Category: <span>Energy</span>

Category: Energy

Article: India’s Run Towards Renewables: Key Takeaways

Prelude A clean and sustainable energy future is on top of every developing as well as developed country’s priority list, which can be seen by the large-scale expansion of unconventional power projects worldwide. For India, it is the most important thing, as it ranks third in oil consumption with 212.7 …

Accident: Bhopal Gas Tragedy- One of The Darkest Nights in Indians’ Life

Introduction: Bhopal Gas Tragedy or Bhopal Gas Disaster, as it is commonly known, occurred due to gas leakage in Bhopal, a city in Madhya Pradesh on 2nd December 1984 at the Union Carbide India Limited (UCIL) pesticide plant. Over 500,000 people were exposed to highly toxic Methyl Isocyanate Gas (MIC). …

Analysis: ONGC-HPCL Merger- Birth of an Oil Behemoth?

Introduction Finance minister Arun Jaitley announced in his budget speech in February to create an oil behemoth by combining operator ONGC and refiner HPCL. Just a few months after this announcement, the Union Cabinet approved the plan to sell government’s 51.1 percent stakes in HPCL to explorer ONGC. The ONGC-HPCL …

Accident: Chennai Oil Spill – A Disaster Due To Miscommunication

The morning of January 28 brought bad news for Chennai residents. Two ships, The BW Maple carrying liquefied petroleum gas (LPG) from Ran Laffan in Qatar, and The Dawn Kanchipuram loaded with petroleum lubricating oil collided near Kamaraj port in Ennore. Kamaraj is a busy port near Chennai which handles …

Article: Battle Of Superpowers- Invisible War For Controlling Black Gold

Russia is a major player in oil and gas production worldwide. It is the second-largest producer of natural gas and the second largest (in 2016) producer of oil. Russia’s oil output touched an all-time high of 11.75 million barrels per day (bpd) in September 2016. In 2016, Saudi Arabia and …

Accident: Macondo Oil Spill- A Horrendous Event That Swept Off The Industry. 

Introduction: The Deepwater Horizon oil spill (also referred to as the BP oil spill, the BP oil disaster, the Gulf of Mexico oil spill, and the Macondo blowout) began on April 20, 2010, in the Gulf of Mexico, on the BP-operated Macondo Prospect. It is considered the largest accidental marine oil spill in the history of the petroleum industry, …

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Oligopolistic Nature of Oil

Oligopolistic Nature of Oil

We all always have, knowingly or unknowingly, discussed amongst ourselves various types of markets. We often use these terms very loosely. Before we move to understand oligopolistic nature of oil. Let’s understand some basics. To start with, there are three forms of market structure.

  • Monopoly – This can be defined in simple words as the absence of competition. A single company or a group totally or nearly owns all markets for a particular type of product or service.
  • Perfect Competition – In perfect competition, there is a presence of various firms. No restrictions on entry or exit of firms. The product is homogeneous, and if one dominating company changes its price structure then other firms have to change their prices in order to remain in the competition.
  • Oligopoly – oligopoly is a type of market structure in which there is a very small number of firms that have maximum market share. Every firm is well aware of the actions of other firm and decisions are made according to that.

As the oil and gas industry is considered a perfect example of an oligopoly type of market, we will mainly focus on the oligopolistic nature of oil.

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