Portfolio and Program Management

This study material covers changes to strategy, performance reporting, and portfolio risk in the oil and gas industry. It discusses the challenges faced by Shell Global, their sustainability reporting, and the risks and uncertainties involved in the industry. The material includes references and is suitable for students studying courses related to energy and business management.

Running head: PORTFOLIO AND PROGRAM MANAGEMENT
Portfolio and Program Management
Name of the Student
Name of the University:

1PORTFOLIO AND PROGRAM MANAGEMENT
Table of Contents
1. Changes to strategy......................................................................................................................2
2. Performance Reporting................................................................................................................2
3. Portfolio Risk...............................................................................................................................4
References........................................................................................................................................5

2PORTFOLIO AND PROGRAM MANAGEMENT
1. Changes to strategy
The strategy of Shell Global is strengthened the place as leading Energy Company by
provided that of oil, gas as well as low carbon energy as change into the energy system. The
market opportunity of Shell Global is that the organization is developing energy sources from
renewable towards the fossil fuels. The fossil fuels are playing a key role as primary energy
sources. Surging demand is a major opportunity both for energy production countries as well as
for the global energy industry. This market opportunity has come into major challenges (Finsgar
and Jackson 2014). The challenges that Shell Global is facing are resource challenges faced into
coming years. The society is addressing stresses of growing population in a planet. It is included
of threats towards global warming. In order to avoid effects of the climatic changes, the
companies are required to reduce emissions of carbon dioxide. Due to increase into a human rate,
easy-to-access to oil as well as gas is over. There is an increase in environmental in addition to
technical challenges to developing new sources of oil as well as gas. Oil and gas industry is
contained of impurities which make it difficult to extract along with process (Kelland 2014).
There is required to change of strategy such as recruitment of talented people with required
technical skills into locations which are required. Experience along with training is allowed to
function so that there is proper management of the resources. The mentioned challenges
represent the opportunities for the resource-rich countries and global energy companies such as
Shell.

3PORTFOLIO AND PROGRAM MANAGEMENT
2. Performance Reporting
The reporting of Shell Global is based on environmental as well as a social performance
from the year 1997. The sustainability reporting is based on challenges which affect the business
performance to the key stakeholders. Reporting is an open way to build trust and motivate the
staffs along with improvement over the environment in addition to a social performance of Shell
Global. There is a tracking of performance against the environment along with social indicators
to work with continuous improvements (Yusuf et al. 2014). The sustainability performance is
ranked in leading indices. Following table shows the performance reporting of Shell Global as:
Performance reporting
data
Description
Environmental data There is a record of performance against the range of
the environmental indicators for assessing how to do
over time along with identification of areas for
improvements.
Safety data There is the report on an individual as well as
procedure safety in line with the business standards
(Ablo 2015).
Social data There is evidence of performing alongside the range
of the social indicators to evaluate to do over time
and also identify areas for possible improvements
(Kelland 2014).
Greenhouse gas emission
data
In the year 2018, there is obtained of limited
assurance of 2017 direct as well as indirect gas

4PORTFOLIO AND PROGRAM MANAGEMENT
emission data from which Shell Global is operated
(Finsgar and Jackson 2014).
Sustainability data There is a beginning of reporting on the
environmental performance with first of the Shell
report which was covered in the year 1997.
Therefore, from the above table, it is seen that there is a proper requirement to report all the data
so that it will be used for future references.
3. Portfolio Risk
Into Shell Global, there are unknown risks as well as uncertainties which cause due to
problems into the business functions of energy and gas industry. The risks which are under Shell
are related to political risks. The main way that the political influence the oil and gas industry is
that the company is enclosed by a variety of the regulations which bound when and how the
removal has been completed (Sadaghiani et al. 2015). The political risks will cause an increase
when the oil, as well as the gas industry, is working on deposits aboard. The geological risk is
caused due to unconventional oil and extraction methods that help to squeeze with the resources.
The risks are referred to the difficulty of the extraction along with the possibility that accessible
reserves. It is hard for the industry to minimize this risk by testing. The high risk into Shell
Global is price risk. It is a primary factor decides whether the reserve is economically feasible.
Higher there are geological barriers to extract; there is an increase of price risks. There are
sometimes unconventional extraction costs that are more than vertical drill down to the deposits
(Kirat 2015). Therefore, the oil and gas industry is not automatically ceasing the project

5PORTFOLIO AND PROGRAM MANAGEMENT
operations that become unprofitable because of the price dip. That time the project is not shut
down even it is restarted.

6PORTFOLIO AND PROGRAM MANAGEMENT
References
Ablo, A.D., 2015. Local content and participation in Ghana's oil and gas industry: Can enterprise
development make a difference?. The Extractive Industries and Society, 2(2), pp.320-327.
Finšgar, M. and Jackson, J., 2014. Application of corrosion inhibitors for steels in acidic media
for the oil and gas industry: a review. Corrosion Science, 86, pp.17-41.
Kelland, M.A., 2014. Production chemicals for the oil and gas industry. CRC press.
Kirat, M., 2015. Corporate social responsibility in the oil and gas industry in Qatar perceptions
and practices. Public Relations Review, 41(4), pp.438-446.
Sadaghiani, S., Ahmad, K.W., Rezaei, J. and Tavasszy, L., 2015, April. Evaluation of external
forces affecting supply chain sustainability in oil and gas industry using Best Worst Method.
In Gas and oil conference (Medgo), 2015 international Mediterranean (pp. 1-4). IEEE.
Yusuf, Y.Y., Gunasekaran, A., Musa, A., Dauda, M., El-Berishy, N.M. and Cang, S., 2014. A
relational study of supply chain agility, competitiveness and business performance in the oil and
gas industry. International Journal of Production Economics, 147, pp.531-543.