SWOT - Shell

Strengths

• They also invest in biofuel, energy from hydrogen and wind power. It allows to be diversified and future-minded in a market which is more and more ecological concerned. Being diversified is a way to spreading risks. It can help to prolong longevity of oil’s deposit. Diversification into products, spreading risk.

• Shell currently invests in exploitation in order to ensure the future of the firm.

• They were among the first who used scenarios to plan different possible situation in the future. This way of thinking is helpful to become consumer- minded.

• Shell is an old firm who faced to many issues, they know how to react with a major problem.

Weaknesses

• Shell is still present in Nigeria in spite of the past events. The area is instable and there is security issues due to sabotages of some pipelines.

• Shell is focusing on the most profitable activities: oil and gas strong. It need constant and costly investments

• Shell get ride off the less profitable activities like solar. People are becoming more and more environmental friendly and expect that oil companies make an effort to be less hurtful for the earth.

• The image of shell is better than few years ago, but people still remember that shell used flaring and burning gas from oil extraction technique.

Opportunities

• Alternative energy and renewable energy are a way of diversification and the future of the oil industry

• Shell was able to move into areas which were considered as risky (Iraq for example). They also find a way to exploit bitumen sand in Canada.

• To get a better image, Shell tried in the past and still now to have a useful conversation with associations and it lead to less frictions.

• Every time, new oil’s deposits are discovered and it is not the end.

• Emerging countries (like the BRIC and the others) demand ever more fossil fuel.

Threats

• Fuel prices are very volatile and can interrupt the growth of the oil industry by reducing profits.

• There is a political risk in a lot of countries (nationalisation of the oil’s deposit)

• People are becoming ecological friendly and change their way of consuming by reducing their fossil energy consumption

• Prices are increasing and oil industry has to face to a huge competition between different companies to get more market shares.

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