“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
A multi-faceted holding company formed through reorganization in 1984 into an energy company to distinguish non-utility services (5). Crude resources from fossil fuels (oil, natural gas) are developed through drilling for interstate transmission, storage and distribution. The resource division involves gas, oil, natural gas for marketing, cost analysis of gas development, risk management, and distribution for the wholesale/retail industry (5).
of which is the mortality of human beings. This can be seen by the fact that
Although, British Petroleum is one of the most well-known oil companies throughout the world, they have had many problems in their past. “In Alaska, home to one of BP’s longest-standing and most important business units, the company produced nearly twice as much oil as ConocoPhillips, the other major company operating there, but since 2000 it has also recorded nearly four times as many large spills of oil, chemicals or waste” (Lustgarten 2). That was just one example of how BP has bee...
Since its discovery back in the year 1858 crude oil has been become one of the most sought after resources on the face of the planet. It is due to this fact that the oil industry has fallen into a rather odd category in the case of globalization and seeking out new markets, new labor and new customers. The reason being that the need for crude oil and fuel is always present therefore the product of oil in its basic sense sells itself and the companies do not have to go out and publicly advertise it in the sense that clothing lines and other commodities do. Oil companies must focus more on the matter of why an individual should buy their oil and along with other alternative fuels over their competitors even though in the end the companies products are the same thing. The company ExxonMobil has been the superior company in the oil industry for quite sometime now, and had plenty of success as individual companies before their merger in 1999. The reason for there success is partially due to the power they wield as the most successful company, leading to many new refineries around the world, making deals with smaller companies to gain access to new markets and are leading the world in alternative fuel research. However these things all come naturally to the biggest oil company in the industry, the real question is how they became the powerhouse they are now. That question can be answered by the way in which the company has not focused in globalizing their product of fuel and oil, but globalizing the image of the company company. This is achieved by focusing on charity in which they donate hundreds of millions of dollars, Foreign Direct Investment in areas in which they wish to expand by attempting to provide these impoverished areas wit...
taking away job from humans, increasing health issues and taking your personal life to the
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.
So in the year 2017, the top 25 MNCs are listed below that was published in the Global 2000 by Forbes, these are :
addressing on a wide scale because of its implications for the future life of humans and other
and is existing surely because of humans themselves- overpopulation. “Overpopulation is the problem” and causes other externalities such as pollution, deforestation, and a greater handful of biodiversity losses. In addition, overpopulation causes economic and political factors such as more consumption per person and the reduction of resources that can be provided per person. This contributes to the strain on ecological systems and the economic and population growth. With overpopulation, many resources become finite and an umpteen amount of ecosystems are being destroyed. Overpopulation relates to the impact of humans on pollution. Obviously with more human life, there is more necessity for jobs such as factories that give off fumes, automobiles, and the use for burning fossil fuels. In greater extent, this leads to an environmental factor in that it accumulates chemicals in food chains such as mercury, arsenic, and copper. It can lead to political problems as well, when trying to interact with other countries and stop the problem of global pollution and eventually endin...
has grown into a $49.7 billion corporation by clearly focusing on the goal of enabling commerce around the globe.
Furthermore met more than 60% of worldwide vitality request by the oil and gas industry. Advancement undertakings and foundation as far and wide as possible, depend on the business. The oil and gas industry is a basic industry globally. The business might be isolated into five parts:
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.
The largest world supplier oil company is Saudi Aramco. It is the most profitable company on the earth. Since it is the most powerful oil company, it has a great impact on the world economy. As a result, a strong international relationship was built with the Kingdom of Saudi Arabia. In addition, the strong developing of international relationship with other industrial countries resulted in massive contributions to the politics, economy, and many different aspects. In 1933, Saudi government bestowed oil concession to California Arabian Standard Oil Company (Chevron). The main factor for this grant was to explore the oil in the eastern region of the Kingdom of Saudi Arabia. After discovering a huge amount of oil, part of the grant was sold to other American oil companies in order to cooperate with each other to do more exploration and to deal with such a big job. In 1948, all these American companies were incorporated into Arabian American Oil Company (Aramco) shared 50% of its profits with Saudi government. Furthermore, the company’s shares had been acquiring by Saudi government to gain 100% of its ownership. In 1988, the name changed to Saudi Aramco. The Headquarter of Saudi Aramoc is located in Dhahran, a city in eastern region of Saudi Arabia. Saudi Aramco produces 10 million barrels of oil each day. The history of Saudi Aramco went through three major periods: exploring oil, interconnecting with the USA, and contributing to other many universal events.