Securing New Markets in Asia: The Value of Strategic Spot Crude Oil Sales to Teapot Refiners
Jennifer Considine, Kang WuKang Wu and Abdullah Khalid Aldayel
In the global energy landscape, much of the conversation focuses on the security of oil supply. But what about the other side of the equation—the security of demand? For major oil-exporting countries, ensuring stable and reliable buyers is just as critical as securing production.
This research project flips the traditional perspective and explores how large oil exporters manage the risk and reward of maintaining demand security, particularly in emerging markets.
In its first phase, the project introduces a comparative static model of global oil trade, designed to shed light on how shifts in crude oil market shares across segmented markets affect exporters. It examines how national oil companies (NOCs) can strategically shape their sales portfolios to balance risk and return—especially in volatile markets like Asia's independent "teapot" refiners.
By comparing the decision-making strategies of NOCs to those of international oil companies (IOCs), the research provides insights into how exporters can better navigate the evolving energy market and secure long-term demand in a competitive, multipolar world.