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premier oil company - Essay Example
Author : antwan50
Pages 4 (1004 words)
PREMIER OIL (Author’s name) (Institutional Affiliation) Premier Oil is a self-governing British oil corporation with oil and gas interests within UK, Africa and Asia. It is dedicated exclusively to the industry’s upstream sector - the gas and oil exploitation – as contrasted with the retail and refining 'downstream' sector (Financial Times 2013).Premier Oil’s strategic group is the stakeholders…
This paper will use the Porter’s forces to analyze Premier Oil environment. Force One: Buyer Bargaining Power The negotiating power of purchasers for Premier Oil is fairly moderate but projected to increase due to high demand from emerging nations in Africa and Asia and their energy demands will have to be met. Crude oil, therefore, is extremely crucial as these emerging nations use a projected 20% of energy supplied from oil. Intrinsically, in the present day world, oil has grown more into a commodity rather than a necessity owing to the underscoring of greener, alternate energy such as hydrogen-cell power-driven vehicles (Financial Times 2013). Force Two: Threat of Substitutes The lure of alternate energy has inflicted a bigger problem to the crude oil business today than it has ever had. Alternatives for bio-fuel or hydrogen cell driven vehicles are easily available to the people. Even nowadays, homes are fitted with solar-energy panels plus they are subsidized by government subventions to counterbalance the huge startup costs required. ...