The Oil and Gas Industry

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Recommended: Opec and it's implication

The oil and natural gas industry is a part of an oligopolistic market structure with an undeniable competitive fringe. It is very clear to society that the oil and natural gas industry's past, present, and future production is somewhat controlled and relied upon by OPEC "cartel" decisions. There are few countries that dominate global oil and natural gas production that are outside of the OPEC organization.

OPEC, The Organization of the Petroleum Exporting Countries believes that their mission "is to coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry" (OPEC). In reality, OPEC's mission statement means nothing to me. In my eyes, it basically sums up the words "international cartel." Oligopolistic firms (or in this case Member Countries) join a cartel to increase their market power, and members work together to decide the level of out...

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