Barriers to Entry: In the upstream segment, government permission is required to begin operation. The costs of research, exploration, development and production of oil fields are significant, so the barriers are higher. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayThe Bargaining Power of Suppliers: Crude prices are determined globally and are highly sensitive to geopolitical events, economic growth and demand factors, economic policies and speculative factors. Paris. Given that domestic availability is only about 20-25% of requirements, India is essentially a price taker when it comes to crude. For petroleum products, given the country's excess capacity, bargaining power is weak. Bargaining power of customers: Although oil prices have been cheaper throughout the year, the price of petroleum products has not fallen to the same extent due to government interference in concerns the increase in excise duties, etc. Since PSUs control most of the market, the bargaining power of customers is not very strong. However, this could change as private players gain a larger share of the market. Competition: In the downstream segment, companies are looking to upgrade their refineries and add capacity, which is likely to lead to more competition. With the new reforms announced in the energy sector, more private players are likely to enter the oil and gas sector, thereby increasing competition. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay Threat of Substitutes: The main alternative sources to oil and gas for generating energy are nuclear power, hydrogen, biofuels and other renewable sources like solar and wind power. For large-scale production, alternative sources require significant investment in R&D and tangible assets, so there is little chance of finding substitutes at least until the next 20 years..