Vermilion Energy

The overall situation of oil and gas industry is not satisfactory. During the past few years, the glut of oil and gas changed the trade flows and gave buyers more power over the gas price than suppliers. As a result, the long-term contracts are being renegotiated so that the buyers can spend less money. Due to the reducing of price, energy companies are forced to cut cost in order to still gain profit. This slows down the growth of the oil and gas industry. However, comparatively, the future of oil and gas demand in Europe is a chance for Vermilion Energy. In Europe, the supply of oil and gas is mostly depending on Russia. If Russia cut off the gas exports, Europe is in huge trouble. Therefore, Europe is urgent to find new suppliers to reduce this power of Russia. Also, the gas trades price in Europe is about three times more than in Western Canada. There are not many competitors in Europe so the services cost there is low. Europe is a market with high potential, high natural gas prices and little industry competitors.

The competitors of Vermilion Energy are private and state-owned oil and gas corporations. Since Vermilion Energy is focused in Canada, Europe, and Australia, I will focus on the top oil companies in these three areas. Suncor is the largest company, in terms of total revenue, in Canada. The strategy is to invest in renewable wind energy and biofuel and continuously improve the tailings management approach. Enbridge is based in Calgary and is noted as one of the largest energy delivery companies in the Canada. The main focus for the company is transportation, distribution and generation of energy throughout North America, serving Canada and the United States primarily. There are many large oil and gas companies in Europe, such as Royal Dutch Shell, BP in UK and Gazprom in Russia. Commitment to technology and innovation is the core of the strategy of all these three companies. Woodside Petroleum is Australia's biggest independent oil and gas company....