Essays on Royal Dutch Shell Company - Inter-Relationships Case Study

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The paper "Royal Dutch Shell Company - Inter-Relationships " is an outstanding example of a business case study.   The Royal Dutch Shell explores for natural gas as well as crude oil across the globe, from sources, like coal formations, shale and tight rock as well as in conventional fields. Shell has for many years worked hard to develop natural gas and new crude oil supplies from different fields. The various segments in the company include Corporate, Upstream, Downstream as well as Integrated Gas. As pointed out by Reuters (2016), Shell cools natural gas to generate liquefied natural gas (LNG) which could be shipped safely to various markets across the globe.

Besides that, the company converts gas into liquids. Shell trades and markets carbon-emission rights, natural gas, crude oil, LNG, as well as electricity and also sells LNG as energy for marine vessels as well as heavy-duty vehicles. Other products sold by Shell include bitumen, aviation fuel, diesel, sulphur, gasoline, marine fuel, heating oil, and lubricants. In Australia, Shell’ s plants generate different types of base chemicals and intermediate chemicals (Reuters, 2016).

Shell Australia was established in 1901, as a subsidiary of Royal Dutch Shell Company. Since then, the company has expanded its Australian activities into coal mining, petrochemicals as well as oil exploration. In 2014, Shell Australia sold its downstream business but retained the aviation fuel business as well as upstream businesses such as onshore coal seam gas, liquefied natural gas (LNG) as well as exploration. Shell Australia has maintained a substantial portfolio of exploration with enormous representation in reserves and permits offshore the Northern Territory and Western Australia. As pointed out by Shell Australia (2017), Shell Australia has invested enormously in Geelong Refinery, Clyde Refinery as well as the Gorgon LNG Project.   Inter-Relationships between the Company and Its Natural, Social and Economic Environments Given that the conventional oil reserves are diminishing faster, Shell has come up with new forms of oil reserves which have an enormous effect on the environment.

Unconventional oil reserves have much higher carbon emissions, and Shell has invested a lot of resources in the projects associated with extracting oil from unconventional reserves. Shell normally engage governments, communities, environmental experts and NGOs in its operations to facilitate the development of sustainable plans and to adjust seismic activities schedule where stakeholder and environmental sensitivities are a factor (Shell Australia, 2017). In terms of social forces, Shell Australia operations not only affect the environment but also its workforces since there are various health and security issues to take into account.

At the global level, consumers are participating in responsible consumption and Shell has been obliged to promote responsible consumption. Shell has continually been accused of damaging the environment and misleading consumers. In consequence, this has damaged its reputation amongst the consumers. Oil prices have recently increased; thus, leading to heavy government taxations and an increase in the cost of production.

The demand for energy has increased tremendously and it has been projected to continue increasing in the coming years. This has consequently become a major challenge since the oil and gas natural reserves have become fewer and cannot meet the increasing demand. For this reason, Shell has started investing in new projects that would facilitate the extraction of oil and gas from unconventional reserves. The economic slump, exchange rates, taxation and inflation are some of the economic factors that affect shell.


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