The impact of the 2007-2009 subprime mortgage crisis in the integrated oil and gas industry

Table of Contents

Chapter one: Introduction

Chapter two: Literature Review

2.1.Introduction to the second chapter

2.2.The current financial crisis

2.2.1.The emerging literature on the causes of the current financial crisis

2.2.1.1.Politics and Policies

2.2.1.2.Credit Rating Agencies (CRA’s)

2.2.1.3.‘Originate and distribute’ banking model and recent developments

2.2.1.4.Financial innovation and technology

2.2.1.5.Information

2.2.1.6.Fair Value Accounting

2.2.1.7.Incentive Distortions (between brokers, agents and bankers)

2.3.Financial crises in the oil and gas context

2.3.1.Oil and Gas Industry background

2.3.2.Impact of economic and financial crises in the Oil and Gas industry in the past

2.4.Business strategies

2.4.1. Oil and Gas industry business strategies-scenario planning

2.4.2.Link between finance and strategy

2.5.Research questions

2.6.Chapter conclusion

Chapter three: Methodology

3.1.Introduction to the second chapter

3.2.Research approach – Epistemological view

3.3.A multi-method approach

3.4.Descriptive statistics and general information about the participants

3.5.Chapter conclusion

Chapter four: Findings and Analysis

4.1.Introduction to the third chapter

4.2.Analysis of survey data

4.2.1. Financing of the companies

4.2.2. The link between finance and strategy

4.2.3. Impact of the crisis in different departments of a company

4.2.4. Effectiveness of Risk Management methods applied in the companies

4.2.5. Impact of the crisis in the cost of capital of the companies

4.2.6. Impact of the crisis in different departments of a company

4.2.7. Scenario Planning

4.2.8. Analysts Recommendations

4.2.9. Impact of the current crisis in different aspects of business entities

4.2.10. Findings of the questionnaires, and other factors, which can affect the speed of economic recovery

4.3.Analysis of reports

4.3.1.Analysis of the publicly available financial statements

4.3.1.1. Sales and Net profits

4.3.1.2. Liquidity ratios

4.3.1.3. Long-term debt

4.3.1.4. Net cash from operating, financing and investing activities

4.4.Analysis of the analysts’ reports

4.4.1.Analysis of the M&A activity for 2007-2009

4.4.1.1. Financial data concerning the M&A activity for the year 2007-2009

4.5.Chapter conclusion

Chapter five: Discussion

5.1.Introduction to the fourth chapter

5.2.Discussion of main findings

5.3.Chapter conclusion

Chapter six: Conclusions

6.1.Conclusion

6.2.Limitations-Future research

Bibliography

7.1. Articles/Journals

7.2. Books

7.3. Press

7.4. Websites

7.5. Other

Research Objectives & Key Themes

This dissertation investigates the impact of the 2007-2009 subprime mortgage crisis on the integrated oil and gas industry, specifically focusing on how the crisis has influenced corporate financing, business strategies, and investment behavior within this sector.

• The effects of the financial crisis on integrated oil and gas company financing and operating results.
• The degree of corporate preparedness regarding strategic planning and risk management practices.
• The recognition of the link between corporate financing and business strategy among industry executives.
• Analysis of market trends, M&A activity, and analysts’ recommendations in response to economic downturns.
• Strategies for cost reduction and resource allocation in a turbulent global economic environment.

Excerpt from the Book

Chapter Summaries

Chapter one: Introduction: This chapter introduces the global economic downturn of 2007-2009 and outlines the study's objective to analyze the impact of this crisis on the integrated oil and gas industry.

Chapter two: Literature Review: This section covers past financial crises, emerging theories on the causes of the 2007-2009 crisis, and provides foundational information on oil and gas industry business strategies and their connection to finance.

Chapter three: Methodology: This chapter details the multi-method research approach used, including surveys with industry executives and the analysis of secondary financial data and analysts' reports.

Chapter four: Findings and Analysis: This chapter presents the raw data from the questionnaires and the financial analysis of the 200 biggest oil and gas companies, covering topics like financing, risk management, and M&A activity.

Chapter five: Discussion: The discussion evaluates the empirical findings against the initial research questions and the established literature to provide context for the impacts observed in the industry.

Chapter six: Conclusions: The final chapter synthesizes the main findings, identifies the study's contributions to management theory and practice, and outlines limitations along with suggestions for future research.

Keywords

Oil and Gas industry, 2007-2009 Financial Crisis, Scenario Planning, Risk Management, Corporate Strategy, Business Finance, Subprime Mortgages, Mergers and Acquisitions, Analyst Recommendations, Global Economy, Capital Structure, Liquidity, Debt, Investment, Economic Downturn.

Frequently Asked Questions

What is the primary focus of this dissertation?

The dissertation examines the impact of the 2007-2009 subprime mortgage crisis on companies within the integrated oil and gas industry, analyzing how financial constraints influenced their strategies and investment decisions.

What are the central themes explored in the work?

The key themes include the alignment between corporate finance and business strategy, the effectiveness of risk management practices, and how companies utilized scenario planning to navigate the economic recession.

What is the primary research question?

The work aims to answer how the financial crisis affected oil and gas companies across various business aspects such as financing, operating results, and M&A activity, and how well these companies were strategically prepared.

Which scientific methods are utilized?

The author employs a multi-method approach involving questionnaires sent to industry executives, descriptive statistical analysis of financial statements, and an analysis of long-term analysts' recommendations.

What content is covered in the main body?

The main body covers the literature review on financial crises and strategic management, the detailed methodology, the empirical findings from surveys and financial reports, and a comprehensive discussion of these findings.

Which keywords best describe this work?

The core keywords are Oil and Gas industry, 2007-2009 Financial Crisis, Scenario Planning, Risk Management, and Corporate Strategy.

Why did the study focus specifically on the Oil and Gas industry?

The study focuses on this industry because of its vital role in the global economy and its high capital expenditure requirements, which make it uniquely sensitive to financing shifts during economic crises.

How does the author characterize the impact of the crisis on R&D?

The findings suggest that when companies face financing difficulties, they often treat R&D as a discretionary expense, leading to a decrease in long-term investments in favor of preserving short-term liquidity.