Vetalian Petroleum

Introduction

Vetalian Petroleum is the largest publically-traded energy producer(VCSE Ticker: VPC)in Vetalia with a market capitalization of over Ş403 billion Solaris as of 233. Its 107,000 employees are divided in to five main sectors: R&D, Deuterium/Hydrogen, Fusion Equipment, VP Finance, and Telere-Fedol Chemicals. The name "Vetalian Petroleum" is something of a misnomer given that Vetalia's oil production peaked in 108 VE and was fully exausted by 132 VE; the company retained the name for historical reasons rather than any actual ties to the petroleum industry.

History

Early Operations: 23-40

Vetalian Petroleum was founded in 22 by a group of petroleum engineers during an oil boom following the final subjugation of the oil-rich region of Telere in the Expansion War of 11-13. The firm recieved Ş30 million in venture capital and accquired exploration rights to a region in the north of Telere for Ş5.3 million. Initial exploration found about 3 million barrels of recoverable oil; this would allow the company to produce at best 1,000-2,000 bpd over 10 years.

The company's leaders were disappointed by the news, yet decided to go ahead with developing the field since the company could still generate about Ş8 million in revenues with production from the proven reserves; that would be enough to turn a small profit but far from enough to generate the return on investment that the company's investors had expected. Further complicating matters was the steady decline in oil prices during the period due to sliding military demand and rising production; oil fell from Ş21/bbl in late 22 to Ş13.55/bbl by the end of 23. With the company's revenues deteriorating along with oil prices, the future of Vetalian Petroleum seemed grim. The stock, which had performed well from its IPO tumbled with the price of oil to under Ş5/share.

Vetalian Petroleum's fortunes changed dramatically in early 24 when VP Engineering discovered that prior exploration had failed to drill deep enough to punch through the bedrock in to the main oil resivoirs; when test drilling was conducted it was found that the block contained upwards of 1.5 billion barrels of light crude and possibly 2-3 billion barrels of sour crude. This discovery prompted a massive turnaround in both the Vetalian petroleum industry and the region of Talere, whose economy had stagnated following the end of the war two decades before. Oil prices rose as a resurgent economy increased demand for consumer products and automobiles providing VP with a considerable increase in profits. Vetalian Petroleum saw its stock soar nearly 1,000% over the next five years to over Ş50/share. Revenue and production soared and the company's financial situation was stable. Over the next two decades the company expanded its influence, assets, and reserves; by 40 the company had over 20 billion barrels of proven reserves and over 100 billion by 70. During this period the company also expanded in to downstream sectors like refining, petrochemicals, and retail sales through its VP chain of gas stations.

Vetalian Petroleum and the OPPC 40-102

The successes of Vetalian Petroleum during the 30's gave it considerable leverage and free cash flow going in to its third decade of existence. The company spent its savings in the 40's accquiring smaller exploration and equipment companies and purchasing exploration rights to previously unexplored regions of the planet that proved extremely profitable once technology had matured enough to harvest the deepwater and polar oil fields. However, this success ground to a halt in the year 51 when the price of oil collapsed from Ş34/barrel to Ş11.20/barrel due to overproduction and inefficent commodity markets that hid the extent of the oil glut until it was too late. The collapse halved VP's revenue and caused it to declare its first loss since 27.