Shell Fracking

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How has Shell 's new business strategy of
affected sales growth and how will it affect the profit growth going forward?

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Royal Dutch Shell or Shell, which it is commonly called, is a global company which seeks to be the leader in the gas and oil industry. Founded in 1907, Shell’s mission is to deliver the best value to its shareholders, while helping to meet energy demands all around the world. In addition to its role as an energy company, Shell strives to drive innovative ideas and to create technology solutions. One of these innovative ideas is known as “fracking”. Gaining financial information from Shell as it relates to the profits and losses due to
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Some experts insist that the regulations for fracking are too lenient and need to be more stringent. These problems can affect the profits and revenue of Shell in a negative way by ruining the corporate image of shell.

Opportunity: Competition from other energy companies makes Shell strive for better and cheaper ways of creating energy. There is a theory which states that competition between different companies helps rather than hinders them. Since Shell has to compete for the energy market, Shell’s scientists work with other institutions such as University of Texas, to develop better methods of extracting energy that is safer and cheaper. Another benefit that has resulted from the growth of the fracking industry is the creation of 1.7 million new jobs in the Unites States. Studies from an economic forecaster, IHS Global Insight, have shown that by 2035 the number should rise to 3.5 million jobs. There is potential for fracking to become the main source of extracting natural gas. In the graph below the green section or shale section shows how many cubic feet of gas is being produced by fracking from 1990 to 2040. However scientists can only estimate that amount of shale gas being produced in the future. We do know that fracking has caused a dramatic boost in the natural gas production in this country. The Energy Information Administration states that the production on natural gas will rise around 44% through 2040 due to fracking.The higher production rate
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