There of oil and gas. As shown below

There are two major
sectors in Oil Industry, Upstream sector and downstream sector, as the power of
supplier is the main topic in this part of research so all the focus will be on
the upstream sector, which includes the
exploration and production of oil and gas. As shown below the stages of extracting Oil and Gas.

 

The types of supplier
companies:

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1.      
Oil Drilling and Services

2.     Oilfield Services

3.      
Oil Refining

 

 

Supplier and the bargaining
Power:

Suppliers
have a greater bargaining
power when the market is well organized and there are not many substitutes
available. The bargaining power of Suppliers in the Oil industry is high. The
major suppliers are the countries that have Oil and Gas reserve (always called
the producing Oil and Gas Countries). The main Oil and Gas provider are the
OPECS countries.

OPEC (Organization of the Petroleum Exporting
Countries, established in 1960 in Baghdad and the headquarter in Vienna since
1965, the OPECS has 14 members, (six in the middle east countries) (six in
Africa) and two in America, which counted for estimated 44 percent of global Oil Production and
73 percent of the worlds proven oil reserves, find here
below a table shows the member countries in OPEC with their share in producing
Oil during 2016.

 

Coming into main goals and reasons for establishing OPEC,
OPEC’s stated that the main
mission is “to coordinate and unify the petroleum policies of its member
countries and ensure the stabilization of oil markets, in order to secure an
efficient, economic and regular supply of petroleum to consumers, a steady
income to producers, and a fair return on capital for those investing in the
petroleum industry.” And this mission enable OPEC to play a very important
role in specifying the amount of Supplied oil and Gas to the market, which is
directly connected to the prices of the oil, which lead us to realize that the fluctuation
on the Oil prices and Gas in the market theoretical depends on the demand and
supply

Frankly speaking
the demand usually does not change, but the supply is fluctuating based on the
amount specified by OPEC. This is could be noticed when the OPEC announces a
meeting to specify the  supply amount for
the next period or month, after sometimes before the meeting or prices are
starting to fluctuate.

To conclude, OPEC
possess a significant bargaining power in the oil and Gas industry, by
influencing the amount of supply to the market which directly affects the
prices of the Oil and the Gas to the end costumers. Another important factor
which not always easy to predict, but highly influences the Prices and the
supply of the oil is the politics, this was witnessed through the last years
(such as wars,  changes in the
governmental politics strategy).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 There are two major
sectors in Oil Industry, Upstream sector and downstream sector, as the power of
supplier is the main topic in this part of research so all the focus will be on
the upstream sector, which includes the
exploration and production of oil and gas. As shown below the stages of extracting Oil and Gas.

 

The types of supplier
companies:

 

1.      
Oil Drilling and Services

2.     Oilfield Services

3.      
Oil Refining

 

 

Supplier and the bargaining
Power:

Suppliers
have a greater bargaining
power when the market is well organized and there are not many substitutes
available. The bargaining power of Suppliers in the Oil industry is high. The
major suppliers are the countries that have Oil and Gas reserve (always called
the producing Oil and Gas Countries). The main Oil and Gas provider are the
OPECS countries.

OPEC (Organization of the Petroleum Exporting
Countries, established in 1960 in Baghdad and the headquarter in Vienna since
1965, the OPECS has 14 members, (six in the middle east countries) (six in
Africa) and two in America, which counted for estimated 44 percent of global Oil Production and
73 percent of the worlds proven oil reserves, find here
below a table shows the member countries in OPEC with their share in producing
Oil during 2016.

 

Coming into main goals and reasons for establishing OPEC,
OPEC’s stated that the main
mission is “to coordinate and unify the petroleum policies of its member
countries and ensure the stabilization of oil markets, in order to secure an
efficient, economic and regular supply of petroleum to consumers, a steady
income to producers, and a fair return on capital for those investing in the
petroleum industry.” And this mission enable OPEC to play a very important
role in specifying the amount of Supplied oil and Gas to the market, which is
directly connected to the prices of the oil, which lead us to realize that the fluctuation
on the Oil prices and Gas in the market theoretical depends on the demand and
supply

Frankly speaking
the demand usually does not change, but the supply is fluctuating based on the
amount specified by OPEC. This is could be noticed when the OPEC announces a
meeting to specify the  supply amount for
the next period or month, after sometimes before the meeting or prices are
starting to fluctuate.

To conclude, OPEC
possess a significant bargaining power in the oil and Gas industry, by
influencing the amount of supply to the market which directly affects the
prices of the Oil and the Gas to the end costumers. Another important factor
which not always easy to predict, but highly influences the Prices and the
supply of the oil is the politics, this was witnessed through the last years
(such as wars,  changes in the
governmental politics strategy).

 There are two major
sectors in Oil Industry, Upstream sector and downstream sector, as the power of
supplier is the main topic in this part of research so all the focus will be on
the upstream sector, which includes the
exploration and production of oil and gas. As shown below the stages of extracting Oil and Gas.

 

The types of supplier
companies:

 

1.      
Oil Drilling and Services

2.     Oilfield Services

3.      
Oil Refining

 

 

Supplier and the bargaining
Power:

Suppliers
have a greater bargaining
power when the market is well organized and there are not many substitutes
available. The bargaining power of Suppliers in the Oil industry is high. The
major suppliers are the countries that have Oil and Gas reserve (always called
the producing Oil and Gas Countries). The main Oil and Gas provider are the
OPECS countries.

OPEC (Organization of the Petroleum Exporting
Countries, established in 1960 in Baghdad and the headquarter in Vienna since
1965, the OPECS has 14 members, (six in the middle east countries) (six in
Africa) and two in America, which counted for estimated 44 percent of global Oil Production and
73 percent of the worlds proven oil reserves, find here
below a table shows the member countries in OPEC with their share in producing
Oil during 2016.

 

Coming into main goals and reasons for establishing OPEC,
OPEC’s stated that the main
mission is “to coordinate and unify the petroleum policies of its member
countries and ensure the stabilization of oil markets, in order to secure an
efficient, economic and regular supply of petroleum to consumers, a steady
income to producers, and a fair return on capital for those investing in the
petroleum industry.” And this mission enable OPEC to play a very important
role in specifying the amount of Supplied oil and Gas to the market, which is
directly connected to the prices of the oil, which lead us to realize that the fluctuation
on the Oil prices and Gas in the market theoretical depends on the demand and
supply

Frankly speaking
the demand usually does not change, but the supply is fluctuating based on the
amount specified by OPEC. This is could be noticed when the OPEC announces a
meeting to specify the  supply amount for
the next period or month, after sometimes before the meeting or prices are
starting to fluctuate.

To conclude, OPEC
possess a significant bargaining power in the oil and Gas industry, by
influencing the amount of supply to the market which directly affects the
prices of the Oil and the Gas to the end costumers. Another important factor
which not always easy to predict, but highly influences the Prices and the
supply of the oil is the politics, this was witnessed through the last years
(such as wars,  changes in the
governmental politics strategy).