Swot Analysis In Petroleum Industry

SWOT ANALYSIS

STRENGTH

1. Strong Distribution and Sales systems

2. High Profitability and Revenue - Revenue arrangements are naturally related to profits from crude oil barrel sales. Thus, increases in net profit per barrel add positively to government revenue. Government revenues are public funds, used to fund essential public services and public policy in every sectors, which contribute substantial economic and social benefits to the people.

3. Employment - The increase in production of crudes has had a noteworthy impact on provision of direct and indirect employment. Instance 1 – USA – 2009 – 2013 Regardless of job losses due to the Great Recession in

In order for these resources to get where they are needed, we need more pipelines-the safest way to move fuel.

This shows that in coming years big opportunities can be seen for petroleum pipeline transportation industry.

2. Increase Safety -Opportunity to increase safety of pipeline by monitoring DAS technology.

3. Income Increase Rate – The income in the petroleum transportation industry is increasingly constantly due to the growing operations of E&P in O&G Sector therefore the need to transport the crude oil is also increasing.

4. Skills of Employees – Skills of the personnel in the field of logistics and monitoring is very import factor for majority of companies, nevertheless for some companies it is threats, for other opportunity.

5. Technological Trends - Technological trends like sophisticated mounts, monitoring during transport of the dangerous materials, tracking of the shipments and navigation in the field of logistics must be executed by each company in order to have edge over the other

Human Health - The contiguity of pipelines to groundwater sources can cause serious contamination that may have a detrimental impact on communities. If dilbit is involved in a spill, the diluent evaporates rapidly in the air and can lead to high airborne levels of toxic components. This adversely affects the health and safety of surrounding societies.

3. Ecological: If ingested by aquatic organisms, oil spills can cause serious harm and death. Submerged oil pipeline can have progressive impacts leading to abnormalities in newly born aquatic species. A land spill can degrade the topsoil or penetrate deep into a local aquifer, impacting the health and economic wellbeing of the surrounding communities.

4. Economic: In addition to the costs suffered in cleanup activities, an oil spill may negatively affect the provincial economy.

Instance 1 –2010 - Enbridge Pipeline Kalamazoo River Spill some local workers in surrounding groups sold their homes, fearing a fall in market prices. In 2014 local businesses continue to be affected by loss of customers.

Oil Spill due to pipeline failure can result in significant economic and employment costs by putting existing jobs at risk.

5. Physical Environment –Sometimes the physical environment can lead to the pipelines failures. Subsea pipeline are more prone to corrosion than the pipeline present in tropical region.

Example 1