Project Description: You Work For A Business Information Fir ✓ Solved

Project Descriptionyou Work For A Business Information Firm That Provi

You work for a business information firm that provides clients with summaries of publicly available information on a range of businesses. Your boss comes to you and says that an increasing number of clients have been asking that the firm develop a catalog of company profiles on businesses that have something to do with the oil and gas industry. The clients want this catalog so that they can quickly identify which companies they may want to carry out additional research on, and possibly have your firm do that research. You’ll need to write company profiles that provide an objective, fact-based summary of: What the company does; How it has performed; and What challenges and/or successes the company has had over the past 3–5 years.

You are to write a profile of either a company that is focused on one activity in the oil and gas industry (e.g., a small exploration and production company, or a small service company whose primary business is drilling wells) or one business unit within a larger company involved in multiple industry activities (e.g., the refining unit of an integrated oil and gas company, or the seismic survey unit of a large, multi-purpose service company). Preparing the Company/Business Unit Profile Select a company or a business unit within a company of interest to you that is involved in the oil and gas industry or in providing one or more services to the industry. There are a variety of places to look up candidate companies, one of which is Google Finance (e.g., Google Finance ->Energy->Oil & Gas and Google Finance ->Energy->Oil & Gas Related Equipment and Services Next, track down publicly available information on the company/business unit using as complete and even a mix of the following resources as possible: Company web sites.

Company annual reports. Company announcements. Market based reports. Financial websites (e.g., Yahoo and Google Finance). News articles (from newspapers, news magazines, trade journals, etc.).

Government websites and reports (e.g., Blogs). The profile should be at least 500 words, but no more than 750 words in length. You should cite the materials you read when writing your company profile and provide a bibliography at the end of your work. For more information about citation, please refer to the Purdue University writing guide . The style of citation is not important.

Finally, your report must address the following questions: Goal 1: What the Company Does What company/business unit are you evaluating? What is the focus of the company/business unit? What sector of the oil and gas industry does the company’s/business unit’s focus fall under? Is the company or parent company of the business unit public, private, or government controlled? Explain your basis for categorizing the company as such.

Which of the following is the company more dependent on demand for, if any: crude oil, raw natural gas, processed natural gas, and/or refined petroleum products? Where does the company/business unit operate geographically? How does the total size of these operations compare to those of other companies that compete in this sector (e.g., is your company among the top five biggest in the sector, worldwide if international or in the country they operate if domestic)?

Goal 2: How the Company/Business Unit Has Performed What has been the overall state of the sector that the company/business unit operates in over the past 3–5 years in terms of product supply, demand, and prices? How has the company/business unit done relative to other companies/business units engaged in the same activities?

Has the company/business unit grown/shrunk/stayed largely unchanged? Why? Goal 3: What the Challenges/Successes Have Been for the Company What have been the most significant challenges and/or successes for the company over the past 3–5 years? What challenges/successes does the company/business unit (and/or expert followers of it) say it will be positioning itself for in the next 3–5 years? What does the company/business unit (and/or expert followers of it) say are its plans or strategy for the upcoming several years?

Sample Paper For Above instruction

Company Profile: Shell Oil Company – Upstream Exploration and Production Division

Introduction

Shell Oil Company, a subsidiary of Royal Dutch Shell plc, is one of the world’s leading integrated oil and gas companies. This profile focuses on the company’s upstream exploration and production (E&P) division, which is primarily involved in the exploration, development, and production of crude oil and natural gas. The division operates in various geographic regions, including North America, Europe, Africa, and Asia, with a significant presence in the Permian Basin of Texas, the North Sea, and Nigeria.

What the Company Does and Sector Focus

Shell’s upstream division is principally engaged in extracting crude oil and natural gas from offshore and onshore fields. Its activities include geological surveying, drilling, extraction, and initial processing of hydrocarbons. The division falls within the upstream sector of the oil and gas industry, which involves exploration, development, and production of raw hydrocarbons. The parent company, Shell plc, is publicly traded on stock exchanges, reflecting its status as a multinational corporation with dispersed ownership and regulatory oversight. Shell’s operations are driven by global demand for their core products, with particular dependence on crude oil and natural gas.

Geographical Operations and Market Position

Shell operates in over 70 countries, with significant upstream assets in North America, notably the Permian Basin, which has contributed to the company’s recent production growth. Its global footprint places it among the top five largest international oil companies (IOCs) in terms production capacity. Shell’s upstream segment produced approximately 3 million barrels of oil equivalent daily in 2022, ranking it among the leaders in the industry. The company’s diversified geographic operations help mitigate regional market risks and capitalize on resource opportunities worldwide.

Performance Over the Past 3–5 Years

In recent years, Shell's upstream division has experienced fluctuating performance, aligned with global oil price trends. Between 2018 and 2022, oil prices fluctuated dramatically, impacting revenue and profitability. Despite these challenges, Shell maintained a steady production level, though it faced operational disruptions due to geopolitical tensions and regulatory changes. In terms of financial performance, Shell reported a net income of $19.3 billion in 2022, rebounding from the pandemic-induced downturn in 2020. Compared to other major IOCs like ExxonMobil and BP, Shell’s upstream segment has shown resilience and steady output growth, partially driven by the Permian acquisitions and efficiency improvements.

Challenges and Successes

One of Shell’s significant challenges over the past five years has been navigating the transition to cleaner energy sources while maintaining profitability in traditional hydrocarbon activities. Regulatory pressures, environmental concerns, and societal demand for decarbonization have compelled Shell to reposition itself towards renewable energy investments. Conversely, its successes include the successful expansion of its Permian assets, which have increased production efficiency and reduced operating costs.

Looking forward, Shell aims to balance its traditional oil and gas operations with investments in renewable energy, including offshore wind and electric vehicle charging infrastructure. Its strategic goal is to reduce carbon emissions while sustaining reliable hydrocarbon output. The company also emphasizes digital transformation and technological innovation as means to improve operational efficiency and environmental sustainability.

Conclusion

Shell’s upstream E&P division exemplifies a traditional yet evolving oil and gas company navigating a complex, volatile market environment. Its geographic diversification, focus on high-growth regions like the Permian Basin, and strategic shifts toward renewable energy position it well for the future. Despite challenges, Shell’s resilience and strategic planning suggest ongoing relevance in the global energy landscape.

References

  • Shell. (2022). Annual Report 2022. Retrieved from https://www.shell.com/investors/financial-reporting/annual-report.html
  • U.S. Energy Information Administration (EIA). (2023). International Energy Data. https://www.eia.gov/international/
  • Royal Dutch Shell plc. (2023). Shell Sustainability Report. https://www.shell.com/sustainability
  • Bloomberg. (2023). Shell Oil's Market Position. https://www.bloomberg.com/markets/companies/shell
  • Reuters. (2022). Oil Price Trends 2018-2022. https://www.reuters.com/energy/
  • Statista. (2023). Global Oil & Gas Market Size. https://www.statista.com/markets/418/energy/
  • BP. (2022). BP Statistical Review of World Energy. https://www.bp.com/en/global/corporate/about-bp/energy-statistics.html
  • Investopedia. (2023). Upstream Oil and Gas Definition. https://www.investopedia.com/terms/u/upstream.asp
  • Wood Mackenzie. (2023). Industry Analysis and Outlook. https://www.woodmac.com
  • Carnevale, J. (2021). Navigating the Energy Transition. Harvard Business Review, 99(2), 62-69.

Related Assignments