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<p align="justify">Canadian Natural Resources Limited is a public corporation dealing in petroleum and gas extraction and development primarily in Canada, and some other regions like the UK North Sea and Offshore Africa. Dealing in the petroleum industry, the company was founded in 1973 having its headquarters in Calgary, Canada. As of 2018, the company generated a strong figure of revenue of 21.027 billion dollars and has involved employment figure of almost 10,000 (Cnrl, 2018). From the perception of the Canadian petroleum industry, the assessment of Porter&#8217;s five forces would be a helpful mechanism for maintaining prospect strategies to better understand the company standing position.</p>
<h2>Competitive Rivalry in the Market</h2>
<p align="justify">The competitive rivalry in the petroleum industry is high because the natural gas and petroleum is the need of today’s world as Canada has the third-largest oil reserves in the world. As a result of this increase, several companies and institutions have captured the market to provide oil and gas production and exploration as Canada is well placed and is becoming a key global supplier, resulting in fierce competition among established players. It is expected that the revenue of petroleum refineries in Canada will reach up to 61,8 billion US dollars by 2024. According to Statista (2020), Canadian Natural Resources is making its way among the top firms in the industry with a revenue of 14.73. The major competitors of the company are Enbridge Inc, Suncor Energy Inc, Imperial Oil Limited, and Husky Energy Inc, with a revenue collection of 33.29, 23.43, 20.57, and 12.57 billion US dollars. Therefore, making the environment of the industry more competitive.</p>
<h2>Threat of Substitutes</h2>
<p align="justify">The threat of having substitutes is typically low in the petroleum industry because the production of alternative resources like solar, nuclear, and wind energy has to face various challenges. Like the expansion and consumption of renewable energy are interlinked with the weather conditions such as availability of sunlight and limited humidity making the production of alternative energy more location-specific. According to their efficiency, reliability, and cost, these alternative energies necessitate significant Research and development activities and built-up expenditures. Though the preface of the electrical vehicle has not reflected a greater budge in a claim for petroleum fuel and consumers mostly depend on gasoline due to price sensitivity (Clemente, 2018). Therefore, the risk of substitutes in the petroleum sector is minimal.</p>
<h2>The Threat of New Entrants</h2>
<p align="justify">The threat of new entrants in the petroleum business is considered to be low as there are loads of petroleum processing companies all over the world, but the barriers to entry are high enough to keep most or new entrants away. The establishment of a mining structure and maintaining supply chain networks involves a lot of capital and resources making it newcomers complicated to launch a company in the petroleum sector. Apart from the capital obstacle, new firms have to deal with the existence of big brands of petroleum organizations and the restrictive federal regulations that regulate the operations. Fluctuation in oil prices and human capital is another risk factor involved in the businesses (Yunna and Yisheng, 2014). Hence, making less room for newbies.</p>
<h2>Bargaining Power of Buyers</h2>
<p align="justify">The Bargaining power of consumers in the case of the petroleum industry is low because it includes people buying fuel, petrol, and another source of energy as per the given prices which is in control of the petroleum producers. A rise in the prices of oil and petroleum fallout in the prices of petrol on an international range, impacting the users at a global level. The clients have to compensate for the increased prices the big petroleum suppliers are charging which leaves them with no right to influence or affect them to reduce the prices (Taha, 2018). Keeping in view such a method, the bargaining power of buyers is relatively low due to the nature of the industry.</p>
<h2>Bargaining Power of Suppliers</h2>
<p align="justify">The Bargaining power of suppliers in the petroleum industry is moderate. The suppliers in this industry are primarily the organizations who are producing and extracting the resources of petroleum products. These firms hold a considerable capacity of authority in the process dynamics of the industry and have the ability to fluctuate the petroleum prices. Moreover, the agreement made by the states on the regions where such resource is extracted influences the suppliers to bargain (Hokroh, 2014). However, the industrial economy is reliable on the operations of such companies allowing them to control to some extent. Thus, in context to the petroleum industry, the bargaining power of suppliers is moderate.</p>
<h2>References</h2>
<p>Clemente, J., 2018. The Link Between Crude Oil And Gasoline Prices. [online] Forbes. Available at: https://www.forbes.com/sites/judeclemente/2018/06/27/the-link-between-crude-oil-and-gasoline-prices/?sh=58f0368e37db.<br />
Cnrl, 2018. annual-report. [online] Cnrl.com. Available at: https://www.cnrl.com/upload/report/113/02/cnq-2018-annual-report_t_w.pdf.<br />
Hokroh, M.A., 2014. An analysis of the oil and gas industry’s competitiveness using Porter’s five forces framework. Global Journal of Commerce and Management Perspective, 3(2), pp.76-82.<br />
Statista, 2020. Leading Canadian oil and gas firms revenue 2020 | Statista. [online] Statista. Available at: https://www.statista.com/statistics/433977/select-canadian-oil-and-gas-company-revenues/.<br />
Taha, T.M.A.M., 2018. Competitive Analysis of the Global Oil and Gas Industry using Porters Five Forces Model.<br />
Yunna, W. and Yisheng, Y., 2014. The competition situation analysis of shale gas industry in China: Applying Porter’s five forces and scenario model. Renewable and Sustainable Energy Reviews, 40, pp.798-805</p>
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