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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.72, # 1, 2015, pp. 61-94
customers as well as invest in marketing. In essence, each of these key players is
fully integrated in as such that they invest and take part in most of the activities
present in the value chain. Thus these companies explore and produce oil and gas
globally. Furthermore they are most likely to own pipelines and tankers that
transport the fossil fuels from oilrigs and gas platforms to their desired location, as
well as refineries to process the crude oil into refined products. Lastly, the key
players of the industry are more likely to sell their products wholesale and retail
globally and sell these products through a global network of wholesale and retail
outlets. There are companies that are considered key players in the oil industry in
terms of their size rather than their integration along the value chain.
Figure 2: Effect of Geopolitical Events on Global Oil Production Capacity (PIRA Consulting, 2011)
Companies such as the National Iranian Oil Company and Saudi Arabian Oil
Company are the largest producers of oil per barrel per day overshadowing many
existent oil companies. In contrast, there are smaller yet important players that are
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