Please enable JavaScript for this site to function properly.
OnePetro
  • Help
  • About us
  • Contact us
Menu
  • Home
  • Journals
  • Conferences
  • Log in / Register

Log in to your subscription

and
Advanced search Show search help
  • Full text
  • Author
  • Company/Institution
  • Publisher
  • Journal
  • Conference
Boolean operators
This OR that
This AND that
This NOT that
Must include "This" and "That"
This That
Must not include "That"
This -That
"This" is optional
This +That
Exact phrase "This That"
"This That"
Grouping
(this AND that) OR (that AND other)
Specifying fields
publisher:"Publisher Name"
author:(Smith OR Jones)

Competitive Environments of the International Oil Industry

Authors
Z.G. Havlena (Husky Oil Ltd., Calgary, Alta.) | J.F. Wasmuth (Husky Oil Ltd., Calgary, Alta.)
DOI
https://doi.org/10.2118/70-01-01
Document ID
PETSOC-70-01-01
Publisher
Petroleum Society of Canada
Source
Journal of Canadian Petroleum Technology
Volume
9
Issue
01
Publication Date
January 1970
Document Type
Journal Paper
Language
English
ISSN
0021-9487
Copyright
1970. Petroleum Society of Canada
Disciplines
4.1.2 Separation and Treating
Downloads
1 in the last 30 days
148 since 2007
Show more detail
View rights & permissions
Get PDF
Abstract

This paper discusses the process of progressive adaption which has resulted in the gradual emergence of large, integrated companies as the predominant form of business organization in the overseas oil industry. It examines: (1) the changes in the world distribution of reserves, production and potential crude oil markets; (2) the structure of the industry as it existed immediately after World War II in comparison with present operations; (3) the technological, economical, political and business circumstances which forced the vertical integration; (4) the past and the present role of the host governments toward their 'guest' companies; (5) the emergence of OPEC and the ensuing 'co-operative' economical political efforts in regulating the fiscal matters of exploration-exploitation and recently also the transportation and manufacturing-distributing operations of the international oil business; (6) the gradual disappearance of the 'old' traditional concession-type business arrangements and their replacement by service contracts; (7) crude oil pricing in the competitive international oil markets; and (8) the resulting general economics of overseas operations.

The background setting of this paper suggests that the real strength of the international oil companies vis-a-vis the host governments is no longer their ability to find and to produce oil but the fact that they are as yet indispensable as offtakers of that oil. They are the only ones who can transport, refine and sell the oil, and indeed only they can finance it and pay the taxes promptly. Briefly, as long as the main consuming countries do not, by taking imports into- their own hands, impede the functioning of these oil companies, their real standing in the international oil game is and will remain virtually unassailable. Thus, as long as these conditions prevail, and surely we all subscribe to the free-enterprise system, the economics of the development of remote and inaccessible crude oil reserves will remain to be governed only by the free demand-supply choice of the highly competitive international oil industry.

HISTORICAL BACKGROUND

THE INTERNATIONAL OIL COMPANIES are business enterprises which are frequently in the public eye because of the various political interplays that affect them. Many times, these political problems find their basis in the growing independence of the host governments. The operations of the foreign companies in Africa, the Middle East, Asia and to a lesser degree in South America, the majority of them either British or American, are still based on the remnants of the European, and mostly British, sphere of influence established in these regions before, or immediately after, World War I. With the help of diplomacy and by various means of commercial entrepreneurship, these companies managed to obtain a foothold in these areas. Thereafter, aided and supported by their financial strength and their unchallengeable position in technological and managerial knowhow, control of worldwide transport, refining- and marketing, such companies have managed to hang on to their status in spite of the gradual disappearance of the political conditions which helped them into the saddle.
File Size  672 KBNumber of Pages   12
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 11/12
    • Issue 9/10
    • Issue 7/8
    • Issue 7
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 13
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 02
    • Issue 01
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
Show more

Other Resources

Looking for more? 

Some of the OnePetro partner societies have developed subject- specific wikis that may help.


 


PetroWiki was initially created from the seven volume  Petroleum Engineering Handbook (PEH) published by the  Society of Petroleum Engineers (SPE).








The SEG Wiki is a useful collection of information for working geophysicists, educators, and students in the field of geophysics. The initial content has been derived from : Robert E. Sheriff's Encyclopedic Dictionary of Applied Geophysics, fourth edition.

  • Home
  • Journals
  • Conferences
  • Copyright © SPE All rights reserved
  • About us
  • Contact us
  • Help
  • Terms of use
  • Publishers
  • Content Coverage
  • Privacy
  Administration log in