engleski

Sustainable Business Strategies of Central European Oil Companies in Light of Geopolitical Role of Petroleum Industry

During the past decade Central European oil companies have completed difficult restructuring operations. Mostly they have been privatised, restructured with modernizing production, market capacities and reorganizing business. Mutual strategic alliances gave them possibility to defend market position from outside takeovers, but also to obtain and strengthen competitive position on nearby energy market. In the future oil companies’ business strategies should to be created in accordance with a few global facts. Firstly, the world primary energy consumption at the beginning of the 21st century is still mainly based on oil and gas. In the past oil had dramatically changed human lives and the society at large. It has shaped world politics and affected the destiny of states. It has caused crises and clashes and has frequently dictated their outcome. Today oil directly impacts economic growth. Also, it has become an important factor of national economies, everyday life of people, political doctrines and strategic projections. Secondly, oil possession or control over their market directions became a mean to political hegemony. This explains the development and relations, causes and effects of oil, money and power that have changed the world economy in the past and still impact the global market. The strategic context of the global petroleum industry at the beginning of 21st century, particularly after 11 September 2001, is underlined by “ circulus vitiosus” : market, politics, terrorism and oil. Therefore it is necessary to stress the significant impact that energy sources today have on complex market relations, hidden geopolitical monopolies, possible instability caused by political or market disturbances and consequently on shaping companies strategies. For countries with smaller oil reserves and small oil companies it is not easy to choose the right strategy under mentioned circumstances. Countries like Croatia with small petroleum industry in the global terms can only follow the process of global approach and tend to integrate their national markets into larger regional and global markets by acceptance of set rules. The awareness that the tie between oil, money and power has changed the world in the past, and that will continue to shape our destiny in the future, is the prerequisite of successful energy strategy. Great passivity leads to uncertainty, yet huge transformations in global petroleum industry show that only the biggest companies can certainly sustain on market. All mentioned leads to conclusion that integration of oil companies from Central European countries could result in one unique strategic alliance that could defend their market position in wider region.

business strategy; Central European oil companies; geopolitical role of oil; market disturbances; global economy

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