The major components of the oil industry are exploration, production and refining, and distribution. We interviewed Mr Widodo Ratanachaitong of Kernel Oil Pte Ltd,and examined these components of the oil industry in the market. In the last ten years the world production of crude oil has been sharply increasing, especially in the Middle East. World oil production doubled several times, to a total of 2 billion tons.According to Porter’s five forces, the threat of new entrants in the industry is low because barriers to entry include high capital costs, economies of scale, distribution channels as well as complicated technologies and regulations. On the other side, the business rivalry is very high because of the nature of the business.
Mr Widodo Ratanachaitong of Kernel Oil Pte Ltd, “we establish competitive advantage through technological and operational efficiencies in the areas of network of suppliers and trading functions. In addition, our operational efficiencies are the main goals that make Kernel Oil Pte Ltd a profitable business. We also support large number of jobs in the industry, contributing national capital and supplying a vast majority of the country’s energy needs”.Referring to many studies and forecasts, the oil industry will continue to require a sustained flow of new skilled people entering the sector on and offshore to its potentials set to be met.As Mr Widodo Ratanachaitong implies, the balance of power is implying to the buyers, as the oil today is a commodity and the prices and contract terms are the terms that lead buyers to companies. Ideally, revenues and profits will be growing consistently, with reference to Kernel Oil Pte Ltd as a company entering the industry and making global awareness of its unique environmental management, technical innovation and leading compound systems.
Also Follow on Twitter: https://twitter.com/WRatnachaithon