Statoil SWOT Analysis, USP & Competitors

Statoil

Parent Company

Statoil

Category

Oil and Gas

Sector

Energy & Power

Tagline/ Slogan

Never satisfied. Always evolving. Always determined.

USP

Largest and most experienced operator on Norweigan continental shelf

Statoil STP

Segment

Corporates and individuals in European markets

Target Group

Entities which require crude oil, condensate and natural gas

Positioning

International energy company accommodating energy requirements of the world in an innovative, responsible manner

Statoil SWOT Analysis

Strengths

1. Strong market position as a result of its merger with Hydro Petroleum allows it to take advantage of economies of scale and ensure revenue growth
2. Large customer base comprising of large national or regional gas companies such as E.ON Ruhrgas, GdF Suez, ENI Gas & Power, British Gas Trading (a subsidiary of Centrica), Distrigaz, and GasTerra reducing risks faced and increases revenue generation capacity
3. Its vertically integrated operations have given it a competitive edge in the market as compared to other players
4. Its liquidity position, as compared to its competitors, is extremely strong as a result of strong financial flowing and cash flows
5. Its geographical diversification (with operations in North America; Latin America; Africa; the European, Caspian, and Russian area; and Middle East and Asia) and an employee base of nearly 23,000 is one of the significant factors which help its growth and profitability

Weaknesses

1.Asset concentration in the Norwegian Continental shelf which is maturing and its reserves slowly depleting, will impact the company’s production capacity and put it at a competitive disadvantage
2.Overdependence on a single region (Europe) for revenue )increases its exposure to local factors and puts it at a disadvantageous position as compared to other companies which have a wider geographic presence
3. Its profitability position has not been strong since some time, owing to a variety of factors

Opportunities

1.Renewable Energy generation capacity of the company, esp. in offshore wind and CCS (Carbon Capture and Storage) will help it create new business opportunities and provide a competitive edge
2.Expansion through several acquisitions will improve its asset position and strengthen its top-line growth
3.Divestments of certain percentages of its assets and licenses on NCS and NOK will help Statoil to optimize its portfolio, increase liquidity to invest in core businesses, and thus enable the company to improve its margins

Threats

1.Political instability in regions where it has its assets and international operations (as Caspian Sea, Persian Gulf, Venezuela, Nigeria, and Angola etc., can disrupt its operations thereby causing a decline in production and affecting its revenue inflow
2.Exploratory drilling risks can , to a large extent, hamper its operations and cause death and other harm to its employees, thereby taking a chunk of its resources in trying to defector this
3.Stringent HSE (Health, safety and environment) regulations such as  Norwegian Petroleum Act of November 1996, can affect the smooth flow of its operations and strategic growth opportunities as a large part of its capital budget may be spent in complying with such codes

4.Intense competition with other players in the market which are more resourceful in terms of finances, and operations may erode its market share

Statoil Competition

Competitors

1.BP Plc
2.ExxonMobil corporation
3.Royal Dutch/Shell group

4.Imperial Oil Limited