The petroleum industry takes into account exploring, extracting, refining, transportation and marketing of petroleum products. Petroleum products are the main sources of energy. This industry holds the monopoly of the market since it is the source of fuel that most automobiles run on. This industry is dominated by the few who have the necessary resources to avail this commodity to buyers. It is not difficult to break into the market especially in African countries and middle once oil fields have been discovered.
Petroleum is very competitive though the competition is among the few industries which dominate the market. Companies that dominate this industry would be in very high competition if they were close in size and resources such as advertising power and marketing. The main suppliers of petroleum products are companies such as the shell oil company. Alternative sources of energy include solar energy, nuclear energy and other forms of renewable energy.
The current change in the industry is mostly influenced by changes in alternative sources of energy. There is also an outcry on use of environmental friendly sources of energy. There is an increased use renewable source of energy as an alternative to petroleum products. The high returns on petroleum products have led to increased efforts to discover and invest in the petroleum industry.
The leading oil companies in the world are the Middle East industries. Saudi Arabian, Iranian, Qatari, and Iraq are the main sources of petroleum in the world. The rivals of the petroleum industry include nuclear industry, solar energy industry, wind power industry and natural gas industry. The main competitors are industries which produce alternative sources of energy. These are cheaper and more efficient sources of energy. These are mostly renewable sources of energy. These competitors might overtake the petroleum industry in energy production. However, petroleum products are used in the manufacturing industry in making chemicals.