Oil, Petrochemicals & Gases

Oil, petrol and gases are an integral part to most all economies and daily life. These fossil fuels are used for manufacturing, heating, transportation and much more. Due to the limited supply and nature of the products there is much volatility in pricing causing sudden demand fluctuations. These fluctuations in price affect business and people alike down the economic ladder, which in turn is fueling the shift towards “greener” less oil dependent means of operation. Which has, quid pro quo, affected the oil, petrol and gases industry as well. Many companies are now conducting R&D for a more sustainable means to energy production.

Larger companies dominate the industry but it is possible for smaller companies to compete by specialization along with efficient operations. Larger companies gain their advantage through bulk holding facilities and also through price negotiationis from suppliers. Larger companies use their ability to store inventory, creating profit, by controlling the supply to consumers.

Technological advances in the industry have created room for improvement in many companies’ distribution tactics, inventory options and purchasing strategies. Technical expertise in the field is becoming more important than ever. Advances in the industry include long-distance pipelines, refineries capable of processing multiple grades of crude oil and gases as well as advances in storage facilities have all opened doors to various ways of lessening market fluctuations.