COMPANY PROFILE -ConocoPhillips
Business Sector :Oil and Gas
Operating Geography :United States, North America, Global
About ConocoPhillips :ConocoPhillips is an American company headquartered in Houston, Texas. It is a multinational that deals in the exploration and production of oil and gas. The company was formed through the merger of two firms Conoco Inc. and Phillips Petroleum Co. in the year 2002. As of 2017, it is reported to employ roughly 12,200 people across the globe.
ConocoPhillips Revenue :$24.4 billion – FY ending Dec 2016
Competitive Analysis of ConocoPhillips
|1. Named under Dow Jones Sustainability Index North America |
2. Big brand name and a very strong market position
3. B rating for CDP climate survey
4. Worldwide presence
5. Focused on conservation of environment
|1. Decline in Oil production|
2. Decrease in the revenue
3. Increased Environmental hazards
|1. Improving oil demand across the world|
2. Increased demand in Britain following the Brexit
3. Expanding in countries like South Africa and Russia
|1. Introduction of Electric and Hybrid cars|
2. New rules issued in the US for offshore oil and gas drilling
3. Increase in the labor cost due to government regulations
4. Increasing rig counts in the US will cut the crude oil prices around the world
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Detailed SWOT Analysis of ConocoPhillips
1. Named under Dow Jones Sustainability Index North America: This has helped the firm to be the best in class and set a benchmark for the investors to recognize the sustainable business practices, which has helped in creating long-term shareholders value and also has helped the firm in reflecting the sustainability conviction in their investment portfolios. This will also open the doors for the socially responsible investors (SPI) to consider this firm as a good investment prospectus.
2. Big brand name and a very strong market position: The pre-established brand name helps the brand to get business easily since it is the first choice of a customer. Also, the brand equity of the firm is required to mark the success of the firm since it through this that the company has been able to gain a big market share.
3. B rating for CDP climate survey: This is a big winner for the company since the most harm made is through the emission of greenhouse gases and reducing the carbon footprint is the major challenge that the firm has successfully met. This shows that the company has strong values towards the environment and considers the importance of maintaining the ecological balance.
4. Worldwide presence: This helps the firm in developing a Global strategy which can ease out its expansion process. Also, this helps the firm gain access to a bigger pool of talent across the globe which can help them work in cross-functional domains. Also, the company’s reputation is increased since it will start gaining trust in the international market.
5. Focused on the conservation of environment: The Company is constantly working on improving their environmental index. They are using new technology to reduce the impact on land, water and air resources- including the greenhouse gas (GHG) emissions. They have also deployed innovative water recycling technologies in their operations. Thus this all adds to the value of the firm and helps in gaining more trust worldwide.
1. Decline in Oil production: The total production of crude oil (MDB) by the firm has gone down from 605 in FY2015 to 598 in FY2016, similar is the case with natural gas (MDB) which has gone down from 156 in FY2015 to 145 in FY2016. Thus this is showing that the there is a decrease in the demand of oil and products worldwide in the recent times.
2. Decrease in the revenue: The firm’s revenue was $30.9 Billion in FY2015, and this has gone down to $24.4 Billion in FY2016. This shows that there is a clear downward slope of the economy in this sector in the future and the company will have to make a more competitive strategy in future to sustain the global markets. Also since there are lots of competitors in the global market for this field thus, the firm cannot ignore them since ignoring them in the present will result in a great amount of loss in the future.
3. Increased Environmental hazards: However the company is working on the environment protection, but there is a chance that it causes a major threat to it. This is because accidents like oil spills and blowouts cause a great amount of harm to the aqua ecosystem and disrupt the normal life cycle of the affected region. Also, the water species are majorly harmed due to such activities, and this makes the government make more stringent rules for these type of organizations.
1. Improving oil demand across the world: With the increase in oil demand across the globe at around 1.3 million/d or 1-2% every year there has to be 55 million gallons of oil to be added to global consumption every year. Also since 85% of the current transportation is powered by oil thus the demand is bound to increase. Thus there is a good opportunity for the company to increase its market.
2. Increased demand in Britain following the Brexit: It is a good time for the firm to strike a deal with Britain and become its official supplier of crude oil and other fuels in future.
3. Expanding in countries like South Africa and Russia: The Company should look to expand into global markets worldwide. Amongst them South Africa and Russia can be targeted since these are the next hotspot for the offshore oil exploration in future. Quantifiable data proves that the Outeniqua Basin has reserves of 341 million barrels of oil equivalent and that can help to reduce coal-fired power generation.
The unpublished sections of the entire SWOT analysis is available in the 'Complete Report' on purchase.
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ConocoPhillips SWOT and PESTLE analysis has been conducted by Prakhar Chhabra and reviewed by senior analysts from Barakaat Consulting.
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