ORGANIZATIONAL STRUCTURE OF THE OIL INDUSTRY.

An application of the familiar three-point diagram (MTK Diagram) which seems suitable to explain the basic character of industry in general, and the oil industry in particular, is introduced in this paper. Manpower (Labour), Technology (Machines) and Knowledge (Information) are placed at the apexes of the triangle. A plotted point on the MTK Diagram indicates a quantitative (and qualitative) representation of each of these three elements. The recognition of the interrelation between the productivity of an industry and the trend of that industry toward the ″knowledge″ apex is the most important result of the application of the MTK Diagram. The oil industry can be subdivided into five principal components: Exploration, Production, Transportation, Refining and Marketing. It is well known that each component of the oil industry maintains its own potential economic power and substantial organizational structure when compared to other industries. Refs.