Nobody downloaded yet

Structural Characteristics of OIL Industry - Essay Example

Comments (0) Cite this document
The paper “Structural Characteristics of OIL Industry” looks at petroleum and its close associate, Natural gas, which has been one of the key energy sources for the ever energy-hungry human race, and this industry has played a critical role in shaping the political, economic and social structure…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.6% of users find it useful
Structural Characteristics of OIL Industry
Read TextPreview

Extract of sample "Structural Characteristics of OIL Industry"

Download file to see previous pages The world oil exploration and refining industry are dominated by a few oil companies. While the top 10 oil firms own, directly or indirectly, about 80%of all oil reserves, they are also This Oligopolistic market structure enables the players in the oil industry to earn supernormal profit through monopolistic pricing.  By the end of the first world war, the oil industry had gained much traction and more so after the 2nd world war. Under the patronage of respective Governments, few companies took control of the whole value chain of oil production in the world. This was gained through complete hold over the resources of the petroleum producing countries. In this scenario, these companies were making the huge profit, huge tax collection was happening in Oil consuming countries but however, on the other end of the value chain, the oil-producing countries were loosing out. This occurrence gave rise to the formation Organization of Petroleum Exporting Countries, OPEC, which was a cartel of major Petroleum exporting countries.  Vladimir Putin the president of Russia has used oil & gas supply as a strategic tool to arm-twist those European countries who are not exactly in friendly terms with Russia. Recently on Jan-7th’2009 – Russia under Putin stopped the supply of Gas to Europe, through Ukraine. More than 25% of Europe’s gas supply is dependent on Russia & 80% of that comes through Ukraine. (Russia stops all gas supply to Europe via Ukraine, January 2009). Like any other industry, the oil & petroleum companies also come up with innovative marketing strategies which would give them a competitive advantage. For example Mobil North American Marketing and refining; how it changed itself from a commodity manufacturer to a customer-centric company. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Not Found (#404) - StudentShare”, n.d.)
Not Found (#404) - StudentShare. Retrieved from
(Not Found (#404) - StudentShare)
Not Found (#404) - StudentShare.
“Not Found (#404) - StudentShare”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Structural Characteristics of OIL Industry

Oil & Gas Operations Industry

...? Investment Analysis and Executive Summary This paper will assess my portfolio in the Oil and Gas industry. This is an industry that operates at a very challenging environment, characterized by frequent fluctuation of oil prices and stringent regulatory framework. More importantly, the industry has to contend with uncertainty that has characterized the recent decades. Despite these challenges, analyst have continued to forecast positive trends in this industry, particularly because the demand of gas and oil is on the rise, coupled with more advanced technology, which has improved production processes and fundamentally...
12 Pages(3000 words)Research Paper

The Oil Industry

...The oil industry The oil industry is not a modern development. It traces back its history to ancient ages. The only problem that has necessitated changes pertains to refinery and exploitation of oil. The modern oil industry emanated from an invention by Colonel Edwin drake. It involved a steam-driven rig for drilling. This set up an expensive machine that most individuals could not be acquired. The only strategy was to harness resources for acquiring of such machines (Clo 6). The machines became more expensive to acquire as time progressed since the demand of oil necessitated very quality production. The...
6 Pages(1000 words)Essay

Nationalization of Oil Industry

...Nationalization of Oil Industry The Argentinean President, Cristina Fernández de Kirchner has announced in mid that Argentina would take control of its biggest oil producer, YPF, from its Spanish owner, Repsol. This has created significant commotion in the international forum. Repsol has faced sharp losses owing to the unexpected expropriation of its Argentinean business. The amount of compensation to be paid by Argentina against its seizure of shares from the company is yet undecided. While nationalization of YPF is expected to act in favour of Kirchner financially and politically, greater concerns cloud around the future investment climate in the economy and its relationship with its...
7 Pages(1750 words)Essay

Nationalisation of Oil Industry

...?Nationalisation of Oil Industry in Argentina Introduction Minder s that Argentina, like many other South American countries, is endowed with vast amounts of oil and gas reserves. Despite its potential, Argentina remains one of the countries that depend much on oil imports from other countries. Argentina is reported to have found itself in this unfortunate situation following the privatization of one of its largest oil and gas companies, YPF Oil and Gas Company, in the 1990s (Minder 2012). YPF was later on sold off to the Spanish company Repsol. However, Argentina has been forced recently to reverse its earlier decision to privatize the...
6 Pages(1500 words)Essay

Strategic management (structural industry analysis)

...Introduction The processes that encase strategic management and structural industry analysis take careful planning and analysis. Unfortunately, they are not systems that can simply be implemented overnight by wishful thinking or without proper planning. The purpose of this paper is to explain the five forces presented in Porter's Model; how they help individuals and groups to undertake strategic planning; give examples of how it applies to at least two companies; and to discuss competitiveness, generic strategy, effectiveness, and profit. Porter's Model According to Kotelnikov, Porter's Model is particularly useful in that it "outlines the primary forces that determine competitiveness within an...
3 Pages(750 words)Essay

Oil Industry

...The Price and Output of Oil in the Next Five Years Organization of the Petroleum Exporting Countries (OPEC) is a cartel aimed at coordinating and unifying the petroleum policies that govern the member countries in ensuring stabilization of the markets of the oil so that they secure an economic, efficient and a constant supply of the petroleum to the consumers, a stable income to the producers and a good return on capital to the ones investing in petroleum industry (The Economist Newspaper Ltd, 2004, pp.8378-8381). Demand and supply characteristics of oil The market for the oil is very unusual. In the short-term, both the supply and demand...
7 Pages(1750 words)Essay

Economic Characteristics of Steel Industry

...xxxxx Management Topic: Nucor 03 November Economic Characteristics of Steel Industry In current scenario, the significance of steel industry cannot be overlooked in the national defense and financial competitiveness of any country. Steel is the main ingredients of railroads, bridges, skyscrapers, automobiles, construction, transportation, manufacturing, different appliances, and a range of user products. In United States of America and some other advanced countries, steel is the most recyclable and cast-off matter. In USA the recycling rate of steel is about 66%. Economically steel is the backbone of industrial countries and according to World Steel Association, 64...
4 Pages(1000 words)Case Study

Industry Analysis - Application to the Oil Industry

...Industry Analysis (Application to the Oil Industry): BP Case Study Suppliers What indicator can help you make a judgment about their power to influence the profitability? Answer Suppliers play an imperative role in the success of any business. As such, a supplier may affect the profitability of a company either positively, by boosting it or negatively, by reducing it. This is what forms the power of suppliers. A supplier has powers to determine the profitability of a company, and in the case of the oil industry, the suppliers of BP can either assist it to become more prosperous and productive or to lose their market and make losses. This stems from the...
3 Pages(750 words)Case Study

Oil and gas industry

...Effect of the Oil and Gas Industry on the Environment The oil and gas sector is one of the leading industries across theglobe. Its revenues are enormous, so are the costs of giving the consumers with the energy they need. America consumes more than 19million oil barrels every daily (Scholastic and Crane 9). The oil and gas sector supplies more than 60 percents of the nation’s energy. It also plays a crucial part of the American economy. The U.S is among the leading producers of oil globally (Vassiliou 70). As of 2011, the sector accounted for 12.2 percent of the gross domestic product. As production and consumption...
2 Pages(500 words)Essay

UK Brewing Industry Characteristics

...interviews over a three-month period. It considers the effect on senior managers, pub managers, and bar staff in two public house retailing companies following a major purchase by a foreign-owned financial services sector company in particular. Industry Background At the end of the 1980s, the structure of the UK Beer Industry was mostly one of vertical integration (see Crompton, 1998). Five of the “Big 6” brewing companies of Bass plc, Scottish and Newcastle Breweries, Courage, Allied, and Whitbread were responsible for the entire course from buying the barley and hops, brewing the beer, supplying it to the pubs, and lastly selling the beer to the customer. With their huge estates of...
51 Pages(12750 words)Term Paper
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 Structural Characteristics of OIL Industry for FREE!

Contact Us