Marathon Oil (MRO) SWOT Analysis

Marathon Oil (MRO) SWOT Analysis

Strengths

Presense Across Energy Value Chain A strong presence in the entire energy value chain gives an energy company flexibility and...
Incremental increase in supply According to the Economist, shale drillers can speed up production or wind it down, just as an...
Diverse Products Diverse products and revenue should help shield the business from shocks in any one part of their...

Weaknesses

Lack of Comparative Scale Certain industries like the energy sector, rely on scale in order to have a competitive advantage....
Hostile Foreign Governments Foreign governments are hostile to international companies that make lots of profits off the...
Political Risk for Oil Companies Political risk affects all companies to a certain degree, but oil companies are frequently targeted...
Declining Oil Reserves Energy reserves decreasing without new replacements. Could lead to shrinking supply and less...

Opportunities

Demand for Diesel is Increasing The demand for diesel is increase much faster than the demand for gas, so refiners are trying to...
Business Expansion When demand for one's goods outpace supply, a business can expand and reap higher revenues and...
Expanding Natural Gas Demand The discovery of techniques to get natural gas out of shale formations is leading to a boom in...
Oil Refining Business is Fickle Refining oil is a tough business, because the price for oil must be in a sweet spot in order to...
Environment Regulation Additional regulation will increase the demand for companies in the environmental services industry....

Threats

Middle East Refining Capacity is Increasing In order to capture more of the value chain (profits) for energy products and services, the Middle...
Renewable Energy Initiatives Renewable energy policies that limit the use of energy or cap the level of pollutants will hurt...
Rising Oil Prices to Refiners Refinery products exist in the spread between the price of oil and the price they can charge their...
Political Action Windfall tax and other politically-motivated issues may increase risk to future earnings.
Windfall Tax Political action. Windfall tax for very high profits. Could decrease cash flow if taxes are...
Government Intervention Govt intervention could put downside pressure on the stock. Possible government intervention...

Marathon Oil (MRO) SWOT Analysis Profile

Marathon Oil operates in a three division structure: Exploration and Production; Refining, Marketing and Transportation; and Integrated Gas. Via these divisions, the company extracts, refines, markets, and distributes its products internationally. Marathon also engages in the production of a myriad of industrial products in some of their refineries. In 2006 they entered into a joint venture with Pilot Travel, who operates highway service centers in the majority of U.S. states. (read full profile)

Additional Information

What is a SWOT Analysis? It is a way of evaluating the strengths, weaknesses, opportunities, and threats that affect something. See WikiWealth's SWOT tutorial for help. Remember, vote up the most important comments. Check out WikiWealth's entire database of free SWOT reports or use our SWOT analysis generator to create your own SWOT template.