Paper rewrite gas station 7 page include reference APA format
Part I. External Environment Analysis
The Gas Station industry has experienced its fair share of highs and lows over the past five years. As the United Sates economy gains stream, more Americans return to work, total vehicle miles increased, bolstering purchase of gasoline. Furthermore, strong economic growth will push up demand fore crude oil, thus paving the way for higher industry revenue. For purposes of this analysis, however, the demographic figures will be confined to the gas station industry’s reach within the United States.
In 2015, the total number of gas station in the US is 121,446 (Statisticbrain, 2015). This data shows the number of vehicles in the U.S. from 1990 through 2014. Around 260 million vehicles were registered in 2014. The figures include passenger cars, motorcycles, trucks, buses, and other vehicles. The number of cars sold in the U.S. per year stood at 7.9 millions in 2014 (Statista, 2015).
According to the U.S. Census Bureau, the typical American family income was $53,657 in 2014, barely changed from $54,462 in 2013. The nation’s poverty rate also held steady at 14.8% last year. Some 46.7 million Americans were in poverty, compared to 46.3 million in 2013(CNN, 2015). No matter where you live, what gender you are or how old are you if you have a vehicle you have to fill it up.
US: Economic growth remains subdued
Despite a developing rebound for the second half of the year, GDP growth for the United States is adjusted downward to 1.7 percent for 2016, as a result of a weak GDP growth in the 1st quarter. Although employment growth and stronger housing trends support consumer spending, faster wage acceleration is the key to sustain income levels and support consumption as the key driver of growth. Weak investment remains a key source of slow U.S. growth, which is one cause of slow productivity growth. The combination of rising wage levels and low productivity provides an increased threat to profits in the coming quarters (Conference-broad, 2015).
Domestic industry economic situation
The U.S. Energy Information Administration estimates that in 2014 the increase in the global supply of petroleum and other liquid fuels was almost twice the increase in consumption. That was a recipe for lower prices and shrinking profits. And it presents a troubling outlook for oil giants such as ExxonMobil, BP, Total, Chevron, and Shell that invested tens of billions of dollars in oil exploration when prices were high but did not enjoy a concomitant boost in production or profit margins. Though they’ve slimmed down by shedding unprofitable units and cutting back on investment more recently, these companies still face-increased competition from an array of state-owned oil companies and independents (Strategyand, 2015).
The forecast for the oil industry is extremely different today compared with how it looked just a couple of years ago, when the fundamentals of the oil industry were controlled by cartels. That traditional structural discipline has been replaced by a systemic imbalance marked by vastly increased supply and receding demand growth (Strategyand, 2015).
Political / Legal
On March 28, 2014 the Obama Administration released a key element called for in the President’s Climate Action Plan: a Strategy to Reduce Methane Emissions. The strategy summarizes the sources of methane emissions, commits to new steps to cut emissions of this potent greenhouse gas, and outlines the Administration’s efforts to improve the measurement of these emissions. The strategy builds on progress to date and takes steps to further cut methane emissions from several sectors, including the oil and natural gas sector.
Oil and gas companies have had a tough time over the past year trying to weather the storm of falling oil prices. But the political and financial winds are moving in the wrong direction for the industry, raising more “above ground” problems at a time that they can ill-afford it. Drilling oil and gas wells requires a lot of money. For companies that have seen their revenues vanish because of collapsing oil prices, access to credit is obviously critically important. But U.S. financial regulators are growing concerned about a pile of energy debt that is deteriorating in quality.
North American is favorites by region. Gas station can be highly regional, so based on Market Force data, it identify the favorites in four U.s regions. The results were a mixed bag, with no one brand standing out in multiple regions. Costco led in the West, Speedway in the Midwest, Shell in the South, and Exxon Mobil in the Northeast.
Global demand for natural gas is expected to have risen by 2.2 percent per year by the end of 2019, according to the International Energy Agency. Yet although natural gas will likely continue to represent an increased share of the global energy mix, a share growing by 2.4 percent annually until 2018, analysts expect production to exceed demand in the short term.