OIL &GAS

INDUSTRY
PREPARED TO
DR. MAHMOUD HASSANIN
PREPARED BY
GROUP#06
MOSTAFA ASHRAF MOHAMED MOHAMED – 18225358
SHAIMAA AHMED ABDELKHALEK SAAD ALAH– 20225241
MOHAMED SAAD NASR EL DIN ELBATEKHI - 20225237
ABDELRAHMAN MOHY – 17225716
 LAST YEAR SALES REVENUES

Aramco Eni

$400,399.1 ($M) 77.771 ($M)

Bechtel bp

$21.8 ($Bn) 164,195 ($M)

 RANK IN 100 TOP COMPANIES

Aramco Eni

6 12
Bechtel bp

35
3rd Top Oil & Gas
Construction Companies
 VISION
Aramco
To Be the World’s Pre-eminent
Integrated Energy and Chemicals
Company, Operating in A Safe,
Sustainable and Reliable Manner
Bechtel
Be the world’s premier engineering,
construction, and project management
organization
Eni
They make the difference through our
people, a team of dedicated
professionals, who value our customers,
deliver on our promises and contribute
to sustainable development.
bp
Our purpose is reimagining energy for
people and our planet. We want to help
the world reach net zero and improve
people’s lives.
 MISSION

Aramco Eni
We Will :
We are an energy company. We concretely support
1. reinforce our leading position in oil and gas
a just energy transition, with the objective of
exploration and production.
preserving our planet and promoting an efficient and
2. integrate our business across the hydrocarbon
sustainable access to energy for all. Our work is
value chain to create impact.
based on passion and innovation, on our unique
3- Enable the sustainable development of the
strengths and skills, on the equal dignity of each
Kingdom.
person, recognizing diversity as a key value for
4- Lead the way in technology development and
human development, on the responsibility, integrity
innovation.
and transparency of our actions. We believe in the
5- Strengthen our position as an employer of choice
value of long-term partnerships with the countries
and communities where we operate, bringing long-
lasting prosperity for all.
 MISSION
Bechtel
Core to Bechtel are our values – ethics, safety,
quality, people, culture, relationships, innovation and
sustainability, and our covenants – integrity, respect,
collaboration, trust, and delivery. They are what we
believe, what customers can expect, and how we
deliver.
bp
In All their Activities we seek to display some
unchanging, fundamental qualities - integrity, honest,
dealing, treating everyone with respect and dignity,
striving for mutual advantage and contributing to
human progress.
 SWOT
ANALYSIS
 STRENGTH
Aramco
1-Aramco is the most profitable company in the
world.
2-First Mover Advantage.
3-Strong Brand Equity and Brand Awareness.
4-Successful Go to Market Track Record.
5-Strong relationship with existing suppliers.
6-Diverse Product Portfolio of Aramco .
7-High Margins.
Eni
1-Supermajor Company.
2-Operates in Many Fields.
3-Exploration & Production.
4-Vertical Integration .
5-Research and Development.
6-Sustainable Development .
 STRENGTH

Bechtel
1. Largest US-based contractor in terms of revenue.
2- Assistance with cleanup efforts at Fukushima
Daichi.
3- Sharp reduction In carbon footprint and water
consumption .
4- long list of high-profile public and private projects
completed.
bp
1-BP has several subsidiaries and retail brands that
include Amoco; ARCO; BP Express, etc., which
provide the company with a diversified revenue
portfolio rather than simply relying on its energy
business.
2- BP Amoco has a strong brand loyalty to its oil
business.
3- The 'Beyond Petroleum' slogan has served BP
well so that it is being recognized for its participation
in other industries and markets.
 WEAKNESS

Aramco Eni
1- The company is currently highly dependent on a 1-High Employee Turnover.
single source of income (crude oil). 2-Local Monopolies.
2- Aramco is not efficiently managing the inventory 3-Declining Market Share.
and cash cycle 4-Expensive Tech.
3- Lack of critical talent - especially in the field of 5-Limitations in Diversifying
technology & digital transformation.
 WEAKNESS

Bechtel
1- Sharp fall in new work bookings .
2- Billions of dollars' worth project payments pending.
bp
1- The company has faced many oil spills and disasters that
led to fatalities and significant environmental damage around
the world.
2- Company executives were dishonest and poorly handled
these disasters, which further tarnished their image and led to
massive penalties, fines, and costs to assist those areas that
were damaged.
3- The ongoing focus on climate change and the reduction in
the use of fossil fuels has put more pressure on the company
to migrate into providing clean energy options.
4- BP has closed many oil wells, leading to many layoffs,
which have occurred in poor economic cycles, furthering the
brand image that the company is uncaring and greedy.
 OPPORTUNITY

Aramco Eni
1-Opportunities in Adjacent Markets. 1-Accelerated Tech.
2- Reducing Cost of Market Entry and Marketing 2-Government Regulations.
into International. 3-Environmental Changes.
3- Lucrative Opportunities in International Markets. 4-Global Expansion.
4- Increasing Standardization. 5-New Acquisitions & Partnerships.
5- E-Commerce and social media Oriented Business
Models.
6- Developments in Artificial Intelligence.
 OPPORTUNITY
Bechtel
1- CityFibre project to improve internet access
across communities in the UK.
2- Revolutionize public transport through
Sydney's new metro.
3- Expanding renewable energy portfolio.
4- Explore global opportunities for new build
Bioenergy with carbon capture and storage
(BECCS).
bp
1- The company has the potential of becoming a market leader in
many alternative fuel and energy markets if it can invest in research
and reposition its strategy. These market opportunities include wind,
solar, and hydrogen.
2- There are opportunities for BP to expand into new geographic
territories with its alternative fuel and energy opportunities.
3- BP can partner with certain countries in developing solutions for
infrastructure issues in order to move into the use of clean energy
options, positioning the BP brand around innovation and
environmental responsibility.
4- BP can focus on further developing many of its subsidiaries that
are outside of its petrochemical focus to enhance revenue streams
in these areas.
 THREATS

Aramco Eni
1-Squeezing Middle Class in Developed and 1-Growing Competitors.
Developing World - The growing inequality 2-Saturation and Stagnation.
2- International Geo-Political Factors 3-Eco-friendly Fuel.
3- US China Trade Relations 4-Climate Changes.
4- Government Regulations and Bureaucracy 5-Political Volatility.
5-Culture of sticky prices in the industry 6-Russia & Ukraine War.
6- The Middle East region experiences many social-
political conflicts.

Bechtel
1- Low energy demand due to COVID-19.
2- Fluctuations in prices of meats.
3- Business severely affected by seasonal or
political disruptions.
THREATS
bp
1- Environmental issues may continue to be a threat if the company
does not formalize its corporate social responsibility and put it at the
forefront of its strategy.
2- The company will continue to face lawsuits and penalties if it
does not address these environmental issues and poor safety
practices.
3- It faces increased competition from other companies like Shell
and Chevron, which are dealing with these environmental issues
better than BP and have enhanced their brand reputation.
4- BP's tarnished brand reputation continues to be a threat to its
future growth and profitability potential due to how it handled the
last major disaster associated with the company.
5- Economic pressure is a threat, especially in terms of volatile oil
prices around the world, furthering the need to focus on the
migration to alternative fuel for its energy solutions.
 COMPETITIVE ADVANTAGES
Aramco
1- Aramco has some of the world's largest
oil fields, leading to very low costs.
2- “Aramco's scale of production in
combination with its vast hydrocarbon
resources is a very strong competitive
advantage.
Eni
1-Vertical integration: engaging in the exploration and production of natural
gas, oil, etc. The upstream market involves exploration and production. In
the downstream market, it is in the marketing of power generation and
mining.
2-Research and development: to improve its technology to decrease its
carbon footprint and greenhouse emission while trying to extract more fuel
with fewer efforts.
3-Operates in many fields: Other than the oil and gas industry, the company
has a broad presence in fields including contracting, nuclear power, energy,
mining, chemicals and plastics, refining/extraction and distribution
machinery, the hospitality industry and even the textile industry and news .
 COMPETITIVE ADVANTAGES
Bechtel
Bechtel's people. We believe that successful
companies will be those that excel at bringing
together competent and committed individuals
with diverse backgrounds and perspectives. It's
why we aspire to be the employer of choice for
the most talented people in our industry.
bp
British Petroleum has achieved its competitive advantage
through its business strategies b cutting cost, innovating
new products such as renewable energies, efficiently
working on research and development and also utilizing
its sales and marketing strategies.
 STRATEGIC ORIENTATION

Aramco Eni

Growth Growth

Bechtel bp

Growth Growth
 BUSINESS LEVEL STRATEGY
Aramco
Aramco has combined adopted strategies Cost-leadership,
differentiates and Focus to handle the competitive pressure.
The main strategy for Aramco is the Cost-leadership strategy .
Bechtel
Bechtel, a global leader in engineering, procurement and
construction (EPC), has established the corporate Strategy and
Business Development group to bring an enterprise-wide focus to
the customer experience, grow business development talent and
accelerate the pursuit of new market opportunities.
The main strategy is the Differentiation.
Eni
ENI have a competitive strategy, combining the cost
leadership and differentiation strategies.
bp
Building on our purpose, together with our beliefs about the
future of energy systems and changing customer demands,
our strategy is built on three focus areas of activity and three
sources of differentiation to amplify value.
1-Resilient hydrocarbons – high-grading our portfolio,
lowering our emissions and driving returns.
2-Convenience and mobility – doubling adjusted EBITDA,
sustaining returns, focused on customers.
3-Low carbon energy – building scale with capital discipline
and returns focus.
 INDUSTRY MAP
Aramco Eni
Price: Low Price: Medium

Product Line Breadth: High Product Line Breadth: High

Group include : PetroChina Co. Ltd. ( PTR) , Exxon Mobil Corp. Group include Chevron, Subsea7 and Technip

( XOM), TotalEnergies SE (TOT),

Bechtel bp
Price: High. Price: Medium
Product line breadth: High. Product line breadth: High
Major Competitors : Balfour beatty, Acciona, Mcdermott, Zachry Major Competitors : aramco, rosneft, apache, shell, eni
Group, AECOM, Flour Corporation.
Major Brands : Bantrel Co., Consolidated Nuclear Security,
Bechtel Plant Machinery Inc., Bechtel Oil, Gas and chemicals,
Bechtel Nuclear, Security and Environment Inc., Tube lines.
INDUSTRY MAP
 FUTURE THREATS
Aramco Eni
1- The slowing demand for oil in Asian markets. 1-Eco-friendly Fuel.
2- Oil consumption too could decline in Asian markets, leading to 2-Climate Changes.
diminished oil exports to these markets. This could slash the 3-Increasing trend toward isolationism in the American
value of the Aramco stocks, as most of Aramco’s exports go to economy.
Asia.

Bechtel bp
1- Demand for new private sector projects has virtually 1- Eco-friendly Fuel
disappeared. 2- Committed to the carbon challenge
2- the efficiency of project permitting, and approvals affects 3- Climate Changes.
private sector demand. 4- Better barrels from better projects
 HOW TO OVERCOME
Aramco
The company developed processes and systems to monitor
projects more effectively and intervene only when needed to
proactively address emerging issues.” He pointed The
priorities that need to be addressed by the construction
industry, namely, efficiency and productivity, project cost and
schedule overruns, and quality.
Bechtel
1- Increasing public sector demand for projects is critical to
offset the retreat of the private sector.
2- Improving the efficiency of project permitting and
approvals will help accelerate the recovery in private sector
demand.
Eni
1-ENI must place the renewable energy at the center of their
strategy and design technological solutions in the field of
renewables and environment protection.
2-ENI must design and solutions to reduce the emission of carbon
dioxide in order to not face any costs increases.
3-ENI shall develop a contingency plan in case of any changes in
economic governments after the isolationism in the American
economy.
bp
bp have an established and growing Alternative Energy business,
with a significant portfolio across five businesses – Biofuels;
Biopower; Wind Energy; Solar Energy; Renewable products
(Butamax bio-isobutanol) – and we are developing new business
models in areas such as low carbon power and digital energy.
 COMPANY “ X”
SWOT
S- Strengths
1- Sustainable Development
2- Strong Financial Stability
3- Diversity & Inclusion of competent resources
4- Acquiring high end developed automated software’s to manage
the company’s business.
O- Opportunities
1- The Government focus on grasp investors into the market and
their willing to find new sources of energy
2- The Current economic growth rate in Egypt
3- There are a lot of existing facilities in Egypt that can be easily
acquired or rented by the company instead of constructing from
scratch
4- The new well-developed Infrastructure and roads in Egypt
5- The Ease of getting bank loans with low interest rates and the
current focus on the stock market shares.
W - Weakness
1- The fossil fuels usage has put more pressure on the
company to migrate into providing clean energy option.
2- Expensive utilized technology and automated software’s.
3- Sharp fall in new work bookings
4- Highly dependent on a single source of income (crude oil).
T-Threats
1- High prices inflation and USD values hike comparing to
the EGP value.
2- The new trend and focus of searching for new renewable
energies in lieu of using oil and gas.
3- High competition due to the existing global competent
companies within this field.
 COMPANY “ X”
FULL MISSION STATEMENT
Our company “company X” doesn’t have an official mission statement, but provides
several different statements called: “What we do”, “What we stand for” & “What we
value”. In this evaluation, we use a combination of all 3 “X” statements, because they
resemble a true mission statement.

1. What we do:
We find, develop, and produce essential sources of energy. We turn these sources into
products that people need everywhere. The world needs energy, and this need is growing.
This energy will be in many forms. It is, and will always be, vital for people and progress
everywhere. We expect to be held to high standards in what we do. We strive to be a
safety leader in our industry, a world-class operator, a good corporate citizen, and a great
employer. We are X.
 COMPANY “ X”
FULL MISSION STATEMENT
2. What we stand for:
Above everything, that starts with safety and excellence in our operations. This is
fundamental to our success. Our approach is built on respect, being consistent and having
the courage to do the right thing. We believe success comes from the energy of our
people. We have a determination to learn and to do things better. We depend upon
developing and deploying the best technology and building long-lasting relationships. We
are committed to making a real difference in providing the energy the world needs today,
and in the changing world of tomorrow. We work as one team. We are X.
3. What we value:
 Safety
 Respect
 Excellence
 Courage
 One Team
 COMPANY “ X”
FULL MISSION STATEMENT
3. What we value:

 Safety
 Respect
 Excellence
 Courage
 One Team
COMPANY “ X”
FULL MISSION STATEMENT
1. Customers: we target to serve the Power stations, factories, and auto
services
2. Products or services: Supply Petroleum raw materials and petroleum
products
3. Markets: Expansion to cover all Egypt
4. Technology: Latest technology methods, innovation in cost reduction
and enhance quality
5. Concern for survival: the company committed to growth and increasing
profit margins
6. Philosophy: safety and excellence in our operations, our approach is
built on respect, being consistent and having the courage to do the right
thing, and We depend upon developing and deploying the best
technology and building long-lasting relationships
7. Concern for public image: one of the most trusted companies in oil and
gas industries.
8. Self-concept: Diversity & Inclusion of competent resources, Sustainable
Development, Strong Financial Stability, and Acquiring high end
developed automated software’s to manage the company’s business.
9. Concern for employees: manpower is the main assets for company to
ensure loyalty
COMPANY “ X”
FULL MISSION STATEMENT
Does it include…?
Customers Products/ Services Markets
Yes Yes Yes
Technology Concern for survival Philosophy
Yes Yes Yes
Self-concept Concern for public image Employees
Yes Yes Yes
Does it mention values like…? Customer or product-
oriented?
Citizenship Teamwork Product-oriented
Yes Yes Score
Excellence Integrity
Yes Yes 3.9/4.5
COMPANY “ X”
INDUSTRY MAP
• Since the Egyptian market is a
promising and attractive
market in the field of
petroleum discoveries and
due to the availability of good
infrastructure, Company X will
be in great competition with
companies such as: (e.g., Eni,
bp, Apache, Rosneft, shell,
enap, Apex….)
 COMPANY “ X”
PORTER’S 5 FORCES
Forces Description

Threats of New Due to extremely high capital expenditure needed to enter the industry, the threat of new entrants is extremely low. Also, there are
multiple international firms with high brand awareness and well-established manufacturing, distribution and logistics channels that
Entrants come with years of experience.

Threats from The threat from substitutes in the industry is relatively high. Firms in these industries must constantly be aware of trends and
advancing technology that could take advantage of current and alternative energy resources as social-culture trends continue to shift
substitutes towards environment consciousness. Electricity and solar power sources are being developed and utilized in more and more places.

Bargaining power The bargaining power of buyers for firms in the petroleum, LNG, oil and chemical industries is very low. There is a high demand for
energy and chemical products to accommodate transportation, power and agriculture needs, to name a few. These buyers are
of Buyers completely dependent on energy and chemical suppliers unless the can supply the means to produce energy on their own.

Bargaining power For firms who are very vertically integrated, the bargaining power of suppliers is low since vertically integrated firms can supply the
means for production and distribution on their own.
of Suppliers For firms that rely on outside companies to supply drills, distribution, or other necessities, the bargaining power is high, which
increases the rationale to invest in upstream and downstream integration.

Rivalry from Rivalry from existing firms is extremely high. While there are expensive and high barriers to entry, the existing firms in the industry
are very powerful and established. There are at least 25 companies who market capitalization is at least 1 billion $. The top firms have
Existing Firms extensive and elaborate research and E&P (Exploration and production) divisions to stay technologically ahead with sufficient assets.
 
Therefore, after clarifying the porter five forces, the new company can enter the market in Egypt.
 COMPANY “ X”
BUSINESS LEVEL STRATEGY
1. Since this is (Consolidated Industry) Company X will adopt the implementation
of the (Cost leadership) strategy for the following factors:

2. Fierce competition with major companies (Red Ocean).

3. Desire to obtain a large part of the exploration rights.

4. By applying this strategy, the highest profits can be achieved.

5. In the case of crisis, the company will be able to mitigate its losses.