SHIFTING IN OIL INDUSTRY COMPETITIVENESS: A CRITICAL REVIEW TO SEARCH ADEQUATE ASSESSMENT METHOD

• Main Author: Abdiwijoyo Henry, Christian
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/39829
• Institution: Institut Teknologi Bandung

The purpose of this paper is to investigate the current competitiveness condition of oil industry in energy sector, which change rapidly after two recent milestones. The first one is the 2011 oil boom and the second one is the promulgation of Paris Agreement in 2016. To achieve this purpose, the author divide this purpose into smaller manageable aims, which are : 1. to understand the factors which affect the current competitiveness of oil industry, 2. To find out the competitiveness assessment methodology that has been used in the oil industry, 3. To find out competitiveness assessment methodology to might be applied to oil industries, and 4. To develop and implement a new method that considers the current condition of the oil industry. After giving a broad view of the current oil industry, this paper identifies the different criteria needed to evaluate the competitiveness of the industry, then a review of the competitiveness assessment methodology is conducted to determine which method matches the criteria that have been obtained. After that the method will be developed so that it can be applied to oil industry. This paper finds three phenomena that have a profound influence on the competitiveness of the oil industry, namely 1. the shifting of energy source preferences from fossil fuel to non-fossil fuel, 2. the emergence of shale oil which caused America to become the largest oil producer in the world, and 3. the polarization of world oil demand to China and India, from this phenomenon it was found that the Porter's Five Forces method is more suitable to be used for oil industry competitiveness assessment today compared with the other assessment method. It is found that the competitiveness of the oil industry is currently moderate. Minimal survey data causes the weighting results to not accurately represent the impact of each parameters to the competitiveness. The rating system used is binary system making scoring results difficult to interpret. This paper reveals specific competitiveness criteria which critically affect the current oil industry competitiveness and developed assessment tools which include these criteria and can be implemented in the present oil industry condition.