OAO Gazprom is one of the largest companies in the world and is the largest extractor of natural gas. Gazprom is based in Russia in 1989 when the Soviet Ministry of Gas Industry converted into a corporation. Gazprom is a global energy company and majors in lines such as geological exploration, production, transportation, storage, processing and sales of gas, and many others. Gazprom also holds the world’s largest natural gas reserves where they hold 14 and 74 percent of the global and Russian gas respectively. They are also one of the pioneers of transporting liquefied gas.
The top two competitors of OAO Gazprom are OAO LUKOIL and Centrica. OAO LUKOIL is Russia’s number one integrated oil company. They produce, refine …show more content…
Therefore, the customers will choose their competitors over them and caused the economy of the company drops as they might have to reduce the price of the production to be lower than their competitors and sell them, with a loss to earn back some of their customer.
(O1) Strategic acquisitions and joint ventures
‘Wintershall company, WINZ, WINGAS, WEE...’ These are the companies that have strong reputation. It is an opportunity for Gazprom to expand their market and gain more customers by join ventures with these companies.
(O2) Global warming
Nowadays, global warming is getting serious causes by the release of abundant of carbon dioxide to the surroundings. Using gas instead of fossil fuels reduces giving out of carbon dioxide. The research shows that, Gazprom has agreements to expand their market into Asia countries, for example, China, India and South-east Asia. Since the global warming is getting more serious and the lack of fossil fuels, the potential for Gazprom to expand their market to Western countries is high, such as Brazil, Mexico and Colombia.
(O3) …show more content…
Vladimir Putin clarified that he noticed many countries have launched new technologies for shale gas production and keep refining it In October 2012. Dependence on gas imports by US has decreased by 45% over the years. At the moment, the European gas market might witness a momentous transition if shale gas is developed successfully in the next 2 to 3 years. Europe might emerge as a significant shale gas producer and the production of shale gas in Europe would completely alter its energy structure. Gazprom might lose their market in EU as potential of shale gas in Europe is changing the dynamics of the gas