GAS the world allows recognition and advertising,

 

 

 

 

 

 

 

GAS
AND OIL CASE STUDY

Sydney
Quinlan

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GEB
1011

Dr.
Cutter

Valencia
College

 

 

                                                                                                                               

 

 

 

 

 

 

 

 

Problems

As
a business consultant to one of the top three oil and gas companies, the
problems facing the company today are unsettling. Demand for gas is at an all
new high because of the growing population. The surging economy also creates
more demand, which is troublesome due to the declining supply of petroleum. Supply
is always uncertain because of political turmoil in the Middle East. Because of
petroleum shortages, price fluctuations of gas are constant, resulting in price
gouging. Lastly, companies are looking for new ways every day to replace oil
and gas with alternative sources of energy.

SWOT Analysis

Strengths

             Good business connections and global partnerships
are key to growing and expanding the market. Being one of the top three major
oil companies in the world allows recognition and advertising, as well as financial
revenue. The consumers of a recognized brand of gas will come back time and
time again creating trust. Research and development are also very important as new
technologies are researched every day to find a better way to obtain oil. Finding
an environmentally safe and economical way to reach oil that it beyond the
company’s capabilities is very important.

Weaknesses

            Oil
is a key commodity in the world today. The dependence on crude oil is vital for
the country, even though they are running out of it. There is also the
potential for oil spills, which could damage more of the ecosystems. As a
result, this would cost the oil company millions of dollars to fix. Since the
supply of oil is depleting, the costs of drilling and exploration will continue
to rise as we look for more ways to obtain petroleum.

 

 

Opportunities

            Although, oil exploration can be
expensive, it could turn out to be a big opportunity in the long run. There is
also the chance of finding new ways to get oil through the creation of
technology, such as fracking. The oil company can also produce more natural gas
as consumers are becoming more conscious of the environment and what they put
into their cars.

Threats

            A huge hit to the company is the
shortage of petroleum. It is in a steady decline and will run out one day, so
they need to be prepared when it does. There is also steep competition among the
major oil companies. They are all trying to sell their brand to consumers and
compete for market share. In addition, government interference with its rules
and regulations is fighting against the oil and gas industry to limit drilling
and protect the environment.

Macroeconomic Factors

            As inflation increases so does the
price of oil. For example, when inflation is high, there will be less oil to
put in trucks to transport goods, which decreases production. Unemployment also
affects the industry, because those affected in a recession or cutback are less
likely to return to the company again. These workers will likely find jobs
somewhere else.

 

Microeconomic Factors

            Supply
and demand has been an ongoing problem for the oil industry. The demand for gas
will always be constant, but supply will not. Although new technologies are
allowing oil companies to find new ways to drill and obtain petroleum, the rate
at which this happens can come at a cost. When the costs of gas go up it allows
new markets, such as electric car companies to come into play, thus driving
away consumers.

Action Plan

            The
oil and gas industry is of ultimate importance for the global economy. It
allows planes, trucks, automobiles, and barges to transport goods and services
around the world. This industry also provides natural gas for electricity and
cooking used in homes around the world. From a business consultant viewpoint, to
sustain this industry going forward, there would need to be a lot of time and
money put into research and development of new technologies. While the current
technology is focused on getting oil from shale, future drilling will focus on
our oceans and deep water drilling.  Although
supply is plentiful at the current time, the petroleum business needs to focus
on making deep water drilling more efficient.  
With lower oil prices, many smaller companies have been forced out of
business, which gives larger oil companies the ability to buy their assets.  Finally, the petroleum industry needs to work
to encourage legislators to reduce regulations forced upon the oil industry by
previous administrations.