Does BP's size, power and clout make it into, well, a Monster?

Some would say that the oil industry is an Oligopoly. On the other hand, many more believe that the global oil industry is generally operated as an industrial cartel.

However, would having such power and force make BP into a more clumsy, more error-prone business?

I'm sure that many Louisianans would agree at the moment. And, from an economic viewpoint, too much power, either in a Cartel, Oligopolistic or Monopolistic system, can lead to problems.

Complacency ruins efficiency, causing a business to react more sluggishly to changes of market forces, and to becoming less caring about the social aspects of their exploits, due to reduced importance of a social standing in relation to demand.

A lack of competition reduces further positive incentives, such as for companies to cut waste, reduce risk and to invest in greener technologies.

And a sense of security as a business, increases the chance of less Research and Development, less long-term investment, and more complacency yet again.

So, perhaps, and only perhaps, the natural disaster in the Gulf was at least partially due to failed Government regulation of the Oil industry. But is the global industry too big for a single Government even to attempt to regulate?

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