- It is difficult to locate value within the conventional notion of the petroleum industry, especially in the upstream.
- A holistic approach to the much broader petrochemical and petroproduct value chains suggests that most of the economic value in the petrochemical industry is created and realized downstream.
- Vertically integrated value chain players are able to source cheap inputs and produce value-added products with intangible values.
- A simple case study of 10 publicly traded companies which occupy the “sweet spot” of the petroleum value chain corroborates the intuition regarding economic value realization.
- The value chain analysis framework can be applied to any situation in which raw materials are liberated from commodity market forces.