The Oil Industry
The world is changing with the changes brought about by the emerging technologies. Business environment has totally changed due to globalization. Firms are operating in a highly unpredictable environment. It is difficult to determine what the future market would bring. Firms are left guessing what the emerging technologies would bring in the future market. This has forced firms trying to develop mechanisms through which the market forces can be managed in a way that would ensure a successful operation.
The oil industry is one of the leading industries in the world. Business has been very good globally. This product ...view middle of the document...
Environmental agencies have therefore, been advocating for clean energy instead of the petroleum products. Solar energy and hydroelectric power have been considered as the main alternatives of energy. Wind energy is also gaining popularity at high rates. These forms of energy have substituted petroleum energy, lowering its demand. Scientists have focused on coming up with alternatives to petroleum energy. Their effort has seen them come up with two most recent forms of energy that may soon reduce drastically, the demand for oil as a form of energy. The bio-fuel has the capacity to drive most of the machines that rely on petroleum fuel. If the scientists would manage to produce it in mass, then petroleum products would no longer have the massive demand in the market as it does today.
It would be considered as a dirty fuel. Geothermal energy is also gaining relevance very first. If this energy can be harnessed in the right quantities, then it would also reduce the demand for oil. The risk of increased competition due to the emerging forms of energy in the market may not be the immediate worry of firms operating in this industry. The main worry currently is on the effect of petroleum products to the environment. The society has been sensitized of the need to maintain a clean environment (Christopher, 2012). This has resulted in the formation of various agencies that are determined to control the level of pollution of any kind to the environment. Most of the petroleum products have been criticized as the leading air pollutants. However, the oil spillage that took place after a pipe ferrying the product for British Petroleum busted has changed the focus of environmentalists. It took British petroleum several weeks to stop this spillage in the high seas, and the effect was devastating. Several aquatic animals died the spillage moved to the shoe, and various American beaches were seriously affected. It was realized that the damage through such spillage were more devastating than when it is emitted as a gas. British Petroleum was forced to compensate various firms that were directly affected by this spillage. It is yet to pay all the claims.
The political environment is very crucial to petroleum firms or any other business unit for that matter. Firms heavily depend on the political stability of a country in order to succeed. A country that lacks political stability lacks enough security to protect its business environment. In the recent past, there has been a massive revolutionary protest in various Islamic countries. The Islamic countries are the leading exporters of oil. When a petroleum firm operates in a country like Libya, it would be faced by a number of challenges in its activities, in the country (Mead & Andrews, 2009). The political structure of the main oil producing countries is also changing. The world is embracing democracy, and a firm like BP must be able to understand these new forces in the environment. This firm must ensure that it...