Sector Sketch and SWOT Analysis of the Dutch Oil Sector – Final Presentation – Dutch Ministry of Economic Affairs Oil Division The Hague, 3rd February 1999 A conflict appears to be emerging between the traditional Dutch economic strengths and more recent environmental concerns Dutch economic prosperity Oil industry focussed on exports Founded on trading Motor of Rotterdam trading strength Dutch environment Legitimate environmental concerns High population density low-lying - vulnerable to Global warming Global warming Congestion Noise Export industry must be petitive to survive Tough environmental stance Conflict Contents Page A. Extracts from Sector Sketch B. Feedback from oil and pany interviews C. SWOT Analysis . Strengths . Weaknesses . Opportunities . Threats D. mendations 4 7 11 12 17 23 26 31 A. Extracts from Sector Sketch The Dutch oil industry has traditionally been strong and internationally orientated Refining and Chemicals Trading Ports Only 15% of total oil supply destined for home market Accounts for 9% of EU refining capacity Key synergies with and supply to Dutch chemicals industry Benelux chemical cluster is second largest in Europe Rotterdam ‘world’s leading port’ for 30 years Road, rail, inland waterway and pipeline connections to many major markets Major oil trading market in the EU time zone and one of the big 3 globally (Rotterdam, Houston, Singapore) Each sector in the oil industry faces important issues affecting petitive position Oil refining Increasing costs of pliance Mergers/alliances change petitive scene Overcapacity and low returns Storage Supports the international business Fosters independent traders Overcapacity and low returns Trading Strong role of panies Dependent on critical mass of Rotterdam market Bunkering Important fuel oil outlet for refiners Refiners ing dominant Pipelines Pipelines and waterways key to Rotterdam logistical advantage Dominated by private or consortium own
