Industry Analysis : The Oil And Gas Industry

The oil and gas business is highly competitive in the exploration for and acquisitions of reserves, the acquisition of oil and gas leases, equipment and personnel required to find and produce reserves, and in the gathering and marketing of oil, gas, and natural gas liquids. The competitors include national oil companies, major integrated oil and gas companies, other independent oil and gas companies, and participants in other industries supplying energy and fuel to industrial, commercial, and individual consumers.

The oil and gas industry is easily influenced by the economic segment as there are so many dependent sectors in this industry. Thus, if the economy is in the recession/inflation, there will be fewer oil and gas products manufactured as people will try to cut down on their energy expense such as vacation or having an own car to drive to work…

The first of three pillars that make up the oil and gas industry in Canada is the upstream sector, which is comprised of

oil industry in all of America. In the short span of a little less than twenty years, the Standard Oil Company had control over 90% of the oil business in America.

The five forces examines the dynamics within an industry. Understanding the competitive forces, and their underlying causes, reveals the roots of an industry’s current profitability while providing a framework for anticipating and influencing competition and profitability over time. Understanding the structure of its industry is also essential to effective strategic positioning.

The oil/energy industry is one of the largest industries in the United States. According to the Department of Energy (DOE), fossil fuels (including co4tral,

ExxonMobil is identified as one of the world’s leading oil and gas businesses. It manages market commodities and means countrywide. ExxonMobil is entail in “marketing, gas, and oil exploration, transportation and production in roughly 200 nations” (ExxonMobil, 2015). This company furnishes assistance and products under label names such as “Mobil, Esso, and Exxon. ExxonMobil is known as one of the biggest oil industrial installation where a substance is refined in the nation” (ExxonMobil, 2015). This essay discusses ExxonMobil’s strategic initiative from

In the B2B domain the fastest way to improve your sales number is to build great relationships with your customers. Relationships help discern when the industry a large number of established players in the market, customers are always asking for price-cut and the industry is quite mature with widespread adoption of products.

The TexasAgs oil company case study gave us insights on different aspects of a negotiation that can happen in real world scenarios. It elegantly portrayed the importance of having a BATNA, setting target and restriction points, impact of the fluctuating markets on the ongoing negotiations, downside of the emotional behavior, importance of having a third party member or mediator in the negotiation. The case illustrates that the negotiations should be based assumptions as they may or may not be right. Having facts and understanding the other parties true objectives and goals are truly essential in negotiation. It is a typical example of how the current power on one side can dominate and take complete advantage of their position.

Firstly, Upstream; which consists of oil exploration, extraction, shipping, and large-scale operations. Secondly, Downstream; which involves marketing, refining, development of modern technologies and retail operations. And finally, Chemical operations which includes the production of substances such as polyethylene, the most common plastic and polypropylene used for a range of things including underwear and rope .

BP, originally known as British Petroleum, which was founded in 1889, is part of the world’s seven largest publicly traded oil and gas companies. According to BP’s recent annual report BP states that they provide their customers with “fuel for transportation, energy for heat and light, lubricants for engines, and petrochemical items used to make items for everyday use such as paints, clothes, and packaging.” The current CEO of BP, Bob Dudley, has a focus on turning the company around into a safer, stronger, and more simple business. Its headquarters are in London, England but the company is present worldwide and operates in three segments: Upstream, Downstream, and Rosneft.

The oil industry can not be discussed without mentioning the name John D. Rockefeller. Rockefeller changed the business of oil distribution. In the 19th century Rockefeller began his humble beginnings with a small investment, along with two other partners, in the oil refining business. Eventually Rockefeller upset at the direction of the company bought out his partners. He was now buying into refining and developing kerosene and other petroleum-based products. He later named this company The Standard Oil Company which by 1872 nearly owned all the oil refineries in Cleveland. In 1882, Rockefeller took all his holdings and merged them into the Standard Oil Trust. Through smart business

The Pacific Oil Company a well-established oil company with an assorted diversified product line including “Vinyl Chloride Monomer (VCM)”. (Lewicki, 2010, p. 583) As one of the pioneer producers of VCM, Pacific Oil cornered the market share for contracting, distributing and selling their niche product, VCM worldwide. One of Pacific’s longtime customers was Reliant Corporation. This partnership was more than a decade old and was strong. However, if Pacific Oil decided to further diversify its product line to include Polyvinyl Chloride (PVC) a VCM derivative, “it would not want to be in the position of supplying a product competitor with the raw materials to manufacture the product line, unless the formula price was extremely

For the purpose of industry analysis we have used the porters Five-force model, the result of analysis is attached in the appendix.

Petroleum Companies operations can divide into two types: upstream and downstream activities. Upstream exercises can classified as first phase petrochemical business ' procedures, which incorporates involves exploration, production, and procurement of raw crude oil, or different types of hydrocarbon raw materials. On the contrary, downstream activities are all the activities that place after the raw material has acquired. These activities incorporate all the procedures that the raw materials are liable to until the final item will convey to the buyer. Some downstream activities are refining, transportation, and sales of petrochemical items such as, fuels, oils, lubricant, and other petroleum-based chemicals. Due to the instability of the oil market, it is critical that petroleum organizations operate effectively in order to recover all expenses, even when oil costs continuously follow a downward