On its long way,
After the nationalization of
On the other hand, oil companies gradually lost the control of market and the producers took the helm as
In the 1970s, OPEC turned to one of the main bodies that set the oil prices and control its market.
The road, however, faced oil shocks and price fluctuations, introducing a new shape in every era. The last came in late 2003, when a sharp rise in the price of black gold was registered and now the 70 dollar price for a barrel of oil is not something odd to the world.
First Step: Transparency in Oil Industry
Since the oil bourse defines everything in the framework of supply and demand, all markets factors have equal conditions, causing further transparency in the purchase and sales processes of oil products.
In addition to transparency, the oil bourse paves the way for fully overseeing all activities of the industry. When different oil and petrochemical companies offer their products in the bourse and the purchasers buy the products presented in the bourse, all oil transactions are carried out in the presence market supervisors, media, and people.
Second Step: Arrangement for Oil Industry Privatization
Furthermore, the oil bourse has the capacity to take a major stride toward the privatization of a main part of the state body. By running the oil bourse, the purchasers of oil products will grow in number and various companies have the chance to move into the oil trade market.
Therefore, the oil bourse is able to break the government’s monopoly of oil deals and the state-run’s monopoly of supply and demand. In that case, Iranian investors have the opportunity to make debut in the oil market.
Third Step: Closer Competition in Intl. Oil Trade
Given the cutthroat competition in oil, gas, and petrochemical supply, Iranian companies will be forced to improve their production processes and management system and cut unnecessary costs to compete with their counterparts in an open rivalry if the oil bourse steps in.
The development also causes other sectors to make progress, making the country ready for entering the world trade market.
The oil bourse exposes the weak points of banking, insurance, customs, financial, and administrative systems of the country, forcing them to remove the problems. It also causes the government and oil industry to pay more attention to transportation, national might in the energy sector, and oil equipment market.
No doubt,
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