What is the competitive landscape of the industry in the USA?
The competitive landscape of the energy industry in the USA has changed rapidly during the last several years. All the companies try to focus on their environmental performances during production because of global warming. Some companies concentrate on the research of renewable energy, such as solar power and wind power. While some companies try to develop new technologies in drilling oil. Meanwhile, the US department of energy invested $60 billion in the renewable industry to support a new energy market (“Gas Processing in...”, 2011). However, the energy industry in the USA is still based on “conventional thermal energy”, and due to the regulatory and policy uncertainties, these kind of companies producing renewable energy are still in a dangerous situation. For example, the White House-backed solar energy company, Solyndra, has filed for bankruptcy, regardless of being heralded as “leading the way towards a brighter and more prosperous future” by President Obama when he visited the company in May 2010 (Dwyer, 2011).
The figure shows the revenue of the five biggest companies in the energy industry in 2008. It indicate that the ExxonMobile Corporation and Shell ranked at the top of the energy market. ExxonMobile is the biggest corporation among the Time & Fortune Group's 2001 Fortune Global 500 list of the largest companies by revenue” (Alley). On the other hand, “According to the Lundberg Survey dated December 2009, Shell ranked number one in total gallons sold and in market share in the Unites States” (U.S. Business).
I think in the energy industry, it is difficult for a new company to survive, the most competitive companies always remain to be some big, well-known companies like ExxonMobil and Shell.
References:
Alley, Angel. “ExxonMobil & Esso Uk” Freedom Press. Retrieved from http://www.corporatewatch.org/?lid=292 on 9th Oct 2011
Dwyer, Devin. (31st, Aug, 2011) “Solar Energy Company Touted By Obama Goes Bankrupt” ABC news. Retrieved from http://abcnews.go.com/blogs/politics/2011/08/solar-energy-company-touted-by-obama-goes-bankrupt/ on 2nd Oct 2011
“Gas Processing in North America Market Analysis, Key Companies and Competitive Landscape” (23rd March 2011) Market Research News. Retrieved from http://www.salisonline.org/market-research/gas-processing-in-north-america-market-analysis-key-companies-and-competitive-landscape/ on 2nd Oct 2011
U.S Business. “About Shell” http://www.shell.us/home/content/usa/aboutshell/shell_businesses/retail/ on 9th 2011
I agree with your closing statement, "I think in the energy industry, it is difficult for a new company to survive, the most competitive companies always remain to be some big, well-known companies like ExxonMobil and Shell." If this is truly the case, it is a bit frightening to think that these few companies are the main suppliers of one of the most sought after resources on the globe. I sure am glad there are Anti-trust laws in place to stop collusion among these energy giants.
ReplyDeleteLike Dan said, energy is one of the most sought out resources in the world. The competitive landscape draws beyond the borders of the United States because companies like Exxon and Shell are competing beyond American borders. After doing some research of the leading oil companies in the world, I realized that more of our research should be on foreign companies in the Middle East, Russia, and China especially. When Alfredo Jollon talked to our class about emerging markets, he presented a slide of the most productive oil companies, few being within the U.S. This is going to be a key factor in our research: we need to think globally.
ReplyDeleteOne other thought on the blog, one of the sources was from 2001 - that might not be entirely relevant to today's environment. Other than that good research on companies that are most influential in the U.S. energy industry.