Petroleum is one of the fundamental substances necessary to make our economies function smoothly. It has shaped today's world as we know it - concerning both negative and positive elements.
However, petroleum will not last forever. It is has been estimated that the global oil re-sources will start thinning out and face depletion levels by 2020. This is a problem! This is a problem not just for the governments, but every human being and especially for the petroleum industry. The depth of this problem has remained relatively unrealized for a while, but not anymore! Right now, the petroleum industry's multinational companies have their thinking caps on and are furiously trying to come up with solutions to address this issue.
In this project, we will set out the solution for Royal Dutch Shell plc. Shell's turnover puts the company at the forefront of the petroleum companies of the world. The financial results and the market capitalization have catapulted the company to the second rank just behind General Electric. But like everybody, Shell realizes that the global oil sources are not endless, and the necessity to find alternatives to produce energy becomes increasingly urgent. We will outline how Shell will be able to prepare itself, its employees and customers for the future by implementing the necessary steps today.
To analyze the current situation of the company and to find solutions for this inevitable problem, we will compile a complete report regarding the history and the structure of Royal Dutch Shell plc. Initially, we will examine the structure of Shell, followed by the regulation aspect which is special stemming from the fact that it is a Dutch and an English company. Subsequently, we will study the internal structure, in particular, the different activities of Shell. And finally, we will identify the projects Shell was, still is or plans to be part of.
The second section takes a look at the environmental aspects of Shell's work. How is the natural environment affected by each step implemented by Shell? How does the general public react to it? How important is sustainability in the petroleum industry? These questions and others need to be answered to allow Shell to find its ideal positioning and strategy.
The next part will include Shell's current preparation for the future. We will explain in dept how Shell will become Shell green and why this has to happen. We will also pro-vide a rough plan of legal regulations which need to be considered, define the relation between the two brands and present our decision on the structure of the new business.
The final part will include our conclusion and a personal comment on the future of the oil industry and its second biggest company Royal Dutch Shell plc.
[...] To analyze the current situation of the company and to find solutions for this inevitable problem, we will compile a complete report regarding the history and the structure of Royal Dutch Shell plc. Initially, we will examine the structure of Shell, followed by the regulation aspect which is special stemming from the fact that it is a Dutch and an English company. Subsequently, we will study the internal structure, in particular, the different activities of Shell. And finally, we will identify the projects Shell was, still is or plans to be part of. [...]
[...] In case of Shell Green, we recommend: A long-term planned PR-strategy, working with well chosen partners like National Geographic (not aggressively but constantly) To participate/ exhibit in fairs which handle topics like environment, ecology and nature[24] Event marketing: Greenpeace is famous for its dramatic activities, for example, showing a melting iceberg in front of the Brandenburg gate in Berlin.[25] This is a tool which Shell Green can learn to use as well but before it does, it needs to determine how to do it and be aware of the message it wants to disseminate. [...]
[...] Strategy The re-organization of Royal Dutch Shell plc offers a special situation; with a new CEO of neither British nor Dutch descent at the helm of operations, the company is now ideally situated to think differently. This way of thinking has been brought to perfection by W. Chan Kim and RenĂ©e Mauborgne, the authors of the “Blue Ocean Strategy” (BOS). Using popular examples, e.g. Cirque du Soleil thinking differently by abstaining from typical elements of a circus show like famous stars or exotic animals and focusing on the artistic theme, they present a convincing way-of- thinking.[13] The title of the strategy explains the idea behind it: you have to find a way/strategy to leave the crowded market space with only little or no prospects for profits and growth. [...]
[...] Today, the company manages a lot of different projects apart from its traditional activities: Athabasca oil it's the production of extra heavy oil Chemistry: the company is working in the petrochemical industry with companies producing products related to plastics, coating, detergent, textiles, medicine, or computer Oil by-products A manufacturing site to produce bio fuel from algae in Hawaii Shell bio marathon”: challenge between twenty teams from different universities in the whole world, where they have to propose a project around renewable energy resources Regarding its future projects, Shell has formulated and implemented numerous action plans to address the current energy and credit crisis: solar energy wind power gasification of the coal “Future fuels”: projects researching on the fuel of tomorrow development of bio fuel, hydrogen and synthetic fuel new oil fields and gas fields million barrels per day) new facilities for the oil refinery new position on the different markets for the selling of lubricant and fuel 800,000 barrels of ethylene and 75,000 barrels per year of mono ethylene $32 billion worth high technology industrial portfolio new fuel in station for next year: fuel with products derived from wheat Environment The global crisis has battered the economy into its worst shape since the Great Depression of 1929. [...]
[...] Due to the financial crisis, oil prices have plummeted by In this regard, the company is understandably worried about how this dramatic decline would affect the projects that are currently underway in renewable energy.[8] In other words, those projects will not be financed because of the relatively low oil price levels; it will put a premature brake on bio-energy projects. Shell is of the unequivocal belief that the oil price will start to increase as soon as the economy recovers. [...]
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