Basic Industries Disadvantages of Investment

Basic Industries Disadvantages of Investment

Basic industries Disadvantages of the industry as an Investment

(1) British oil companies have their sources of supply mainly in countries with unstable governments (Middle East and South America), where there is always the risk of nationali-sation or political upheaval.

(ii) The industry necessarily has a heavy capital expenditure in developing oil fields and pipelines, costly refining installations, and in owning and maintaining fleets of tankers.

(iii) The commercial development of mw/ear power as a rival to oil, is foreseeable, if as yet distant.

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