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Tag: oil companies

  • 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.

  • 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.

  • Why is Anil Agarwal not giving his business to his family but the society? | How is he doing it?

    Vedanta Resources is a global diversified company that is involved in mining. It has its headquarters located in London, England and is the largest mining company in India. The company was founded by Anil Agarwal who is the current Chairman of the company.

    He has a net worth of USD 3.5 billion and is among the 24th richest men in India. He had recently announced that the company will be institutionalized and won’t be giving his business to his family. In this article let’s look at the further details about it.

    Anil Agarwal – Latest News
    Reason Why Anil Agarwal is not giving his Business to his Family
    How is Anil Agarwal doing it?
    Anil Agarwal on India
    Anil Agarwal on Women Entrepreneurship in India
    FAQ

    Anil Agarwal – Latest News

    The Chairman of Vedanta Resources, Anil Agarwal has conveyed on 26 June 2021 that the company will be institutionalized no matter what and it will not go to his family. He added that the company cannot be run in a defensive mode.

    The family itself is an institution according to him and he conveyed that in the future if the family is capable enough to run the company then it is a different thing. It was conveyed during a webinar on Vedanta of Business that was organized by the FICCI Ladies Organization which is a women business wing of the apex body of FICCI.

    Reason Why Anil Agarwal is not giving his Business to his Family

    One of the major reasons the NRI Anil Agarwal and his family has stated is aiming to give back to the society from where he has got it all. He and his family have decided to give away 75 % of their wealth for the good of the society.

    Anil Agarwal has stated that it is important to give back what we earn for the greater good of the society and community programmes that work towards the eradication of poverty, child welfare and women empowerment.

    Vedanta Revenue from Operations
    Vedanta Revenue from Operations

    How is Anil Agarwal doing it?

    Anil Agarwal has stated that he would provide 75 % to the society and the rest 25% would be given to his family. He also stated that the 25% will be enough for the family. The pledge of 75 % is estimated to be around USD 2.6 billion which is about INR 15.900 crores.

    He stated that the company is the largest producer of oil in India and the largest producer of zinc and silver. He added that he would institutionalize the company at any cost.

    Anil Agarwal on India

    Anil Agarwal while speaking about India conveyed that India is a land of entrepreneurship with the advantage of location, young talent, natural resources, and sea on all the three sides. He also added that the country is moving towards an economy that is self reliant.

    He added that the world never wanted India to grow and always looked at it as a market. But at present, the process of being self-reliant has grown over time and the youth of the country have come up with various startups and ideas and are taking the country to greater heights.

    Anil Agarwal on Women Entrepreneurship in India

    Speaking of women entrepreneurship in the country he added that India has the largest deposit of gold, oil and minerals and stated that it is high time that we explore them and added that the young and women entrepreneurs are supposed to do it.

    Worldwide around 44% of the women are entrepreneurs and in India, it is just 20% of the women are into entrepreneurship. It is considered as the time for the women to come up as they can deliver as well as convince people.

    Conclusion

    India will have to eradicate poverty and create more jobs, which all the countries have done by exploring their natural resources and the current policy of India is expected to bring in a lot more investments because there are opportunities in the country and the government has created a likely environment.

    FAQ

    What is the net worth of Anil Agarwal?

    The Net worth of Anil Agarwal is 430 crores USD.

    What is the revenue of Vedanta?

    The revenue of Vedanta is ₹183,622.00 crore (US$26 billion). Its operations span across India, South Africa, Namibia, Ireland, and Australia.

    Is Vedanta an Indian company?

    Vedanta Limited is the Indian subsidiary of London listed Vedanta Resources Plc and Its operations span across India, South Africa, Namibia, Ireland, and Australia.

  • How Rockefeller built his trillion-dollar oil empires

    How many wealthiest Businessmen or tech giants are living today? There are plenty of them who have worked their path through to the billionaire. But the only name topping the chart died almost a century ago. The businessman who continues to rank as one of the richest men in modern times built a trillion-dollar oil empire. This is the story of John Davidson Rockefeller(1839-1937).

    He is still one of the great figures of Wall Street, reviled as a villain, applauded as an innovator, but universally recognized as one of the most powerful men in history.  

    Early Stage of Rockefeller

    John was a smart individual since childhood. He got his hands into a lot of tasks, including raising turkeys and doing chores for neighbors, to make any money for his survival.

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    He received an unusually good education for his time till the age of 16 and then found a job as an assistant bookkeeper at a company called Hewitt & Tuttle, but he left that position in order to form a business partnership with oil driller Maurice Clark, that would later become Rockefeller, Andrews & Flagler, a company that focused on oil refineries rather than drilling.

    Frustrated with the low wage rate at the Bookstore, he decided not to invest his more time into the job and get some higher paying work. He then managed to secure a loan and started selling food products, such as grain and meat.

    The business boomed and John made some serious money. He was far from a millionaire though, but he didn’t do too bad for an inexperienced teenager. He was only 18, but the banks, impressed with his commercial acumen, were ready to loan him more money.

    Standard Oil

    In 1865, Rockefeller had borrowed some money to buy some of his partners and take control of the refinery. Over the course of the next few years, he acquired new partners and expanded his business in the growing oil industry. In 1870, Rockefeller formed the Standard Oil Company of Ohio, along with his younger brother, and a group of other men. John Rockefeller was himself the president and largest shareholder.

    Standard Oil Company
    Standard Oil Company

    Rockefeller’s Oil Monopoly

    In 1859, the first oil well in the United States was discovered. And so there began the oil rush and rise in demand. A lot of passionate entrepreneurs, including Rockefeller, rolled up their sleeves and prepared to grab their slice of the pie.

    When a bunch of determined, ruthless, pioneering entrepreneurs see an opportunity, they don’t show any mercy to their competitors. These people are relentless and won’t settle for anything but the first spot.

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    John Rockefeller not only sold refined crude oil but he also squeezed profits from byproducts like paraffin wax, tar, and naphtha. He didn’t buy wooden barrels from other businesses, he bought a forest and used his own wood to produce barrels to store oil.

    The revenue kept coming and Rockefeller made all the small competitors surrender to his authority. Rockefeller incorporated his company as the Standard Oil Company in 1870.

    But there was one thing that was still bothering him. There were four more competitors left and Rockefeller, who was raised in a crowded household and earned 50 cents a day, wasn’t a big fan of sharing.

    Rockefeller’s Standard Oil gained a state of monopoly in the oil industry by buying rival refineries and developing companies for distributing and marketing its products around the globe. In 1882, various companies were combined into the Standard Oil Trust, which would control some 90% of the nation’s refineries and pipelines.

    By 1890, his company, Standard Oil, was gaining major profits, which he used to buy out competitors. While Rockefeller’s offers were usually readily accepted, he had ways of persuading holdouts.

    He bought up all the oil barrels to cause a shortage that crippled smaller companies. Orchestrating price wars between wholly-owned subsidiaries, forcing holdouts to sell at losses. Also, Secretly bribing legislators.

    Limiting the number of trains available for shipment by leveraging his close relationship with the railroad companies. Purchasing all of the equipment and the equipment suppliers, then refusing to sell replacement parts to holdouts.

    Rockefeller’s Journey to Trillion Dollar Empire

    Standard Oil Trust

    After his failure to reorganize the rail industry, Rockefeller decided to restructure his sprawling empire. He and his partners innovated a first of its kind trust, where they swapped their individual holdings for shares in the trust. Rockefeller now wielded centralized control and veto power on all of the corporate boards within his conglomerate. The immediate benefits included even lower costs, lower kerosene prices, and standardization across the industry. Rockefeller’s company now had the assets and wealth to build pipelines and other infrastructure, on a scale that was previously unthinkable.

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    Standard Oil also employed chemists who developed ways of increasing the types and quality of combustible fuels and created methods of converting waste into usable substances. The petroleum coming out of the ground was being refined into various products, such as diesel fuel, varnish, and hair gel. As the new products became cheaper to produce, the company increased its global economy of scale.

    Standard Oil had its hands in many ancillary industries, such as iron, copper, steel and coal, but it also grew its presence in more unexpected areas, such as general stores. Rockefeller wisely forced shops to carry his products alone, where he was able to draw on the empire’s war chest to slash prices, thereby driving non-compliant shop owners out of business. Standard Oil likewise bought up newspapers to promote its version of events. It also owned its own boats, railroad cars, and warehouses, while manufacturing its own sulfuric acid.

    Rockefeller’s later life

    After retiring in 1896, Rockefeller channeled his energies towards philanthropic deeds, donating millions of dollars in the latter years of his life. With his son’s help, he created the Rockefeller Foundation, to carry on his work after he died. His business practices and charities have nonetheless benefited millions of people.

  • Causes of fluctuations in Oil prices and its impact on economy

    Oil prices fluctuate quickly in response to new cycles, policy changes, and fluctuations in the world trades and it impacts the economy in certain ways . The recent change in oil prices has been driven by a number of factors which includes several years of upward surprises in the production of unconventional oil, weakening global demand, unwinding of some geopolitical risks and an upliftment of the U.S. dollar. Oil prices are also influenced by a variety of factors that are particularly responsible for the decisions made about output by OPEC, the Organization of Petroleum Exporting Countries. Oil, a commodity which tends to see larger fluctuations in price than more stable investments such as stocks and bonds.

    Like any other market product, the laws of product’s supply and demand influence its prices. The retainment of stable demand and oversupply has put pressure on Oil prices over the last five years.

    The drastic fall in oil prices since June 2014 is a significant but not a new event. Over the past three decades, the oil price declines of 30% or more in less than a year period occurred, coinciding with major changes in the global economy and oil markets. Natural disasters that could entirely disrupt production and political unrest in an oil-producing industries like the Middle East impacting its pricing.

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    How Oil prices are determined?

    All the relative factors of change in Oil prices is difficult to systematically pin down. Empirical estimates also indicate that supply factors have accounted for the greater share of the latest plunge in oil prices. Although the supply capacity of relatively high-cost and flexible producers, such as shale oil industries in the US, will need to adjust to lower prices. Most of the important factors point to lower oil prices with considerable volatility in global oil markets.

    Demand and Supply

    Like all the other commodities, the oil prices are also set by the study of demand and supply. The price of oil is actually fixed in the oil futures market. The oil futures contract is an agreement that gives one the right to purchase oil by the barrel at a predefined price on a particular set date in the future. Under a futures contract, both the buyer and seller are obligated to fulfill their side of the transaction on the specified date.

    Market sentiment

    One of the key factors in determining oil prices is sentiment. The mere belief that demand of Oil will increase dramatically in the future can result in a dramatic increase in Oil prices in the present, as speculators or hedgers alike snap up oil futures contracts. The opposite of this situation is also true. The belief that oil demand will decrease at some point in the near future can result in a dramatic decrease in oil prices in the present, which means that prices can fluctuate little more than market psychology at times.

    Natural Disasters

    Natural disasters are one of the factors that can determine oil prices. For instance, when Hurricane Katrina devastated the U.S. in 2005, affecting almost 20% of the U.S. oil supply, it caused the price per barrel of oil to rise by $13.56. In May 2011, the flooding of the Mississippi River also led to oil price fluctuation.

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    Causes of fluctuations in Oil prices

    Fluctuations in Oil prices
    Fluctuations in Oil prices

    Weather

    If the weather is too windy, the oil rigs and transport facilities in the US Gulf are likely to shut down or may even suffer damage. If there occurs loss of oil production, this may lead to higher oil prices because the region’s refineries, which depend on the Gulf’s output, are forced to seek crude oil elsewhere. Meanwhile, cold temperatures mean that the pipelines cannot be switched off, it is one of the reasons why it is difficult for Russia to support OPEC in cutting production during its winter.

    Extreme Warm and cold temperatures, especially for prolonged periods, can dramatically increase the demand for crude and heating oil for cooling and heating, respectively, as opposed to the softening effect of more moderate temperatures. If the climate is particularly hot then more crude oil is used in power generation, resulting in less available to be exported.

    The US dollar

    Most internationally traded commodities, even oil is priced in US dollars. The decrease in the value of the US dollar relative to a commodity buyer’s currency means that the buyer will need to spend less of their own country’s currency to buy a given amount of the commodity. As the commodity becomes less expensive, demand for the commodity rises, resulting increase in the price and vice versa.The relationship between oil prices and the US dollar works both ways.

    A weaker dollar can also act as a disincentive to producers to increase output. Depreciation in the US dollar against the Russian ruble can reduce profit margins for oil companies in Russia. All of the oil producers revenues will be received in US dollars, which will buy less rubles, but some proportion of the costs will be denominated in rubles and will remain constant. Hence, the prospect of a lower profit margin acts as an incentive to decrease the supply of oil.

    War and conflict

    A look at a simple oil price chart back to the 1970s reveals a series of bumps. Each of these can be pinpointed to wars and conflicts, whether it was the Iranian revolution, the Iraqi invasion of Kuwait or the US-led invasion of Iraq in the second Gulf War. Recently, Arab related uprisings in Libya or Egypt have also affected the oil price.

    Looking at the chart of first Gulf War is a good case study. The invasion of Kuwait by Iraq caused prices to plunge higher but then as soon as the US led invasion started oil prices fell back on speculation that the conflict would be brought to a concrete conclusion and that the military would secure oil manufacturing facilities.

    OPEC supply

    A statement of intent can often be enough to influence sentiment and result in higher prices during a period of weakness. Despite the influence, OPEC have a poor record of sticking with their agreements. The conflict between members and non-OPEC producers means that there is an incentive for individual members to overproduce.

    Unplanned outages

    Possible reasons of Unplanned outages include the weather, maintenance or civil unrest, etc.

    Stocks/Inventories

    Stocks act as a form of extras for both producers and consumers of a commodity. Falling stock levels, however, make a particular commodity market more vulnerable to an unanticipated disruption to supply or a sudden increase in demand. There is an inverse relation between stock levels and the price of oil.

    Impact of change in Oil prices

    Impact on Economy

    Monthly oil prices from 1990 to early 2008, using the spot oil price for West Texas intermediate and the U.S. retail gasoline price. The series track each other closely over time, increase in oil prices are accompanied by increase in gasoline prices.

    Global demand for oil has been sky-rocketing, outpacing any gains in oil production and excess capacity. The reason behind is that developing nations, especially China and India, have been growing rapidly. These countries have become increasingly industrialized, which contributed to an increase in the world demand for oil. Addition to it, in recent years fears of supply disruptions have been spurred by turmoil in oil-producing countries such as Nigeria, Venezuela, Iraq, and Iran.

    The astoundingly sharp increase in the price of oil in the last half of 2007 and first half of 2008 has led many to argue that increased speculation in markets has played a role and there is evidence of increased activity in these markets. However, the speculation is playing a role in high oil prices is open to debate. It is even useful to remember that both the demand and supply of oil react sluggishly to changes in prices in the short run, so very large changes in prices can be required to acquire equilibrium.

  • Impact of COVID-19 on Oil Industry

    As everyone is aware of the COVID-19 situation the world is facing right now. On the brink of this cliff, we can just hope that everything goes back to normal. Into the list of unprecedented victims, the Oil Industry has been added to it successfully. The chaotic change in the prices of Oil during COVID-19 outbreak is like adding fuel to the fire.  

    The recent news about Super Contago(when the space to store the tangible products is running out due to excess supply) has shook the world inside out. This pandemic is going to be near about compared with the 2008 depression.

    The surge in supply of crude oil was due to lack of demand across the world. The world implementing complete lockdown has brought the global Oil Industries to an acute dearth of available storage facilities. The sudden termination in the utility of the fuels has worsened the situation. Oil Industries were already under pressure from lower oil and fuel prices because of a warm winter even before the COVID-19 outbreak and the price war between Saudi Arabia and Russia.

    For the first time in history, WTI crude oil prices fell below $0 per barrel and entered into the negative territory.

    As there is no early hope of how to recover from this situation in the near future, the key issue of Oil inventory storage is likely to remain. If the Oil and fuels are stored at the pennies, the non-Saudi shale companies would have to pay to dispose the excess stock off. And as a result, they may have to further narrow the rate of production by shutting down their rigs and oil wells to avoid plunging into deeper financial troubles.

    Reasons of decline in Oil Industry due to COVID-19

    With history and the growing tension between the USA and Saudi Arabia regarding the Oil prices and the export business. The shale players were already tested with their limits even before the pandemic. COVID-19 is not the major reason why Oil prices are falling.

    • The world i.e. direct or indirect dealers in Oil market are either tested positive of COVID-19 or too cautious to take a physical step forward.
    • The interested dealers reside in an area which have been quarantined or are facing national lockdown.

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    Actual Effects on Oil Industries worldwide

    Surge in oil prices can reduce demand for other goods because they reduce wealth, as well as induce sheer uncertainty about the future. The rise in Oil price can also suppress the growth of the economy through their effect on the supply and demand for goods other than oil.

    Iran faced a decline in oil prices. The majority of revenue took a hit due to the unexpected outbreak of COVID-19. The price of Iran’s heavy crude plummeted to below $14/barrel down from $44 or more per barrel in February. It also had to allow it’s buyers to come directly with it’s tankers to it’s refineries, plug in and fill up. Thus removing transit fee, insurance and whatever maritime indemnity from the cost of each barrel.

    Iran and Iraq want to produce enough to satisfy their markets by offering to produce more to gain new markets, and deliver through their own agents. But the problem here missed is, an offer in the international market doesn’t happen overnight.

    Saudi Arabia cuts down the price oil in a day since the 1991 Gulf War, estimating the prices further could fall $20 a barrel. Whereas, Saudi Arabia needs oil prices at around $82 to balance the market.

    Angola, Algeria and Venezuala are suffering the most by loosing around 85% of their oil and gas revenue this year.

    The dispute between tow biggest oil producers which are Saudi Arabia and Russia has pushed the oil prices in four years.

    China, the world’s biggest oil importer, is now consuming much less oil and energy due to disruption in the manufacturing industries. Moreover, Countries would rather stock up the bottles of fresh water, poultry products, meat, vegetables, pharmaceuticals and other necessities rather than burning fuel.

    Graph of oil prices over the passage of years
    Graph of oil prices over the passage of years

    OPEC members and its allies finally agreed to make a deal to slash global output by about 10%. Therefore, the deal led to largest cut in oil production ever.

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    How does change in Oil prices affect India?

    There are number of ways we can look into this due to the slump in oil prices.

    Impact of Oil prices on Indian Economy

    Almost 85% of oil is imported from the big oil industries. Low oil prices reduces India’s import bills and it can also give space to the government to increase fuel taxes, offsetting low direct tax collection. Furthermore, low oil and petroleum costs also bring down the energy prices, moderating the inflation rate. “India being a net oil import contributor tends to gain immensely from oil prices drop on its import bill,” Madhavi Arora, Economist.

    Indian Economy has a possibility of getting a hike of 1.4% points GDP.

    It is interesting to mark that the prices for retailers/investors have not been reduced since the government is using the buffer amount to fund its expenses. However, once the lockdown comes to an end, the government faces increased pressure to reduce the fuel prices for consumers.

    However, the oil industries are in deep trouble due to terrific crash in demand. Dealers and Refiners imported a tons of crude oil before price crash resulting heavy inventory losses, with negligible sales revenue and repeating the cycle.

    An add on to this fiasco, from a consumer’s point of view, is that reduced oil prices help in slowing inflation. Also, there are many possible ways to measure real oil prices, depending on which measure of inflation you use.