“The moral issues of distributive justice are unlikely to be realised if biophysical limits to
growth are ignored” - Philip A. Lawn, 2001.
Introduction
This paper evaluates the likely impact on the competitive position of PETRONAS if it were to
strengthen its business strategy based on Sustainable Development.
PETRONAS, acronym for Petroliam Nasional Berhad, is a Malaysian owned oil and gas
company that was founded on 17 August 1974. Wholly owned by the Government, the
corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with
the responsibility of developing and adding value to these resources. PETRONAS is ranked
among Fortune Global 500’s largest corporations in the world. In 2007, its revenue was in
excess of US$51 billion.
Source: Wikipedia and Fortune Global 500
Since its incorporation it has grown to be an integrated international oil and gas company with
business interests in 31 countries. As of the end of March 2005, the Petronas Group
comprised 103 wholly owned subsidiaries, 19 partly-owned outfits and 57 associated
companies. Together, these companies make the Petronas Group, which is involved in various
oil and gas based activities. The Financial Times has identified PETRONAS as one of the
“new seven sisters”: the most influential and mainly state-owned national oil and gas
companies from countries outside the OECD.
Source: FT.com, 11 March 2007
The Group is engaged in a wide spectrum of petroleum activities, including upstream
exploration and production of oil and gas to downstream oil refining; marketing and
distribution of petroleum products; trading; gas processing and liquefaction; gas transmission
pipeline network operations; marketing of liquefied natural gas; petrochemical
manufacturing and marketing; shipping; automotive engineering; and property investment.
PETRONAS built the Petronas Twin Towers (opened 1998), the tallest twin towers and once
the world’s tallest buildings, as its headquarters.
Source: PETRONAS
The Reality
The looming growth of globalisation and continuous development have resulted in a negative
impact on the environment, which will be detriment to the survival of mankind and other
living things on this planet if we do not take the necessary steps to reduce this impact. As for
our planet, it has all the time in the world to regenerate itself, but we don’t.
The threat to our survival has become more apparent with the increasing number of
environmental catastrophe such as earthquakes, flooding, drought, water shortage, depleting
natural resources and ultimately the increase in Greenhouse Gases fueled by rapid
of which is the mortality of human beings. This can be seen by the fact that
One of the ExxonMobil 's advantages is that it works in the entire operation of oil development from production, resource exploration, refining, and manufacturing of byproduct. The company has a vertical integration in the oil and natural gas industry including upstream and chemical operations division. Accordingly, this helps the company to diversify investments so as to get high revenue from various sections of the industry.
Humans can not be the only thing that is hurting the Earth. When you really think about it, Earth goes through a lot of natural disasters, which cannot be controlled. According to an activist, Tim Haering, “Tsunamis, floods, volcanoes, earthquakes, tornadoes, wildfires, disease nature kills more than we kill each other.” Earth throws in all of these natural ...
oil in Nigeria. Nigeria’s large supply of high quality crude oil helped Shell climb to the top,
Well known, this issue can be the main cause for many problems in our environment
Exxon Mobil Corporation was incorporated in the State of New Jersey in 1882. Mr. Rex W. Tillerson is the current CEO, Director and President of ExxonMobil Corporation. He was appointed Chairman of the Board and Chief Executive Officer on January 1, 2006. According to Annual Report Form 10-K, Mr. Tillerson still carries these positions. Exxon Mobil’s nature of business is “energy, involving exploration, form and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of natural oil, fuel, and lubricant products. Exxon Mobil is also a major manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a wide variety of specialty products”. The primary products and services of ExxonMobil are the production and sale of fuels ranging from diesel, gas and Liquefied Petroleum Gas (LPG) for commercial and industrial applications; passenger, commercial, marine, aviation and industrial lubricants, signum oil analysis; base stocks and specialty products.
... the harmful effects that we will experience later on. It is important that we do our best to preserve the incredible natural landscape we’ve been given, and not destroy it rapidly, as we have tended to do.
For many years, IBM succeeded in holding a very good market position. In fact, the company achieved a very high market share and huge profits. However, this situation did not last forever. In 1990, IBM experienced its first quarterly loss of $2billion due to some unexpected accounting charges. However, revenues increased from $62.7 billion in the previous year to $96 billion. In 1991, the c...
addressing on a wide scale because of its implications for the future life of humans and other
With the government eventually breaking up the trust into thirty-eight companies, the world of petroleum products was about to change. Few companies could survive. They lacked focus and sustainability, basically they needed a strategic plan. When first broken up the companies needed to sever from their Standard ties while remaining a brand name that people recognized. With so much competition one company had to find an edge over the other. They needed to be the low-cost leader in the industry. Out of this struggle is where three of the biggest oil companies emerged. They are Exxon, Mobil and Chevron.
over great distances, causing adverse effects such as acid rain in areas far from the
The industry is divided into three distinct sectors including the upstream, midstream and downstream sectors. The upstream sector includes the exploration and production of crude oil as well as the exploration and production of natural gas. This sector has experienced the largest amount of deals in terms of mergers and acquisitions, which will be further discuss in section III. The midstream sector involves the transportation of extracted petroleum from the upstream sector through pipelines, rail, barge, truck as well as storage. Finally, the downstream sector connects the end consumers through derived products such as gasoline, liquefied natural gas (LPG), liquefied natural gas (LNG), kerosene (aircrafts), and diesel…
continue to impact our planet at a faster and more destructive rate over time unless
the world which are detrimental to Earth and are progressively causing global warming and an
...e fate and collapse due to the overuse of resources and not allowing Earth to replenish.