Strategic Plan for Petro CanadaStrategic Plan for Petro CanadaExecutive SummaryPetro-Canada is a publicly traded, Canadian integrated oil and gas company with headquarters in Calgary, Alberta. The Company’s core business lays in petrochemical products, refining and supply operations, retail and marketing networks, and a specialty lubricants business.
Petro Canada has evolved to be one of the major players in the petroleum industry and uses price as well as non-price strategies to enhance market share. In today’s changing environment, where gasoline prices are volatile and supply and demand is shifting, Petro-Canada should create long-term plans and expand the current portfolio of assets and products. The company needs to be aware that escalating prices of gasoline as well as the alternative fuel sources and more economic cars, may negatively affect demand for gasoline and therefore product sales and price of gasoline in the future. Although Petro-Canada revenues increased by 23% in 2006, crude oil and products purchases increased over 31%; therefore, the net profits slightly increased to1.9% in 2006. Technology plays a significant role in reducing the operation cost and increasing reliability. Petro-Canada
is a leader in the energy sector and its products from its two main source of natural gas, natural gas and diesel, but will continue aggressively in the oil and gas segment. Petroleum-Efficient vehicles are the backbone of the pipeline system. With improved quality and operation, high-level technologies, long-term savings and a proven track record of success, the Company will continue to grow its portfolio of petroleum-efficient automotive products worldwide with a new strategy of expanding its business in the oil and gas energy sector. • Continued growth, through improvements in our pipeline and transportation system, will continue to enable our customers to pay higher wholesale prices, which will be responsible for the continued increase in our market share and in our annual income, as well as, through other management activities, increase our cash flow from operations. If that continues, the Company will be able to continue to attract capital, increase cash flow and increase our profits.
• In October 2013 the company announced that it is going to implement a two-prong model for its global market strategy, which will be focused on the production of oil and natural gas products, such as diesel and natural gas. As such, the two-prong strategy will target the entire world. As a result of this, as of October 2013 Petro-Canada is currently expanding production capacity in three regions of the world: South America, Europe and Africa as well as Asia-Pacific. Through the joint marketing strategy, we hope that the future expansion of Petro-Canada’s operations, combined with the enhanced level of infrastructure in each region around the world, will offer products that offer greater flexibility relative to the global marketplace. • The two-prong strategy would further increase our ability to develop and expand our products in a single market in order to continue to provide greater value for the Company. In our view, Petro-Canada’s current model will serve to drive a significant opportunity to ensure greater investment in the company. As previously established by the Company, the two-prong strategy will enable the Company to better manage its natural gas production, including the extraction of hydrocarbon from the surface of Canada. As such, in order to fully prepare for the expansion of production, the Company should be able to obtain additional energy from the available available resources throughout the world. Through the three-prong investment strategy, we believe those areas that are most conducive to additional oil and natural gas production will serve as the most competitive for Petro-Canada: India, Brazil, and South Africa. In other words, our expansion of production capabilities will help create high-margin pipelines and transport systems for this segment of the economy. The two-prong strategy will help ensure the continuing growth of Petro-Canada’s global refining market by working together. The Company’s overall investment of at least $500 million in hydrocarbon extraction capacity, as well as other resources, is projected to be sufficient for our business to achieve its full potential. As a result, Petro-Canada will remain a significant source of revenue and a significant contributor to our overall financial performance. Under the joint marketing strategy, Petro-Canada will continue to develop and expand our technologies to meet the competitive needs of the competitive economy in these and other countries when compared to alternative natural gas and hydrocarbon fuels. With respect to the development of hydrocarbon products, Petro-Canada is developing and developing new technologies to meet the growing demand in this region. With respect to the development of oil product lines based in this region, while we look forward to the first line of pipeline and light