An economic perspective on Shell UK
Uploaded by balsheel@yahoo.com on Mar 18, 2007
The Royal Dutch Shell PLC
The ‘energy’ market is an ever booming and ever evolving one in many countries. The impact that energy fuel has on the varying economies of the world is to a large extent due to the fact that ‘OIL’ and any other fossil fuel is regarded as one of the most precious commodities of this planet which determines fluctuations in currencies, economies, political systems, and prices of all other commodities: basic or otherwise luxurious, as it is one of the main component of production. In this paper, I will be looking at the Shell organisation in the UK. This report will cover some major economic contribution factors of that organisation to the UK economy and give an economic point of view of how the organisation operates, its conduct and performance. I will provide an in-depth analysis of its market structure, its operations, the degree and type of competition it faces and the type of competitive advantages it may offer. I will do so by using economic tools and doing a constant comparative analysis where appropriate of Shell and its competitors.
History: As brief as possible
The Royal Dutch/ Shell Group of Companies was formed in February 1907 when the Royal Dutch Petroleum company merged with the ‘Shell’ Transport and Trading Company ltd. The terms of the merger gave 60% of the new Group to the Dutch arm and 40% to the British. Royal Dutch/Shell is the world's second-largest oil company by revenue, Europe's largest energy group and a major player in the petrochemical industry and the solar energy business.
Shell has six core businesses: Exploration and Production, Gas and Power, Downstream, Chemicals, Renewables, and Trading/Shipping, and operates in more than 140 countries.
OPERATION: SHELL
Known to many millions of people throughout the world as ‘Shell’, the named company is one of the world’s main distributors of crude oil and gas and other such fuel that relates to burning energy. In the UK, Shell delivers a majority of the energy that is used by the British. But Shell’s contribution is not only limited to fuel, but also contributes enormously towards the British Economy through employment, tax revenues as well as investments. Shell boasts the ‘only oil refinery in the UK’ . Shell U.K. has a number of sub companies which are specialised in various fields of the ‘petrol’ industry. Amongst these companies are the Shell U.K. Oil...