Problem
Industrial gas monopolies
Nature:
The business of supplying nitrogen, oxygen and other gases for industrial use has been from its start limited to five big companies. Contracts can extend over 15 years with stability of earnings, prices and products. There are high barriers to entry and a lack of technological change. There is very strong client stability because the product is piped to the client's sites. A change of supplier would involve construction of a new piping system.
Broader Problems:
CartelsMonopolies Aggravates:
High cost of natural gas trade infrastructure Strategies:
Operating a monopoly Subject(s):
Commerce → Conditions of tradeFundamental Sciences → Gaseous state
Industry → Industry
Related UN Sustainable Development Goals:
Problem Type:
E: Emanations of other problems Date of last update
04.10.2020 – 22:48 CEST