Industry analysis g.o.l.d. (global oil leakage detecto

1. Industry Analysis:
G.O.L.D.
(Global Oil Leakage Detector)
Table of Contents
I. Introduction2
II. External and Internal Environmental Analysis2
III. Perform a Competitor Analysis3
IV. Market/Submarket Analysis3
V. Perform a Customer Analysis4
VI. Provide a Comprehensive Strategy Assessment5
I. Introduction
An oil spill is "a release of a liquid petroleum hydrocarbon into
the environment due to human activity, and is a form of
pollution."[footnoteRef:1] On April 20, 2010, BP (British
Petroleum) was ultimately responsible for an oil explosion of
the Deepwater Horizon and has had a serious effect on the

2. marine environment. BP, one of the largest private sector
energy corporations, was unable to prevent such a devastating
event. However, with the new proactive tool, G.O.L.D (Global
Oil Leakage Detector), this destructive event could have been
prevented or even avoided. With this product, it allows oil
companies to monitor current waters in the hopes of preventing
leaks and assisting in oil spills. [1: Wikipedia.
http://www.wikipedia.com. Oil Spill. July 4, 2010.]
II. External and Internal Environmental Analysis
Strengths
G.O.L.D is a proactive tool, a new product, and is the only
one on the market at this time that ensures such positive results.
G.O.L.D is of high quality and reasonably price which would be
marketed to only oil companies across the world.
Weaknesses
Competing against products that have been used for
decades may be the biggest challenge. With G.O.L.D being
created and produced by a new company, building a strong,
positive brand name and reputation is also a test.
Opportunities
One of the opportunities for G.O.L.D is that it is the first
on the market to do so. The equipment being used to clean-up
oil spills are containment booms, dispersants, absorbents, burns,
and also skimmer boats which are the same tactics used for the
past two decades. Unlike other companies in the market, our
company’s researchers and top scientist have devoted their time,
efforts, and attention to this oil spill detection device. This
product will offer immediate detection of any leakage, faster
clean-up, and ensure the safety of the marine life. Also with the
current Deepwater Horizon explosion, more than 50 oil
companies across the world are eagerly awaiting such a product
in order to prevent another catastrophe that could do extreme
damage to its business.
Threats

3. One threat to our product would be competing with other
oil spill clean-up products on the market. For instance, the
fairly new product on the market called TEPCO Terracap
Additives. This product contains absorbents that offer
economical solutions to remediate and clean-up a wide variety
of fuel spills, oil spills, and other organic hydrocarbon spills
from hard surfaces, soils, and of course water.[footnoteRef:2]
There are several products out on the market that ensures clean-
up in a healthy and environmentally safe way. [2: RTSACO.
Oil Spill Clean-up Products. http://www.rtsaco.org. July 4,
2010.]
III. Perform a Competitor Analysis
The top six current and potential direct competitors in oil spill
detection technology are as follow[footnoteRef:3]: [3: Fortune
500]
1. Halliburton
4. Smith International
2. National Oilwell Varco
5. Cameron International
3. Baker Hughes
6. FMC Technologies
These six companies are in the business of oil and gas
equipment and services. They all have different technology in
detecting oil leakage.
We will analyze the top 3 competitors in the table below:
Listed below identifies current and potential indirect

4. competitors. They are involved because oil spill affects them
and they may push for new technology and solutions:
1. United States Environmental Protection Agency (EPA)
2. United Nations Environment Program (UNEP)
3. United States Department of Energy
4. WSPA: World Society for the Protection of Animals
IV. Market/Submarket Analysis
U.S. demanding for refined petroleum products will grow by
over 35 percent in the next two decades, according to the U.S.
Energy Information Administration. Over the next quarter-
century, a briskly growing world will need large increases in
energy supplies[footnoteRef:4]. Coastal states have opposed
new offshore drilling, in the past. The effect of oil spills on
tourism and coastal industries and the “visual pollution” of
oilrigs looming off the coast have always been concerns.
Environmental action organizations maintain that offshore oil
and gas operations have detrimental effects onshore because
these operations require roads, pipelines, and processing
facilities on America’s beaches, wetlands and coastal
areas[footnoteRef:5]. [4: Energy Information Administration
(US Dept. of Energy) Energy Statistics, Data, and
Analysis. Annual Energy Outlook, 2007 & 2008] [5: Florida
Department of Environmental Protection, Mining & Minerals,
Florida Oil and Gas
Report, 2001-2007]
According to Lisa Flavin, Senior Policy Advisor for the
American Petroleum Institute (API), “The oil and natural gas
industry has worked hard to achieve a harmonious relationship
with the environment and surrounding wildlife. In fact, the
industry has invested nearly $100 billion in emerging
technologies that allow offshore operations to be cleaner, safer
and more efficient.”[footnoteRef:6] Through new seismic

5. exploration and extended reach drilling technologies, API’s
geologists can see and survey underground oil and natural gas
deposits more effectively than in days past. This improves
exploration success rates while reducing environmental impact.
Despite the improvements in technology and better government
oversight, detractors of oil drilling remain unconvinced.
According to Dr. Sisskin, “They make it sound as though there
are no more accidents anymore, but that is not true. In 2006,
there were 133 fires and explosions in the Gulf of Mexico.
People say we won’t have spills because we’re using pipelines
instead of tankers. That’s not true because they will need
tankers for deep sea drilling.”[footnoteRef:7] The MMS predicts
there will be no less than one oil spill a year of 1,000 barrels or
more in the Gulf of Mexico over the next 40 years. Oil is toxic
for most marine species and, according to the National Academy
of Sciences, cleanup methods can only remove a small fraction
of oil spilled in marine waters[footnoteRef:8]. [6:
http://www.api.org/aboutoilgas/] [7: The National Resources
Defense Council, Legislative Facts, July 2008
http://en.wikipedia.org/wiki/Roman_numerals /policy] [8: U.S.
Department of the Interior, Minerals Management Services,
OCS Oil Spill Facts,
September 2002]
V. Perform a Customer Analysis
A. Customer Needs
Oil producers need a product that would protect against
losses of their most viable asset. They are looking for a low
maintenance, high quality, long lasting and efficient product
that would detect oil leakages. They need a product that can
detect leakages on land and at varied oceanic depths while
under the most extreme weather/oceanic related conditions. Oil
producing customers need a product that can accommodate any
oil piping apparatus to date. Lastly, they’re looking for a
product that is readily available with a manufacturer’s warranty

6. and guaranty.
B. Current/High Potential Customers
Exxon-Mobil (United States), Royal Dutch Shell
(Netherlands/United Kingdom), BP (United Kingdom), Chevron
Corp. (United States), Conoco Phillips (United States) and Total
S.A. (France) are considered super majors. The term super
major, also called International Oil Company (IOC), illustrates
the six largest, non-state owned energy companies, as seen in
popular financial news media around the world. These
companies’s acceptance of G.O.L.D. (Global Oil Leakage
Detector) would attract the state-owned oil companies of the
world. We will be trying to appeal to the IOC, who controls 6%
of global oil and gas reserves.
Other current/high potential customers could include, as
follows: offshore drilling companies (Transocean, Statoil,
Diamond Offshore Drilling, Inc. and etc.); oil pipeline
companies (Saudi Aramco, British Pipeline Agency, Kenya
Pipeline Company, and etc.); and oil pipeline manufacturers
(Arab Pipe Manufacturing Co., Smart Pipe Co., He Bei Shen
Zhoe Steel Pipe Manufacturing and etc.). These current/high
potential customers welcome a variety of open markets that
would benefit from global oil leakage detection.
VI. Provide a Comprehensive Strategy Assessment
a. Describe each key competitor’s current positioning/marketing
strategy
This part of the market is ultimately untapped due to the
lack of research and development. However, one company, in
particular, that has been on the market for some time is Pristine
Sea. Pristine Sea is a natural clay that has been chemically
treated. "When applied to hydrocarbons found floating on the
water, it will immediately begin a chemical reaction-solidifying
and breaking up the oil into little cakes."[footnoteRef:9] Their
intentions are to develop products to solidify and render a wide
range of radioactive and hazardous waste. Since being founded,
the company has progressively grown and has broadened "its
range of services and products to meet the challenges of dealing

7. with marine oil spills and dust mitigation.[footnoteRef:10] [9:
Fluidtech. Pristine Sea. http://fluid-tech0inc.com. July 5, 2010.]
[10: Fluidtech. http://www.fluidtech.inc. July 5, 2010.]
b. What are each key competitor’s major sources of competitive
advantage?
· Halliburton - Helium Leak Detection Services[footnoteRef:11]
[11: Halliburton ]
· National Oilwell Varco - Tubular Leak
Detection[footnoteRef:12] [12: National Oilwell Varco]
· Baker Hughes - CPIG Pipeline Inspection
Services[footnoteRef:13] [13: Baker Hughes]
c. What additional sources of competitive advantage could each
develop in the future?
In the future, the GOLD could face competition from other
environmental companies who will try to reinvent our product.
Copycat companies could use “less expensive” materials or
manufacturers in order to make a “less expensive” version of
our product. Energy companies will be willing to save money if
we’re not efficient, and would switch to other brands to save
capital.
d. Global Finest (Optical Fibre Pipeline Leak Detection)
Global Finest offers an amazing product in leak detection, but
hasn’t put the company in the best position to promote its’ state
of the art product. Global Finest needs to expand its web-based
marketing to include social networks, oil databases, and place
ads in the leading oil revues and journals.
We recommend these changes in marketing strategy because the
more people see things, the more they tend to want it. By
making themselves and their award winning product more
visible and the proper exposure, it will sell itself!

8. These marketing strategies would be implemented in stages: 1-
Join and advertise on all the major social networks, 2- Take out
one-page ads in the entire major oil related revues and journals.
The overall success of these marketing strategies could be
measured by various means, such as: quarterly asset/sales
summaries, regulated financials, and customer feedbacks
Sources:
1. Fluidtech. Fluidtech Inc. http://www.fluid-tech-inc.com. July
5, 2010.
2. Investing Blog. BP Stock Price-Oil Spill.
http://www.investingblog.org. July 5, 2010.
3. RTSACO. Oil Spill Clean-up Products.
http://www.rtsaco.org. July 4, 2010.
4. USA Today. Despite Previous Spills, Oil Clean-up Research
Fall Short. http://usatoday.com. July 4, 2010.
5. Wikipedia. Oil Spills. http://www.wikipedia.org/OilSpills.
July 4, 2010.
6. Wikipedia. British Petroleum. http://www. wikipedia.org/BP.
July 4, 2010.
7. EPA:
<http://www.epa.gov/osweroe1/docs/oil/fss/fss06/chase_1.pdf>
8. Fortune 500:
<http://money.cnn.com/magazines/fortune/fortune500/2010/indu
stries/218/index.html >
9. Halliburton:
<http://www.halliburton.com/ps/Default.aspx?pageid=442&prod
id=PRN%3a%3aIVPX5CKG4 >

9. 10. National Oilwell Varco:
<http://www.nov.com/Tubular_and_Corrosion_Control/Tubular
_Leak_Detection.aspx >
11. Baker Hughes: < http://www.bakerhughes.com/products-
and-services/downstream-chemicals/pipeline-services/pipeline-
management/pipeline-inspection-services/cpig-pipeline-
inspection-services >
12. Smith International: < http://www.smith.com/$bc9eae40-
7ef7-435c-b45b-4f91fda4aea3 >
13. Cameron International: < http://www.c-a-
m.com/forms/Product.aspx?prodID=5e505612-7a79-4bb7-ad1a-
3762981d64dd >
14. FMC Technologies:
<http://www.fmctechnologies.com/~/media/Subsea/Services/CP
M/WHAT%20-%20CPM_low%20res.ashx >
15. Leak Detection Technologies: <
http://www.dec.state.ak.us/spar/ipp/docs/ldetect1.pdf>
16. United States Environmental Protection Agency (EPA): <
http://www.epa.gov/awi/pdf/600f09019.pd f >
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2 / 7
% change% change
RankCompanyFortune 500 rank$ millionfrom 2008$
millionfrom 2008
1Halliburton 15814,675.0-19.71,145.0-25.6
2National Oilwell Varco 18212,712.0-5.41,469.0-24.7
3Baker Hughes 2439,664.0-18.5421.0-74.3
Source: Fortune 500 -

10. http://money.cnn.com/magazines/fortune/fortune500/2010/indus
tries/218/index.html
Revenues Profits
Oil and Gas Equipment and Services Industry