The Oil, Gas, and Consumable Fuels Industry is one of the world’s leading profit making industries. The industry is very vertically integrated with many multinational companies present in the industry. The oil, gas, and consumable fuels industry is not very tough to enter as it is fragmented with many distributors around the globe, although there are a few top distributors including Exxon Mobile, Shell, and BP. Most of the distributor’s fuels are supplied by very large top competitors who make up over a 50% share of the industry. Suppliers include Halliburton, Schlumberger, and Smith International which all have corporate headquarters based out of Texas, although they extract oil from locations around the world (EBR_EBdaily,2010).
Potential entrant for the Oil industry include, new innovative forms of fuels which, aim to protect the environment and decrease costs. New technological advances in wind energy, also prove to be a threat as consumers are looking for a more earth friendly way of living. Extensive research by top competitors also poses a threat to the industry. Increased use of bio fuels is becoming extensively popular in many agricultural parts of the world. It is low in cost and emits less pollution in our economy.
Substitutes in the energy industry include Wind, Water, Solar, geo-thermal, and bio fuels. Wind energy has become increasingly popular in the recent years and has gained a large share of the market, it is a source of energy that is free, but as other sources it is expensive to install. Another popular form of energy in the past decade is solar power, they have increased the use of this since it was first discovered and now is used by many. Solar energy is proven to be an efficient and free resource, which proves a low cost and has very few moving parts, which means low maintenance and no pollution emission. However, until solar energy is a