PESTEL ANALYSIS
Political/Legal - There are controversial arguments between the large Texas-based oil companies and the big green state of California in terms of alternative energy and pollution (Environmental Law). There are also the Water Lawsuit with oil companies, since some citizens' water in America was contaminated with the additives of gasoline, which led to multiple oil companies paying a total lump sum of over $400 million.
Economic - During economic downturn and when gas prices were rising, the consumption of gasoline was decreasing. People were traveling less, considering alternative energy, especially for automobiles. The demand for gas-guzzling automobiles have been downward turn.
Social - The baby boomer generation contributed to increased in demand for automobiles and gas consumption over the years with their population quantity and interests in high power automobiles and motorcycles. However with the new generations accepting alternative energy and wanting lower gas consumption automobiles, there is a fear of decrease demand for oil companies.
Technological - The increase in alternative energy technology is a threat for Valero. However, they are seeking out new routes for their business for the future, including in investing in Enerkem, a Montreal, Canada company, who is converting garbage into car fuel.
Environmental - Valero has won many environment awards, explained in this site, with reducing emmisions, seeking alternative energy on how they run their factories, and recycling old oil-based substances and other excess material. This is a constant challenge that oil companies face, especially dealing with very stringent regulations.
Political/Legal - There are controversial arguments between the large Texas-based oil companies and the big green state of California in terms of alternative energy and pollution (Environmental Law). There are also the Water Lawsuit with oil companies, since some citizens' water in America was contaminated with the additives of gasoline, which led to multiple oil companies paying a total lump sum of over $400 million.
Economic - During economic downturn and when gas prices were rising, the consumption of gasoline was decreasing. People were traveling less, considering alternative energy, especially for automobiles. The demand for gas-guzzling automobiles have been downward turn.
Social - The baby boomer generation contributed to increased in demand for automobiles and gas consumption over the years with their population quantity and interests in high power automobiles and motorcycles. However with the new generations accepting alternative energy and wanting lower gas consumption automobiles, there is a fear of decrease demand for oil companies.
Technological - The increase in alternative energy technology is a threat for Valero. However, they are seeking out new routes for their business for the future, including in investing in Enerkem, a Montreal, Canada company, who is converting garbage into car fuel.
Environmental - Valero has won many environment awards, explained in this site, with reducing emmisions, seeking alternative energy on how they run their factories, and recycling old oil-based substances and other excess material. This is a constant challenge that oil companies face, especially dealing with very stringent regulations.