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Occidental Petroleum, one of the world's foremost producers of oil and gas and chemicals, was actually a minor player in the industry during its early years. Established in 1920, it was more than 30 years before the company received a shot in the arm. Businessman Armand Hammer (no relation to the baking soda), seeking a tax shelter, tripled the company's assets with a $100,000 personal investment in 1956. Three years later, Occidental discovered California's second largest gas field. Since then, the company has expanded across nine countries, from the Libyan desert to the jungles of Peru. OxyChem, the company's chemical subsidiary is the world's sixth-largest chemical producer, specializing in basic chemicals, petrochemicals, and vinyls. History After hitting it big in California, Occidental won permission from King Idris of Libya to explore that country for oil. In 1966, the company discovered a billion-barrel oil field there. The company began diversifying two years later, acquiring Island Creek Coal and Hooker Chemical. Like many a romance, Occidental's lucrative relationship with Libya burned hot, but fast. When Muammar Qaddafi ousted King Idris in 1969, he sent the California company packing. It was 1971 before Occidental started exploring new ground. The company began in Latin America, and entered the North Sea (where it later found the lucrative Piper oilfield) the following year. In the 1980s, Occidental continued to diversify, and began exploring for oil a bit closer to home. In 1981, it purchased Iowa Beef Processors for $750 million in stock. Six years later, the company spun off 49% of the company for $960 million. After selling off some of its foreign operations, the company purchased an Oklahoma oil company called Cities Service (1982), and MidCon, a natural gas transmission concern (1986). Ray Irani (now the company's CEO) was hired in 1983 to rejuvenate the company's flagging chemical's business. Irani led the integration of the oil and chemical operations, and initiated the acquisition of Shamrock Chemicals, Cain Chemical, and several other properties. By 1989, OxyChem was back on track, with reported profits of close to $1.1 billion. Irani took over as CEO in 1990 when Armand Hammer passed away. In 1991, the company sold off holdings in China and the North Sea, and spun off the rest of Iowa Beef Processors. Three years later, through a deal with Italy's Agip Petroleum, the company acquired interests in 17 oil and gas properties on the Gulf Coast. By 1995, Occidental was mired in debt and initiated consolidation efforts. A record year Ironically, in order to cut costs, Occidental's board bought Irani out of his generous employment contract in 1997. At $95 million, it was the largest buyout of the year, but the contract was replaced with a compensation package more closely linked to company performance. Later that year, the company set another record - the largest privatization in American history - with the purchase of the U.S. Government's 78% stake in the Elk Hills oil field. To pay for the Elk Hills acquisition, Occidental sold off MidCon and its holdings in Venezuela. Also that year, OxyChem entered into two joint deals: the first with Lyondell Chemical and Millennium Chemicals to form Equistar Chemicals (Occidental holds a 29.5% stake); and the second with Geon, for a joint venture called Oxy Vinyls LP (Occidental controls 76%). After 1997, oil and gas prices fell drastically (28 percent between 1997 and 1998 alone), diminishing earnings industrywide. As a result, Occidental cut a total of 1,000 jobs in past three years. After merging its petrochemical operations with Equistar in 1998, the company began consolidating the rest of its chemical holdings. In addition, Occidental reduced its 1999 budget considerably - affecting the chemical business as well as oil and gas exploration and production. Still in debt, the company shut down its Chemical Intermediates Group and Grand Island Technology Center, and is attempting to sell Indspec Chemical Corp., along with other chemical intermediate businesses. Occidental wanst to focus on its core chlor-alkali and vinyls businesses. To that end, the company bought the chlor-alkali operations of Olin Corp., creating a $1.2 billion-a-year company for OxyChem. All's fair in the oil industry Occidental is working with the Colombian government to develop and pump oil from fields near the border with Venezuela, the only problem is the U'wa. The U'wa Indians believe oil is the Mother Earth's blood, and that they are the caretakers of the earth. As such, they have threatened mass suicide of Occidental begins pumping. Police have broken up riots on the roads leading to the site, and though four children have died and a man was shot, Occidental pledges to move ahead.
Applicants should send their resumes to the Occidental subsidiary they are interested in. Corporate openings are generally filled by promoting current employees. All unfilled openings are listed in The Los Angeles Times, and the company often relies on college recruiting for entry level technical hires. The company's web page, www.oxychem.com, provides a link to job openings, allows applicants to file online profiles, and displays a chart matching up education backgrounds with work departments. OxyChem also advertises jobs in the Dallas Morning News and other major Texas newspapers. MidCon, the Occidental subsidiary most actively hiring new employees, does not accept unsolicited resumes, so applicants should look for job openings in the Chicago Tribune and Wall Street Journal. Our sources warn that "consolidation in the oil industry means that hiring, if any, will be minimal this year."
Life in a small town Because Occidental is comprised of "so many acquired operations," the culture "varies significantly from one location to the next." As one source puts it, "each plant is like a small town." Benefits, however are the same company-wide: "We have a 401k program with a 50% company match, in addition to a defined contribution pension program where the company contributes about 7% of our annual compensation." Salaries are "competitive within the industry," and are supplemented by "performance bonuses that can be up to several thousand dollars a year." Dealing with diversity Sources also note that "the company bends over backwards to ensure equitable treatment of women and minorities." One insider even suggests that it is "excessively favorable," but we'll take that with a grain of salt. That source adds that "the company is actively recruiting the best women and minority candidates, and has created very effective policies and training to prevent discrimination." Says another insider, "the greatest problem is inadequate mentoring for these new hires, but some divisions are working to amend that - largely by increasing the number of women and minorities in management positions." Safe A major source of pride at Occidental is the fact that "we have one of the best safety records in the industry." As one contact remarks, "the company is serious about continuing to operate its plants both profitably and safely." Adds another, "doing our work in a way that is environmentally sound" is also paramount.
Human Resources
Oil exploration and extraction;Natural gas production and transportation;Chemicals;Plastics
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