Canadian Natural Resources SWOT Analysis, USP & Competitors

Canadian Natural resources Ltd

Parent Company

Canadian Natural resources Ltd

Category

Oil and Gas

Sector

Energy & Power

Tagline/ Slogan

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USP

To develop people to work together to create value for the Company's shareholders by doing it right with fun and integrity.

Canadian Natural Resources STP

Segment

Corporates and individuals with energy requirements

Target Group

Enterprises which require light/heavy oils, natural gas and gas liquids etc.

Positioning

Largest heavy oil producer/second largest independent natural gas producer in Canada

Canadian Natural Resources SWOT Analysis

Strengths

1. Strong market position in the Canada energy sector, due to strong natural gas assets, vast land base, developed infrastructure and a deep and diversified inventory of drilling prospects
2. Strong reserve base(of both proved and provable Crude Oil, Bitumen, SCO and NGL)enables a high production capability
3. Strong 3-pronged marketing strategy, viz (a) capture access to markets over short, medium and long term (b) support/participate in new pipelines, and expansions of new pipelines (c) support/participate in activities which add conversion capacity
4. CNR has operations in North America, the North Sea and offshore West Africa, with a total employee base of nearly 6000.

Weaknesses

1. Overdependence on North America depriving CNR of revenues from global higher growth markets
2. Lower Scale of operations (revenue and employees) as compared to its competitors puts it at a cost disadvantage against them

Opportunities

1. JV with NWU (North West Upgrading) will help CNR optimize its resources, improve production and revenue
2. CNR has a Focused drilling program in its bases to increase number of active wells will lead to production growth and value creation in its reserves
3. CNR has a Strategic capital investment program to complement its diverse assets base, to ensure financial flexibility and increase operational efficiency

Threats

1. Volatile crude oil/natural gas prices are a major threat, and significant decline in their prices can have averse effect on CNR’s financial condition
2. Intense competition with other Oil & natural gas companies, which are more robust in terms of assets and finances
3. Failure in timely reserve replacement by CNR can have adverse impact on its future cash flows

Canadian Natural Resources Competition

Competitors

1.Imperial Oil Limited
2.EnCana Corporation
3.Chevron Corporation

4.Petro-Canada Inc