Hamza Ahmad Chaudhary ERP: 11201

Managerial Policy
Dr. Shahid Zaki
Assignment 1
Over the past few years, the excessive supply in the field of oil and gas means that the industry
could be ineffectively managing its inventories and maintaining a huge stockpile. This business is
effectively dealing with changing political scenarios and portfolio realignments. The following
paragraphs explain the global patterns:

Threats:
One of the biggest threats that the oil industry is facing is the emergence of electrical cars and
the raised popular concern over the environment. The US company, Tesla has been an inspiration
in the development of fully electric cars and the industry is growing. Other car manufacturers
have also followed suit with Toyota, Honda etc. developing hybrid car models. The popularity of
this new concept is growing posing a threat to the oil industry.
Another major threat looming over this industry is the disturbance in the supply chain due to
several factors including terror attacks, political alignments and economic sanctions over
different countries. Disturbances in the supply route can push prices sky high and cause long term
damage to the industry. Also, the generation of oil is constrained as it is a limited natural resource
which is depleting over time.

Opportunities:
The oil business is a very profitable one and the overall economic indicators for the oil industry
are looking stable. The current oil prices are following a rising trend which will help the companies
grow their profits. More and more corporations are investing in the fields of digitalization and
introducing IT based controls in the industry. This is being done to increase productivity and
efficiency of the oil corporations.
The dependence of world’s energy industry on the supply of oil is crucial and although the
concerns regarding the carbon footprint of oil are rising, the industry is still stable in the long run
as it will still require a lot of time and effort to switch completely to renewable sources.