Business Report Essay Example
Business Report 4
Statoil (STO), Origin Energy Limited (ORG) and other energy resources dealing companies operate in an industry that is becoming more complex as time moves. Accessibility of resources becomes challenging suggested by International Energy Outlook (2010). In the future, the change pace will go up and quality importance in execution will be higher, hence making efficient and safe operations more vital than ever. STO is still challenged by limited access to new energy resources and increasing international competition. Financial stability is a significant future challenge to STO. Substantial amount of company’s funding is channelled into research, expansion and development of new technologies in order to make, renewable, carbon capture and storage more competitive. Wind power is the potential renewable energy that is targeted by the company. Offshore wind, where Statoil has taken on various projects, is expected to take a significant share of the wind market when different large countries are to attain their renewable energy goals. Like STO, its rivalry Origin Energy Limited (ORG) is facing several future challenges. The company has several deals plans of joint venture partnership with other businesses which is a risk to the company since they involve a lot of funds. Origin is threatened with future international competition from other companies because several companies are coming into the industry with the increase in energy demand. All theses companies are faced with future requirements to utilize environmentally friendly technologies in their production according to UNEP (2002).
STO have taken several crucial decisions in order to cope with the future challenges that the company is facing. THE Global Strategy and Business Development (GBS) business area was established to achieve corporate strategies, acquisition activities, merger and business development in order to actively drive corporate development of Statoil. It has set a strong strategy direction and identifies, establish and deliver opportunities for Statoil’s global growth. It will be fully attained through close collaboration within the group across geographical business and regional areas. The business growth strategy is based on focused business development, exploration, divestments and strategic acquisition, and building long-term partnership.
Origin has invested millions of hundred of dollars in order to develop new reforms of large-scale renewable energy. It has collaborated with Geodynamics Limited to invest in cutting-edge technology to come up with base load renewable electricity from the hot rocks found in Australia desert. It partnered with microchip manufacturer Micron in undertook the Transform Solar joint venture to explore the large-scale production of affordable and more affordable solar panel. Currently it is in the feasibility stage a joint venture partnership with PNG Energy Developments Limited to change power generation on the Australian mainland, provide accessibility to a year-round source of a large scale of renewable base load power by developing a power station in Wabo of Papua New Guinea according to The Oil & Year Australia 2009 (2009). Origin has formed a $ 12.7 million partnership with the Australia Carbon Trust to increase the adoption of technologies that enhance energy efficiency and practices by businesses in Australia through the reduction of upfront capital expenditure. These important moves by the company have brought many benefits not only to the company but also to society. They have assisted in environmental friendly energies that have little effect with regards to environmental pollution. Through them, they company has empowered society by meeting some of its societal responsibilities.
Energy Information Administration (U.S.), U S Energy Information Administration, 2010, International Energy Outlook, Government Printing Office, Washington, DC
Wildcat Publishing Inc, 2009, The Oil & Gas Year Australia 2009, Wildcat publishing.
United Nations Environment Programme, 2002, Industry as a Partner for Sustainable Development: Oil and Gas, UNEP/Earthprint.
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