Pestle Analysis of Petrosa

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host nations.

• Over 70% of companies recognized that skills, people training and development are among their top-five strategic priorities over the next five years.

• This shows the significance that industry is placing on local content initiatives and the significance that skills development has on executive-level agendas

Legal

• The legal factor influences exploration, exploitation and commercialization of oil products.

• Some legal positions like work regulation, work protection, social protection, competition regulation, pollution, international trade, and consumer protection.

• The industry has to pay subsidies, taxes on fuels and oil prices.

• The industry has to follow taxation policies, implement labor laws, trade restrictions, and political stability in the country.

Economic factors

• The oil industry is divided into upstream and downstream activities. Upstream refers to the exploration and production of crude oil. Downstream refers to the refining, transportation and marketing of end-user products.

• South Africa has no crude oil reserves of its own and about 60% of its crude oil requirements are met by imports from the Middle East and Africa.

• The major petroleum products that are sold in South Africa are petrol, diesel, jet fuel, illuminating paraffin, fuel oil, bitumen and liquefied petroleum gas (LPG). Petrol and diesel are the major liquid fuels that are used in South Africa.

• Government regulates wholesale margins and controls the retail price of petrol.

• South African petroleum prices are regulated, based on import parity price formulas. This means that the domestic price is influenced by supply and demand for petroleum products in international markets, combined with the rand/dollar exchange rate.

• Currency fluctuations have an impact on the oil and gas industry.

Technology

• Different technologies and techniques were used in South Africa for extraction in recent years

• Such technologies were used in better exploration of oil and gas.

• It has also been helpful in providing protection to environment, workers and enhance the efficiency of the companies with better maintenance and repairing skills.

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