Critical Evaluation Of The Impacts Of Iran Re-entering Into Oil Industry On OPEC Strategy

Research Aim

Describe about the fact for Critical evaluation of the impacts of Iran re-entering into oil Industry on OPEC Strategy.

Oil is called as the blood of world’s economy. If there is an increase in oil’s prices, the impact of every sector can cause inflation to the economy. The oil policies form an important area as it provides subsidies on petroleum products to promote domestic industries and check inflation rate (Thomas, Brittingham and Stoleson 2014). Organization of Petroleum exporting countries (OPEC) is an association of 12 developing countries that includes Algeria, Ecuador, Angola, Iran, Iraq, Libya, Kuwait, Nigeria, Saudi Arabia, Qatar, Venezuela and the UAE. OPEC’s influence in the market has been effective to determine oil prices in terms of production units. However, the main purpose of the research is to make a critical evaluation of the impacts of Iran re-entering into oil Industry on OPEC Strategy. It was observed that the Iranians have offloaded millions of barrels of crude oil on the international market but the investors did not fear because the process was a gradual one (Ossai 2012). Since Iran holds vast supplies for the crude oil, it has an importance on its commodities by bringing the market on promotional change. Iran re-entered into the oil market by starting a joint comprehensive plan that has better implementation plan according to International Atomic Energy Agency (IAEA).

OPEC was founded in the year 1960. The five founding members that founded the platform of OPEC included Iraq, Kuwait, Venezuela, Iran and Saudi Arabia. Due to rapid increase in prices, the consumers found better insulation for new homes, increased insulation for older homes and the automobiles found a higher mileage. OPEC attempted to set a production quota that was lower to stabilize prices (Anderson 2012). Now, to observe the impact of oil prices in Iran, it was seen that oil exporters accounted about 36% of Iran’s state revenues and 85% of the total export earnings. In March 1998, Iran’s Central Bank Governor estimated that Iran managed $26.4 billion for foreign debt obligations including $14.1 billion for a confirmed debt. The impacts made a considerable change and due to these experiences, there was a larger budget deficit, shortage of foreign currency and a depreciation of the Iranian rival (Badiru and Osisanya 2013). At the current oil export levels, Iran lose about $1 billion per year and the oil export revenues for every $1 drop in oil price. Moreover, there was a serious implication that saw a decline in Iran’s oil prices due to the export revenues that was lacking due to the availability of cash and investment. With Iran re-entering to the global markets, oil future dropped as 10%, trading lower than $57 per barrel. Regardless to the timeframe, the sanctions were lifted to increase the prices of global supply under a short medium (Bell 2012). This also precipitated a prolonged period that consistently bent prices for WTI crude oil. In order, the prices of that region increased from $50 per to $58 per barrel that were anticipated highly in terms of oil consumption.

Research Objectives

The aim of the research is to make a critical evaluation of the impacts of Iran re-entering into oil Industry on OPEC Strategy.

Under these, the research objectives are as follows:

To identify the impact of Iran re-entering to oil and gas industry under OPEC strategy

To assess the challenges faced by Iran as it entered as a new platform in oil and gas industry

To recommend practice for developing Iran as a prime partner of oil and gas under Gulf division through OPEC strategy

The oil and gas industry was developed over 200 years ago to meet an ever-increasing need for fuels. Companies in oil and gas industry discovered that the reserves of these resources in the ground state refined for future generations (Bilstad et al. 2013). It also helped to distribute and utilize for longer periods. According to the institute of energy research, it was observed that the US consumed 70% of petroleum products for transportation whereas the industrial uses accounted for 24%. The energy information administration (EIA) observed that there were 31 billions of barrels of oil reserves technically recoverable in the US. This estimated that new technologies enabled access to the resources that remained in the past. Before the customers could pump the gas into vehicles, it started out as the crude oil. Oil companies operated and constructed a way where large oil wells and the offshore drills found locations that transported refinery for further processing (Borden 2014).

However, the first commercialization of natural gas occurred before oil became as an important resource. The first business began to offer with natural gas to the most customers, which generated gas to the lighthouses and the streetlights. An interesting perspective is that oil was used to make kerosene and then it used for fuel lamps (Borousan 2012). After this expansion in the 1990s, the primary use of oil switched to the automobiles and later to the ships and planes. Thus, with the development of automobile, it saw that demand of gasoline increased drastically. In addition, by the end of 1970s, the demand of oil increase to the western nations that could not supply enough to meet their own needs and was forced to import to the Middle Eastern nations, particularly Africa and South America. Thus, to control the price and quantity, the countries formed a cartel, known as Organization of Petroleum Exporting Countries (OPEC). It formed in the year 1960. OPEC became one of the major influences in the world’s economy that liberated the US, Great Britain and other oil producing countries (Boschee 2013). Moreover, OPEC forced to reduce its prices for controlling the market with increased dominance.

Industry Background

The researcher has developed an outcome in this research by bring an issue that forecasts about Iran’s re-entry into the oil industry. If the Iranian production is not priced high, then there may be a drop of prices that Saudis may take a good pace from it. As argued by Clark (2013), due to uneven supply and demand, the demand of oil prices may decrease because Iran will be the new entrants in Gulf division. In order, there may also be political instability that will hamper prices of oil at certain levels (Comyns 2014). However, due to restrictive legislation and poor financial markets, Iran cannot make high profits in oil as the other countries are supplying good quantity of oil and gas at affordable prices.

With the help of research objectives, the researcher has made some questions that are as follows:

What is the impact of Iran re-entering to oil and gas industry under OPEC strategy?

How would you assess the challenges faced by Iran as it entered as a new platform in oil and gas industry?

What are the necessary recommendations to develop Iran as a prime partner of oil and gas under Gulf division through OPEC strategy?

As opine by de Oliveira (2014), it was observed that oil industry braced for increase in Iranian production after the western powers lifted the sanctions of the nuclear program. The re-emergence of Iran claimed to boost the production and the exports that threatened to add the glut of oil to$30 barrel. It would be specific if the relations come down as a major importance on Iran and Saudi Arabia. The significant factor that influences oil prices in Iran is that due to the international sanctions, the concerns over the global market oversupplied oil too much. As a result, the analysts expected that Iran would produce 3-4 barrels of oil a day (Dunnahoe 2012). Thus, OPEC faced an issue where a downward pressure made a fore-seeable future towards oil’s supply and demand (Cips.org, 2016).

Iran’s re-entry into the market capitalized many changes that increased the global markets. This has also lead to shuttering of many US crude oil facilities, decrease in supply and loss of jobs. In this event, the researcher has divided the dissertation into 5 chapters. It includes introduction, literature review, research methodology, analysis and findings, and conclusions and recommendation. The first chapter that is introduction comprises of industry background, rationale, research aims and objectives whereas the literature review includes objectives, analysis, and definitions (Gobyr 2013). The third chapter is research methodology, which includes research philosophy, approach, strategies and data collection methods. Besides, the fourth chapter includes analysis and findings, which would be described with quantitative and qualitative questionnaires. The last chapter includes the recommendations and conclusions that would be described from the analysis part of the research (Grunskoy and Perkhutkin 2014).

Rationale of the Research

The idea would be to develop the contemporary position of Iran’s re-entry to Oil Company through in the Gulf division. The research develops a thesis statement where control and process of supply and demand is informed with the OPEC strategy. However, there may be a drop of prices because of the restrictive legislation that will lead to political instability of the market prices. In order, the analysis of literature depicts a phase that should be developed by new operations. However, Iran began to start a program that took several months before it implemented on Iranian nuclear program. In order, there may be substantial investment associated with development in the country’s oil field and infrastructure could take place relatively. Thus, with operations and PESTEL analysis, operations of oil and gas industry of Iran can be understood better.

Introduction

In this chapter, the researcher will vary his points and discuss the central theme of the topic. Literature review includes the current knowledge that will vary the substantial findings under theoretical and methodological contributions of the topic described. The research discusses about the analytical behavior of oil and gas management and Iran’s re-entry to oil and gas industry through various concepts and ideas (Haber 2013). Besides, the contradictory topic will assess the positions that will be effective for development. In order, characterizing the ideas of this research will help to formulate the industry’s current position under OPEC strategy.

To identify the impact of Iran re-entering to oil and gas industry under OPEC strategy

The Iranians have made huge barrels of crude oil in the international market where most of the investors found a gradual process to make isolation in the circle of global markets. As argued by Inkpen and Moffett (2011), the market cannot be understated because Iran holds vast supplies of crude oil. It is believed that analysts believed that the market share has approximately increased around 30 million barrels. However, the global consumption of oil has made 90 million barrels where Iran was capable to produce 2.8 million barrels per day at present levels. The estimation was under a timeframe that forecasted change in the global markets at an interval of six months or more for Iranian oil (Jacoby 2012). The reason for this delay was that Iran could not show a better compliance that was effective to set agreements with the US and the EU. Iranian oil was stored in the oil tankers, which floated off cost. Moreover, when the oil was offloaded into the markets, it created additional supply that exerted down pressure on the oil prices on short span of time. Contradictory, in presence of the international sanctions by the EU and the US, Iran was exporting most of its oil to China, India, South Korea, Japan and Turkey. Thus, the exports of crude oil began to decrease because of US imposition on Iranian Central Bank. This also resulted to drive Union of shipping insurance in Iran’s oil sector (Krupa 2013).

Research Questions

While the country has made vast resources of oil, Iran developed its drilling, production and infrastructure for bringing country’s position under the international standards. It was figured that the daily crude oil remained 800,000 barrels a day lower than it was in 2011, where it topped production to 3.6 million barrels a day. Thus, analyzing the phase, the country has 158 billion barrels according to the industry analysts (Lebedko 2014). Moreover, it was observed that due to lack of investment, the country found several years to develop the production capacity. In order, as a floating capacity, the storage tankers under the Iranian coast will condense half of its crude oil. As Iran re-entered into the global markets, the oil prices dropped by 10%. It saw that trading lower was susceptible to hold the barrels for liquefaction. Additionally, the timeframe sanctioned would be clear to make a global supply chain that will increase prices for a short span of time. It developed prices, which increased the benchmarks from $50 per barrel to $58 per barrel. As per Lefebvre (2013), the typical commodity prices were in a surge that backed excess demand to make a glut in oil. Under the timeline, Iran began to start a program that took several months before it implemented on Iranian nuclear program. Iran also held to make compliances that invested heavily to produce tenets successively.

As Iran is an OPEC member, Saudi Arabia need to make accommodation for making a return policy in the oil market. In order, Saudi Arabia has to reduce its market share for promotional change (Lindøe, Baram and Renn 2013). It is evident that there was a tough situation among the countries, which were the arch- enemies at past. At present, Iran’s export was hovering around 1.1 million barrels a day. However, there were approximately 50% of the pre-sanction produced under a short-term assessment. Thus, if pressure comes unbearably, the oil prices have to make an advantage under maintenance and development. In addition, the countries that proved to be the major oil reserves are Venezuela, Canada, Iraq, Iran, and Saudi Arabia. In order, the substantial investment associated with development in the country’s oil field and infrastructure could take place relatively. Iranians also bump their production that estimated a requirement of $100 billion of foreign direct investments for boosting up their production facilities. The oil on the global markets assumed that there was a change, which made lower prices for most customers and producers (Mehdi Sheikhzadeh 2012). It also leads to shuttering of oil prices where facilities were not there effectively. Thus, there was a possibility that increased oil supply to a greater efficiency under the drillings of the US. Moreover, by lowering the costs in production, the US was able for competing with OPEC and other oil-rich countries. It also made a possibility where Iran was highly factored into the oil markets and the price did not fluctuated as much it could seem.

Significance of the Research

According to Ossai (2012), the Iranian government has set ambitious targets for raising oil and gas production for the country. The targets are framed with effective decisions that have significantly made an impact in tightening the international sanctions for Iran’s oil and gas in the recent years. Under the Joint Comprehensive plan of Action, the country’s global relations have significantly provided an upstream drilling. This could make the cost unbalanced and the maintenance may fall on the lower side. In anticipation to the re-entry of Iran into the global market, it has produced a huge list of oil and gas projects. It worth around US$185 billion that was intended for development. In order, the projects listed were auctioned for trade in foreign investment facilities (Rawlins 2013). The projects included North Pars, Ferdowsi gas field development, and other international oil companies. Despite the positive developments, the limitations remained contrasting. Iran’s ability to increase the output on production was short-term based. The results that proved for lifting the sanctions related to Iran’s nuclear program were bilateral. It was also related to the terrorism activities and the human rights that abused in the market place. Moreover, this created an uncertainty and a re-entry for the US companies. In addition, it was seen that the foreign banks were cautious regarding the processing of Iranian payments and due to these concerns, the financial reprisals were breaching out evidently (Raydugin 2012).

(Source: Rusco 2012)

Objective 2:

To assess the challenges faced by Iran as it entered as a new platform in oil and gas industry

Iran’s success was securing in the hands of investment on oil and gas sector but it was also independent for a back up in the structure of petroleum contract. Although, the new structure addresses the limitations were securing but the contract was put through a joint risk venture. However, a downside risk remained with the possessions of the nuclear activities that monitored for a period of 15 years. Thus, it was predicted that onshore gas production was forecasted to reach a millions of barrels by 2021. In order, Iran’s giant South Pars field contributed significantly to rise up the bars for natural gas (Samosir, Popineau and Lechon 2013). Additionally, the condensed production from the development of oil contributed to raise the offshore areas. It forecasted to reach 1.3 MMbbl/d by 2020 and declining marginally by 1.2 MMbbl/d in 2021.

As per Savaresi (2012), two factors will determine Iran’s effect on oil prices under world’s economy. These are production capacity and the overall demand for crude oil in the coming years. Before Iran came under a cloud of sanctions, Iran produced four million barrels of oil that exported to 3 million barrels. Because of these sanctions, Iran’s export fell to millions.  Its share over the world energy declined from 9% to 6%. However, the top exports market substituted their needs that included Nigeria and Russia. Immediately, due to these consequences, Iran’s president increased the capacity of oil production by 50,000. In order, the country’s plan was  developed by the exports that rose to 25,000 barrels a day. As argued by Thomas, Brittingham and Stoleson (2014), most of the country’s oil exports from the storage tankers made a ramp where the crude oil was increased to 4.6 million barrels between 2016-2021. The other factor will have a direct influence on Iran’s oil market to grow its demand. Since growth has slowed down in most developed countries, China and India has made transitions to increase the economy through a consumer driven process. In order, the energy information administration expects that the oil prices will grow up. Iran’s entry to the oil markets has made a decline in oil production across the world. Because of this, the competitive pressure in the steep drop in oil prices have began to decline the output significantly (Tudorica 2014). Thus, it is predicted that by the end of 2016, oil production is expected to fall about 400,000 barrels a day.

Oil and gas industry falls under the petroleum industry, which includes processes for extraction, refining, transportation and exploration. The largest volume products of the industry are mainly gasoline, petrol and fuel oil. Petroleum is a vital area for most industries as it has a good importance for maintenance on the current configurations for business. It is estimated that oil accounts a large percentage of the world’s economy ranging from 32% in Europe and Asia whereas 53% to the Middle East (Wilson 2013).  However, the US government has provided a heavy subsidy to the petroleum companies, which breaks the stage of oil exploration including cost, leases and drilling equipment.

PESTLE analysis examines the marketing effort to understand the external environment through political, economic, social, technological, legal and environmental factors. The political environment would consider the effects of decision-making by the developments of the company through supply and demand of Oil Company of Iran. Here, the global environment has legislative laws that try to protect Iran’s re-entry to oil Company under the Gulf division from endangered population (Lefebvre 2013). On the other hand, the company plans to develop the assembly workers that leave a voluntary policy in the economic environment. In order, the global environment has a trusted a priority to develop the oil company by increasing its prices. Thus, Oil Company of Iran makes a superior performance by making an extensive area to hold corporate areas socially. This may be extensive in future as the worker of the corporation is well conscious about the laws that govern under the gulf division.

The technological factors also drive the quality factors to produce high quality products. In order, the motivation of the employees makes a number of incentive programs to stimulate production that was feasible. However, the legal factors make a balance of Iran’s Oil Company on political and legal implications. This is because the company does not have to deal with the unions, financial burdens and retirement plans. Moreover, the legislation laws become competitive for the Oil Company to develop consumer protection, taxation and competition (Wilson 2013).  In addition, the environmental conservation on the global scale recognizes the company’s development to provide products and to deal with an action plan. It is observed that Oil Company of Iran satisfies the environmental standard in execution of the company by dealing with the suppliers and dealers.

The operations on the downstream sector includes following constraints that are as follows:

Gathering

This process employs low and narrow pressure pipelines for connecting oil and gas producing wells to larger, long pipelines and other processing facilities (Rawlins 2013).

Processing

The processing and refining operations have made a valiant impact in marketing the products. In case of crude oil, the products including heating oil, gasoline, jet fuel and diesel is used for refining process.

Transportation

Oil and gas are transported to the processing facilities and from there to the end users by pipeline, truck and rail. Here, the pipelines are the most economical transportation methods that are suited for long distances (Lefebvre 2013).

Storage

The midstream service providers offer storage facilities at the terminals where there is good distribution of oil and gas. However, the facilities are used for refining and processing mainly.

Technological applications

The midstream service providers apply technological solutions for improving efficiency of the midstream processes (Haber 2013). However, the technology is used for good compression facilities that improve easy flow of oil through pipelines.

The identification of five competitive forces of oil and gas industry is analyzed through Porter’s five forces. It is a framework for analyzing the level of competition within market strategy. It also draws the industrial organization to derive its five forces through attractiveness of the company and competitive intensity. Porter also discussed these forces based on the microenvironment and macro-environmental terms. These forces also serve the customers in order to make a generating profit. Oil and gas industry with the help of market place owns industry’s profitability on core competencies, business model and other aspects of the oil and gas industry (Lefebvre 2013). Porter five forces included the horizontal competition and the vertical competition. The horizontal competition includes threat of the substitute services/products, threat of the established rivals, and threat of new entrants whereas the vertical competition includes bargaining power of customers and suppliers.

The profitable markets of oil and gas industry yields high returns that will attract the new firms. This would result the new entrants to decrease their profit in the industry. Unless the incumbents block the new entrants, the abnormal rate on profit will be zero. However, following factors may affect the new entrants. This includes existence of barriers while making an entry to the market.  Here, the new firms can enter the market easily. Oil and gas industry through threat of new entrants include capital requirements, cost advantages, government policies, absolute cost, product differentiation and the customer loyalty (Rawlins 2013).

Here, the existence of products remains increased if the common boundaries would increase the market propensity for oil and gas industry. Hence, the potential factors includes relative price and performance, buyer propensity, switching the costs, perceived level for product differentiation, quality depreciation and ease of substitution.

The bargaining power of the customers describes the market entry to the outputs of a product/ service. Here, the firm takes the measure the buying power if there would be some alternatives associated with it. Since the buyer power has variable alternatives, it would act independently (Grunskoy and Perkhutkin 2014). Oil and gas industry also takes measure to reduce the buyer power and a loyalty program. Besides, the potential factors include buyer concentration to firm’s concentration ratio, degree of dependency, buyer’s information availability, buyer’s sensitive prices and the differential advantages for industry’s products.

It makes an area where the market inputs processes through distribution of goods on oil and gas industry. However, suppliers of raw materials, labor and services of the firm makes a profitable area to use alternatives of a business. As the suppliers refuse to work with the firm, it may charge up higher prices. Thus, the potential factors include supplier switching cost, strength of a distribution channel, supplier concentration and employee solidarity.

Oil and gas industry intensity of a competitive rivalry is one of the major determinants that have competitiveness for the industry. Here, the potential factors include level of advertising, degree of transparency, powerful competitive strategy, sustainable innovation and competitive strategy, and firm’s concentration strategy.

Objective 3

To recommend practices for developing Iran as a prime partner of oil and gas under Gulf division through OPEC strategy

OPEC strategy is a long-term strategy that has a coherent framework and a consistent vision for future. The strategy is prepared for every 5 years by OPEC secretariat under the guidance of Deputy Ministers of petroleum and energy. The strategy also analyses factors that affect the organization’s effort in ensuring the market stability. It also analyses the global trends that has an impact on the security of world’s oil demand. Moreover, under the line of OPEC’s mission, the strategy would consider the overall conditions that are suitable in regulating the supply of petroleum to the most consumers. As opined by Grunskoy and Perkhutkin (2014), to review the long-term objective of OPEC’s strategy, its prime objective is to coordinate the petroleum prices in order to make a steady income. It is also an efficient, economic and a regular supply of petroleum for most consuming nations.

OPEC’s long-term strategy upheavals through the past few years have made a speculation to the volatile market in bringing a change to the financial regulations. Underlying the objectives has made a significant change in the organization. This has also provided an opportunity to assess the implications of potential developments and change in mitigation policies (de Oliveira 2014). To make a review of the long-term objectives in relation to revenues of OPEC member countries, there is a stable price, which meets oil’s future energy demands. In contrast to the stability of oil market, there would be securable and enhanced supply to meet the needs of future.

OPEC had a proactive, balanced and a flexible approach in response to the change perspective of oil in the market industry. Meeting the challenges of supply of crude oil will safeguard the interests of OPEC’s economic prices that remain unbalanced. In order, the market stability remains under the organization’s hands, as the development is dependent on social and economic areas (Borousan 2012). However, there are stable and fair prices that are essential for the investments made on economic and social development. It also maintains sustained economic growth. As opined by Bilstad et al. (2013), the economic emergence of oil as an asset has transformed the market that has broader financial markets. Thus, the oil markets have experienced a greater volatility whereas the price of crude oil has affected by certain factors. Moreover, these factors include portfolio management, exchange rate fluctuations and risk heading strategies. It would be ideal if the non-commercial participants of the market make an analytical view on the determinants of oil prices. To be specific, OPEC has to continue a positive area for sharing data and explaining the rationale of OPEC’s positions and its decisions.

OPEC member countries have always satisfied for their demand in oil. Their aim is to ensure the physical market by giving adequate supply and demand (Badiru and Osisanya 2013). In order, to support the market stability and secure security of suppliers, OPEC members have to expand their production capacity to meet demand of their crude oil and spare the production capacity. However, the certainties remain unpredictable because of the surrounding future demand and the need of OPEC’s crude oil in terms of polices particularly. It is observed that security of demand is vital to OPEC’s policies as it ensures appropriate investments made for supply. For better understanding, technology is one of areas that have future energy supply and its use. OPEC’s support under the promotion of technologies and development has made continuous improvements (Anderson 2012). This will be promotional if the industry’s footprint promotes development regarding the concerns associated to technology-based cooperation.

For example, the collaboration of research and development encourages a rapid development of a portfolio that advances research to production of clean crude oil. Under the increasing environment, the active engagement of OPEC on global trade negotiations has significantly made principles to sustain competitive advantage provided by many resources (Borden 2014). Thus, OPEC needs to continue a sphere where effective communication channels are pursued to expand public understanding with a better role.

The SWOT analysis of oil and gas industry has a major part that contributes to segment the market position. It also advances to become as one of the major iron ore company in the world. Thus, the strengths, weaknesses, opportunities and threats are discussed below:

• There is a close proximity to grow in the markets
• It also holds as world’s largest producers and the sea-borne traders of oil and gas in Iran
• The export has also increased rapidly over the years In OPEC
• It also has a good fund raising ability to give assurance on the financial areas

• Dropping the plans due to the fluctuations and weaknesses raise the credit market condition
• Decrease of production rates in OPEC

• The expansion to increase the market capacity improved market share and exports
• There are also newer markets that existed globally through expansion

• Challenging the environmental sensitivities
• Wet weather conditions make an impact on production

Conclusion

This chapter explains the ideas of how Iran’s re-entry has made the market prices higher through OPEC strategy. It analyses the outcomes that will determine Iran’s success by building a timeframe and cost in the international market. However, there are areas, which need to be developed with good potential to prices in oil and building the market place relatively.

Chapter 3

Research Methodology

In this section, the researcher will follow a methodological outline by incorporating various theories, concepts and ideas in this research. Under this methodology, the researcher will gather reliable information that will help to conduct the research in an efficient way. As opined by Biddle and Emmett (2013), the researcher will make a critical explanation with the help of research analytical tools and data collection methods (Al 2013). In this study, the researcher will form a clear understanding by enhancing data and learning methods. Reliably, analyzing the topic will give certain outcomes that would be beneficial in future. The researcher here has taken positivism philosophy, deductive research approach, descriptive design and survey strategy to incorporate the research ideas. This also provides an authentic explanation while collecting primary data collection.

Research paradigm is a pattern that contains simplified examples to illustrate the theoretical procedures, processes and points. With the help of assumptions, it creates an intellectual structure on research and development in the field of inquiry. Moreover, paradigm is an interpretive framework that has a set of feelings and beliefs. While creating assumptions, there are areas that need to be described through ontological, epistemological and a methodological variety. Epistemology is a theory of knowledge and the assumptions created under the nature of knowledge whereas ontology is concerned with the philosophy that has certain assumptions and beliefs under the nature of survival and existence (6 and Bellamy 2012). In response to the paradigms, a scientific method would be predominant, which gives attention to the social inquiry and a political debate.

Research philosophy is a belief that has a phenomenon for interpreting results and by giving a valid reason to the researcher about the research process. It also receives information that would help to understand the topic with Positivism, Realism, Interpretivism and Post-Positivism. The researcher has selected Positivism philosophy, which will make an interrelation to the topic with the help certain research outcomes. However, due to low budget and less time, the researcher could not go for better methods (Al 2013). It would be evident if the researcher undertakes the research to an extent where it will minimize possible errors and would evaluate effective information that would be resilient to the topic. Realism philosophy is a belief that has some aspects, which is ontologically independent on conceptual schemes, linguistic practices, and perceptions whereas Interpretivism philosophy integrates human interest that has a development on the critiques of social sciences (Alvesson and Sandberg 2013).

Since the researcher has selected the topic on critical evaluation and the impacts of Iran re-entering into oil and gas company. Thus, it would be essential if the topic provides effectiveness in evaluating the topic that will minimize errors with a good outlook. However, the philosophies depicted in this research would be contrasting if proper validity would enhance the topic with the help of literary outcomes (Armitage 2012). Positivism is a philosophy that would gain positive knowledge based on natural phenomena and relations. It also allows the researcher to gain authentic knowledge that will be scientific under validity by creating certain assumptions. As the researcher has selected this philosophy, this would be trustworthy and helpful in future. Under contact to nature, certain evaluations would be justified that would be presentable and contradictory where a new influence attempts to hold the propositions of research (Biddle and Emmett 2013).

Research approach provides an application to the study to understand the validity of research with the help of certain assumptions. It comprises of inductive and deductive research approach. Deductive research approach provides an outline to the study by choosing the right path. It would also be effective if there would be an interrelationship made on research outcomes (Chandra and Sharma 2013). Conditionally, this approach would be helpful because it involves active participation by accumulating the data with the help of relevant theories and models. On the other hand, the inductive research approach would be beneficial as it generates new theories and models to gain effective information about the topic. Therefore, for better evaluation the researcher has taken deductive approach, as it will produce results that would be empirical and conventional (Corti 2012).

Since the researcher could not develop better theories and models because of low budget and less time. Therefore, the researcher was unable to choose inductive research approach. For better purpose, the researcher has chosen deductive research approach, which will assist the data for completion and produce effective results under no variability. Under the deductive methods, there are certain principles that would form relationship criteria if proper measures were taken to form a good clarity in this research (Fiorito, Scheall and Suprinyak 2015). Thus, following an unconventional research outlook, the researcher has chosen this approach under these types of circumstances. Moreover, it is observed that inductive research approach would provide a generalized view in understanding the topic with the help of models and theories (Fram 2014).

Research design provides the researcher to accomplish the topic with the help of literary outcomes and by giving a proper justification. Under this design, the researcher will enhance certain information that would be effective. This will provide the researcher opportunities to evaluate data and by collecting various methods that are assumed to be relevant. Research design covers exploratory, explanatory, correlation and descriptive designs. Exploratory research design would develop information that would be relevant with knowledge, ideas, values, thoughts and skills (Goodson, Loveless and Stephens 2012). On the other hand, explanatory research design would occur if there would be a good precision about the research variables. Conventionally, the researcher has chosen the descriptive research design as it would be reliable to understand the foundation of research.

Since the researcher has selected descriptive research design, it would be considerable if the design procedure would be accurate. It also provides an authentic explanation in analyzing the topic through various perspectives and through various angles (Hammersley 2014). Besides, the descriptive research design would also help the researcher for gaining effective results in this topic from primary and secondary data sources. It would be conditional if the researcher avails the data during the course of the study. Under the research problems, a distinction would change a state of phenomena that requires statistical and experimental designs. Research design also makes a longitudinal state where feasible study is done through a meta-analysis procedure (Hantrais 2014).

The researcher has taken several strategies to conduct the work with the help of case studies, experiments, interviews and surveys. This will be effective to incorporate the research by following a suitable strategy that would be conditional. Besides, an appropriate strategy for the research work would be suitable to produce effective information about the topic (Latchem 2013). In order, the researcher would organize the collected data that would be effective to study further. Moreover, the survey strategy would provide the researcher a good foundation to incorporate ideas and gather relevant information in a successful manner.

To gain an in-depth knowledge about the topic, the researcher has faced several strategies while implementing the study with the help of certain outcomes. Since the researcher has taken survey strategy (Love 2012). Thus, it would be possible to get effective results from the concerned topic. The survey strategy also holds a good scope to gather positive results concerning the issues the researcher has faced while conducting the research. Considerably, it would be ideal of the researcher has analyzed the topic to resolute better chances without facing any type of difficulties. Towards the research ethics, the research strategy follows ethical principles where the respondents find a way that would minimize the potential distress of the informed consent (Mayer and Steneck 2012).

Data collection is a process for gathering and measuring the information on target variables in an established manner. It also answers relevant questions asked during the research. However, the goal for data collection method is to capture the evidence of the research analytics and to build a convincing answer to the credible questions. It also attains an important area for gaining knowledge and ideas under the research framework. Data collection methods include secondary and primary collection methods. Under primary data collection method, there are quantitative and qualitative data collection methods. These are evolved by forming various types of questionnaires and options to choose in between them. On the other side, secondary data collection method is formed with the help of various journals, books, websites, magazines, and other references (Novikov and Novikov 2013). Moreover, the data collected from the previous sources would be useful. It would be ideal if the collected data would be useful in providing the research an ideal scenario. There are certain observations that the researcher has accumulated data through survey questionnaires, observations, experiments and interviewing rounds.

As explained by Popping (2012), there are several ways where the researcher would collect questionnaires, observations and experiments under quantitative method. Quantitative methods emphasize orientation of data through statistical, numerical and mathematical analysis. However, quantitative research would focus on gathering numerical data under by determining relationships between independent and dependent variables. In order, the quantitative research would focus on experimental and descriptive methods. Descriptive research is a methodological orientation that deals with numbers, variables and integers. In addition, the characteristic of a quantitative research is structured on the sample size by representing the impact of population by creating questionnaires, having reliability and a numerical representation (Preser 2014).

Qualitative data collection method represents direct interaction with the groups that mainly forms group-setting theories. The prime focus of this method would base on focused groups, individual interviews, observations and an action research. It would be ideal if the research provides an explanation by including audio recording, stenography, video recording, and written notes. This will illustrate the research by forming interviews from a variety of books, transcripts, annual reports, content analysis and conversations (Salaberry and Comajoan 2013). Moreover, the qualitative research forms a good analytical idea, which involves prolonged distribution of attitudes and knowledge for gathering data.

Data analysis is defined as a procedure of transforming and inspecting goals by suggesting a method for decision-making process. Under this, several domains include exploratory data, statistical applications and predictive analysis. Data analysis could be integrated as a precursor of data visualization and data visualization (Sullivan 2014). However, the researcher has accumulated the quantitative data through the help of SPSS and the numerical data through MS Excel in the form of percentage. Since the researcher has accumulated data by comparing the situation of past and present. Thus, it would be useful to highlight the areas to make the research contrasting and eventful (Supino and Borer 2012).

Sample size is the number of respondents that executes the research through an efficient manner. In this research, sampling techniques are used to gather important information that would be useful in decision-making procedure. Under certain circumstances, sampling method provides a selection procedure that would be reliable and useful for executing the study. Sampling method is of two types (Zanutto 2013). It includes non-probability and probability sampling methods. Under probability sampling method, there are random sampling, systematic sampling and stratified sampling while non-probability sampling method provides an explanation in determining a random objective through assumptions created in an effective manner. It is evident from the research that the main advantage of probability sampling method has certain areas errors that needs to be minimized with a degree of attainment. On the other hand, non-probability sampling method technique is based on subjective judgment that represents the whole population to inform social processes through a meaningful orientation (Preser 2014). Here, the researcher has taken 50 respondents (Customer or employees) of oil Industry in Iran and 4 managers through non-probability method.

Under the research limitations, the researcher has faced some barrier that would have to implement during the course study. Phenomenally, the researcher has formed the data with the involvement of limitation of time, limitation of finance and information limitation. It is observed that limitation of time allows the researcher for completing the study by skipping relevant information in the research. On the other hand, limitation of finance develops the researcher’s viewpoint through ongoing resources with more details. However, the researcher has provided an analytical view through sample size, time constraints, reliable data, shortcomings of research and other factors. In order, the delimitations would provide an area where the researcher feels little oppressive about the research. This would also be confidential to get a reflection about the research variables (Mayer and Steneck 2012). Moreover, the sample size taken is very small because it plays a significant relationship to ensure population, data and other groups.

The primary responsibility of the researcher would be to pay attention to the ethical issues while conducting the research. Here, the information would be collected only for personal use. However, the respondents would enjoy active participation according the choices made during the research (Hantrais 2014). In order, the data is kept under a confidential manner. Thus, the researcher would also maintain certain rules and regulations that would be appropriate during the course study. Moreover, the researcher should follow Data Protection Act that was launched to keep the information secret in an effective manner.

Research Activities	Week 1-4	Week 4-8	Week 8-12	Week 12-16	Week 16-20	Week 20-24	Week 24-28
Topic
Secondary sources
Layout
Literature review
Research Plan
Research Techniques
Primary data collection
Interpretation of Data Collection
Findings
Conclusion
Formation of Draft
Submission

Introduction

In this chapter, the researcher will analyze possible outcomes with the help of demographic and quantitative questionnaires in representing Iran’s re-entry to oil industry. In order, with the help of major respondents, the quantitative questions will depict the age group, industry’s position, and the factors of increasing market value. However, with the help of managers through interviewing rounds, qualitative assessments would assess the impact and recommendations of Iran’s future in oil industry.

Quantitative questionnaires and its analysis

Question1

What is the age group?

Options	Number of respondents	Frequency (in %)	Total number of respondents
Below 25	15	30	50
25-40	12	24	50
41-55	13	26	50
Above 56	20	40	50

Analysis

From the table depicted, it is observed the age group of individuals in oil and gas industry in Iran. To be fair enough, oil and gas industry has significantly influenced the Gulf countries with huge number of prices. Thus, the employees associated with Iran’s oil industry figures that those who are below 25 years of age evolves 30% whereas the age group of 25-40 years result 24%.  In order, those employees that are associated with the industry for a longer time that is 41-55 age group results 26% whereas those are above 56 evolves as 40%. Thus, it is predicted that employees associated with the oil industry for more than 56 years of age evolves a greater percentage rather than the other age groups.

Question2

What is the primary language?

Options	Number of respondents	Frequency (in %)	Total number of respondents
Arabic	26	52	50
English	14	28	50
Spanish	8	16	50
Others	2	4	50

Analysis

Language is one of the important areas where customers and employees communicate when they deal with the petroleum products. It is observed from the above table that the individuals those who are under the Arabic origin evolves 52% while the people having a culture of the arbitrary language English results around 28%. However, the respondents that have a Spanish culture evolve as 16% whereas the other languages evolve just 4%. Thus, it would be contradictory to observe the results because Iran has a rich culture to Arabic language other than English and Spanish as it evolves a higher percentile comparing to others that are very much less.

Question 3

Which of the following best describes the area for oil and gas in Iran?

Options	Number of respondents	Frequency (in %)	Total number of respondents
Urban	22	44	50
Suburban	16	32	50
Rural	12	24	50

Table 4: Area for oil and gas in Iran

Figure 4: Area for oil and gas in Iran

Analysis

This is an interesting question, which will configure possible results to analyze the impact of oil and gas in various areas of a country. It is depicted from the following tabular representation that the urban areas in Iran evolve with 44% whereas the sub-urban areas evolve to be just 32%. In order, the rural areas of Iran that has oil stations evolve just 24%. Now, to predict the result effectively, the oil stations are best fitted where there is more population that is the urban and sub-urban areas. With high population of automobiles will increase the production to a good extent. Thus, the results predict that urban areas have a good percentage than suburban and rural areas.

Question 4

Which area describes the role for the respondents in oil and gas industry?

Options	Number of respondents	Frequency (in %)	Total number of respondents
Upper management	12	24	50
Administrative staffs	13	26	50
Support staffs	10	20	50
Skilled laborer	5	10	50
Temporary employee	10	20	50

Figure 5: Role for the respondents in oil and gas industry

Analysis

This area describes the role of respondents on how they produce a good role in oil industry in Iran. Here, the upper management is responsible to produce good effect with 24% whereas the administrative staffs role to oil industry produce 26%. Successively, the support staffs produce a role that would be enough to capitulate just 20%. On the other hand, the skilled laborer produces a percentage of just 10% while the temporary employees associated with the industry evolve 20%. Thus, it could be described that every individual’s role is necessary for administrating oil industry for better producing and sales.

Question 5

What is the type of organization the respondents work for?

Options	Number of respondents	Frequency (in %)	Total number of respondents
Public sector	20	40	50
Private sector	22	44	50
Not for profit	6	12	50
Others	2	4	50

Analysis

This question will analyze the idea of what type of organization the individual has relied on. Oil industry is of various types. It may be classified as public sector, private sector, non-profit organization and others. The respondents that work for the organization for public sector evolves as 40% whereas for private sectors, it results 44%. On the other hand, the respondents that work for non-profit organizations evolve as 12% and the other sectors evolve just 4%. Thus, the analysis produces that oil industry may be either a public sector or a private sector based on the influence of the market.

Question 6

What is the industry’s total budget annually from all sources?

Options	Number of respondents	Frequency (in %)	Total number of respondents
More than $1000 billion	30	60	50
Between $500 to $1000 billion	12	24	50
Between $100 to $500 billion	5	10	50
Less than $100 billion	3	6	50

Figure 7: Industry’s total annual budget

Analysis

Oil industry produces a huge budget annually. To review Iran’s total budget annually, the country produces huge capital because it is the main producer of oil under the Gulf division rather than Saudi Arabia. The budget, which falls on the category with more than $1000 billion, is 60% whereas the category that falls on $500 to $1000 billion is 24%. Moreover, the category of $100 to $500 billion is 10% and the last category that is Less than $100 billion evolves just 6%. Thus, it is depicted from the table that revenue with more than $1000 billion is higher because Iran produces huge number of barrels of oil a day.

Question 7

How far do you believe that Iran’s re-entry to oil industry will provide good value to the Gulf division?

Options	Number of respondents	Frequency (in %)	Total number of respondents
Strongly believe	15	30	50
Believe	12	24	50
Neutral	10	20	50
Disbelieve	7	14	50
Strongly disbelieve	6	12	50

Figure 8: Providing good value to Iran’s re-entry to oil industry

Analysis

Iran’s re-entry to oil industry has induced a quality to produce oil at a fair price with respect to the other neighboring countries like Saudi Arabia, Iraq, Venezuela, Kuwait and others. The customers that strongly believe Iran re-entry to the Gulf division in terms of oil and prices is 30% whereas those who believe evolves as 24%. On the other hand, the neutral customers that do not have the right opinion results 20%. Moreover, the customers that disbelieve to the fact that Iran’s re-entry was not successful evolve as 14% and those who strongly disbelieve evolve as 12% respectively. Thus, it is predicted that Iran’s re-entry to the Gulf division in providing a good value to the market is successful.

Question 8

How far do you agree Iran re-entry on oil and gas industry will increase market value?

Options	Number of respondents	Frequency (in %)	Total number of respondents
Strongly agree	12	24	50
Agree	7	14	50
Neutral	6	12	50
Disagree	20	40	50
Strongly disagree	5	10	50

Figure 9: Increasing market value on Iran’s re-entry

Analysis

An interesting opinion about the results produced by Iran on oil and gas industry will increase the market value surely. The question analyses the importance of the topic where the customers strongly agree that Iran’s re-entry will increase market value evolves as 24% whereas those agrees evolve as 14%. In order, the neutral areas evolve as just 12%. Customers may have their own opinion and it depends on how the market is behaving. However, it is observed that the customers disagrees evolve as 40% whereas those strongly disagrees evolve as 10% respectively. Thus, it analyses that there may or may not be a chance of increasing the market value of Iran’s oil industry.

Question 9

How far have you been satisfied that supply and demand will make an impact in Iran through OPEC strategy?

Options	Number of respondents	Frequency (in %)	Total number of respondents
Strongly satisfied	10	20	50
Satisfied	12	24	50
Neutral	8	16	50
Dissatisfied	12	24	50
Strongly dissatisfied	8	16	50

Figure 10: Supply and demand makes an impact in Iran through OPEC strategy

Analysis

Supply and demand are the key factors that make a good impact to Iran’s oil industry with the help of OPEC strategy. From the above table, it has been analyzed that the customers strongly satisfied with supply and demand evolve as 20% and those which are satisfied evolve as 24%. Under the neutral venues, it evolves that customers have a little chance with just 16%. Moreover, the customers that are dissatisfied evolve as 24% and those who are strongly dissatisfied evolve as 16% respectively. Thus, supply and demand is an important area that will help to make a static change on supply and demand through OPEC strategy in Iran.

Question 10

What are the factors that play an effective role in increasing the market value by assessing customer’s position in oil industry?

Options	Number of respondents	Frequency (in %)	Total number of respondents
Increased supply and demand	15	30	50
Iran’s latent ability to produce more oil	10	20	50
OPEC’s inscrutable strategy	8	16	50
Engaging financial transactions	12	24	50
Others	5	10	50

Table 11: Factors playing an effective role in increasing the market value

Figure 11: Factors playing an effective role in increasing the market value

Analysis

There are certain factors that play an effective role in increasing the market value by assessing customer’s position on oil industry in Iran. Increased supply and demand plays an efficient area in increasing the market value with 30% while the latent ability for producing more oil develops with 20%. In order, OPEC’s inscrutable strategy develops with 24% and engaging financial transactions evolves with 24%. The other factors evolve as 10% other than these factors.  Thus, it would be ideal that there is a good contribution of increased supply and demand and the financial transactions to Iran’s market value by assessing customer’s position on oil industry.

Question 11

With Iran’s re-entry to oil market, which factors are affecting the decrease in oil prices?

Options	Number of respondents	Frequency (in %)	Total number of respondents
Elasticity of demand	7	14	50
Geopolitical flashpoints	14	28	50
Change in weather	9	18	50
Speculative buying	10	20	50
Uneven financial markets	10	20	50

Analysis

Iran’s re-entry to oil market has affected a decrease in oil prices. It is observed from the above table that elasticity of demand results with 14% whereas the geopolitical flashpoints include with 28%. In order, change of weather also affects oil prices. It evolves with 18% whereas speculative buying evolves as 20%. Additionally, there are uneven financial markets that evolve with 20%. Thus, it could be said that there are several factors affecting oil prices in Iran. Among these factors, geopolitical flashpoint and speculative buying affects decrease in oil prices consistently.

Question 12

What are the challenges that Iran faced while entering to the market again on OPEC strategy?

Options	Number of respondents	Frequency (in %)	Total number of respondents
Rapid decline in oil prices	10	20	50
Rise of domestic demands for petroleum products	5	10	50
Lack of adequate research and development facilities	15	30	50
Lack of privatization	5	10	50
Gap in technology	15	30	50

Table 13: Challenges Iran has faced while entering to the market

Analysis

From the above table, the responses made on the challenges that Iran faces in entering to the market area has been fatal. With the help of OPEC strategy, there is a rapid decline in oil prices, which evolve with 20% whereas the rise of domestic demands for petroleum products evolves as 10%. In order, lack of adequate research and development facilities results with 30% while lack of privatization evolves as 10%. Prior to these, there may be a gap in technology, which is an important factor that evolves to be 30%. Contrastingly, the results show a clear gap by understanding the challenges Iran faces on the market area through OPEC strategy. However, there is a gap in technology due to lack of adequate research and development facilities.

Qualitative questionnaires

Question 1

What is the impact of Iran re-entering to oil and gas industry under OPEC strategy?

OPEC forecasts that oil supply from the non-member countries will post a larger strategy and this will decline due to the collapses made on prices. It would be considerable if the producer groups boost the crude oil. In order, a drop in the non-OPEC supply has reduced a glut in supply that has promoted the oil prices to collapse. However, Iran’s re-entry has started to slow down the development in extensive supply of prices. The second manager has stated that there may be an upward pressure on Iran’s oil prices. Due to this, the economic impacts will largely depend on the global oil production as it rises to the peak. However, there may be less availability of energy and alternatives, which would make a good effect when the production declines. Effectively, transportation is also dependent on oil, as it will hit hard if the vehicles are fueled by the sources other than oil. As revisited by fourth manager, Iran re-entry on oil and gas through OPEC strategy would cut down the prices because they will come as the beginners. Under a short-term strategy, Iran with the help of the additional investments, it is capable of supplying the oil market with additional million of barrels a day. In order, the new investments would produce an effective strategy to produce more oils as comparable to other neighboring countries like Saudi Arabia, Iraq, Oman and Kuwait. Thus, Iran could immediately influence the oil market if the sanctions are lifted well, it could store a large volume of oil in the tankers.

Question 2

How the execution plan will work through OPEC strategy in Iran by making good production rates in oil prices?

The execution plan will work effectively by bringing oil production rates to a usable price. With the help of OPEC strategy, there have to be a positive orientation in terms of prices dealing with the producers and consumers. As oil industry is a capital intensive by nature, thus it evolves good supply and demand. It also monitors with the help of effective policy decisions that will be instrumental in gaining support of market stability. As explained by first manager, Technology is one of the key drivers of future supply of oil and gas to Iran. OPEC supports promotion and development through advancing the environmental performance in oil and gas. It also makes a better prospect that will improve standards of exploration and the development activities in oil and gas. In order, it also promotes the deployment of technology by addressing the change in climatic concerns. Moreover, as stated by third manager of oil industry in Iran, OPEC national oil companies have enhanced technology through cooperation. The portfolio on research and development has made effective communication channels and by expanding the media through gaining interests of a community. However, the active engagement of OPEC under the global traditions have made a comparative advantage provided by a broad range of concerns that includes security of energy in supply and demand, availability of skilled manpower, sustainable development, and downstream and upstream investments.

Question 3

What are the recommendations for developing Iran as a good entrant in oil industry?

Iran has regained a position to deal with the market share through economic planning as it emerges as a new entrant in oil industry. However, the government has declared a target in making production higher in terms of investment and development. In order, it is observed that there is a sharp increase by making an implication to condense exports and production. Among the targets offered on political ground, the trajectory of Iran’s re-entry will affect oil prices. As stated by the fourth manager, a new petroleum contract is to be introduced for satisfying needs of Iranian constitution and international oil companies. In addition, with the help of convenient shipping routes through Gulf borders, Iran’s location is localized by the export-focused industries. As Iran is the home of world’s fourth largest oil reserves, the sanctions were lifted to make huge barrels of oil. There were also several fields, which come to effect with enhanced recovery projects and optimization under the latest technology.

This chapter concludes a strong opinion of Iran’s re-entry to oil industry by developing quantitative and qualitative questionnaires. These questionnaires will help to deliver an interpretation and analysis by making a judgment on developing Iran’s market ability to produce huge barrels of oil in future.

Introduction

In this chapter, the researcher will focus on the observations that will link to the objectives from the first chapter. On evaluating the findings, the researcher will make a link from the questionnaires of fourth chapter to make a strategy on oil and gas industry in Iran. However, with suitable recommendations, the researcher will depict an outcome that will progress for developing Iran as a prime partner in oil and gas.

To identify the impact of Iran re-entering to oil and gas industry under OPEC strategy

The impact of oil and gas has been effective for penetrating a strategy that will be successful in future. From the fourth chapter in quantitative question number 10, it is said that increased supply and demand will be efficient in making a good value for the market. It is initiated that there would be good contribution to the financial transactions of Iran’s market value by assessing customer’s position. However, from qualitative question number 1, as revised by fourth manager, Iran’s re-entry on oil industry will cut down the prices. Under short-term strategy, with additional investments, there would be a capability of supplying oil into the market with additional million of barrels.

To assess the challenges faced by Iran as it entered as a new platform in oil and gas industry

There are several challenges that Iran faces as it has entered as a new platform on oil and gas industry. From quantitative question number 12, rapid decline in oil prices and lack of adequate research and development facilities would affect oil prices in Iran. In order, lack of privatization also affects relatively on prices of oil. In order, from qualitative question number 2, as explained by first manager, technology would be a key driver for assessing Iran’s future. The challenges may be under environmental influence but the exploration would develop a key advantage under the portfolio of research and development.

To recommend practices for developing Iran as a prime partner of oil and gas under Gulf division through OPEC strategy

The idea would be static if Iran’s re-entry on oil industry will provide good value under Gulf division. From quantitative question number 7, it is initiated that the major customers will provide a good value and has a strong opinion in believing to the fact that has increased oil prices in Iran relatively. Moreover, Iran’s re-entry has induced good quality in prices to the gulf division. Besides, from qualitative question number 3, as stated by the fourth manager, a new petroleum contract will be introduced for satisfying needs of the Iranians. This would be effective if the recovery points will enhance proper optimization through the latest technology.

It is observed that predicting oil prices will depend on supply and demand particularly. Over the past years, there has been a global increase in oil and natural gas in Gulf division. Thus, OPEC has to cut the production in response to the effect of fall in prices. Moreover, the weakening in the global economy has lead to drop in oil prices. Thus, analyzing the supply chain purchases would increase prices in oil. Suppliers will also have to create a backup strategy that would be competitive in making effective prices for customers.

For promoting adequate rigging, Iran’s oil company should make a marine forum that would emphasize vertical position of oil spills. The need for vertical and the flat decks would offload the water line and create maximum amount of vertical sides on the design requirements of oil and gas. However, leads, mounting points and necessary lifting equipments would make a better position on the secondary fenders. Thus, this will create an optimum effectiveness and make better facilities for ensuring maximum coverage for the primary fenders.

There are key areas that plan for a financial performance as Iran re-enters to oil industry. These are profitability, income, working capital, liquidity, bankruptcy and long-term analysis of advantage and coverage. Thus, the past years have showed a forecast on how long-term future will meet the performance metrics of oil industry. Moreover, this will empower the balance dramatically on prices statistically. It would also be important if Iran’s future need will determine effective prices in examining return of investment.

Conclusion

The chapter will conclude an analytical interpretation by forecasting impact of Iran re-entering to oil and gas industry under OPEC strategy. This would be static if technological influences make good orientation in developing Iran as a prime partner in oil and gas. Moreover, increasing supply and demand will promote adequate rigging of the secondary resources by offloading technological implementation in oil and gas.

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