Pooja Gared 1

 Creative
 Team Player
 Analytical skills
 Determined
 I don’t shy away from challenges
 Oil and Gas Industry
Competitive rivalry
• The competitiveness of oil and gas industry and especially in the upstream sector of the industry is significantly intensive.
2
There are three different type of players in the upstream sector
• The big IOCs or as we call it Integrated Oil and Gas Companies (private sector), based on the below graph these are
Royal Dutch Shell, Exxon Mobil from USA, BP from UK, Total from France, Chevron from USA, Phillips 66 from USA

Threat of New Entrants in Oil and Gas Industry

• The factors that affect the newest companies to enter oil and gas business, especially the upstream segment are
• Huge capital required
• National Oil Companies control more than 90% of the proven oil and gas reserves
• Increase of the internal competition within the industry
• The big oil and gas companies can increase their R&D spending which will give them a boost regarding innovation and
improve existing technologies. This strategy will give them a competitive advantage

Threats of Substitutes in Oil and Gas Industry

• The main alternatives sources to oil and gas for producing energy which used for electricity, transportation, heating, etc.
are:
• Nuclear Energy, Coal, Hydrogen, Biofuels and other renewables sources such as solar and wind energy

Bargaining Power of Buyers in Oil and Gas Industry

• The main buyers of oil and gas products are:
• Refineries, National Oil Companies, International Oil and Gas companies, Distribution companies, Traders, Countries (USA,
China, Japan, countries of the EU, etc.)

Bargaining Power of Suppliers in Oil and Gas Industry

• Supplier companies can be the big International oil companies such as Chevron, Shell and Exxon Mobil or National oil
companies such as Saudi Aramco, Gazprom, and Petrobras
• The ability of those companies to affect oil prices and the industry is high due to their business involvement on all of the
business segments of oil and gas industry, so their bargaining power is significantly greater than the buyers
• Another great player in the side of the suppliers are the oil rich countries (as they call them oil producing countries) or else
OPEC has a significant bargaining power.