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Analyze Case 14-1: The Oil and Gas Industry

Analyze Case 14-1: The Oil and Gas Industry.

The year 2007 marked another tumultuous year in the oil and gas industry, that included continued efforts from oil-producing countries like Kazakhstan, Russia, and Venezuela to exert greater control over their resources (i.e., economic nationalism0, major technological advances in offshore drilling, Chinese firms acquiring exploration rights at record high prices, ongoing strife in Sudan, Nigeria, Chad, and other major oil exporting nations, continued heated discussion about global warming and nonhydrocarbon sources of energy, and near $100 per barrel crude prices. All of this came amid predictions that the global demand for energy would increase by 40 percent by 2030, which many experts believed was not sustainable.

The cases analysis includes:

A summary of the salient points of the case.
Answers to the following questions:
What opportunities and threats do the players in the industry face?
What are the keys to success in the industry?
Perform a comparative competitive analysis of ExxonMobil and its competitors.
What options does ExxonMobil have?

Solution Preview

Oil and gas industry provides about 6.9 billion people throughout the world with 60 percent of their daily energy requirements. The other 40 percent energy requirements come from hydro electric power, coal and 'renewable'. Within a business perspective, oil and gas industry represents a massive scale of global commerce. The global energy market continues to expand and spend millions of dollars every year so as to improve on the maintenance and production of oil and gas. Companies have been invited for a negotiation by over 200 countries so as to explore their water territories water an aim of finding and producing oil and gas so as to create local jobs and provide billions of dollars and at the same time earn billions of dollars in national revenues (Asia-Pacific Oil & Gas Companies 2009).

Large oil quantities and gas quantities flow on a daily basis from exporting countries such as the Middle East to the importing regions such as Europe and Far East. The main aim of gas and oil exporters is revenue maximization and trade balance improvement while their control and sovereignty of their natural resources is maintained at all cost.

The major players in the oil and gas industry face significant challenges in the competitive market, changes in economic and government policies, mature assets and limited capital. These challenges arise from external pressures which come about as a result of shareholder demand and the growth in regulatory and environmental pressures. The players within the industry also ...

Solution Summary

The expert analyzes a case study for The Oil and Gas Industry.

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