Oil Market Is A Global Market Essay

1625 Words null Page
Oil market is a global market. Developing countries like China and India require a large quantity of oil. So the oil market has great potentialities in the future. However, obstacles such as increasing price of raw materials and complex production techniques of oil make the oil company necessary to build a high level supply chain to survive in the fierce market competition (Adelman, 2014, p. 3).
Value activities of oil enterprises can be divided into basic activities and support activities. Basic activities (oilfield construction and exploitation, refining and petrochemical, oil, gas storage and transportation, sales and service) are direct activities of value creation, and support activities (procurement and materials management, research and development, human resources management, enterprise-based system) are the prerequisites to complete the basic activities.
The conceptual model shown in Fig.1 describes the value chain from production to marketing process. To begin with, crude oil is purchased from different places in a global scale. Then, these resources of oil are transported by transportation system such as shipping and pipeline transportation. Next to it, this crude oil is delivered to the refinery factories for further processing. To be more specific, crude oil would be processed into required products like diesel, gasoline, kerosene, liquid gas or other petrochemical products through complex technical process. Moreover, the purchase of finished products from…

Related Documents