Where Is Our Oil and Gas Industry Headed????

3630 Words Sep 27th, 2008 15 Pages
TABLE OF CONTENTS

Executive Summary……………………………………………………………… 3
Introduction………………………………………………………………………. 4 Description……………………………………………………………….. 4 History……………………………………………………………………. 4 Organization………………………………………………………………. 5 Governmental or Environmental Factors………………………………….. 6
Market Structure…………………………………………………………………… 6
Industry Demand………………………………………………………………….. 7 Key Determinants of Demand…………………………………………….. 8 Future Expectations of Demand…………………………………………… 8
Industry Analysis…………………………………………………………………. 10 Threat of entry by new competitors………………………………………. 10

Rivalry among existing competitors …………………………………….. 11

Pressure from substitute products ………………………………………. 11

Bargaining power of buyers…………………………………………….. 11

Bargaining
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History
The petroleum industry has been in existence in various forms for several centuries. Ancient Persian tablets indicate the existence of petroleum; historical references point out to the use of asphalt in the construction of walls in Babylon more than four thousand years ago. Oil wells were drilled in China in 347 C.E., to a depth of around 200 meters, using drilling bits attached to bamboo poles. Japan also used oil during ancient times. Early historical references point out the use of tar for paving the streets of Baghdad, derived from the easily available petroleum in the region. In the 9th century, oil deposits in and around the area of what is now Baku in Azerbaijan were exploited for the extraction of petroleum and the production of naphtha. The earliest account of petroleum in America points to oil springs in the region around Trinidad Pitch Lake in 1595. Peter Kalm, a Russian traveler, also points to oil springs in the region of Pennsylvania in his works published in 1748. The modern history of the petroleum industry began when the process of refining kerosene from raw coal was discovered by Abraham Pinoe Gesner in 1846. The first Russian refinery came up at Baku during the year 1861. At this time, Baku accounted for around 90% of the world oil production. The petroleum industry in the United States of America was started by the establishment of the Seneca Oil Company near Titusville in 1859. During the 1800s, market growth was gradual