Anadarko Petroleum is an oil and gas company that produces primarily in the U.S. and Algeria. Its product is a commodity good, meaning that it is only differentiated from competitors by price. Anadarko's success is determined by the demand for oil and natural gas, a demand that is highly unpredictable due to the combination of a rising demand for energy, the efficiency of fossil fuels, increasing oil and gas prices, and growing environmental concerns. While Anadarko is a competitive producer among similarly sized peers, due to its focus on new gas reserves from recent acquisitions, it does not have the earning potential of larger companies like Chevron.

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