Nobody downloaded yet

Oil Business - Advantages and Disadvantages - Essay Example

Comments (0) Cite this document
Summary
The paper “Oil Business - Advantages and Disadvantages» reports the industry's resistance to market fluctuations, among the threats, there is its absolute dependence on raw materials, competition from alternative energy sources, the environmental movements protecting the planet from pollution etc…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.4% of users find it useful
Oil Business - Advantages and Disadvantages
Read TextPreview

Extract of sample "Oil Business - Advantages and Disadvantages"

Download file to see previous pages Typically, the entire oil business is divided into three main parts which are the upstream, midstream, and downstream sector. The upstream sector is concerned with the location and extraction of oil from various parts of the world while the midstream is concerned with the processing of extracted oil to marketable products as well as the transportation of such products. Both the upstream and the midstream sectors are concentrated only in certain parts of the world such as Russia or the Middle East while the distribution industry which is part of the downstream sector is spread throughout the world (Gary & Handwerk, 1994). Therefore, any changes in the global market of oil can either favorable or adversely affect the distribution industry significantly. The unpredictability of the global market can also lead to many changes inside of the distribution industry, and the rising cost of fuel has only put a strain on the already straining oil distribution industry.
One of the industry’s strengths is that it is among the first in the line of industries affected by oil prices and therefore it can suffer minimally as compared to other industries when it comes to changes in oil prices. Because it is the first hit by the changes, it is also the first that can adapt and the first to be able to quickly overcome the changes to try to lessen losses based on the change in oil prices. Where other industries are affected conversely through the chain of order and sometimes have little room to do anything about the price of oil, the gas distribution is hit first and therefore can adapt most quickly with the other industries adapting around it.
When less oil is mined and processed in the international market, independent distributors would have to compete to obtain what is available. This sort of competition can drive smaller distributors out of business. And for those smaller distributors, this can cause problems, and may at first look like an outright negative effect of gas prices, and a negative effect of the whole of the industry. But this negative opportunity for the smaller firms soon opens up a larger one for the bigger firms, which can then flex their economic muscle a little bit. It is this versatility and adaptability that helps the oil distribution industry to survive at hard times when most other industries would fold upon themselves and crumble. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Oil Business - Advantages and Disadvantages Essay”, n.d.)
Oil Business - Advantages and Disadvantages Essay. Retrieved from https://studentshare.org/business/1528477-oil-industry-essay
(Oil Business - Advantages and Disadvantages Essay)
Oil Business - Advantages and Disadvantages Essay. https://studentshare.org/business/1528477-oil-industry-essay.
“Oil Business - Advantages and Disadvantages Essay”, n.d. https://studentshare.org/business/1528477-oil-industry-essay.
  • Cited: 1 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Oil Business - Advantages and Disadvantages

Assistive Technology: Advantages and Disadvantages

...? Assistive Technologies- Advantages and Disadvantage Research Study Assistive Technologies- Advantages andDisadvantage Research Study 1. Introduction Technology has intervened in every walk of life and has introduced revolutionary changes in the lifestyles of humans. The field of education is no different; innovative technologies have made their way into the classrooms and other modes of education that are being followed by the academicians in the prevailing times. Assistive technologies are also counted amongst these inventions of the modern era since they facilitate the acquisition of education by students who have disabilities. This field is an emerging one and is attaining the...
3 Pages(750 words)Essay

Recommendation: its advantages and disadvantages

...for provision for depreciation would help to reduce the likely uncertainties of the company. Though the company still subtracts the accumulated provisions, it will benefit by reducing any possible losses (Bebbington, Gray & Laughlin, 2001, P. 187). Advantages and Disadvantages of the Recommendations Every accounting principle applied in any business unit has its own advantages and disadvantages, and depreciation is no exception. However, most companies have realized that the advantages indeed outdo the disadvantages. Advantages Increased accuracy in accounting for business assets; though...
4 Pages(1000 words)Essay

Advantages and Disadvantages of Conducting Business Offshore

... Finance and Accounting Advantages and Disadvantages of Conducting Business Offshore Introduction Offshore company relates to theincorporation of a company overseas, and it is utilized in a way that investors are able to avoid tax laws imposed to business in their home countries. Moreover, the offshore are legal in any if they are set for the right purpose regarding the business in which they are involved. Therefore, the tax reasons for offshore business are the principal factors in deciding to start the business offshore, though there are other advantages and disadvantage. Making a decision of conducting business offshore entails the motives of establishing a business for a given purpose in a country having different corporate... and...
3 Pages(750 words)Essay

Advantages and disadvantages of internet

...; hence, children encounter such sites effortlessly. Regardless of all of the horrible disadvantages of the Net, there seems to be numerous advantages as well. Actually, the advantages even prevail over the disadvantages. The most frequent thing the Internet is employed for is research. Kids as well as students are amongst the top individuals who make use of the Internet for research. Nowadays, it is almost necessary that students apply the Internet for their research. Entertainment happens to be another popular motive why many kids surf in to the Internet. Now we are able to communicate in a few seconds with a person who happens to be sitting or even working in the other section of the world. There are numerous messenger services...
1 Pages(250 words)Essay

Advantages & Disadvantages of JavaScript

...and your system remains secured. (Freeman, 2012, p. 290) Conclusion: It can be concluded from the above situations that all in all JavaScript has some advantages asa well as disadvantages. Security issue is the main disadvantage that is offered by JavaScript while its main advantage is the high speed accessibility. Privacy is the burning issue that has to be taken care of therefore JavaScript is disabled. . Although, there are many sites that would restrict their execution if JavaScript is disabled, but your system will become faster with respect to performance but no significant loss in business is observed References Daggett, M. 2013. Expert...
2 Pages(500 words)Essay

Advantages & Disadvantages of Monsters

... humans to suffer. Their disadvantages in people’s lives are reputations preceding them. For example, the article asserts that these monsters cause insanity among other forms of misery. An evaluation of the abovementioned opinions that are considered as representative of several other positions, one might observe that most individuals do not still understand this kind of monster. Actually, several atheists might not perceive the actuality that spiritual monsters, also known as demons, are real. Thus, the perfect evaluation for the disadvantages and advantages of this kind of monsters can merely be advanced through the religious prism. Christianity indicates that there is no good thing that demons are able to bring into the life... down on...
4 Pages(1000 words)Essay

Advantages and Disadvantages of Business Regulations

...Advantages and Disadvantages of Business Regulations Introduction A business may refer to an organization that is involved in trade of goods or services to consumers (Nijsen, 2009). Most businesses are privately run by individuals who are in quest of maximizing their resources or create wealth. However, in realizing their aims ought to comply with already devised regulations that govern respective enterprises either large or small scale for them to run smoothly. Most of these regulations range from health to security besides varying significantly among states though crystallized by the international ones. In most cases the requirements are...
2 Pages(500 words)Assignment

Advantages and Disadvantages of Globalization for Business

...Evaluate the Advantages and Disadvantages of Globalization for Business Globalization is a principal concept that plays a significant role in business processes over the past decades. Globalization affects companies, environment, world economies and societies in various ways. Those largely affected by globalization are almost all business corporations. Organizational changes are likely as a result of dynamic technological advancements, rapid competition and information exchange. To respond to these dynamic changes companies are required to recognize the various elements of the major effects of globalization. a couple of years ago management guru peter...
9 Pages(2250 words)Essay

Advantages and Disadvantages of Globalisation on Business

...Advantages and Disadvantages of Globalisation on Business Introduction Research indicate that globalisation has influenced businesses to a large extent through the manner in which they conduct their operations and business. This has been attributed to the advancement of technology, transport, education, communication and regulations of trade that make business fair to all parties. Fair terms of trade are also attracting more investors all over the world towards investment destinations. For this reason, many multi-corporation are establishing outlets, production sites and connecting to suppliers and customers in different parts of the...
7 Pages(1750 words)Essay

Psychoanalytic therapy advantages and disadvantages

...Global Warming Vs. Global Dimming Global Warming Vs. Global Dimming In most of the instances, people believe that aerosols with a global dimming effect are the solution needed to help in the regulation of global warming attributes. However, many view this with much skepticism because of the increase of cooling effects rather than the reduction in warming effects. This is something that people continually overlook as they continue to advocate for these dimming aerosols across the world. The fact remains that the aerosols provide a global dimming effect where lesser radiation levels reach the earth, but the trend reversed in the 1990s. Essentially, the growth of the global dimming phenomenon only worked between 1950 and 1985, only... Warming...
1 Pages(250 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Oil Business - Advantages and Disadvantages for FREE!

Contact Us