Pest Analysis EncanaThis essay Pest Analysis Encana is available for you on Essays24.com! Search Term Papers, College Essay Examples and Free Essays on Essays24.com - full papers database.
Autor: anton • January 3, 2011 • 717 Words (3 Pages) • 540 Views
PEST CASE STUDY: ENCANA CORPORATION
The province of Alberta has an abundant source of energy resources and the industry leading player is the EnCana Corporation. It has helped to provide an economic boom to the province which has brought with it job and economic growth, a rising housing market lifestyle changes and has also provided a large population of immigration/emigration workers. With this boom a number of disadvantages have also been identified such as the impact on the environment, homelessness and the idea that the oil & gas industry are the gatekeepers of the province.
Here are a few more pertinent facts about the corporation before I begin my PEST analysis.
EnCana has an industry leading land position with approximately 21 million net acres, of which 12.1 million are undeveloped
Approximately one third of the land is owned in fee title by EnCana, which means that all production is subject to mineral tax which is less than the Crown royalty imposed for production on government owned mineral rights land
EnCana is the leading North America unconventional natural gas and integrated oil sands company
The company is involved in the exploration, production and marketing of oil & gas and natural gas liquids
Natural gas sales averaged 2,185 million cubic feet per day in 2006 and are expected to increase
Crude oil and natural gas liquids sales averaged 142,210 barrels per day in 2006 (1)
The purpose of a PEST analysis is to examine the changes in a market place or company which are caused by Political, Economical, Social and Technological factors. Below you will find my brief analysis of the EnCana Corporation.
The oil and gas industry has to follow a string of both provincial and federal government regulations when it comes to the production of energy resources. There are potential fines and sanctions that can be set by various governmental depart at both levels if standards are not meet.
The following are some factors that could cause the EnCana Corporation and the oil & gas industry to have varying results.
a major issue effecting the industry is the revision of the Alberta royalty system, which would reduce the number of wells drilled
the federal Government aligning with other nations to establish Kyoto targets
Federal/Provincial elections as each jurisdiction wants more from the industry
Federal issues such as market based trade, equal tax treatment
Canada and US trade relations, the export of energy products is a growing issue
Environmental issues for infill well and off shore drilling
EnCanaÐ²Ð‚™s reserves are developed in some of the most challenging terrain and climate in the world in the world if accessibility becomes an issue the corporation or industry could lose millions per project