IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v73y2014icp312-322.html

Competition, transmission and pattern evolution: A network analysis of global oil trade

Author

Listed:
  • Zhang, Hai-Ying
  • Ji, Qiang
  • Fan, Ying

Abstract

This paper studies the competition among oil importers using complex network theory, combined with several alternative measures of competition intensity, to analyze the evolution of the pattern and transmission of oil-trading competition. The results indicate that oil trade has formed a global competition pattern and that the role played by the Asian-Pacific region in the evolution of this competition pattern is becoming increasingly prominent. In addition, global competition intensity has continued to rise, and non-OECD countries have become the main driving force for this increase in global competition intensity. The large oil importers are the most significant parts of the global oil-trading competition pattern. They are not only the major participants in the competition for oil resources but also play important roles in the transmission of oil-trading competition. China and the United States especially display the feature of globalization, whose impacts of transmission reach across the whole oil-trading competition network. Finally, a “5C” (changeability, contestability, cooperation, commitment and circumstances) policy framework is put forward to maintain the stability of oil trade and improve the energy security of oil importers in various aspects.

Suggested Citation

  • Zhang, Hai-Ying & Ji, Qiang & Fan, Ying, 2014. "Competition, transmission and pattern evolution: A network analysis of global oil trade," Energy Policy, Elsevier, vol. 73(C), pages 312-322.
    • Handle: RePEc:eee:enepol:v:73:y:2014:i:c:p:312-322
    DOI: 10.1016/j.enpol.2014.06.020
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421514003929
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2014.06.020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Ferreira, Douglas S.R. & Papa, Andrés R.R. & Menezes, Ronaldo, 2014. "Small world picture of worldwide seismic events," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 408(C), pages 170-180.
    2. Li, Xianguo, 2005. "Diversification and localization of energy systems for sustainable development and energy security," Energy Policy, Elsevier, vol. 33(17), pages 2237-2243, November.
    3. Hogan William W., 1983. "Oil Stockpiling: Help Thy Neighbor," The Energy Journal, , vol. 4(3), pages 49-72, July.
    4. repec:aen:journl:2000v21-03-a02 is not listed on IDEAS
    5. Kline, David & Weyant, John P., 1982. "Reducing dependence on oil imports," Energy Economics, Elsevier, vol. 4(1), pages 51-64, January.
    6. Loderer, Claudio, 1985. "A Test of the OPEC Cartel Hypothesis: 1974-1983," Journal of Finance, American Finance Association, vol. 40(3), pages 991-1006, July.
    7. Wabiri, Njeri & Amusa, Hammed, 2010. "Quantifying South Africa's crude oil import risk: A multi-criteria portfolio model," Economic Modelling, Elsevier, vol. 27(1), pages 445-453, January.
    8. repec:aen:journl:2004v25-04-a04 is not listed on IDEAS
    9. Brémond, Vincent & Hache, Emmanuel & Mignon, Valérie, 2012. "Does OPEC still exist as a cartel? An empirical investigation," Energy Economics, Elsevier, vol. 34(1), pages 125-131.
    10. Fan, Ying & Zhang, Xiao-Bing, 2010. "Modelling the strategic petroleum reserves of China and India by a stochastic dynamic game," Journal of Policy Modeling, Elsevier, vol. 32(4), pages 505-519, July.
    11. Zhang, Hai-Ying & Ji, Qiang & Fan, Ying, 2013. "An evaluation framework for oil import security based on the supply chain with a case study focused on China," Energy Economics, Elsevier, vol. 38(C), pages 87-95.
    12. Glick, Reuven & Rose, Andrew K., 1999. "Contagion and trade: Why are currency crises regional?," Journal of International Money and Finance, Elsevier, vol. 18(4), pages 603-617, August.
    13. Ge, Fenglong & Fan, Ying, 2013. "Quantifying the risk to crude oil imports in China: An improved portfolio approach," Energy Economics, Elsevier, vol. 40(C), pages 72-80.
    14. Alhajji, A. F. & Huettner, David, 2000. "OPEC and other commodity cartels: a comparison," Energy Policy, Elsevier, vol. 28(15), pages 1151-1164, December.
    15. repec:aen:journl:1983v04-03-a04 is not listed on IDEAS
    16. Ediger, Volkan S. & Berk, Istemi, 2011. "Crude oil import policy of Turkey: Historical analysis of determinants and implications since 1968," Energy Policy, Elsevier, vol. 39(4), pages 2132-2142, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Minggang & Tian, Lixin & Du, Ruijin, 2016. "Research on the interaction patterns among the global crude oil import dependency countries: A complex network approach," Applied Energy, Elsevier, vol. 180(C), pages 779-791.
    2. Sun, Xiaolei & Liu, Chang & Chen, Xiuwen & Li, Jianping, 2017. "Modeling systemic risk of crude oil imports: Case of China’s global oil supply chain," Energy, Elsevier, vol. 121(C), pages 449-465.
    3. Kisswani, Khalid M., 2016. "Does OPEC act as a cartel? Empirical investigation of coordination behavior," Energy Policy, Elsevier, vol. 97(C), pages 171-180.
    4. Yang, Yuying & Li, Jianping & Sun, Xiaolei & Chen, Jianming, 2014. "Measuring external oil supply risk: A modified diversification index with country risk and potential oil exports," Energy, Elsevier, vol. 68(C), pages 930-938.
    5. Ang, B.W. & Choong, W.L. & Ng, T.S., 2015. "Energy security: Definitions, dimensions and indexes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1077-1093.
    6. Xiaolei Sun & Jun Hao & Jianping Li, 2022. "Multi-objective optimization of crude oil-supply portfolio based on interval prediction data," Annals of Operations Research, Springer, vol. 309(2), pages 611-639, February.
    7. Nazlıoğlu, Elif Hilal & Kök, Dündar & Soytaş, Uğur, 2025. "Energy prices and stock markets: Does energy supply security matter?," International Review of Economics & Finance, Elsevier, vol. 103(C).
    8. Bharati, Rakesh & Crain, Susan J. & Kaminski, Vincent, 2012. "Clustering in crude oil prices and the target pricing zone hypothesis," Energy Economics, Elsevier, vol. 34(4), pages 1115-1123.
    9. Lin, Boqiang & Omoju, Oluwasola E. & Okonkwo, Jennifer U., 2015. "Will disruptions in OPEC oil supply have permanent impact on the global oil market?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1312-1321.
    10. Zhang, Hongwei & Wang, Ying & Yang, Cai & Guo, Yaoqi, 2021. "The impact of country risk on energy trade patterns based on complex network and panel regression analyses," Energy, Elsevier, vol. 222(C).
    11. Wang, Yue & Zhang, Zhenke & Xu, Minghui, 2023. "Evolution pattern of African countries' oil trade under the changing in the global oil market," Energy, Elsevier, vol. 284(C).
    12. Gasser, Patrick, 2020. "A review on energy security indices to compare country performances," Energy Policy, Elsevier, vol. 139(C).
    13. Al Rousan, Sahel & Sbia, Rashid & Tas, Bedri Kamil Onur, 2018. "A dynamic network analysis of the world oil market: Analysis of OPEC and non-OPEC members," Energy Economics, Elsevier, vol. 75(C), pages 28-41.
    14. Berk, Istemi & Çam, Eren, 2020. "The shift in global crude oil market structure: A model-based analysis of the period 2013–2017," Energy Policy, Elsevier, vol. 142(C).
    15. Murphy, Frederic & Oliveira, Fernando S., 2013. "Pricing option contracts on the strategic petroleum reserve," Energy Economics, Elsevier, vol. 40(C), pages 242-250.
    16. Bigerna, Simona & D'Errico, Maria Chiara & Polinori, Paolo & Simshauer, Paul, 2022. "Renewable energy and portfolio volatility spillover effects of GCC oil exporting countries," MPRA Paper 114164, University Library of Munich, Germany.
    17. Farzanegan, Mohammad Reza & Raeisian Parvari, Mozhgan, 2014. "Iranian-Oil-Free Zone and international oil prices," Energy Economics, Elsevier, vol. 45(C), pages 364-372.
    18. Jianping Li & Xiaolei Sun & Fei Wang & Dengsheng Wu, 2015. "Risk integration and optimization of oil-importing maritime system: a multi-objective programming approach," Annals of Operations Research, Springer, vol. 234(1), pages 57-76, November.
    19. Brémond, Vincent & Hache, Emmanuel & Mignon, Valérie, 2012. "Does OPEC still exist as a cartel? An empirical investigation," Energy Economics, Elsevier, vol. 34(1), pages 125-131.
    20. Ji, Qiang & Zhang, Hai-Ying & Zhang, Dayong, 2019. "The impact of OPEC on East Asian oil import security: A multidimensional analysis," Energy Policy, Elsevier, vol. 126(C), pages 99-107.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:73:y:2014:i:c:p:312-322. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.