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SWOT analysis of the oil industry
Overview of oil & gas industry
The importance of SWOT analysis in formulating strategy
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Integrated Oil Companies and ExxonMobil Analysis Edwin Romero Ashford University BUS 690: Business Strategy Dr. David Kalicharan December 22, 2014 Abstract The Oil and Gas Industry is one of the oldest industries in the world, which plays a crucial role for the survival of mankind on this earth. As the future is demanding for nonhydrocarbon energy sources, we still foresee the need for oil and gas energies. We’ll look through a Strengths Weaknesses Opportunities and Threats (SWOT) analysis for integrated oil companies (IOCs), and provide recommendations. As ExxonMobil is one of the largest companies in the oil and gas industry, we’ll look at a comparison and a competitive analysis with other IOCs, and give recommendations. …show more content…
This industry plays a crucial role for the survival of mankind on this earth. It is tough to imagine life without the products of oil and gas companies. The ExxonMobil is one of the largest companies in the oil and gas industry. This company had experienced ups and own in its journey from beginning till now. In order to understand the Oil and Gas Industry, we’ll need to look at the Strengths Weaknesses Opportunities and Threats (SWOT) analysis for integrated oil companies (IOCs), as well as a competitor’s analysis of ExxonMobil in order to provide recommendations for both IOCs and ExxonMobil. The case study “Oil and Gas Industry,” by Andrew Inkpen, discusses and predicts that there is still a need for the demand for oil and gas for the next few decades, despite the pressure to develop nonhydrocarbon energy sources that are currently being sources and used in hybrid vehicles (Pearce & Robinson, …show more content…
The Standard Oil of New York became Mobil. Later Exxon merged with Mobil and created “ExxonMobil.” This company is one of the many integrated oil companies (IOCs) that are known at the global level. The revenues of ExxonMobil are high compared to other companies in the IOCs list. At the global level the ExxonMobil stands in second position next to Petrochina, from the perspective of market capitalization at the global level. It is essential to analyze the competitor strategies in the modern world for sustaining in the business. Even though numbers of players in the oil industry are less but competitor analysis is mandatory for developing the right business strategy. Since the beginning of ExxonMobil, their vision of merging IOCs’ has shown other companies the future in order to survive in the oil and gas industry. The competitor analysis of ExxonMobil compared with some selected competitors in the industry is shown in the following
The internal SWOT analysis also revealed some potential areas for Methanex to grow within the future, particularly in providing methanol to high-growth potential markets like the energy industry. In order to stabilize business within these growing sectors, Methanex should implement long-term contracts whenever possible with these energy producers in order to avoid spot price buys and to better predict future demand for
When John D. Rockefeller merged with the railroad companies, he had gained control of a strategic transportation route that no other companies would be able to use. Rockefeller would then be able to force the hand on the railroads and was granted a rebate on his shipments of oil. This was a kind of secret agreement between the two industries. None of the competition knew what the rates were for the rebates or the rates that Rockefeller was paying the railroad. This made it hard for the competition to keep up with the Standard Oil Company. The consequences led to many oil companies getting bought out by Rockefeller secretly. All in all, 25 co...
"The Home Depot NYSE: HD, headquartered in Vinings, Georgia, is a home improvement retailer that aims for both the do-it-yourself consumer and the professional in home improvement and construction. It is the second largest retailer in the United States, behind Wal-Mart; and the third largest retailer in the world, behind Wal-Mart and French company Carrefour. The Home Depot operates about 1,900 stores across North America. The company operates stores in the United States (including the 50 states, Puerto Rico, the United States Virgin Islands), Canada, and Mexico. The Home Depot also operates EXPO Design Center stores in select U.S. markets, providing high-end home design products and services. Its 2004 sales totaled US $73.1 billion. It was ranked #13 on FORTUNE magazine's FORTUNE 500 The Home Depot also owns a chain of higher-end home decorating and appliance stores. The Home Depot employs over 325,000 people."
According to ExxonMobil, for future, the company will invest on exploration for oil and gas at around $34 billion annually. However, Exxon took criticism that investing on exploration for oil and gas affects to destroy climate by recklessly extracting and burning fossil fuel reserves. The company tried to rebuild its business image. Exxon’s recent investments have been in natural gas, which pollutes less CO2 than oil when it burned. The company spends about $6 billion a year for reducing pollute. Investing on exploration for oil and gas will generate revenue in
Both the CEO of Exxon, Lee Raymond, and the CEO of Mobil, Lucio Noto, announced that it is because of this reduction in prices and downsizing within the oil industry that the merger is taking place, the very nature of the oil industry was becoming increasingly competitive. The oil industry as whole was becoming more efficient, causing oil prices to fallr. Firms can only maintain their prices equal to or above marginal cost, and if prices are lower than marginal...
America is dependent on other nations for their ability to create energy. The United States is the world’s largest consumer of oil at 18.49 million barrels of oil per day. And it will continue to be that way for the foreseeable future considering the next largest customer of oil only consumes about 60% of what the U.S. does. This makes the U.S. vulnerable to any instability that may arise in the energy industry. In 2011, the world’s top three oil companies were Saudi Aramco (12%), National Iranian Oil Company (5%), and China National Petroleum Corp (4%). The risk associated with these countries being the top oil producers is twofold. One, they are located half way around the world making it an expensive to transport the product logistically to a desired destination. And two, the U.S. has weak, if not contentious,...
Pratt, Joseph A. “Exxon and the Control of Oil.” Journal of American History. 99.1 (2012): 145-154. Academic search elite. Web. 26. Jan. 2014.
Since its discovery back in the year 1858 crude oil has been become one of the most sought after resources on the face of the planet. It is due to this fact that the oil industry has fallen into a rather odd category in the case of globalization and seeking out new markets, new labor and new customers. The reason being that the need for crude oil and fuel is always present therefore the product of oil in its basic sense sells itself and the companies do not have to go out and publicly advertise it in the sense that clothing lines and other commodities do. Oil companies must focus more on the matter of why an individual should buy their oil and along with other alternative fuels over their competitors even though in the end the companies products are the same thing. The company ExxonMobil has been the superior company in the oil industry for quite sometime now, and had plenty of success as individual companies before their merger in 1999. The reason for there success is partially due to the power they wield as the most successful company, leading to many new refineries around the world, making deals with smaller companies to gain access to new markets and are leading the world in alternative fuel research. However these things all come naturally to the biggest oil company in the industry, the real question is how they became the powerhouse they are now. That question can be answered by the way in which the company has not focused in globalizing their product of fuel and oil, but globalizing the image of the company company. This is achieved by focusing on charity in which they donate hundreds of millions of dollars, Foreign Direct Investment in areas in which they wish to expand by attempting to provide these impoverished areas wit...
Occidental petroleum utilize strategy growth by vertical integration that including seeking and integration with conduct to diverse level of companies and its opportunity for the company to increase influence noteworthy on the supplier chain. Moreover, Occidental petroleum has develop capacity on the technology has high efficiency than before.
The oil & gas sector faces specific risks affecting its financial performances. The main variables affecting the industry are political, geological, price, fiscal, supply and demand as well as cost risks. Given the specific risks, the demand for energy is still gr...
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OPEC was established in the 1960's and ever since, Saudi Arabia gained a reputation of being the major power of the organization. Saudi Arabia has the biggest oil reserves in the world and production costs lower than any country. (economist.com 2003)This means that it is a natural monopoly and economies of scale arises; when the long run average total cost falls as the quantity of output increases as illustrated in figure 1. (Gans, J. King, S., Mankiw, N., 2003) Saudi Arabia is the undisputed leader of OPEC.
The SWOT analysis is a useful tool for identifying our personal strengths, weaknesses, opportunities, and threats to our plans and goals. According to a “Fuel My Motivation” article (2010), this analysis considers internal influences that can positively or negatively affect our ability to achieve our goals. The internal factors are our strengths and weaknesses. Also considered are opportunities and threats, which are external influences that can have a positive or negative impact on the ability to achieve our goals. I will share how the self-assessment instruments and self-exercises in this course have contributed to assessing and understanding my strengths and weaknesses. I will also discuss techniques I will use to leverage my strengths and understand my weaknesses. In addition, I will consider opportunities that I can take advantage of and the threats that can possibly impede my progress.
MSCI, a budgetary investigation firm with extraordinary aptitude in surveying the estimation of intangibles like carbon hazard, examined the petroleum business'execution in five key classifications: operations, wellbeing and security; capacity to get to assets in developing markets; carbon discharges; interest in option vitality; and interest in unpredictable fossil powers like oil sands and oil shale, coal bed methane and coal crease gas, and both gas-to-fluid and coal-to-fluid energizes.
Furthermore met more than 60% of worldwide vitality request by the oil and gas industry. Advancement undertakings and foundation as far and wide as possible, depend on the business. The oil and gas industry is a basic industry globally. The business might be isolated into five parts: