The without having many substitutes, as long as The

The Oil and gas field is
always divided into Upstream and downstream sector. The upstream sector
includes the process of extracting the oil and gas . as the power of supplier
is the main topic in this part of research all the focus will be on the
upstream sector. The graph below represents the stages of processing the crude
oil and Gas. Supplier and the bargaining

The bargaining power of supplier means to which extent
the suppliers have impact on influencing the market prices of oil and gas, by determining
and controlling the amount of supplied oil and gas to the market.

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A very strong bargaining power requires a well organized
market without having many substitutes, as long as The current market does not
find a suitable alternatives or substitutes for oil and gas, this gives the
suppliers of Oil and gas or which called ( the producing Oil and gas countries)
a greater bargaining power. As the oil and gas producing counties are mentioned  here, it is a must to clarify what the OPEC
is. OPEC (Organization of
the Petroleum Exporting Countries) established
in 1960 in Baghdad , The OPEC has 15 members ( those countries are the major
producing oil country worldwide six in middle east countries:, seven in Africa
and two in America ) which counted for 44 percent of global Oil production and 73
percent of the worlds proven oil reserves according to US International Energy
Statistic .Frankly speaking
the demand usually does not change, but the supply is fluctuating based on the
amount specified by OPEC. This is could be noticed when the OPEC announces a
meeting to specify the  supply amount for
the next period or month, after sometimes before the meeting or prices are
starting to fluctuate.

To conclude, OPEC
possess a significant bargaining power in the oil and Gas industry, by
influencing the amount of supply to the market which directly affects the
prices of the Oil and the Gas to the end costumers. Another important factor
which not always easy to predict, but highly influences the Prices and the
supply of the oil is the politics, this was witnessed through the last years
(such as wars,  changes in the
governmental politics strategy).