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Petroleum products are prime commercial sources of energy throughout the world in spite of the impressive efforts of the International Energy Agency (IEA) and European Economic Community (EEC) to find viable alternatives. Energy is the vehicle for economic development and the policy of the Nigerian government is that petroleum should be tapped, developed and optimally distributed for the overall development of society. Owing to several factors, the distribution and marketing of petroleum products have developed hydra‐headed problems constituting a major source of concern and embarrassment to the government, private organisations and individuals.

This paper aims to clarify the relationship between oil product prices and factors describing the most crucial emerging trends in fuel consumption. The work is aimed to test the hypothesis that the proliferation of alternative fuel cars is a significant factor in determining the level of motor fuel prices. The influence of technical standards of oil products on the model parameters is also analysed.

The hypothesis testing is carried out on the basis of an econometric analysis of information regarding the North-West European commodity market and the data on the registration of alternative fuel passenger vehicles. Time series are analysed for the presence of a structural shift in the parameters of the model as a result of changes in the requirements of technical regulations for fuel.

The results suggest a different nature of the influence of the proliferation of alternative fuel passenger vehicles – it has little effect on diesel prices, whilst the indicators under study have a negative effect on the prices of motor gasoline. The construction of oil product price models has confirmed the impact of tightening the technical requirements for the parameters of dependence equations.

The obtained results can be used in forecasting price indicators in oil refining for strategic and investment purposes.

This paper fulfils an identified need to take into account the emerging global trends in fuel consumption to obtain reliable parameters for oil product price modelling.

The purpose of this paper is twofold. First, the paper examines the risk transmission between crude oil and petroleum product prices of Japan’s oil futures market. Second, it compares the performance of two tests for Granger causality using realized variance (RV) and the exponential generalized autoregressive conditional heteroscedasticity (EGARCH) model.

The author measures the daily RV of crude oil, kerosene and gasoline futures listed on the Tokyo Commodity Exchange using high-frequency data, and he examines the Granger causality in variance between these variables using the vector autoregression model. Further, the author estimates the EGARCH model based on daily data and test for Granger causality in variance between commodity futures using Hong’s (2001) approach.

The results of the RV approach reveal that the hypothesis on the existence of a mutual volatility spillover between crude oil and petroleum product markets is accepted. However, the results of the conventional approach indicate that all the hypotheses on Granger causalities in variance are rejected. The methodology based on intraday high-frequency data exhibits higher power than the conventional approach based on daily data.

This is the first paper to investigate Japan’s oil market using RV. The authors conclude that the approach based on RV is universally adoptable when testing for Granger causality in variance.

Subject areas are strategic management and marketing management.

This case can be used in strategic management and marketing management courses for MBA students.

This case discusses the future of petroleum business at Reliance Industries Limited (RIL) – whether to stay or exit. This scenario took place between 2001 and 2008. The volatility in the external environment was beyond their control. Or was it so? This case encapsulates the characteristics of innovative strategy formulation, leading to successful differentiation in a regulated and commoditized industry. This case portrays two significant aspects of business strategy by RIL. First is to comprehend the pioneering strategies formulation and implementation by RIL in the petroleum retailing business. Second is the severe impact of external forces on the company’s current and future prospects and what contingency plans could have been made.

This study enables to understand how innovative and differentiation strategies can be successfully applied in a commoditized business; to comprehend the effective application of forward integration and brand extension in a complex, scale-driven industry; and to understand the implication of external threats severely disrupting a growing business.

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CSS 11: Strategy

This chapter examines the oil and gas industry and the efficacy of vertical integration strategies. Using multiple theoretical lenses ranging from the resource-based view, transactions costs, and parenting perspective, the chapter considers different arguments associated with vertical integration. The 2011 breakup of ConocoPhillips and its global value chain helps address the question of which strategy is best – integrated or nonintegrated. We provide several conclusions about the structure of integration and value chains within the oil and gas industry. First, vertical integration based on the physical transfer of products between value chain activities will generate little firm advantage in the form of classical integration benefits, such as control over input quality or speed to market. Second, competing across the industry value chain as a hedge or strategy against industry cyclicality is not theoretically defensible. Third, pure play industry specialists can create value through management focus, agility, and, transparency for investors. Fourth, firms that compete across a wide range of industry value chain activities can create value-adding corporate strategies if they are able to leverage knowledge and assets across different industry sectors.

This study aims to demonstrate how integration is achieved in an explanatory sequential mixed-methods design by assessing the effect of collaborative cultural dimensions on supply chain collaboration amongst firms in Ghana's downstream petroleum sector. Specifically, the study examined how collectivism, long-term orientation, power symmetry, as well as uncertainty avoidance influence supply chain collaboration. Besides, it also demonstrates how integration is achieved in an explanatory sequential mixed-methods design.

Using an explanatory sequential mixed-methods design, the study employed a partial least squares structural equation modelling (PLS-SEM) analysis of quantitative data (N = 166), followed by a thematic analysis of eight semi-structured interviews to explain how and why the dimensions of collaborative culture impact supply chain collaboration.

The quantitative findings suggest that three out of the four dimensions of culture significantly predict supply chain collaboration. Integrating the quantitative and qualitative findings suggests convergence between the results of the quantitative and qualitative phases of the study as the qualitative results compliment the quantitative findings and offer more nuanced understanding of the cultural mechanisms responsible for successful supply chain collaborations.

The findings provide managers in the downstream petroleum sector with insights into how and why the dimensions of collaborative culture influence supply chain collaboration. These managers should, therefore, build corporate cultures characterized with high levels of long-term orientation, power symmetry and uncertainty avoidance.

Owing to the role of culture in successful supply chain collaborations, this study, through a mixed-methods design, links the dimensions of collaborative culture with supply chain collaboration in the downstream petroleum sector. Moreover, it demonstrates how integration and complementarity are achieved at the study design, methods, as well as the interpretation and reporting levels of an explanatory sequential mixed-methods design.

The case describes the policies followed by the Government of India to attract private investments for Oil & Gas exploration. This case is based around observations made by the Comptroller and Auditor General of India on some of the petroleum sharing contracts and the remedial measures suggested by a committee appointed by the Government. The case describes how such contracts are structured elsewhere and raises issue about how such contracts can be structured and managed by the state.

The purpose of this paper is to reveal the dynamics of the Greek energy sector. As energy sectors contribute substantially to a national economy and stimulate national output and employment, it is important to identify their upward and downward linkages and interrelations with the other sectors of the economy.

To do this and capture such relations in the economy, a general equilibrium model is used. In specific, input–output (I–O) analysis is used and a model is specifically built for the Greek economy to examine in detail the energy sectors. Multiplier and linkage analysis is performed to assess their dynamics in terms of output, household income and employment.

Results indicate that the three energy sectors’ multipliers and elasticities, though are not ranking in the first places, are enough high indicating their strong linkages in the economy and their potentials to enhance the economy’s total output, employment and household income.

Further disaggregation of the economy’s energy sectors is needed to make clearer the separation among renewable and non-renewable sector, to identify and compare the dynamics and contribution of each category in the economy. Additionally, an environmental I–O model would indicate consequences on the environment and not just pure economic benefits.

Through the analysis, it can be seen that energy sectors and secondary energy products have the ability to drive a country’s economic activity through exports and intersectoral linkages, even if it is not a crude petroleum producing economy. Thus, knowledge of the economic impacts of such sectors is a valuable information.

The current study provides significant information of an economy’s energy sectors regarding their ability to support economic activity and employment. A general equilibrium model is used, examining the whole economy, to assess direct and indirect interrelationships.

The purpose of this paper is to assess whether oil price shocks emanating from oil price increase and decrease have a different impact on the macroeconomic activity.

This study conducts the empirical analysis using structural vector auto-regressive model on Indian data for the period from 1996 to 2017. This paper uses four key macroeconomic variables, namely, real gross domestic product (GDP), the real rate of interest, real money supply, wholesale price index inflation and various linear and non-linear measures of oil price shock.

Empirical results confirm that oil price shock has a significant impact on various macroeconomic variables used in the study. Specifically, shocks emanating from a decline in oil price have a stronger positive impact on real GDP, whereas, a shock due to the rise in oil price has a weaker negative impact on real GDP. Impulse responses confirm that shocks due to a decline in oil prices are long-lasting compared to similar shocks due to a rise in oil prices. Therefore, this study concludes that the macroeconomic impact of oil price shock is asymmetric in India.

This paper adds the following new insights: First, this paper presents a distinct relationship between the growth rate of oil price and GDP during increasing and decreasing phases of oil price to drive home the case for this study. Second, India has adopted crucial administrative initiatives such as deregulation of the market for petroleum products and the promotion of renewable energy during the study period. Finally, previous studies have revealed specific behavioral and economic features of people in India with respect to the demand for petroleum products. In light of these factors, this paper based on Indian experience would be justified.