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Major companies that once controlled the world's oil resources, refineries and distribution systems are now having to share the market with national oil companies, independent producers and local distributors, while developing nations are extending ever more attractive terms for exploration, development and production. The result is an increase in the overall world oil supply and an intensification of competition in the industry. Such challenges force oil producers to search for new technologies in order to remain competitive in the world market. Strategic positioning plays an important role, determining whether a producer can benefit from the latest technologies and is able to dispose of its oil in the international market, or profit from the oil-price fluctuations in the commodity market. This study considers strategic positioning and the options available to countries and companies alike in terms of their upstream and downstream industries.