Sea and North Sea regions, including active drilling at the Hasselbaink prospect.

In May 2020, Northern Australia assets were sold to Santos Limited for $1.39 billion. Two months later, ConocoPhillips acquired liquids-rich land positions within Canada’s Montney Formation for $375 million.

On August 1, 2020, Steinar Våge was named President of ConocoPhillips Europe, Middle East, and North Africa; he brought significant leadership experience from previous executive roles at the company’s Houston headquarters.

During the COVID-19 pandemic in 2020, production levels in Alaska were temporarily reduced due to depressed oil prices but returned to normal as market conditions improved.

In December 2020, ConocoPhillips announced its largest oil find of that year at the Slagugle well on the Norwegian continental shelf with an estimated volume between 75.5 million and 201 million barrels.

January 2021 marked the completion of a $9.7 billion acquisition of Concho Resources by ConocoPhillips, greatly expanding its presence in the Permian Basin and reinforcing its strategy focused on shale development.

September 2021 to Present

In September 2021, ConocoPhillips completed the purchase of Royal Dutch Shell PLC's assets in the Permian Basin for about $9.5 billion in cash, significantly bolstering its shale operations within the United States.

By June 2022, the company had acquired interests in QatarEnergy’s LNG expansion initiatives: a 3.125% stake in the North Field East project and a 6.25% share in North Field South. These developments are slated to begin production in 2025 and 2028 respectively, enhancing ConocoPhillips’ position in the global LNG sector.

During 2023, the Biden administration granted approval for ConocoPhillips to proceed with coastal drilling activities in Alaska, aligning with its Arctic resource development plans. That year also saw ConocoPhillips increase its ownership in the Surmont heavy oil facility in Canada by purchasing an additional 50% from TotalEnergies for $3 billion, expanding its footprint in Canadian oil sands.

In February 2024, ConocoPhillips progressed with the Salam-Patawali offshore project in Malaysia by moving forward with FEED competition involving leased FPSO operators. This extensive development includes seismic surveys and engineering collaborations with companies such as Genesis, Bumi Armada, MISC, and Yinson Holdings.

The company’s Norwegian subsidiary holds a 35% share in the Eldfisk North Project, which commenced production in May 2024, representing a major investment within Norway’s oil industry.

In July 2024, ConocoPhillips initiated litigation against the Biden administration following imposed limitations on oil and gas exploration across nearly half of Alaska’s National Petroleum Reserve. This legal action underscores the company’s dedication to safeguarding its assets and future growth potential.

By September 2024, ConocoPhillips secured a decade-long natural gas supply contract with Uniper for up to 10 billion cubic meters annually, thereby expanding its market reach across northwestern Europe.

The company’s strategic expansion culminated in November 2024 with the $22.5 billion acquisition of Marathon Oil, substantially increasing its reserves and production capabilities across key regions.

Museums

The history and legacy of the company are preserved at the Conoco Museum located in Ponca City, Oklahoma and the Phillips Petroleum Company Museum situated in Bartlesville, Oklahoma.

Operations

ConocoPhillips operates worldwide across exploration, production, transportation, and marketing of crude oil, bitumen, natural gas, natural gas liquids, and liquefied natural gas. Its organizational structure divides operations into six geographic segments: Alaska; Lower 48; Canada; Europe, Middle East and North Africa; Asia Pacific; and Other International.

Leadership

Chairman of the Board President

Archie W. Dunham, 2002–2004
James J. Mulva, 2004–2012
Ryan M. Lance, 2012–

James J. Mulva, 2002–2012

Current Board of Directors

Environmental record

On April 11, 2007, ConocoPhillips distinguished itself as the first American oil corporation to join the U.S. Climate Action Partnership, a coalition of leading corporations and environmental organizations promoting mandatory limits on emissions. That same year, the company boosted its funding for alternative energy projects to $150 million, up from $80 million in 2006. Nevertheless, in February 2010, ConocoPhillips withdrew from the partnership along with BP and Caterpillar.

The firm is a participant in the Voluntary Principles on Security and Human Rights and was placed 12th out of 92 oil, gas, and mining companies regarding indigenous rights protection in the Arctic region in 2016. In 2020, proposed drilling activities on Alaska’s North Slope sparked opposition from the Native Village of Nuiqsut community. According to the 2021 Arctic Environmental Responsibility Index (AERI), ConocoPhillips is ranked fourth among 120 resource extraction companies operating above the Arctic Circle for environmental responsibility.

ConocoPhillips has been involved in multiple environmental legal actions and settlements related to pollution issues. In 1990, it disbursed $23 million to compensate families near its Ponca City refinery who claimed health problems. Its fully owned subsidiary in China was accountable for the Bohai Bay oil spill in 2011. In 2015, ConocoPhillips and Phillips 66 agreed to an $11.5 million settlement concerning violations at over 560 gas stations in California involving underground storage tank regulations. A $39 million settlement was reached in 2017 over groundwater contamination claims in New Jersey linked to MTBE gasoline additives. Additionally, a 2019 agreement addressed allegations of soil and water pollution in Oklahoma City.

Public figures such as Bobby Berk from Netflix's "Queer Eye" have publicly criticized ConocoPhillips for incidents of water contamination. The company was ranked 13th among U.S. corporate air polluters by the Political Economy Research Institute and was identified as having the highest methane leakage compared to its industry peers in 2013.

In February 2022, ConocoPhillips initiated a pilot project that sells flare gas from its Bakken Formation operations to bitcoin miners as part of its strategy to eliminate routine flaring by 2030. This initiative responds to widespread concerns about bitcoin mining’s substantial electricity usage, which recent reports indicate surpasses that of entire nations such as Argentina and the Netherlands.

Carbon footprint

For the twelve months ending December 31, 2020, ConocoPhillips reported total CO2e emissions (Direct plus Indirect) amounting to 16,200 kilotonnes, reflecting a 21% decrease compared to the prior year. This data excludes Scope 3 emissions related to fossil fuel consumption by end users.

Annual Total CO2e Emissions for ConocoPhillips - Location-Based Scope 1 + Scope 2 (kilotonnes)
Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020
27,700 26,100 26,800 20,900 20,800 20,500 16,200
  1. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named company
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