“The objectives of the Shell group are to engage safely, responsibly, efficiently, and profitably in oil, gas, oil products, chemicals and other selected businesses and to participate in the search for and development of other sources of energy to meet evolving customer needs and the world’s growing demand for energy (RDS, 2007)”. This is the business trademark of Royal Dutch Shell, engaging in business through supplying purified and extracted oil and gas resources coming from different refineries of 110 countries with 104,000 employees around the globe. Indeed, looking at the financial annual reports of Shell from 2003-onwards, it is not anymore amazing to feel that they subdue the global energy industry with their highly competitive strategy and management. Although, despite the controversies made by its executives particular the over-statement of its oil reserves, the RDS still secure its place on top of other rival companies. It can be thought that RDS with its strong and quite invincible management and efficient strategies for different operations it undertaken, it continues to flourish and growing.
The task of this paper is to present hypothetical constructions and assumptions basing these to the growth and development of Shell from 2003 onwards. However, since this is an attempt to hypothetically construct the future outcome of RDS, it should be considered that information given here are not purely opinionated rather grounded on the annual reports and financial statements published by RDS from 2003 onwards.
Against the background of high energy prices, competition for access to resources will remain intense. Cost inflation continues at a high rate, in certain cases exacerbated by a weakening US dollar. Capital cost inflation impacts upstream and downstream projects alike. Continued focus project delivery and on operational excellence will be a key for success. Only recently when there were considerable economic problems hovered around the global economic systems. One example was the United States economic crisis which today became intense and by economic analysts foresights affect the global economy. Without any doubt, some of global businesses are affected and other may manage to control. Shell in this case was able to manage to control the depressing crises on global economy brought about by the US economic inflation.
It is under its norm of strategy that RDS able to prevent the crisis in the global scale and that its sounds strategic principles shielded them from the great effect of global economic problems. The RDS strategy “seeks to reinforce our position as a leader in the industry and provide investors with a competitive and sustained total shareholder return.” One of the challenges that Shell is facing now is how to minimize environmental and social impact while continuing developing and improving its global energy sources and production.
The role of technology is clearly definable in the sense that it stands to be at the center of development and progress of the industrialized society. To make it more particular, the future of RDS resides more on the availability and advancement of technological. It is always been at the core of their strategy. “Our commitment to technology and innovation continues to be at the core of our strategy. As energy projects become more complex and more technically demanding, we believe our technologies and technical expertise will be telling factors in the growth of our business” (RDS, 2007).
Again, to see the future of the company is to examine and identify the present or existing strengths that serve to be the foundation of maintaining its financial status in global scale. Fundamental to Shell’s strengths are the application and development of technology, the project management skills that allow them to undertake large oil and gas projects across all of the businesses globally, diverse international business portfolio and customer-focused businesses. These strengths are significant in identifying the future of Shell.
Foreseeing the future in this context, as the world goes industrialized and technology-driven, oil and gas will play an integral role to it. Thus, even the Shell company sees such demands and put itself in a futuristic role to play that is to “ensure to extract and deliver the [products] in environmentally and socially responsible ways, safely, and profitably.”
Clearly, when we look at this point of reference, we can say that Shell in the future will still continue to grow and provide the same quality or higher quality of products. One of my grandiose predictions can be its ability to rule and dominate the global energy industry if it keeps its management and strategy effective and highly efficient.
Credit:ivythesis.typepad.com
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