StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Analysis of market and arrangement of production - Essay Example

Cite this document
Summary
The supply is 46% and China share in consumption was 14.6% in 2006, while its share of production is estimated to be 15.5%. By…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.3% of users find it useful
Analysis of market and arrangement of production
Read Text Preview

Extract of sample "Analysis of market and arrangement of production"

Analysis of market and arrangement of production The latest report from BMI (business monitor internationals) forecasts that China will account for 32.3% of Asia pacific oil demand by the year 2010. The supply is 46% and China share in consumption was 14.6% in 2006, while its share of production is estimated to be 15.5%. By 2010 its share of demand is forecast to be 19.4%. The country is expected to supply 13.1% oil for the Asia Pacific region. The oil and gas sector is partly privatized and most of the part is controlled by Petro china, sinopec and CNOOC for domestic production.

The report also estimated that the oil and gas liquid output will remain no more than 3.54 mn b/d by the year 2011 though the country has pumped about 3.67 mn b/d last year. Oil consumption in China is expected to increase by 28% by 2011. Therefore the import of oil is expected to be 5.85 mn b/d by 2011. The overall business environment for oil and gas is moderately attractive from a regional perspective because political risk is overwhelmed by a strong and sustaining growth of demand for energy.

There is a positive reserve for international oil and gas companies to take part in this competitive market. Economic risk is moderate and regulatory norms are set to make progress. China is an important nation in Asia for long, medium and short term oil and gas growth and demand that attracts energy sector investors (The China Oil and Gas Report 2008.) The Chinese oil and gas market conducts activities of storage, refining, exploration, production, transportation, development and marketing (King,2008).

With augmented force for bigger oil manufacture and new basis of energy, opportunities to spend in oil and gas business are growing. Unearthing of new sources of oil and gas as well as persons eager to put their cash on the line is imperative to the oil and gas industry. Oil companies are in want of financiers to fund research, for the growth of new technologies, and the hunt of new sources (Richards)China is now a net importer of oil. It consumes nearly five million barrels of oil per day. Out of this requirement, one third is imported.

It is expected that China will consume seven million barrels per day by the year 2020. in view of the above mentioned forecasts government sponsored groups have started functioning for devising objectives in this area. One of the main plans formulated is in the area of marketing oil and gas products (PETROCHEMICALS, CHEMICALS, OIL & GAS INDUSTRYWORKING GROUP.)The pricing device has been correspondingly continuing towards semi liberalised bazaar value indication based on the change made in 1998.

In the oil division, the setting up of a system pairing national orientation to internationally documented quotes from the Singapore market presently prevails, even though subject to local amendments. On the gas sector, the civic policy guarded value chain system has undergone quite a few modifications to bring contemporary pricing methods integrating cost structure type elasticity pricing (Sepulchre. 2004).Although the requirement for oil and gas reserves is high, the promotion of this merchandise in china is still below the normal precincts.

The oil and gas market in china is expected to grow extremely from the year 2020. To meet the rising energy requirements in this area, the Chinese government inhibited oil producing firms have started to build up new marketing strategies. One of the largest oil firms in the country, Sinopec have formed separate subdivision for chalking out marketing plans entirely in the Chinese market. Special efforts are on also to develop low cost techniques like construction of pipelines, private participation etc.

an added significant progress that is undergoing in the Chinese oil and gas sector is the installation of modern refineries having a capacity to purify heavy crude oil. To reduce the price of oil, the Chinese authorities have closed down several small refineries having very low refining capability and using obsolete know-how. In its place new refineries having larger capacities have blossomed. This move is to reduce the cost as well as to increase the eminence of oil and gas in the country.The marketing strategies framed by Chinese oil firms have began to look beyond its limits now.

Acquirement of oil assets by Chinese oil firms overseas has given a boost to this zone. It is approximated that nearly one half of acquisitions made in overseas oil assets are made by Chinese firms. This move by the Chinese firms is to make china facilitate to export surplus oil in the near future. Another vital development made by the Chinese in this segment is encouragement of private participation in manufacture as well as marketing fields. Primary oil firms around the world now partake in the energy sector of the country.

Allowing private players, expansion of low cost refining techniques, edifice of gas and oil pipelines, acquisition of oil assets abroad, discovery new sources etc seems to be the new strategies and challenges faced by the oil industry in china (Oil [and] gas journal).Works citedThe China Oil and Gas Report 2008. The China Oil &GasReport http://www.businessmonitor.com/oilgas/china.htmlKing, M. 2008. Oil and Gas in China - Companies and Markets adds new reporthttp://www.pr-inside.com/oil-and-gas-in-china-r822623.

htmOil [and] gas journal. Petroleum Publishing Company. http://books.google.co.in/books?id=Tb5jn2JT3B8C&q=marketing+plan+for+oil+and+gas&dq=marketing+plan+for+oil+and+gas&lr=&pgis=1PETROCHEMICALS, CHEMICALS, OIL & GAS INDUSTRYWORKING GROUP.http://ec.europa.eu/enterprise/enterprise_policy/gov_relations/china_regul_coop_dialogue/f1749b.pdfRichards,P Energy & Environment . http://www.business.com/directory/energy_and_environment/oil_and_gas/ Sepulchre.A. 2004. Energy and Globalisation: Oil and Gas in Chinahttp://chinaperspectives.revues.org/document2962.html

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Analysis of market and arrangement of production Essay”, n.d.)
Analysis of market and arrangement of production Essay. Retrieved from https://studentshare.org/miscellaneous/1548338-analysis-of-market-and-arrangement-of-production
(Analysis of Market and Arrangement of Production Essay)
Analysis of Market and Arrangement of Production Essay. https://studentshare.org/miscellaneous/1548338-analysis-of-market-and-arrangement-of-production.
“Analysis of Market and Arrangement of Production Essay”, n.d. https://studentshare.org/miscellaneous/1548338-analysis-of-market-and-arrangement-of-production.
  • Cited: 0 times

CHECK THESE SAMPLES OF Analysis of market and arrangement of production

Creating the GM-Toyota

This called for a determination of the geographic market and appropriate product and then an evaluation of the likelihood that the companies in that market might cooperate in a way that would hurt market efficiency and consumers.... Cooperative Behavior and Market Definition This is the first issue in the analysis of the joint venture and involves the possibility of cooperative behavior in the appropriate market.... This process provides both agencies with time to investigate a proposed arrangement before it is consummated....
8 Pages (2000 words) Term Paper

Strategic Analysis and Choice

The objectives may be both financial such as higher revenues, lower costs, high profits or non-financial just to be the top in the industry, largest market share, or to be place the product in the top minds of the customers. Thus, the need arises to have a blue print that tells how to go about it Companies need to diverse, differentiate, integrate backward or forwards, and manage business portfolio balanced.... These strategic business units are the individual planning units contained within one large and diversified business serving either the external or the internal market....
6 Pages (1500 words) Essay

Getting Goods onto the Market: Marketing Arrangements

Direct exporting connotes a firm or a manufacturer reaches the market and sells its product with the help of intermediaries or middlemen.... nbsp;… Licensing refers to a contractual arrangement between two parties where one firm allows another firm to use its property against the payment of a royalty for a specified time period (Czinkota et al, 1992).... Franchising is another form of a contractual arrangement between parties concerning the use of a firm's brand name, logo, trademark, etc....
8 Pages (2000 words) Assignment

Electric Power Industry in the UK

The pre-privatization organization of electricity in the United Kingdom is symbolized by broad vertical integration of production, transmission, distribution and its supplication (DTI, 2006).... There has been a recent trend in the integration of production and supplication in recent years.... For instance, the structure of the nationalized industry in Wales and England was control by one huge production and Transmission Company called CEGB which sold electricity in mass to 12 area distribution boards....
7 Pages (1750 words) Case Study

Case: European Brewing Industry

The market structure is the kind of market that the brewery firms operate (Witcher & Chau, 2010)....  analysis of the five forcesCompetition among the present firms is extremely high and unavoidable; thus, firms are forced to create ways in which they can curb the various competition challenges in the market (Witcher & Chau, 2010).... echnological: Advancement in technology in the processes of beer production has made it easy and accurate.... Substitute and attractive products are also a challenge in the market, in that production of beverages that may replace the beer is swiftly penetrating into the market....
2 Pages (500 words) Essay

Global Marketing - Segmentation, Targeting, and Positioning

The concepts of market segmentation, targeting, positioning and differentiation are very important for the achievement of the broader marketing strategies.... According to Lynn (2011), segmentation refers to the process of identifying unique customer needs and preferences,… Havaldar (2005) observes that target marketing stems directly from the market segmentation process.... market targeting is therefore the process of evaluating the identified market egments, selecting one or more attractive market segments and deciding on the appropriate and effective market strategies to implement in these segments....
15 Pages (3750 words) Essay

Inter-Organizational Collaborations

These methods directly affect the distribution of resources and technologies used in their production.... In most cases, when the intended goal is not attained within a reasonable period, the arrangement may be terminated at will.... This directly widens the market for the products of the organization.... Lastly, it has been proven that collaborative strategies have the ability to minimize uncertainty caused by market failures....
2 Pages (500 words) Essay

Trade Preferential Arrangements or Regional Trade Agreements

The Southern African Customs Union (SACU) serves as an extension of the customs union arrangement.... The European Union is an example of a full customs union that represents a common market.... In light of the answer to question (c) what might happen to relative magnitude of trade flows between countries that were both party to a preferential agreement compared to trade flows between countries where one was party to an agreement whereas the other was not....
16 Pages (4000 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us