It has been observed experimentally that small additions of oxygen to the argon shielding gas affect the general operation of GMAW processes. By theoretically modeling the arc column, it is shown that the addition of 2 to 5% oxygen to argon has an insignificant effect on the arc characteristics. This corresponds to the minor changes in the thermophysical transport and thermodynamic properties caused by the oxygen addition. Therefore, it is concluded that the addition of oxygen to the argon shielding gas mainly affects the anode and the cathode regions. From the literature, it was found that the formation of oxides initiates arcing at the cathode and decreases the movement of the cathode spots. These oxides can also improve the wetting conditions at the workpiece and the electrode. Finally, oxygen is found to affect the surface tension gradient and thereby the convective flow of liquid metal in the weld pool.