Challenges Market Analysis.. •The United States As Exporter

CHALLENGES MARKET ANALYSIS. †¢ The United States as exporter of oil. The United States has increased its oil production from 10 million to 15 million barrels per day between 2011 and 2015 surpassing both Saudi Arabia and Russia, and has perched at the list of the most productive oil countries (See figure.1) . This increase in the production of the United States due to the developments in techniques for extracting oil that called Hydraulic fracturing or fracking. Although the extraction of oil in this way is relatively expensive, but the high oil prices in recent years have made this investment worthwhile. On Jan 2015, the United States oil tanker loaded with oil arrived at the French port of Fos . It is the first commercial shipment of†¦show more content†¦Then, the landing journey of oil prices had begun, and the price of Brent crude was averaged $ 57 a barrel (See figure.2) . The sharp decline in the oil prices in the years followed by suspending the sanctions, it has not due to the return of Iran to the market only, but in addition to oth er factors contributed to it. With the passage of time. it has been flooding the market with large quantities of oil and the price fall to $ 28 a barrel, which is sounding the alarm in the OPEC. Figure.2 (Source: U.S. Energy Information Administration) †¢ Saudi Arabia kept low production rates In the past decades, Saudi Arabia has played a big role to achieve a balance in the market with reasonable prices for producers and consumers. Saudi Arabia has the capability of producing oil in the large quantities. It has a large number of oil wells that did not reach the maximum production capacity as well as it has oil wells are ready for production and placed as a reserve when needed. For these reasons, Saudi is able to raise production quickly in a relatively short time without incurring significant production costs, what drives prices to decline. but at the same time, Saudi Arabia is also able to curb oil production in order to raise prices globally, especially Saudi Arabia is the second largest oil exporter in the world at the moment, after the United States (See figure.1). Saudi Arabia does not use oil to influence any state as much as it does not want to cedeShow MoreRelatedGlobal Trade and Competition in Smartphones1307 Words   |  5 PagesSmartphone global market is exp ected to grow drastically in the upcoming few years; however, it incurs a lot many competition challenges. These challenges are emerging due to the need for Smartphone manufacturers in maintaining a considerable market share in global trade keeping pace with the rapidly changing user requirements. 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