Petroleum, The Most Valuable Commodities

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Crude oil, also known as petroleum, is among the most valuable commodities in the world. It is vital to many industries, accounting for just over thirty-three percent of the world’s energy supply. Crude oil is a naturally occurring substance that can be refined into several products, including diesel fuel, motor oil, and gasoline, among others. Though prices of crude oil in years passed were typically high, they fluctuate daily in response to a host of factors, including world-wide rates of production and consumption, environmental issues, overall global economic health, and sociopolitical developments in other nations that purchase oil. These are, furthermore, factors over which neither government nor industry have control. The…show more content…
The potential changes that BP should have been scanning for include technological and legislative changes, changes in the global economy, and changes in the physical environment. BP should have been aware, for example of any changes or trends in technology. Successful monitoring is then determined by a company’s ability to accurately interpret the data collected from scanning. In this example, if BP had detected a technological change or trend, it would be important for them to have an understanding of exactly what the technology is and what it is capable of. Next, the company must be able to project how the detected changes and trends will impact business. A new technology could be a potential opportunity for BP or a threat if implemented by a competitor. And finally, once the changes and trends have been identified, it is important for the firm to determine the significance and timing of the event. With a change in technology, BP would need to assess whether or not implementation would give them a competitive advantage. The threat of new entrants to the industry in the context of the BP oil spill was likely pretty low. Aside from the traditional challenges of entering an industry as a new-comer, new offshore leases were placed on hold, and a moratorium subsequently placed on offshore drilling below 500 feet by the federal government. This would have deterred any new
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