This paper is aimed at analyzing the global energy industry with a focus on oil and gas segment using a Porter Five Forces framework. The oil and gas industry has many subsegments and a variety of products, but some level of generalization can be applied to describe the market within this framework.
Diagram of Porter’s Five Forces for the Industry
Barriers to Entry
The oil and gas industry is very attractive in terms of profitability (Aubert & Frigstad, 2007), but the barriers to entry are high. The major global oil and gas market players are mostly integrated international companies that benefit from economies of scale. To enter this Continue reading...