Description of the Market Structure of Qatargas Company Paper Example

Introduction

The business structure of the company can be described based on the type of business the company operates under and the competition; this may either be monopolistic, oligopoly or monopoly. The Company operates under the corporate business structure because it determines its ownership, control and the organizational authority and the stakeholders who are the key decision makers. Main shareholders are Abdullah Fadhalah Al-Sulaiti, Mohammed Al-Sada, the C.E.O of Qatar Petroleum, Ali- Al-Kuwari and Sami Nabawi to mention but a few (Bridge & Bradshaw, 2017). It equally operates based on oligopoly competition since it supplies gas in large quantity to Qatar and the rest of the world. This makes it difficult for other competitors to match its standard.

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How the firm operates to produce goods and services

The company operates uniquely in the global energy production sector. It operates about 14 liquefied natural gas trains with each having an annual production of between 77 and 80 million tonnes. It develops, and produce its hydrocarbon products from one of the world's largest and non-associated natural gas (Kirat, 2015). Apart from the involvement in the production of liquefied natural gas, it also exports natural gas, helium and other condensed and associated products. The company also operates in association with the Qatar Petroleum Company with the aim of integrating their resources and capabilities to create a unique global operator in energy. The integration is also premised on creating a higher value of the product in the market not matched by other competitors and acquire a competitive position within the Qatar gas industry and the world at large. The company also continues to benchmark in the liquid and natural gas industry to ensure safety and reliability regarding the energy supplied to the consumers. It also considered a merge with RasGas thus creating unrivaled energy operation in the market based on reliability, service, and size.

Description of the technology used by the company

One of the technologies used is known as the GTL or Gas-to-liquid technology which helps in the refining process and the turning of the natural gas into the liquid fuels. Such fuels include the naphtha and the low sulfur diesel. There is also the Dolphin processing plant that is located at Ras Laffan that helps in the processing and compression of the natural gas with the help of various automation systems.

The fixed cost of Qatar Gas Company

Some of the fixed costs incurred by the company include the money paid to insurance firms, the monthly and annual salaries paid to the workers and the interest taxes for the gas exported or those that are distributed locally. The utility tax is another fixed cost where charges are made for the company's operation in Qatar and other transportation expenses on the communication and transport of supply of the natural gas (Safari et al. 2018).

The Company's inputs (workers, materials, etc.) and the effect on the variable cost

When dealing with the input of Qatar Gas Company, it is important to consider the workers, raw, materials, the financials that are put into the system, the manufacturing plant and the gas produced. The company has committed employees with a wide variety of roles provided in the developmental system. In liaison with the company's shareholder partners, they operate the 14 liquefied natural gas trains. On the part of resources, the company's reserves of both oil and gas are noted to be about 25 billion barrels. These inputs decrease the company's variable cost since they are aimed at ensuring efficacy in operation and increasing the production or output volume.

References

Bridge, G., & Bradshaw, M. (2017). Making a global gas market: territoriality and production networks in liquefied natural gas. Economic Geography, 93(3), 215-240.

Kirat, M. (2015). Corporate social responsibility in the oil and gas industry in Qatar perceptions and practices. Public Relations Review, 41(4), 438-446.

Safari, A., Das, N., Jafari, S., Langhelle, O., Roy, J., & Assadi, M. (2018). Role of Gas-Fuelled Solutions in Support of Future Sustainable Energy World: Part II: Case Studies. In Sustainable Energy Technology and Policies (pp. 35-86). Springer, Singapore.