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the IOCs in the oil industry - Essay Example
International Oil industry is the main and one of the most important industries in the world. The history of its development goes back to the previous century when the first International Corporation emerged. The history of development of various corporations, as a rule, testifies, that the level of profit is a result of successful political strategy provided by the counties…
Most of the International Oil Companies have been started as national corporations operating only on the domestic market. In general, the history of the IOCs goes back to 1850s when domestic oil industry development was marked by significant growth (Mohr, 1976), and many companies like Marathon Oil began to penetrate into other markets given a start to International Oil Corporations (Marathon Oil corporation History, 2005).
The international expansion of International Oil Companies began at the beginning of the XX century when substantial oil fields were discovered in Asia. For instance, explorations of oil in India had been started in 1875, and after that time some International Oil companies sterted their activity in the Assam region. According to the historical data production of oil was about 0.30 million tones at the end of the XIX century.
The main problem of national oil industry of many less developed countries was that the oil fields discovered by the public sector were literally gifted to the private sector without recovering the direct costs, let alone the sunk costs, written off over the years, for futile exploration activities in other parts of the coun ...