Abstract
The global motor fuel market is dominated by the oil companies (NOC – National Oil Companies and IOC – International Oil Companies) which control the raw material and manage stable alliances designed to monitor the various stages of the fuel supply chain. Where distribution is concerned, the large oil companies are being threatened by the expansion of large retailers which, particularly in certain European countries, now occupy important positions.
Highlights
The motor fuel market1 is one aspect of the vast oil products market, an area of activity populated by global companies that compete in conditions of scarcity of supply2
We have unsatisfied overall demand with a high propensity to purchase on one hand, and a heterogeneous, concentrated supply system on the other, in which both the large oil companies (IOC - international oil companies and NOC - national oil companies) and a small number of minor companies, in terms of their output and results operate successfully
Oil companies market a small number of alternative products, which are homogeneous within each category, not replaced by other products, so that there is a low price elasticity
Summary
The motor fuel market (petrol, diesel and LPG) is one aspect of the vast oil products market, an area of activity populated by global companies that compete in conditions of scarcity of supply. Mergers and acquisitions (for example, BP acquired Lear Petroleum, Britoil and Burmah Oil; Getty Oil was bought out by Texaco; Chevron purchased Gulf Oil) have always been an important part of the growth of the main oil companies The goals behind these strategies are basically growth and a global presence, access to reserves, and the exploitation of scale and scope economies at the refining, transportation and distribution stages, to defend and consolidate the competitive positions achieved;. Many large oil companies extend their activities along the various stages of the fuel supply chain, undertaking the extraction and the refining, logistics/storage and distribution of the finished products;. □ Saudi Aramco, the world’s leading oil company in terms of reserves, has expanded its upstream and downstream activities, entering into numerous competitive strategic alliances. The company is developing projects to expand its refining capability by establishing partnerships with ExxonMobil and Sinopec (for the plant located in Fujian), with S-Oil (for the plant in Seosan), with ConocoPhillips (for the plant that will be built in Yanbu), with Total (for the plant planned in Jubail) and with Sinopec (for the plant that will be developed in Quingdao)
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call