Essays on Refining Industry

Introduction

Contemporary business, political and social environments have changed under the influence of globalization, consequent internationalization of business portfolios, size and scale of the activities and even the tremendously increased international mobility of individuals. It is difficult to argue that the future of the Oil and Gas industry have changed with the growing influence of OPEC, economic growth, observed in non-OECD countries and climate change policies and legislation around the globe (Martin, 1995). The access to the new fossil reserves and the changes in the distribution of these resources also have had a significant impact on the ways the future ...

Question 1: What drives the basic economies of the airline industry? The refining industry?

The revenue side of the airline industry is driven by the amount of passengers an airline can carry per flight. A common index is the percentage of filled seats: if it is low on a flight, that flight may be unprofitable. Fuel costs may represent 30 to 50% of total operating costs in the airline industry (Grassbaugh, 2013). For the refining industry, the cost of crude oil is the major driver (Grassbaugh, 2013). Hence, when the price of crude falls, refining margins tend to rise.

Question 2: How is Delta different from other airlines?

Mallikarjun (2015) posits there are so many competitors in the American airline industry, that ...