Evaluate the performance of Encana Assignment Example | Topics and Well Written Essays - 1750 words

Evaluate the performance of Encana - Assignment Example From this position, it evolved and became one of the largest independent Oil and Gas Company of the same state. The earlier leadership of EnCana developed a strategy of focusing on extract unconventional or difficult oil gas when 90% of the hydrocarbon needs were fulfilled by conventional sources. Over the years, advanced technology and expertise have been hired by EnCana so that they can acquire substantial land resources and make it one of the largest land holders in the North American region (Manda & Maldar, 2005). EnCana as one of the successor companies to the break-up of Canadian Pacific Limited In 2002, September, the company was separated into five stand alone companies. Here after the break up, the Pan Canadian Energy Corporation merged with Alberta Energy Co. now called EnCana Corp. (Andy, 2002). The striving young part of Canadian Pacific Limited has struggled a lot throughout the time and now because of their effective leadership and strategies, they have been able to be counted as one of the cheapest and largest natural gas producers of the state. Evaluate the performance of the company on the bases of their Strategy and Leadership Instead of following other energy companies, who were moving into more remote or hostile places like Iraq, seabed of Atlantic Ocean, the early leaders of EnCana changed their strategy and spent three and a half year in dumping the almost every faraway asset of EnCana. Initially, this strategy was unusual and was not supported by many of the business intellectuals. As the owners, even offload the collection of Ecuadorean pipelines and oil fields on the Chinese for around U.S. $ 1.2 billion (Stock house, 2008). From the billions they received in the entire deal making, EnCana managed to acquire the right to drill on the land in Western North America, through government auction. Though it was known to the company that this turf was hard to exploit, but it was very rich in hydro-carbon and gas fields. These reserves are hund reds or even thousands of meters below the Earth’s surface (Bloomberg Business week, 2011). Right strategies by the leadership, has helped the company to survive well in the time of crises. For the oil side, they have used different strategy, the minority stake of the company was sold in the Syncrude oil sands, it is the mining operation in Northern Alberta and concentrated more in, in-situ tar sands projects. Now, the business has increased to this extend that these two units of EnCana run as a separate unit (Patch work, 2011). According to the pioneers of EnCana, the road to success was not difficult but an intelligent game. They focused more on the reserves of unconventional type of gas. According to them, EnCana has signed huge checks for the exploration right. These checks were sometimes based on the limited geological knowledge. However, they were convinced that in future they will find unconventional gas there. Since with the passage of time new drilling and fracturing rock methods will be introduced, the gas will move to the surface, will make the unconventional deposits more economic. As the company has spent millions of dollar in such fields now, they do not have to explore more places. This is because some of their reserved fields are so large that, they can produce unconventional gas