The evolution of oil trade: A complex network approach

Andrea Fracasso, Hien T. T. Nguyen and Stefano Schiavo

Network Science, 2018, vol. 6, issue 4, 545-570

Abstract: Trade in oil has undergone significant changes in the last 20 years: technical progress has allowed the exploitation of new and previously untapped fields; the emergence of new large oil importers, such as China, has shifted the traditional patterns of demand and supply, while the desire to diversify energy sources has favored the emergence of new suppliers. This paper compares the topological properties of the network of crude oil trade over the period 1995–2014. The analysis covers both aggregate measures (such as network density and centralization) and node-specific indicators (e.g. centrality) that allow to uncover the rise (demise) of new (old) important players. Accounting for the position of each country within the network provides valuable information above and beyond traditional measures such as market shares. To investigate whether oil trade has experienced a process of globalization or, rather, regionalization, we look at the community structure of the network: the number of communities increases in the aftermath of the global financial crisis, but then goes back to its historical values. Something similar happens to the average geographic distance within each community, showing that along a regional component there are also strategic/political considerations at play. Econometric analysis suggests that high oil prices increase the likelihood that high-production-cost exporters play a more central role in the network, thus reducing the power of traditional suppliers.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cup:netsci:v:6:y:2018:i:04:p:545-570_00

Access Statistics for this article

More articles in Network Science from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().