Strategic Interactions in the Petroleum Industry:: Consequences for Market Structure

This book analyses strategic interactions in the upstream activities of the petroleum industry, using game theoretic technique. The author provides insight into the peculiar nature of competitive behaviour of the oil majors and the revenue destruction effect that ensues from interdependencies between these firms for market share. These arguments are augmented by reference to an illustrative case study demonstrating prisoner's dilemma with reference to exploration efforts, and offers an explanation for the wave of mergers between 1998 to 2005. The role of process technologies such as Seismology, in the industry dynamics referenced and highlighted. The content is suitable for students enrolled in executive management courses in business schools since it provides an excellent real life example of corporate strategies, as well as oil executives and managers. Oil and gas engineers who have an interest in understanding industry dynamics, government "watch dogs", whose responsibility it is to understand industry wide consolidations are likely to find this book valuable.