This
paper explains, using Porter Five Forces Model, that there is a limited threat of new entrants cutting into Shell, Mobil, Texaco, Gulf, and Exxon's market share because the
industry is fairly oligopolistic, with only a few giant firms controlling the majority of the industry even on the global scale. The author points out that the world's
oil-producing
nations are very influential in the
supply and
demand factors associated with oil
production and consumption through the Organization of Oil Producing Countries (OPEC). The paper stresses that, as globalization increases the world's demand for oil, it will be critical for the oil-producing nations to maintain a steady cost per barrel, while, at the same time, meeting the high production demands because there are few new technological advances or regulatory controls available to overshadow the basic economic formula of supply and demand. OPEC promises to control pricing for the industry. Tables. Table of Contents Introduction Industry Overview Five Forces Model Major Competitors and Strategic Group Mapping Future Trends Opportunities and Threats Conclusion Appendix A: Oil Industry