Canadian Natural Resources SWOT Analysis, Competitors & USP

Canadian Natural resources Ltd

Oil and Gas

Energy & Power

-

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

Corporates and individuals with energy requirements

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

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

Below are the Strengths in the SWOT Analysis of Canadian Natural Resources:

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.

Here are the weaknesses in the Canadian Natural Resources SWOT Analysis:

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

Following are the Opportunities in Canadian Natural Resources SWOT Analysis:

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

The threats in the SWOT Analysis of Canadian Natural Resources are as mentioned:

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

Below are the top 4 competitors of Canadian Natural Resources:

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

4.Petro-Canada Inc