Divestiture is a political term. It is the forced break up of major oil companies.
Divestiture can take two forms: horizontal and vertical.
- Horizontal divestiture would force direct op oil companies to divest of their owned non-oil business, like chemical, coal, and nuclear energy plants.
- Vertical divestiture would mandate the oil companies to divide their operations by functions. (exploration, production, refining, transportation, marketing)
Divestiture is a political term. It is the forced break up of major oil companies.
