Our Energy group works with leading oil and gas companies globally, delivering innovation to help individual companies raise their performance to new heights. Our oil industry clients in the Czech Republic have been facing significant changes in their sector, especially in light of Czech Republic's accession to the European Union. In our opinion, the major driving forces impacting this sector are the following:
- Increasing regulation, especially environmental.
- Increasing competition requiring investments in technology and efficiency improvements.
- Internationalization.
- Privatization.
- Over-capacity.
  One of the most significant forces today is the increasing intensity of competition. Highly rising crude oil prices and an increasing fuel oil consumption, which is expected to continue for a few years, represent one side of this situation. On the other side, entrance of new supply from several competitors formed a new situation on a market where a local producer lost its monopoly position. Foreign suppliers demonstrated an aggressive entrance to the Czech market due to their significant cost advantage achieved through different means, e.g. more complex refining processes, lower fixed costs, favorable crude procuring costs, control over their product's distribution, etc. In any case, new entrants have created an overabundance of supply.
The Energy retail market is characterized by a high level of gas station network rationalization. Smaller enterprises are mostly impacted by shrinking sales margins, whereas large networks of gas stations can balance possible losses in one region by a profit in another region. One of the key expected trends is the further development of non-fuel offering—convenience stores. Within Central and Eastern Europe, there are a number of prominent examples where oil companies have vigorously embarked on the journey to improve performance. We have assisted some of the key players in this market. As an example, we worked with a client on a large business transformation program that concentrated on cost reductions through the improvement of processes and organization, and the replacement of existing systems across the company. We partnered with a client to reengineer processes in the areas of sales and distribution, contracting and procurement, finance and accounting, new projects, human resources and plant maintenance. Learn more about our global expertise in the energy industry and services Accenture offers in the Czech Republic. |