CITGO

[Name of the Institute]

CITGO

Introduction

CITGO Petroleum Corporation can be ideally defined as one of the leading and world renowned refiner, marketer, and transporter of transportation fuels, lubricants, petrochemicals and other gasoline related industrial products. The corporation is a United States incorporated and primarily Venezuelan owned business entity. The company is formally owned and operated by PDV America Inc, which is a completely owned subsidiary of the domestic national Oil Company of Venezuela. The majority of the senior management of the company is dispersed in the headquarters present in the Venezuelan region and also in the Energy Corridor of Houston, Texas. The Company has a vast global presence and its operations cause it to become one of the major role players in the global petrochemical oriented industry. The company was initially developed by the vision and strategic outlook of the entrepreneur Henry Latham Doherty in the early 1990s, which had a vision for the potential growth and the development in the global oil sector.

Over the years since the establishment of the company, the management of the business entity has seeked to implement a dynamic and progressive policy of expanding in the western region of the world. The company has developed a strategic policy of acquiring other business entities, in order to attain a strategic advantage and to be able to become a strong player in the global petrochemical industry. The company was formally sold 50 % to the Petróleos de Venezuela, in the year 1986 and in the short coming years the ownership to the Venezuelan major petrochemical group. Ever since the changing in the ownership and the management of the company, there \has been a stark difference in the operational strategy of the company, leading to the involvement of the business entity in various high profile legal and operational cases. The management has realized that the petrochemical entities have to develop highly dynamic and efficient policies, to be able to become fast movers and pioneers in the industry. It is due to this policy that the company has been maligned by a negative global image and several legal cases. However due to the strong and complex management structure at the company, the corporate giant has been able to avert majority of the legal dilemmas.

Discussion

International Operations of CITGO

The majority of the operations of CIGO are based on the western global region as this part of the world represents a substantial market for petrochemical oriented products. The company has realized that even though the predominant supply of the petrochemical products is generally based in the Middle Eastern countries, the majority of the demand for this gasoline related products come from the Western countries. The primary reason for this high petrochemical products demand in the western countries can be attributed to the advanced economic and manufacturing sectors in these countries. America is considered as one of the biggest demand markets for the oil based product on the global scale. As it has a substancial amount of complimentary industries that require the assistance of ...