Petroleum Management-The Relationship Between Oil Price and Oil Companies

CAHYATI, MARISSA ASTERIA ,

2013 | Skripsi | S1 Accounting

Crude Oil is a main commodity and the world needs now days. The entire industry and economic activity depend on the stability of oil prices. This is because the principal role of oil as the main energy sources for most of the processes of production and economic activity in the entire hemisphere. Concern about demand factors has driven oil price upward more recently. It may have a modest impact on activity in the oil company. I am considering specializing in oil industry for my future career, so I keenly interested in acquiring more theoretical knowledge and practical skills in this area by taking the theme “The Relationship between Oil Prices and Oil Company”.


World market fundamentalÂ’s nature of supply and demand is becoming one of the forces that push crude oil price to experience fluctuations and show a high level of volatility. The main objective of this paper is to analyze the factors influencing the price of oil and assesses the effects of oil price on making strategic decisions to enhance oil companiesÂ’ preparedness for a future of volatile oil prices.


The fluctuated oil prices suggest that supply and demand market adjustments can yield not only changing prices, but changing patterns of consumption and productions as well. Volatility oil prices are definite some effects to the oil company that arenÂ’t necessarily good or bad, just not always expected. I would like to explain who is the main role in the oil market? What are the causes of fluctuated oil prices? How does the oil company manage it? Moreover, I will further discuss the various impacts caused by oil price hike also create a lot of changes in oil production activities.Since the demand of Crude oil always rises and it is non-renewable sources, that will be my research direction to give some recommendations for the company, such as finding substitute product to replace oilsuch as natural gas, metal, coal and soon. Any time an oil companies do drilling exploration they will find natural gas resources. It can be replacement energy source.

Kata Kunci : crude oil, petroleum management, OPEC, volatile oil price, oil companies.