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:
Cartels
Monopolies
Strategies:
Operating a monopoly
Values:
Monopoly
Related UN Sustainable Development Goals:
GOAL 7: Affordable and Clean EnergyGOAL 8: Decent Work and Economic GrowthGOAL 9: Industry, Innovation and InfrastructureGOAL 12: Responsible Consumption and ProductionGOAL 16: Peace and Justice Strong Institutions
Problem Type:
E: Emanations of other problems
Date of last update
09.09.2019 – 20:55 CEST