StartupTalky

Tag: Oil and Gas

  • Valero Energy Success Story – Fueling Innovation and Leadership in the Oil and Gas Industry

    The oil and gas industry is a critical sector that plays a pivotal role in the global economy. It encompasses a wide range of activities, from the exploration and extraction of crude oil and natural gas to the refining and marketing of petroleum products such as gasoline, diesel, jet fuel, and more. The industry is complex and highly competitive, with companies operating at various stages of the value chain, from upstream exploration and production to downstream refining and marketing.

    One prominent company in this industry is Valero Energy Corporation. Established in 1980, Valero has grown to become one of the largest independent petroleum refining and marketing companies in the United States.

    In this article, we will delve into Valero’s story, business, and revenue model, and more to gain insights into its success in the dynamic energy sector.

    Valero Energy – Company Highlights

    Company Name Valero Energy Corporation
    Headquarters San Antonio, Texas, United States
    Industry Oil and Gas
    Founder William Greehey
    Founded 1980
    Website valero.com

    Valero Energy – About
    Valero Energy – Industry
    Valero Energy – Founder and Team
    Valero Energy – Startup Story
    Valero Energy – Mission and Vision
    Valero Energy – Name, Tagline, and Logo
    Valero Energy – Business Model
    Valero Energy – Revenue Model
    Valero Energy – Employees
    Valero Energy – Acquisitions
    Valero Energy – Awards and Achievements
    Valero Energy – Competitors

    Valero Energy – About

    Valero Energy Corporation is a prominent American multinational corporation headquartered in San Antonio, Texas. The company owns and operates 15 petroleum refineries located in the United States, Canada, and the United Kingdom, which collectively produces approximately 3.2 million barrels (500,000 m3) of gasoline per day. Valero also operates 12 ethanol plants in the U.S. Midwest, with a combined ethanol production capacity of approximately 1.6 billion gallons (6 billion liters). As one of the largest independent refiners and marketers of petroleum products in the world, Valero holds a significant market presence.

    Valero Energy Corporation is a renowned player in the oil and gas industry, with a diverse portfolio of refining, ethanol production, and marketing operations. The company continues to make necessary improvements and innovations in line with the dynamic energy landscape to maintain its position as a leading player in the industry.

    What Does Valero Do to Continually Fuel Modern Life and Make a Better Future Possible?

    Valero Energy – Industry

    The oil and gas industry is one of the largest sectors in the world and plays a key role in international economics, politics, and employment levels. The dollar value of jobs created by this sector is very high, and it provides both direct and indirect employment opportunities.

    This industry has been a major contributor to economic growth throughout the world for many years, providing stability to global markets and increasing overall wealth. In the United States, crude oil is a major contributor to economic growth. Oil supply provides a stable energy market for countries around the world, while natural gas fuels many industries.

    The global oil and gas market increased at a compound annual growth rate (CAGR) of 4.9% from $6,989.65 billion in 2022 to $7,330.80 billion in 2023.

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    Valero Energy – Founder and Team

    William Greehey is the founder of Valero Energy Corporation.

    William Greehey

    William E. Greehey - Founder, Valero Energy Corporation
    William E. Greehey – Founder, Valero Energy Corporation

    William Eugene “Bill” Greehey is an American businessman who founded the Valero Energy Corporation. He also founded NuStar Energy. Greehey, after his graduation, worked as a CPA for Price Waterhouse and became an Auditor for Exxon. In 1963, he joined Coastal State Corporation and worked as a senior vice president. In 1973, he was the president and CEO of Coastal Corporation’s subsidiary, LoVaca Gathering Company, which became Valero Energy Corporation on December 31, 1979. He was the founding CEO and Chairman of the Valero Energy Corporation and Group and held those posts until January 2006 and January 2007, respectively.

    The team of Valero Energy includes:

    • Joe Gorder, Chairman and Chief Executive Officer
    • Lane Riggs, President and Chief Operating Officer
    • Jason Fraser, Executive Vice President and Chief Financial Officer
    • Gary Simmons, Executive Vice President and Chief Commercial Officer
    • Julia Rendon Reinhart, Senior Vice President and Chief Human Resources Officer
    • Mark Schmeltekopf, Senior Vice President and Chief Accounting Officer
    • Cheryl Thomas, Senior Vice President and Chief Technology Officer

    Valero Energy – Startup Story

    Valero Energy Corporation was established on January 1 as the corporate successor of Lo-Vaca Gathering Company, a natural gas pipeline subsidiary of Houston-based Coastal Corporation. Greehey, who had prior experience in the oil and gas industry, became the founding CEO of Valero. Initially headquartered in San Antonio, Texas, Valero has grown over the years to become a multinational corporation with a diverse portfolio of refining, ethanol production, and marketing operations. Valero’s growth and success over the years have established it as a prominent player in the oil and gas industry.

    Under Greehey’s leadership, Valero experienced remarkable growth and emerged as one of the world’s best-performing energy companies.

    Valero Energy – Mission and Vision

    The vision of Valero Energy meets the innovation and unmatched execution of its responsibility to meet the demands of a growing world.

    The vision statement goes as follows: “The world needs reliable, affordable, and sustainable energy. We are advancing the future of energy through innovation, ingenuity, and unmatched execution.”

    Valero Energy Corporation’s success is driven by its core cultural values of Safety, Accountability, Teamwork, and Excellence. The company maintains the highest standards of safety, responsible operations, integrity, and environmental care. Valero’s commitment to doing the right thing and caring for its employees, communities, and stakeholders has been instrumental in its achievements in the oil and gas industry.

    Valero Energy Corporation Logo
    Valero Energy Corporation Logo

    Valero Energy Corporation was founded in 1980 as the corporate successor of LoVaca Company. It was named for the mission of San Antonio de Valero. It is the original name of the Alamo-Valero Energy Corporation. Valero binds through its guiding principles of reliable, affordable, and sustainable fuels.

    The current Valero logo contains yellow and blue colors. The color choices of the company for the logo depict the new beginnings and abundance that the company stands for.

    Valero Energy – Business Model

    The business model of Valero keeps the company successful all the time. Being a Fortune 500 international manufacturer Valero Energy is the main marketer of transportation fuels and power.

    Its business model revolves around being a leading manufacturer and marketer of transportation fuels, petrochemical products, and power. The company operates a diverse portfolio of refining, ethanol production, and marketing operations globally. Valero focuses on producing and selling high-quality products to meet the energy needs of consumers and businesses worldwide.

    Valero Energy – Revenue Model

    Valero’s revenue model is primarily generated through the sale of transportation fuels, including gasoline, diesel, jet fuel, and other refined products, to customers in various markets. Additionally, the company generates revenue from the sale of petrochemical products and power.

    Valero follows disciplined capital management practices and strives to achieve operational excellence and cost efficiency across its operations. The company aims to deliver value to its shareholders through cash returns, including dividends and share repurchases, while also reinvesting in growth opportunities and maintaining a strong balance sheet. It also has a proven history of profitability and higher income-generating projects. The annual revenue for the year 2022 was $176,383 million.

    Valero Energy – Employees

    The company benefits its employees in various ways and plays at the top of its game. The company considers its employees to be its greatest assets. The real-world benefits of Valero include financial wellness education workshops, tuition reimbursement, a Valero scholarship program for the children of the employees, a family gift program, adoption assistance, and a VAL-U employee suggestion program.

    Valero Energy – Acquisitions

    In 1981, Valero executed lease agreements for two other refineries: St. Charles Refinery near New Orleans, LA, and Wilmington Refinery in Los Angeles County, CA. The company then set about constructing pipelines and terminals to transport refined products from these refineries to customers around the country. In 1998, Valero purchased a refinery from Union Texas Petroleum at Corpus Christi (TX), which was renamed Valero’s Corpus Christi Refinery; and in 2005 acquired a refinery from Ultramar Diamond Shamrock Corporation at Memphis (TN), which was renamed Valero’s Memphis Refinery. The company also purchased ownership interests in Huntway Refining Company at Benicia (CA) and San Francisco (CA), which were eventually merged into Valero’s Benicia-Martinez refinery; as well as a refinery near Aruba that was closed down by its previous owner ConocoPhillips Co., later re-opened by Valero as its Aruba Refining facility.

    Valero Energy – Awards and Achievements

    Valero Energy has been recognized as the World’s top refining and marketing company. It has received the honor of OSHA’s highest plant safety designation for its nine refineries and three asphalt terminals. Valero has won the “Award of Excellence – Downstream” from S&P Global Patts Global. The award is for its contribution and commitment to advancing the energy industry through investments to create a sustainable future.

    Valero Energy – Competitors

    The competition is high in the field of oil and gas. The main competitors of Valero Energy include Phillips 66, Marathon Petroleum, Chevron Corporation, BP p.l.c., Shell plc, Eni, ConocoPhillips, and more.

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    FAQs

    Who is the founder of Valero Energy?

    William Greehey is the founder of Valero Energy Corporation.

    When was Valero Energy founded?

    Valero Energy was founded in 1980.

    Which industry does Valero Energy operate in?

    Valero Energy Corporation is a renowned player in the oil and gas industry with a diverse portfolio of refining, ethanol production, and marketing operations.

    Who are the top competitors of Valero Energy?

    The main competitors of Valero Energy include Phillips 66, Marathon Petroleum, Chevron Corporation, BP p.l.c., Shell plc, Eni, ConocoPhillips, and more.

  • How Are Startups Getting Affected by Rising Fuel Prices?

    The pandemic has hit the Indian economy hard. Consumer demand has fallen drastically and the supply side of the market has become vulnerable to shocks and crunches. But it’s not all for these entrepreneurs. The latest addition to their list of woos is the ever-increasing price of petrol, which is a key manufacturing ingredient for many chemical and pharmaceutical processes and the backbone of energy-driven service startups.  

    The price of petrol has galloped upwards through 2020 and touched all-time highs in June 2021. The government has sighted several reasons for this hike in petrol price but all those claims have been shot down by independent policy experts and economists, who claim the real factor behind this meteoric rise in the price of petrol is the indirect tax levied on it by the Government of India.

    Several economists, energy policy experts, and trade have requested the government to reduce this indirect tax on petrol to help increase the profitability of these already hard-hit startups and these requests have been backed by the State Bank of India (SBI) and Reserve Bank of India (RBI) in their annual and quarterly evaluations. Now, let’s have a look at the impact of the rise in petrol prices on startups, in a sector-wise manner.

    Impact on Startups In the Logistics Sector
    Impact on Startups in FMCG (Fast Moving Consumer Goods) Sector
    Impact on Startups in Appliances Industry
    Impact on Startups in the Pharma Sector
    Impact on Startups in the Core Manufacturing Sector
    Impact on Startups in the Doorstep Service Industry

    Impact on Startups In the Logistics Sector

    The logistics sector is one of the hardest-hit sectors in the current economic scenario. The pandemic and rising fuel prices have helmed the conquest against this sector and have succeeded in closing doors for many budding startups and as well well-established companies.  

    With the increase in diesel and petrol prices, the startups in the logistics sector have been forced to increase the cost of their services to just breakeven and this, in turn, has led to shrinkage in demand.

    Freight owners have complained about the lack of two-way cargo trips and how it has affected their profit model and them vulnerable to losses. Overall, the country’s mobility has been hard hit by this upward climb in the price of petrol.

    The Reserve Bank of India has cautioned the government about the same in its reports on the Indian Economy and the depressionary spiral that the startups and MSMEs of this sector have become prone to, following the price of petrol and other energy commodities like diesel.

    Impact on Startups in FMCG (Fast Moving Consumer Goods) Sector

    Fast Moving Consumer Goods can be defined as products that are sold quickly over the counter and are bought by most consumers, irrespective of their preferences like biscuits, candies, medicines, etc. Due to the steady demand for these goods, the goods have to be shipped continuously to maintain the supply.

    The startups here have faced acute problems with the rise in fuel prices. Due to increased freight costs and distribution costs, the cost of the products has gone up, which has led to the shrinkage of demand for the durable goods produced by these startups.

    All this increased distribution has caused the firm to not even break even and decimated its profits. Also, like fuel is a key ingredient in meeting the energy demands of the production plants and some manufacturing processes, the inflationary push has caused extra trouble for the startups in the FMCG sector.

    Impact on Startups in Appliances Industry

    Currently, this sector is valued at 85,000 crores, and alone the domestic appliances sub-circuited is estimated to be 35,000 crores. The sector used to be one of the most thriving playgrounds for startups. But the increase in manufacturing and transporting costs owing to an increase in fuel prices have hard-hit many budding startups. Also, this increase in petrol and diesel prices has caused a cost-push in raw material, component supply, and operational costs.

    Impact on Startups in the Pharma Sector

    The pharma sector is no stranger to the hardships of increasing oil prices. Petrol and diesel play a huge role in the manufacturing aspect of this industry. The rise in the cost of fuel has, in turn, raised the cost of petrochemical raw inputs and the cost of operating the manufacturing unit.

    Also, to maintain a steady supply of drugs in the markets, startups here have to maintain well-equipped fleets of freights. With the rise in the cost of petrol and diesel, the cost of maintaining and distributing the product through such a logistic mechanism has become excruciatingly expensive for startups to maintain.

    Crude Oil Price vs Retail Price
    Crude Oil Price vs Retail Price

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    Impact on Startups in the Core Manufacturing Sector

    The core manufacturing sector acts as the backbone of our economy. Being on the most thriving playground for MSME startups, this sector has become the subject of many complex backlashes and ripple effects that accompany an increase in the price of an essential energy commodity like petrol.

    The cost of production and maintenance of plants has shot up rapidly with the increase in fuel price. Petrochemical components have become costlier, along with the logistic cost of acquiring these key components of the manufacturing process.

    The transportation cost of the finished product and distribution cost has pushed the market price to rise to combat the effects of the rise in diesel price. However, this increased shelf price has been met with a rapid demand shrinkage, which has put this sector in a difficult economic spot.

    Impact on Startups in the Doorstep Service Industry

    The doorstep service industry relies on the commitment to procure and provide already available services at the cheapest rate possible. The increase in petrol price has become a great impediment for the sector, as the logistic costs have risen sharply.

    In the past few years, several internet-based startups have come up in this sector, but today most of them have had to close shop and the remaining strive hard to break even. Many economists suggest, that if the fuel price rises any more, the valuation of this industry can fall greatly, and most startups will fail to maintain their business model in the long run.

    Conclusion

    Thus, we can conclude the rampant increase in petrol price has a detrimental effect on the startup atmosphere of the country, irrespective of whichever sector they belong to. A further surge in petrol prices may become the key reason for the closing of startups in the coming months. However, it can be expected that the government will pay heed to the petrol price policy advice given by the apex bank, and eminent economists and reduce the petrol price to create a more business conducive atmosphere.

    FAQs

    What is the effect of the increase in the price of fuel?

    The rise in fuel price affects the price of other essential goods as the transport costs increase. It also leads to inflation which affects businesses.

    Will higher fuel prices lead to inflation?

    Yes, higher fuel prices lead to inflation as the fuel price impacts all the goods and services.

  • Royal Dutch Shell Success Story- Safely Marketing and Distributing Energy and Petrochemical Products

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Royal Dutch Shell.

    The United States itself utilised an estimated 20.5 million barrels of petroleum per day in 2018, according to the US Energy Information Association. This equates to around 7.5 billion barrels per year or about 22% of estimated worldwide petroleum consumption.

    As world economies and infrastructure keep relying significantly on petroleum-based commodities, the world’s dependency on oil and gas is escalating. Even with a weakening world economy and dwindling oil supplies, discussions about when the world’s oil and gas output would peak seem to remain on the outskirts.

    Nevertheless, the oil and gas industry maintains to have great weight in global economics and politics, notably in employment conditions, with the US oil and gas industry employing at least 10 million people.

    Shell is an oil & gas multinational business headquartered at The Shell Centre in London, United Kingdom. Shell is a publicly-traded corporation based in the United Kingdom that is primarily traded on the London Stock Exchange (LSE).

    It is one of the “largest companies” in the oil and gas sector. Shell is one of the world’s largest corporations in terms of sales and earnings, consistently ranked in the top ten of the Fortune Global 500 since 2000.

    Here’s learning all about Royal Dutch Shell, its Founders and Team, Funding and Investors, Business and Revenue Model, Growth, Challenges Faces, Name, Tagline, Logo and more.

    Royal Dutch Shell – Company Highlights

    Startup Name Royal Dutch Shell
    Predecessors Royal Dutch Petroleum Co. (1890); Shell Transport and Trading Co. of the United Kingdom (1897)
    Headquarters London, England, United Kingdom
    Industry Energy: Oil and gas
    Founders Marcus & Samuel Samuel
    Founded April 1907
    Areas Served Worldwide
    Current CEO Ben van Beurden
    Website www.shell.com

    About Royal Dutch Shell
    Royal Dutch Shell – Latest News
    Royal Dutch Shell – Industry
    Royal Dutch Shell – Name, Logo, and Tagline
    Royal Dutch Shell – Founders
    Royal Dutch Shell – Startup Story
    Royal Dutch Shell – Vision, and Mission Statement
    Royal Dutch Shell – Employees
    Royal Dutch Shell – Business Model, and Revenue Model
    Royal Dutch Shell – Funding, and Investors
    Royal Dutch Shell – Investments
    Royal Dutch Shell – Acquisitions
    Royal Dutch Shell – Growth
    Royal Dutch Shell – Competitors
    Royal Dutch Shell – Challenges Faced
    Royal Dutch Shell – Future Plans

    About Royal Dutch Shell

    Royal Dutch Shell is a multinational oil and gas business. The corporation looks for and produces oil and gas in traditional fields and sources such as tight rock, shale, and coal. It owns and runs refineries and petrochemical plants all around the world.

    Shell sells lubricants, bitumen, and liquefied petroleum gas, as well as petrochemicals such as raw ingredients for plastics, paints, and detergents. In Brazil, the firm is a major biofuel producer. It’s also involved in liquefied natural gas (LNG) and gas-to-liquids (GTL) projects.

    In Europe, Asia, Oceania, Africa, North America, and South America, the corporation sells its products directly and indirectly through distributors. The Hague, the Netherlands, is where Shell’s headquarters are located.

    The business is categorized into three groups: upstream, downstream, and corporate.

    • The Upstream section searches for and extracts crude oil and natural gas, develops fields, produces oil and gas, mines oil sands, extracts bitumen, cools the gas, regasifies LNG, converts gas to liquid goods, and generates wind energy.
    • Oil refining into fuels and lubricants, petrochemical manufacturing, biofuel development, trading, rental sales, carbon dioxide emissions management, business-to-business sales, and alternative energy firms are all part of the Downstream segment.
    • Shell’s non-operating businesses, including its assets and treasury organisation, its headquarters and central services, and insurance firms, are included in the Corporate section.

    Shell operates in over 99 countries, produces roughly 3.7 million barrels of oil equivalent per day, and has over 44,000 service stations throughout the world. Shell had total proven reserves of 11.1 billion barrels of oil equivalent, as of now.

    One of its greatest businesses is Shell Oil Company, its main subsidiary in the United States. Royal Dutch Shell owns 44% of Razen, a publicly-traded joint venture with Cosan that is Brazil’s third-largest energy firm by revenue and a significant ethanol producer.

    Royal Dutch Shell – Latest News

    10 Jan 2022 – Oil and gas firm Royal Dutch Shell has surfaced as an unexpected bidder for Sprng Energy, Actis Llp’s Indian renewable system that is available for auction. Shell, the largest global seller of liquefied natural gas, will compete for the possible billion-dollar purchase alongside Macquarie, an Australian infrastructure fund, and CPP Investment Board (CPPIB), a Canadian pension fund.

    After an initial round of screening from a list of over 20 possible applicants who had signed non-disclosure agreements, all three were selected last week. Shell’s non-binding equity bid of $1.2 billion is said to have beaten out all others. These assets have a $960 million debt.

    Dec 15, 2021 – Indore-based green consultant EKI Energy Services will enter into a partnership with oil company Royal Dutch Shell that would invest $1.6 billion over five years to supply “environment-based solutions” to Indian industries.

    As part of Shell’s strategy to develop in India’s renewables area, the joint venture would aim to produce 115 million carbon credits in the next five years. Shell will control the remaining 49 percent of the joint venture, with EKI Energy owning 51 percent.

    Nov 16, 2021 – As the energy giant swings away from oil and gas, Royal Dutch Shell would ditch its dual share structure and relocate its headquarters to the United Kingdom from the Netherlands, forced out by Dutch taxation and facing climate pressure in court.

    The business plans to delete “Royal Dutch” from its name, which has been an essential part of its brand since 1907, into becoming Shell Plc. It has previously faced challenges from investors about its dual structure and was recently struck by a Dutch court ruling over its climate ambitions.

    Shell has been in a long-running legal battle with the Dutch government over the country’s 15% dividend withholding tax, which it attempted to dodge through its two share classes.

    Shell’s new unitary structure would alleviate this problem and enable it to complete sales and acquisitions more quickly. The main Dutch state pension fund, ABP, said that it will withdraw Shell and all fossil fuels from its portfolio, further severing ties with the Netherlands.

    Royal Dutch Shell – Industry

    Oil prices have reached their greatest levels in six years, and the oil and gas industry has returned well during 2021. While the sector’s comeback is stronger than projected, market dynamics in the future year remain unpredictable.

    After going negative in April 2020, oil prices have recovered to roughly $80/bbl. However, common thinking suggests that when oil prices are high, oil and gas firms would have less capital discipline and will focus on their core business rather than sustainable marketing options.

    As a result, it is frequently considered that high oil costs will stifle the energy shift. Oil prices above $60 per barrel, according to 76 percent of questioned O&G executives, will most likely increase or enhance their energy revolution shortly.

    The 2020 oil price fall resulted in the sharpest layoffs in the industry’s history. Since then, prices have roughly doubled, and yet only approximately half of the jobs being lost have returned. The industry’s credibility as a dependable employer is being harmed by periodic staffing and firing, and a tenured, ageing workforce is limiting potential talent.

    In a congested labour market, it would be difficult for O&G firms with advanced initiatives and sound balance sheets to stand out to employees. Although a commitment to decarbonization may be the most compelling recruiting pitch, more than 75 percent of survey respondents believe that flexible and agile workforce structures that empower remote, hybrid, and cross-border teams will help companies compete for and retain talent in today’s tight labour market.

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    Royal Dutch Shell – Name, Logo, and Tagline

    Once the firm combined with Royal Dutch to become the Royal Dutch Shell Group in 1907, ‘the Shell’ part of the company name started to deteriorate for a short time, but the newly established corporation rapidly became known as Shell for short.

    Shell Logo
    Shell Logo

    Royal Dutch Shell’s tagline says, “You Can Be Sure of Shell.”

    Royal Dutch Shell – Founders

    The Royal Dutch Shell Group was formed in February 1907 by the merger of two competing firms: the Royal Dutch Petroleum Company and the United Kingdom’s “Shell” Transportation and Trading Company Ltd.

    When King William III of the Netherlands granted a Royal charter to a small oil exploration and production company known as “Royal Dutch Company for the Working of Petroleum Wells in the Dutch East Indies,” Jean Baptiste August Kessler and Henri Deterding founded the Royal Dutch Petroleum Company in 1890.

    Marcus Samuel and his brother Samuel Samuel formed the “Shell” Transport and Trading Company in 1897 in the United Kingdom.

    Royal Dutch Shell – Startup Story

    The Royal Dutch Shell Group was formed in February 1907 by the merger of two competitor companies: the Royal Dutch Petroleum Company and the United Kingdom’s “Shell” Transport and Trading Company Ltd. It was mainly motivated by the necessity to compete with Standard Oil on a worldwide scale.

    According to the conditions of the merger, the Dutch arm would hold 60% of the new company and the British would own 40%. A comprehensive merger or acquisition of either company would be prohibited by patriotic sentiments.

    Koninklijke Nederlandsche Petroleum, a Dutch business, was in charge of production in The Hague. The Anglo-Saxon Petroleum Company, located in London, was founded to oversee the storage and transportation of the goods.

    Shell was the primary fuel provider to the British Expeditionary Force during WW 2. This was the only source of aircraft fuel and 80 percent of the TNT used by the British Army. Also, it offered the British Admiralty all of its vessels.

    Shell purchased the Mexican Eagle Petroleum Company in 1919 and founded Shell-Mex Limited in 1921, which sold products in the United Kingdom under the “Shell” and “Eagle” trademarks. Shell Chemicals was formed in 1929. Shell was the world’s top oil business by the end of the 1920s, generating 11% of the globe’s crude oil supply and holding 10% of the world’s tanker traffic.

    Royal Dutch Shell – Vision, and Mission Statement

    Royal Dutch Shell’s mission statement says, “To safely market and distribute energy and petrochemical products while offering innovative value-added services.”

    Royal Dutch Shell’s vision statement says, ” They make the difference through our people, a team of dedicated professionals, who value our customers, deliver on our promises and contribute to sustainable development. “

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    Royal Dutch Shell – Employees

    • Samuel Samuel – Founder
    • Michiel Brandjes – Company Secretary and General Counsel
    • Simon Henry – Shell Oil Company Investor Relations
    • Steve Mutch – Next Generation ERP COE Lead
    • Daniel Jeavons – VP Computational Science & Digital Innovation
    • Ed Daniels – Executive Vice President – Strategy & Portfolio
    • Gillian Hynes – Senior Talent Advisor, Downstream
    • Nick Feast – Special Advisor, Exploration

    Royal Dutch Shell – Business Model, and Revenue Model

    The company’s primary business is hydrocarbon exploration, production, processing, transportation, and marketing (oil and gas). Shell also has a sizable petrochemicals company (Shell Chemicals) and a fledgling renewable energy sector that is exploring wind, hydrogen, and solar power.

    The business is categorized into three groups: upstream, downstream, and corporate.

    • The Upstream section searches for and extracts crude oil and natural gas, develops fields, produces oil and gas, mines oil sands, extracts bitumen, cools the gas, regasifies LNG, converts gas to liquid goods, and generates wind energy.
    • Oil refining into fuels and lubricants, petrochemical manufacturing, biofuel development, trading, rental sales, carbon dioxide emissions management, business-to-business sales, and alternative energy firms are all part of the Downstream segment.
    • Shell’s non-operating businesses, including its assets and treasury organisation, its headquarters and central services, and insurance firms, are included in the Corporate section.

    Royal Dutch Shell – Funding, and Investors

    Royal Dutch Shell has secured $750 million in a single round of fundraising.

    Date Round Amount Lead Investors
    Oct 27, 2021 Post-IPO Equity $750M Third Point

    Royal Dutch Shell – Investments

    Royal Dutch Shell has invested in 18 companies.

    Date Organisation Name Round Amount
    Jan 6, 2022 Silicon Ranch Private Equity Round $775M
    Dec 16, 2020 Silicon Ranch Private Equity Round $225M
    Aug 21, 2020 RVE.SOL Grant –
    Apr 16, 2020 Haishangxian Funding Round –
    Dec 12, 2019 Esco Pacific Corporate Round –
    Nov 5, 2019 Powergen Renewable Energy Series B $15M
    Apr 3, 2019 EcoSmart Solution Corporate Round –
    Dec 19, 2018 Cleantech Solar Corporate Round –
    Aug 28, 2018 Zhenkunxing Series C $129M
    Aug 28, 2018 Zhenkunhang Series C $129M

    Royal Dutch Shell – Acquisitions

    Royal Dutch Shell has acquired 13 companies.

    Acquiree Name About Acquiree Date Acquisition Amount
    Savion Savion develops utility-scale, greenfield solar photovoltaic power projects across the country for renewable and cost-effective energy. Dec 14, 2021 –
    Inspire Energy Capital Inspire Energy Capital offers renewable energy to customers via a variety of innovative services. Jul 28, 2021 –
    Next Kraftwerke Next Kraftwerke is the operator of a Virtual Power Plant (VPP ) & a trader on various European power markets. Feb 25, 2021 –
    ubitricity Ubitricity focuses on developing charging infrastructure for electric vehicles. Jan 25, 2021 –
    Eolfi EOLFI is an independent company specializing in wind energy. Nov 5, 2019 –
    Sonnen Sonnen is a pioneer for intelligent lithium-based energy storage. Feb 15, 2019 –
    Greenlots Greenlots delivers innovative software, services, and expertise that empowers utilities, cities, communities, and automakers. Jan 30, 2019 –
    Hazira LNG and Port Hazira LNG and Port is an energy company that is engaged in creating long-term wealth for the benefit of the country. Jan 9, 2019 –
    First Utility First Utility is an independent energy supplier in the UK which helps customers save money on their energy bills. Dec 21, 2017 –
    NewMotion Electric Mobility Service Provider Oct 12, 2017 –

    Royal Dutch Shell – Growth

    • Royal Dutch Shell’s revenue for the quarter ended September 30, 2021, was $61.555 billion, up 37.65% from the previous year.
    • Royal Dutch Shell’s revenue for the year ended September 30, 2021, was $227.462 billion, up 1.89 percent from the previous year.
    • Royal Dutch Shell’s yearly revenue in 2020 was $183.195 billion, down 47.97 percent from 2019.
    • Royal Dutch Shell’s yearly revenue in 2019 was $352.106 billion, down 11.21 percent from 2018.
    • The yearly income of Royal Dutch Shell was $396.556 billion in 2018, up 27.15 percent from 2017.

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    Royal Dutch Shell – Competitors

    Top competitors of Royal Dutch Shell are :

    • Imperial Oil Limited
    • ConocoPhillips Company
    • Chevron Corporation
    • Exxon Mobil Corporation
    • BP p.l.c
    • Petro-Canada
    • Hess Corporation. 2,075
    • ADNOC

    Royal Dutch Shell – Challenges Faced

    For more than a century, the oil sector has been immersed in operations globally, and it has seen many hazards connected with working in diverse nations at the same moment. Shell, which is operating in more than 70 countries around the globe, experienced several issues as a result of its business methods, technology, and operational environment.

    The company had the most serious issues which include its business in Nigeria, where it was a victim of oil theft and pilferage, resulting in massive setbacks; its Arctic venture, where it encountered technical difficulties as well as issues with local environmental conservation groups; and its US shale operational processes, where Shell received no returns despite significant investments.

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    Royal Dutch Shell – Future Plans

    As of May 2021, Shell’s proposal got 88.74 percent of shareholder votes, according to the firm. The executive of the Anglo-Dutch oil company had asked for endorsement for its Energy Transition Strategy, which received the first vote of its sort in the energy industry.  

    While the outcome was not binding, it was considered likely and theoretically gives Shell a shareholder authorization to pursue its goals to achieve net-zero emissions by 2050. However, 11% of Shell’s stockholders voted against the company’s own climate goals. In contrast, up to 99 percent of investors accepted management advice on 19 other resolutions proposed during the online AGM.

    At this time, over five years after the Paris Agreement was approved by almost 200 nations, no oil and natural gas major has revealed how it plans to meet its ambitions of being a net-zero firm by 2050 or before.

    The historic climate change agreement is largely seen as vital to averting an irreparable global calamity. Shell’s Energy Transition Strategy, which was released earlier this year, detailed the company’s goals to achieve net-zero emissions by 2050.

    It plans to cut net carbon emissions by 6% to 8% by 2023, compared to 2016 levels. By 2030, the goal has risen to 20%, 45 per cent by 2035, and 100 per cent by 2050. The firm has said that it would alter its strategy every three years until 2050.

    Royal Dutch Shell – FAQ

    What does Shell do?

    Shell is an oil & gas multinational business headquartered at The Shell Centre in London, United Kingdom. It owns and runs refineries and petrochemical plants all around the world. Shell sells lubricants, bitumen, and liquefied petroleum gas, as well as petrochemicals such as raw ingredients for plastics, paints, and detergents.

    How does Shell make money?

    The company’s primary business is hydrocarbon exploration, production, processing, transportation, and marketing (oil and gas). Shell also has a sizable petrochemicals company (Shell Chemicals) and a fledgling renewable energy sector that is exploring wind, hydrogen, and solar power.

    Which companies do Shell compete with?

    Imperial Oil Limited, ConocoPhillips Company, Chevron Corporation, Exxon Mobil Corporation, BP p.l.c, Petro-Canada, Hess Corporation. 2,075, and ADNOC.

    When did Shell come to India?

    Shell entered India with its retail fuel business in November 2004.

  • Failures of Reliance Industries to Learn Lessons From | Reliance Failed Projects

    Reliance Industries Limited (RIL) is a private Indian multinational conglomerate business based in Mumbai. Regarding market capitalization and sales, Reliance Industries is India’s most profitable corporation and the country’s largest publicly traded firm. It is India’s tenth largest employer, employing over 236,000 people. RIL has a market capitalization of US$243 billion as of October 2021. The company is ranked 155th on Fortune’s Global 500 list of the world’s largest firms in 2021.

    Reliance is responsible for over 5% of the entire customs and excise tax income collected by the Indian government. It is also the private sector’s top income tax payer in India.

    RIL has improved its dominant position in various more minor fashion and lifestyle industry markets. The corporation has recorded a twofold increase in income from small-town retailers. JioMart is currently connected with over 400 retailers, with daily orders increasing by over 2x quarter-on-quarter. Lets get a glance at some of the Reliance projects that failed in market.

    Reliance Failed Projects

    Petrochemicals
    Reliance Fresh
    Reliance Jewels
    Reliance Trends
    Reliance Time Out
    Reliance Health Insurance
    Conclusion
    FAQs

    Petrochemicals

    Reliance Refining is in a significant crisis.

    The petrochemicals division, which only a few quarters ago became RIL’s largest EBIT (earnings before interest and taxes)-generating vertical, has grown by 42.9 per cent to Rs 8,221 crore in EBIT. In comparison, refining’s EBIT declined 18% to Rs 5,055 crore. Revenues from the refining and petrochem verticals also climbed under the 10.4% increase in the average Brent oil price in the third quarter. In a news release, Chairman Mukesh Ambani mentioned “heightened volatility” in the oil price as one of the issues.

    The benchmark Singapore complex margin averaged $4.3 per barrel in the third quarter, down from $6.1 in the second quarter and $7.2 in the third quarter of 2017-18. ” Singapore margins were driven down by a fall in light distillate cracks, despite advances in fuel oil and intermediate distillate cracks “, In a statement, RIL said. OPEC’s increased crude oil output also negatively impacts crude oil benchmarks.

    Another concern for the corporation is oil and gas exploration and production (E&P). The segment’s revenue decreased by 27.5% to Rs 1,182 crore. However, the company’s EBIT loss remained at Rs 185 crore. The loss during the second quarter was Rs 480 crore. RIL has invested Rs 40,000 crore in its Krishna Godavari blocks with its partner BP Plc to revive E&P activity, but it has failed to persuade investors.

    About Reliance Petrochemicals

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    Reliance Fresh

    Reliance Fresh - Reliance Failed Project
    Reliance Fresh – Reliance Failed Project

    Biyani, known as the “Father of Indian Organized Retail,” employed aggressive pricing to lure middle-class customers to his outlets, including Big Bazaar, Central, and Brand Factory, and built a retail behemoth. However, his enterprises were saddled with net debt of Rs 12,989 crores, with the promoters’ total equity committed to lenders.

    “We required a holistic solution rather than a solution in a certain format because our businesses were so interwoven.” As a result, this was probably a reaction to our presence.” On a turnover of Rs 3,860.4 crore, Reliance Fresh Ltd lost Rs 273.8 crore.”

    Reliance Jewels

    Reliance Jewels - Reliance Failed Project
    Reliance Jewels – Reliance Failed Project

    Reliance Retail, India’s big fish, maybe exit the jewellery business. The corporation run by business mogul Mukesh Ambani is up against stiff competition from regional rivals, which might force it to shut down its jewellery retail operation. It now conducts its retail jewels business under the ‘Reliance Jewels’ brand from over 50 locations around the country.

    Reliance Retail, the retail arm of Reliance Industries, has closed roughly ten Reliance Jewels stores, including several of the brand’s flagship locations on Hughes’s Road near Ambani’s 27-story mansion Antilia in South Mumbai and Park Street, Kolkata’s historic high street.

    According to people close to the stores, Reliance Jewels have not impacted the domestic jewellery industry, which requires a brand to remain dedicated for years. Meanwhile, regional players began to expand rapidly. Reliance Retail continues to close more jewellery stores, which may be the end of their narrative in this category. A message was submitted to the Reliance Retail representative by a well-known newspaper. However, it received no answer. The Indian jewellery market is one of the country’s fastest-growing sectors since it is the world’s top importer and consumer of gold.

    Reliance Trends - Reliance Failed Project
    Reliance Trends – Reliance Failed Project
    • However, in Reliance Trends’s market wishes to enter, competition is fierce. Retailers such as Landmark Group’s Max and hypermarkets such as Big Bazaar and More sell value items in the mid-market. Cantabil Retail, a recently listed company, is likewise pursuing a similar strategy of accessing tier-II towns and attracting middle-class customers. In the current fiscal year, it expects to open 180 outlets.
    • On a sales of Rs 489 crore, Reliance Trends, which operates apparel boutiques, lost Rs 11.35 crore on a turnover of Rs 1,234 crore.

    Reliance Time Out

    Reliance TimeOut - Reliance failed Project
    Reliance TimeOut – Reliance failed Project

    Shops that offer books, music CDs, and stationery find it challenging to come up with new ideas as online shopping becomes more popular. Due to fierce competition from online shopping portals and a drop in client base, Reliance TimeOut, a one-stop store for books, music, toys, and stationery has halted operations and is forced to close down.

    Reliance Health Insurance

    Reliance Health Insurance- Reliance failed Project
    Reliance Health Insurance- Reliance failed Project

    Reliance Health Insurance, Reliance Capital’s separate health insurance unit, has been ordered by India’s Insurance Regulatory and Development Authority (Irdai) to transfer its entire portfolio to Reliance General Insurance and has been barred from selling new plans.

    Reliance Health Insurance was reported to have a solvency margin of 106 per cent in the June quarter (Q1FY20), significantly below the statutory threshold.

    One hundred fifty per cent, according to Irdai. Since then, the solvency margin has fallen even more, to 77% in August and 63% in Q2FY20.

    With effect from November 15, the regulator has also instructed Reliance Health Insurance, which began operations in October 2018, to transfer all policyholder investments and its financial assets to Reliance General.

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    Conclusion

    Threats develop when situations in the external environment jeopardize the organization’s business’s dependability and profitability. These external influences might have a significant impact on the company’s performance. Still, Reliance has impacted the economy and may lose clients as a possibility due to the current scenarios and the current trajectory of Reliance. But, Reliance is known to bring customers mainly due to the inexpensive costs it offers. One such example is the market response to removing free services—but Reliance Jio won the market and is now linked to a slew of freebies. There may be a decline in sales for the firm if these are eliminated.

    FAQs

    What are the failed products of Reliance?

    Some of the failed products of Reliance are:

    • Petrochemicals
    • Reliance Fresh
    • Reliance Jewels
    • Reliance Trends
    • Reliance Time Out
    • Reliance Health Insurance

    What is the main business of Reliance Industries?

    The core business of Reliance industries is petrochemical, refining, oil and gas-related operations.

    What are the products of Reliance Industries?

    Some of the core products of Relince Industries are:

    • Transportation Fuels
    • Aviation Turbine Fuel
    • Auto LPG
    • Fleet Management Services
    • Highway Hospitality Services
    • Convenience store
    • Foods
    • Lubricants

  • How To Start A Fuel Delivery Business In India?- A Guide

    It takes a lot of effort to start a business. The quantity of paperwork, regulatory obligations, and strategic planning that must be completed might be overwhelming. Young people’s entrepreneurial ambitions are expanding in tandem with India’s growing middle class. Technology has thrown up a slew of new business prospects and simplified the process of beginning and running a company. As a result, it is a better moment to start a business in India than ever before.

    The Entrepreneur must have a vision for the proposed business before starting it. A vision could be as basic as the Entrepreneur’s plan of action for beginning a firm, or it could be a full business plan with market analysis, anticipated financial statements, and so on. Solid business planning will assist the entrepreneur in avoiding mistakes and increasing the likelihood of business success. If the Entrepreneur hasn’t come up with a business idea yet, he or she can look for business ideas online. In this article, we look at how to start a Fuel Delivery business in India.

    About Fuel Delivery Business
    Process of Fuel Delivery
    Best Way to Start a Fuel Delivery Service
    On-demand Fuel Delivery Application
    Conclusion
    FAQs

    Fuel delivery Business in India

    About Fuel Delivery Business

    A fuel delivery startup is a new way of providing clients with on-demand refilling services. Most businesses have a webpage and a smartphone app where you can place orders as well as track your fuel use and expenses. Fuel-delivery businesses, in contrast to gas stations, provide comfort and time savings. You can order fuel in remote places where there isn’t a petrol station. You may, for example, order diesel for your colony generator without having to leave the house. Unfortunately, because of government laws, only diesel and not petrol can currently be delivered in India.

    Process of Fuel Delivery

    • A mobile-based application is used by a fuel delivery service to conduct business.
    • The customer must first download the app and then login with it via email or another method.
    • The location-aware programme immediately pins the location of the car in need of refuelling after registering.
    • If the vehicle’s position differs from their present location, they can individually pin the spot on the map.
    • The fuel provider can use their own app to locate the user’s pinned destination.
    • He/she will then travel to the user’s place and refuel their vehicle.
    • The funds are deducted from the payment option they choose when registering for the app.

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    Best Way to Start a Fuel Delivery Service

    Fuel delivery business
    Fuel delivery business

    Following are the steps to start a Fuel Delivery Service :-

    1. Build a system

    The first step after deciding to construct an app is to create a fleet. Follow the compliance requirements and double-check the country’s standards and regulations when it comes to such a firm. As a result, create a system that is compliant with all needed requirements. Some app development businesses provide outstanding support to accompany your business on this journey.

    2. Create an Information Technology Infrastructure:

    Build a strong IT infrastructure to accommodate your fuel-delivery firm after getting all compliances and certificates. Building a processing facility as well as a feedback and complaint response system are all part of the IT infrastructure. Assemble the skills and equipment needed to complete the task. Use a Gps tracker to keep a close eye on the movement of goods and the distribution network. Tookan Tracker is a technology that not only eliminates fuel fraud but also provides total safety. All communication systems will be digitised, and analytics and reports will be generated to support business choices, thanks to a solid infrastructure.

    3. Creating a Fuel Delivery Truck Crew with professional truck drivers

    Fuel is a flammable material that necessitates the use of expert drivers who can securely transport the fuel to the customer’s location. HAZMAT drivers know how to safely transport combustible fuel to a customer’s door. Similarly, they understand how to choose the best road approaches based on the population density of the area. For the sake of the fuel delivery firm, the owner must now engage competent HAZMAT drivers.

    4. Collaboration with Fuel Providers

    Collaboration with fuel providers is the final and most critical step in starting a fuel delivery service. The fuel distribution business is pointless without the fuel. No one wants their fuel supply to be interrupted, thus the owner must work with the best fuel source for the job.

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    On-demand Fuel Delivery Application

    There are various aspects of the app that have the potential to make or ruin the fuel delivery business. The following are the important features of an On-demand Fuel Delivery Application :-

    1. Location tracking app

    A location-aware programme would allow drivers of fuel truck to rapidly determine the delivery location. This feature will boost your app’s productivity by making the process of obtaining fuel online more easier. Also, make sure your software has advanced functionality, such as the ability for users to manually pin their position. This functionality is required in order for users to pin their vehicle’s location even if it is parked elsewhere. When someone is lost in the middle of nowhere, this feature comes in handy. They may quickly pin their location to get their vehicle refuelled by using this tool.

    2. Selection of type, quantity and time of delivery of fuel

    Any fuel delivery app should have the ability to allow customers to modify their orders, which is a very fundamental and basic function. Users can select the type of fuel (petrol or diesel) that their car requires with this tool. Similarly, they have the option of selecting the fuel quantity. Users can also select the time frame for when they will require the fuel. You can make it easier for users to acquire a customised gasoline delivery by enabling these capabilities in the app.

    3. Different options to pay

    This capability is now available to all On-Demand delivery services throughout the world. You must present your customers with a variety of payment choices. It will ensure that they have a wide range of options from which to choose, boosting the app’s efficiency. It’s best to include all of the alternatives in the app, such as cash, internet banking, e-wallets, cards, and so on. Also, make sure that all of the payment channels you’re using in your app are absolutely safe and secure.

    4. Call and text from within the app

    It’s one of the more subtle aspects of an on-demand delivery software. By including this functionality in your app, you are allowing consumers to communicate directly with the drivers. As a result, this function may quickly address all of the consumers’ complaints without them having to leave the app. As a result, make sure that your app has an in-app call and text option.

    5. Fuel Delivery Monitoring in Real-Time

    We’re all keen to find out where our package is immediately after placing an order. Customers can track the whereabouts of the gasoline truck using this function. This will guarantee that they do not have to wait for their fuel in vain.

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    Conclusion

    It is not easy to start a fuel delivery service. You must accept the fact that you are entering one of the most competitive market segments. There is a lot you need to accomplish in order to start and operate a profitable business. To summarise, starting a fuel delivery service is a difficult endeavour. To start a fuel delivery business successfully, one must overcome numerous obstacles. However, after you’ve surmounted the obstacles, your company will be a market sensation. As a result, a large profit is generated.

    FAQs

    Does India import oil?

    India imports 84 percent of its crude oil needs, making it the world’s third largest crude oil importer.

    Where does India get its oil?

    Despite a 23 percent reduction in purchases to a five-month low of 867,500 bpd, Iraq remained India’s largest oil seller, according to the data.

    In India, which fuel is the most efficient?

    As a result, there are only two types of fuel in India that have a higher Octane rating than 91, notably Indian Oil’s 93 Octane and Bharat Petroleum’s Speed 97.