Petroleum Market Share
Due to the fact petroleum products are the key components in the running economy to many countries, market for this product is always available.
Petroleum products are in much demand to any countries citizen and economy at large, petroleum products such as fuel, aviation kerosene, are products that are used to run day to day business activities in most countries, the use of fuel for instance a must for transpiration.
Such demands have brought about less competition in the market, however a company will decide on where to buy it s product basing its decision on other major components, for an oil company to sell petroleum product is not a guarantee that it will always find market, a company dealing in the sell of petroleum products must do a through research on the needs of its consumer based, ad then tailor make products that will meet this need.
Failure to this research and steps necessary to lure the market to buy its products will cost this particular company very much.
Its very important for a company to do thorough research on the market and then try to address those issues, that's why you will find despite of the market responsiveness to the petroleum products few companies often do dominant this markets.
It's the sole discretion for a company to plan well and devise innovative way to penetrate in any market.
For the oil producing countries, there is a body called Organization of petroleum Exporting Countries, this organization was formed for the purpose of coordinating petroleum policies, these policies at some point will address the issue of market share for any producing country, Its board of governors are elected by the member nations, Saudi Arabia dominates the organization, due to that and other reasons some countries have decided to suspend their membership.
Saudi Arabia posses more than 40% of the world oil resources, that's the reason behind its dominance in this institution, the headquarters for this institution, are in Vienna, Austria.
These organization has set guidelines for each participating country, the guideline are supposed to be observed failure to which a country may be suspended from the quorum, this organization has negative characteristic, due to the Arab countries cold war with the western countries, they have used this organization to rise prices, which often than not has brought about inflation in many countries. The last oil price rises could have been caused by this organization.
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