Published by MBA Skool Team, Last Updated: April 12, 2020
SWOT analysis of Cenovus Energy analyses the brand by its strengths, weaknesses, opportunities & threats. In Cenovus Energy SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Cenovus Energy to benchmark its business & performance as compared to the competitors. Cenovus Energy is one of the leading brands in the energy & power sector.
The table below lists the Cenovus Energy SWOT (Strengths, Weaknesses, Opportunities, Threats), top Cenovus Energy competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).
Corporates and individuals with energy requirements
Entities which require crude oil, natural gas, Bitumen and Natural gas liquids
Canada based integrated oil and gas producing company
SWOT Analysis of Cenovus Energy
Cenovus Energy Strengths
Below are the Strengths in the SWOT Analysis of Cenovus Energy:
1. Cenovus makes use of self-developed advanced innovative technologies like Dewatering (to reduce the Steam-To-Oil ratio for its Steam Assisted Gravity Drainage (SAGD) process), Flue-Gas Recirculation (to recycle exhaust from steam generators used in SAGD process) and SkyStrat drilling rig etc., which improve its production efficiency and help it gain a stronger market position 2. Cenovus has a diversified revenue sources base. It is engaged in production of oil( from both conventional and non-conventional resources) , bitumen, natural gas and heavy oils, which helps it mitigate market risks due to volatile commodity pricing 3. Integrated refining operations of Cenovus (both its own crude oil production from oil sands and 50 % ownership in two US refineries) help it capture the full value chain from oil production to refined products, boosting up its finances in the process
4. Strong sustainable operations makes it a prominent industry player
5. 5000+ skilled employees form a strong workforce
Cenovus Energy Weaknesses
Here are the weaknesses in the Cenovus Energy SWOT Analysis:
1. Declining natural gas production due to reduced natural gas capital spending for the previous few years, divestiture of a non-core property (Boyer) and anticipated declines in production has impacted Cenovus’ revenue streams greatly 2. Significant decline in proved and proved plus probable natural gas reserves( due to lower gas prices in the forecast, causing certain reserves to become uneconomic to produce, and affecting the company’s financial health
Cenovus Energy Opportunities
Following are the Opportunities in Cenovus Energy SWOT Analysis:
1. Increase in Crude Oil demand by US Gulf Coast refineries gives impetus to Canadian companies like Cenovus to increasingly trade with these newer markets in the US 2. Availability of newer technologies (like JAGD or J-well Gravity Assisted Steam simulation) for in-situ extraction processes is a good opportunity for producers of oil from oil sands(like Cenovus) to improve cost efficiencies while meeting stringent environmental regulations 3. New pipeline expansion projects (like the Sandpiper project and the Enbridge Bakken Expansion project) will help major oil producing Canadian companies like Cenovus etc., to access more lucrative American and other markets at lower costs
Cenovus Energy Threats
The threats in the SWOT Analysis of Cenovus Energy are as mentioned:
1. Operational hazards typical to oil &gas companies, which could lead to damage of facilities, loss of lives, property etc. and cause prolonged shutdown of facilities can decrease production of the company, thereby reducing revenues substantially 2. Fluctuations in future commodity prices depend on several external factors, outside the realm of control of the company, and can cause adverse impacts on the financial health of the company 3. Stringent environmental regulations in Cenovus’ biggest market, the US( for example, the New Source Performance Standard(NSPS) proposed by the US Environmental Protection Agency to limit CO2 emissions) can cause additional liabilities and/or unforeseen losses for the company
Cenovus Energy Competition
Cenovus Energy Competitors
Below are the top 4 competitors of Cenovus Energy:
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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