Where Is Our Oil and Gas Industry Headed????
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 power of suppliers ………………………………………….. 12
Conclusion………………………………………………………………………. 12
Footnotes…………………………………………………………………………. 15
References……………………………………………………………………….. 18
Appendix………………………………………………………………………… 19
EXECUTIVE SUMMARY
The United States is a leading producer of refined petroleum and a major player in the global decision regarding this industry. Our country is beset by a shrinking supply or decline in production, pressures of environmental concerns, yet increase in demand.
These problems are not unique to our country. Globally, we are dealing with a resource that will eventually be depleted. Increasingly, avenues for other countries to offset the demand of the United States have caused the domestic industry to burden the need of increasing supply. The main areas of the large entity of the petroleum industry analyzed were:
• Government and environmental regulations
• Decline in US production
• Increase in global demand
• Competitive forces of the industry
The oil and gas industry is an oligopoly with regards to OPEC and there are few countries who dominate global oil production. By definition, an American firm with desire to enter the industry, must first evaluate the
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 power of suppliers ………………………………………….. 12
Conclusion………………………………………………………………………. 12
Footnotes…………………………………………………………………………. 15
References……………………………………………………………………….. 18
Appendix………………………………………………………………………… 19
EXECUTIVE SUMMARY
The United States is a leading producer of refined petroleum and a major player in the global decision regarding this industry. Our country is beset by a shrinking supply or decline in production, pressures of environmental concerns, yet increase in demand.
These problems are not unique to our country. Globally, we are dealing with a resource that will eventually be depleted. Increasingly, avenues for other countries to offset the demand of the United States have caused the domestic industry to burden the need of increasing supply. The main areas of the large entity of the petroleum industry analyzed were:
• Government and environmental regulations
• Decline in US production
• Increase in global demand
• Competitive forces of the industry
The oil and gas industry is an oligopoly with regards to OPEC and there are few countries who dominate global oil production. By definition, an American firm with desire to enter the industry, must first evaluate the