The oil and gas value chain starts with discovering fields and ends with providing products to end consumers. The different stages are exploration, production, storage and shipping, refining and marketing.

Chima [2] “Supply chain management in a Petroleum industry is the configuration, coordination and continuous improvement of sequentially organized operations involved in upstream, midstream and downstream.” [8] So, the oil supply chain has three functional segments namely the Upstream, Midstream and Downstream (Fig.

Petrochemicals are chemical products derived from petroleum, although many of the same chemical compounds are also obtained from other fossil fuels such as coal and natural gas or from renewable sources such as corn, sugar cane, and other types of biomass.

Petrol companies have the market structure of an oligopoly. An oligopoly is a market structure where there are a few dominant firms whose behavior is interdependent. There are a few dominant firms relative to market size, and they each command a large proportion of the market share, thus having strong monopoly power.

Understanding the Value Chain The term value chain refers to the various business activities and processes involved in creating a product or performing a service. A value chain can consist of multiple stages of a product or service’s lifecycle, including research and development, sales, and everything in between.

Your downstream value chain is generally classified as what happens once a product or service has left your door. There are risks and opportunities at any stage of a product’s or service’s life cycle. For issues that arise downstream, the solutions often need to be enacted upstream.

At multiple stages of the oil supply chain process, oil is transported to storage, refineries, terminals, and finally to the point of sale. There are four basic modes of transportation of crude oil from production to the point of sale: trains, trucks, ships, and pipelines.

The terms upstream and downstream oil and gas production refer to an oil or gas company’s location in the supply chain. Upstream oil and gas production is conducted by companies who identify, extract, or produce raw materials. Downstream oil and gas production companies are closer to the end user or consumer.

Petroleum products are materials derived from crude oil (petroleum) as it is processed in oil refineries. Unlike petrochemicals, which are a collection of well-defined usually pure organic compounds, petroleum products are complex mixtures.

An oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence. The concentration ratio measures the market share of the largest firms.

Because online retailers have market power as a result of their oligopolistic market structure, they can charge prices above marginal cost in accordance with consumers’ demand without losing business to their competitors.

Petroleum value chain DEPARTMENT OF ENERGY Petroleum value chain Mashudu Sinthumule Petroleum value chain Content •Introduction •Petroleum value chain •Industry overview •Frequently asked questions (Conclusion) Petroleum value chain Introduction The petroleum industry is divided into three major components: Upstream, midstream and downstream.

Petroleum value chain Introduction The petroleum industry is divided into three major components: Upstream, midstream and downstream. •Upstream activities refer to the exploration and production of crude oil.

The petroleum industry was licensed for the first time in 2005, in terms of the Petroleum Products Amendment Act, No.58 of 2003. •SAPIA members do have the option to franchise a service station to an independent dealer and directly supply it with petroleum products. •There are also service stations that are independently operated and unbranded.

To help meet this need, member companies of the American Petroleum Institute (API) first published the Compendium of Greenhouse Gas Emissions Estimation Methodologies for the Oil and Gas Industry in April 2001, with a third edition released in August 2009 (referred to as the Compendium).