Analyze of the development of alternative fuels in France

Résumé du document

There are innumerable indicators in the economy. The indicator gaining prime importance is the sky rocketing oil prices. If we consider the present economy, everything is linked to oil. However, this product and its by-product is not available on planet earth in plenty. This gave rise to the development of alternative fuels by engineers. With this development, the subsequent questions that follow is whether these elements can compete with oil and how can they be developed in the future. In this paper, we will analyze the market and its new alternative fuels that will compete with the oil industry in France. The goal is to financially analyze how the French fuel market is progressing in France, and how the new fuels can be developed in a market which is exclusively controlled by the sky rocketing oil prices and in conclusion, the perspectives for 2010. Analyzing the French Market and its alternative fuels which are not completely developed is a Herculean task. The fact that explains the rise of alternative fuels (oil price, reserves) needs to be considered. ?Is the consumer interested in protecting the environment' is a mind-boggling question. This and many more reflections will form the base and its interpretations for this report.

Extraits

[...] What will be the impact of the oil rate rise continuation on the fuels prices? In order to estimate the development of the alternative fuels in 2010, we have to make some hypotheses on the oil cask price: First, the offer is not influence by any political issues and the demand goes down, we will assist a “against oil crisis” and the oil price will goes down to reach $30 the cask. Secondly, the political situation in the product countries is stable and the demand from the user countries is controlled. [...]

[...] How customers act on the alternative market? The consumers want to limit the impact on the environment but they do not want to pay a lot of money for that. According to a study of French people choose their car thanks to the price thanks to the car consumption and 22% thanks to the environmental impact. The best example of the price importance when people buy cars is the Renault Logan. His sales expectations were double in 2005 ( cars sold). [...]

[...] Today in France, the alternative fuels market is at the beginning. Since 1980 the number of diesel engine vehicles raised a lot: The growth of the total number of cars is stable since the last twenty fifth years. The annual rise is in the eighties: cars, in the nineties: and since 2000. Between 1980 and 2004, the number of cars in France raised of per years. So the market is very mature. That means that the customers buy cars only to renew their old car. [...]

[...] What are the economical consequences of the development of the alternative fuels? Our analysis showed that the alternative fuel have a lot of impact in the economy. Savings and production of 44 billion barrels of liquid fuels Requirement for over $ 2.6 trillion of investment Over 10 million employment years of jobs created Total industry sales of over trillion Over $125 billion of industry profits Over $500 billion in federal government tax revenues Nearly $300 billion in state and local government tax Revenues The alternative fuel impact will be different: see the Figure on top. [...]

[...] How are the fuels sold in France? Three categories of actors influence the oil distribution: - The oil companies and their subsidiaries (Total, Shell, BP, Esso et Agip) - The supermarkets ( Carrefour, Casino, Auchan, Intermarché, Leclerc) - The retailer (independent, Dyneff) The oil companies are the first sellers of oil with a volume of 22 million of sq3 in 2004, the supermarket only sold 20,9 sq3 and 5,5 for the independents. That is due to by a targeting by fuel used. [...]