This was the clear result of a tightening in supply, however. Another major fuel price shock occurred as a result of the Iranian Revolution and the subsequent Iran/Iraq ar. This again caused a supply shock as two of the world's major oil producing nations were completely destabilized (illiams, 2007).
In the 2000s, a number of factors have combined to drive up oil prices. Major economic gains in key, highly-populated developing markets have served to increase demand substantially. The Iraq ar has destabilized that nation's oil supply and the Mideast region in general. A weaker U.S. dollar, another consequence of the Iraq ar, has also caused the price of oil -- traded in U.S. dollars -- to rise (Ibid). These events correspond with traditional supply and demand drivers. The events of 2008 may have been the result of speculation, but over the course of the past decade, it is more likely…… [Read More]
Producer Symbolism) at that time, the oil balance of these countries was not as critical as it is today, and they were not really depending on "foreign" oil. The entire situation changed with the October War which started shortly after midday on Saturday, October 6, 1973 with a concerted attack by Egypt and Syria on Israel. (Oil Price History and Analysis)
At the same time, one has to remember three important factors regarding the situation in 1973 embargo. The first of these points is that the evolution of the situation to an embargo was not a surprise to any of the Western nations. United States and its allies had been receiving warnings from different Arab countries months before the embargo took place, and the embargo was not for any economic reasons. The second point was that there had been an energy crisis in United States for a long period before…… [Read More]
Oil Market & U.S. Economy
In June 2008, when the price of oil had crossed $120 per barrel, the predictions for the impacts on the U.S. economy were dire. hereas just months previous, prices were expected to top out at $100 before returning to a more reasonable equilibrium point (Schoen, 2007), now the potential of $200 barrel oil came to pass, bringing with it economic catastrophe (Biderman, 2008). The short version is that demand for oil in the United States is relatively price inelastic. Therefore, as the price of oil increases, the amount of money that American businesses and consumers spend on oil increases. This reduces the amount of money available for consumer spending and industrial infrastructure investment. Ultimately, this harms the economy by concentrating capital flows to the petroleum industry. The capital eventually flows out of the country to the petroleum-producing regions.
This paper will delve into the subject…… [Read More]
Oil Spill esponse Plan
In order to effectively respond to any oil that might arrive on Florida's beaches as a result of the spill in the Gulf, one must take into account the different regulations governing the response to crises such at this on the local, state, and federal level. As the city currently does not have an oil spill response plan, in this case it is helpful to look at the state and federal level first, in order to determine the most effective role for local authorities to play in the context of these larger efforts. Examining the existing plans and regulations will answer any possible questions regarding who is responsible for the cleanup, as well as any additional costs related to the effects of the spill such as lost business revenue. Furthermore, this study will reveal the best ways in which the city can implement different policies, procedures,…… [Read More]
The results found are very credible. Looking at simply the correlation between rotating countries on the Security Council and the purchase of oil contracts, even a layperson becomes suspicious. As an example, both Nambia and Gambia only received oil contracts during their tenure on the Council. Even permanent Council members, like France and ussia, are not above suspicion, with their call for adjustments to the retroactive pricing system established by the Sanctions Committee to prevent Iraq from earning kickbacks by underpricing oil, when both countries are the two largest recipients of said contracts. Lastly, it is shown statistically significant that there is a relationship between countries who have shown strong Iraqi support and the receipt of oil contracts. The author uses appropriate data methods in addressing these questions.
However, there is very little evidence to support the surmation that Hussein was using this kickback money and oil contracts to purchase…… [Read More]
But the basic rule of political economy may not be sufficient to best understand the matter; therefore, the problem will be analyzed within the international context.
An additional cause, aside the diminishing resources compared against the increasing demand, could be given from within the United States and would materialize in an unstable economy and a weaker dollar, which is less trusted by the exporting countries. Then, the country possesses limited capacity to refine the oil, and these facilities are restricted by an increased demand, technological limitations and even environmental concerns, which force them to increase operating expenditure and eventually influence the retail price. Other reasons, this time outside the United States, could refer to increasing political tensions between importing and exporting countries, but also the global regulations imposed by various organizations influencing the market of oil and gas.
The next step in this direction will be to identify the international…… [Read More]
Oil Extraction Tax to Fund Education
The potential California proposition "Tax Oil for Education" is an important social issue in 2012 for the state, due to its ties to both oil industry as well as liberal values of excellent education for all. It is an exercise of public opinion that is based on personal preferences that vary between party lines and income levels. hile many in the state favor taxation as a tool to better the common citizen in California, others do not feel that taxing large corporations in order to fill budget gaps is appropriate use of state power. They believe that taxing oil is bad for the growth of the market, and will make California less competitive. This struggle will be decided, if the Tax Oil for Education bill is indeed placed on the ballot in November.
A political proposition is a tool that is used…… [Read More]
Oil and Gas Prices:
Gas prices have been one of the major issues or problems in the past few years, especially in the United States where more people are hitting the road drive. As the driving season begins in the summer, many Americans continue to look at gasoline price at the pump. In the past few months, many drivers have been wondering why they have to pay more at the pump in light of the spiking prices in various parts across the country. In his article on CNBC, John W. Schoen examines why most drivers may be right in thinking that someone may be rigging the market because of the prices spike throughout the country (Schoen, 2013).
While gasoline prices have been a major problem in the recent past, the tendency of these costs to be different from one place to another raises huge concerns. These concerns continue to emerge…… [Read More]
Oil used for Sustained Development: A Case Study
It is a country about the size of Kansas, with a population of about three million individuals. Along with Yemen, its neighbor to the southwest, Oman has been one of the most isolated of the countries in the Arabian Peninsula. Until 1970 the entire country had only 10 kilometers of paved roads, two schools, and two hospitals (Gorden 142). A dramatic change has occurred in subsequent years, owing primarily to two factors: the bloodless coup by the present Sultan, and the foreign investment made in oil exploration by a consortium of five global shareholders, whose names over the years became the companies we know today as Exon, Partex, Total/Fina/Elf, Shell, and British Petroleum (Petroleum par. 2).
By the middle of the 20th Centrury, unlike neighbors like Kuwait, Qatar, and Bahrain, Oman had stagnated in terms of trade, politics, and social institutions. The…… [Read More]
" This argument makes some sense in light of the role OPEC plays and the presumed ties between terrorist regimes like Al Qaeda and oil. In fact, Bin Laden's brother was a stakeholder in President Bush's own Arbusto Oil Company (Wiles 2001). Bin Laden is also believed to have "made a massive profit from trading in oil and gold as well as shares on the eve of the [September 11] suicide attacks blamed on his followers," (Sherwell 2001).
However, CATO institute analysts deny a connection between international terrorism and oil money: "The fundamental problem with the argument is that terrorists don't need oil revenues...terrorists don't rely on oil revenues." (Taylor & Van Doren 2006). Conflicting theories regarding the connection between terrorism and oil aside, the American addiction to oil has undoubtedly motivated the decision to invade and occupy Iraq. Indeed, the lack of any established connection between the Iraqi government…… [Read More]
The member nations of OPEC are relatively few, making it easier for them to form a producing conglomerate; the idea of a consumer conglomerate is untenable, as OPEC will always be able to find an extensive enough market for its commodity with other countries not in this conglomerate, and thus they can still control the price.
The oil industry is not fueled by supply or demand so much as it is by the simple motivator of most economic decisions -- greed. Economies exist precisely because there is competition for limited resources. Any more, the resources that are actually necessary for life are not limited in the developed world, and the competition for unnecessary resources ends up depriving other regions of basic necessities. The oil producing countries of the world are cashing in on the system like and "intelligent" economic actor.
Econbrowser. "New study of the effects of…… [Read More]
283). This led to the National Environmental Policy Act of 1969 (NEPA). This Act acknowledged the fact that there was a lack of knowledge about the ocean ecosystem. This was an important insight and "At its core, NEPA requires federal agencies to produce an environmental impact statement (EIS) whenever they propose a major federal action" but " it was unclear from the original language of the statute whether the lease of oil exploration rights was covered" (othbach, 2007, p. 283). However, in 1978 Congress amended this Act with regard to the current state of the law governing the leasing of offshore oil exploration rights. The 1978 amendments "…specifically state that if a plan for development and exploration of offshore oil resources is a major federal action, then an EIS must be produced" (othbach, 2007, p. 283). These events were to contribute to the growing concern about the environmental impact of…… [Read More]
Much oil is also used for heating, especially during winter. Therefore, new commitments toward researching, developing, and making available, on a large scale, alternative sources of heating must be made, and this time kept, as well.
To try seriously, however, to identify and describe one core "solution" to oil dependency; that is both untested and would nevertheless work, in this author's opinion, is (and especially given even the current extent of research and understanding into the gnarly depth of the problem and its myriad continuing causes) not only a fruitless exercise, but extremely naive. Instead, the answer lies in not one solution but combinations of many: starting with will; and continuing (perhaps indefinitely) with persistence, patience, personal and public sacrifice; and a loss of national hedonism; self-centeredness; arrogance, and a sense of personal and national entitlement. All of this, in combination, albeit gradually, could still, if the will were…… [Read More]
If Nigerian local content law is not complied with equires licensee to submit a detailed programme for recruitment and training of Nigerians
(Nigerian Local Content Policy)
2.3. History of the LCL
The Local Content Law was signed into law in April 2010 by acting President Goodluck Jonathan. In brief, the Nigerian Oil and Gas Industry Local Content Development Bill 2010 places "…obligations on upstream oil companies in the areas of finance, community and local workforce" (Examining Nigeria's Local Content Act). The process that led to this Bill began in 2007. The initiator of the Bill, Senator Lee Maeba, provides some interesting insight into the originating impetus that led to the final acceptance of the Act. He states,
I saw that there is no law guiding the activities of Nigerian companies in the oil and gas industry and because of that, there has been a capital drift...and that is the reason…… [Read More]
Oil & Gas Management
An Analysis of OPEC's Pricing Strategy: Has Saudi Arabia underestimated the resilience of U.S. shale oil?
The global environment for oil and gas has changed significantly in just the last few years as a new set of market conditions have been created that can be defined by an increase supply in oil. These supply increases have largely come from technological developments that have allowed for new forms of oil to extract such as shale oil which has in turn reduced the dependence on the cartels and Middle Eastern oil (Doshi & Corrigan, 2015). There have also been changes in the demand due to technology development as well. Engines and efficiencies have reduced the total demand for oil per user despite the fact that the number of total oil and gas users have increased rapidly in the developing world.
The oil industry serves as the foundation for…… [Read More]
Higher prices means a decrease in demand, and consumers who are already experiencing difficulty paying for basic goods and are even less apt to buy luxury items. Consumers are more likely to cut things out of their budget, and look for lower-priced items when shopping for necessities. Already, I find myself buying generic goods, looking for food on sale, and putting off replacing clothing and shoes with new items. Some people are even giving up beef, not for ethical reasons, but because it is lower in price than chicken and vegetables substitutes (Krauss 2008, p.1).
Not all industries are suffering because of higher fuel prices. Of course the oil and gas companies themselves are flourishing. Also, while the local middle-level chain restaurants in my town appear to be patronized less than they were, discount department stores seem to be doing well, as consumers can get all of their shopping done…… [Read More]
Similarly, while the arrangements made by the British lasted a relatively short timeframe, the dividing up of land necessary to mark off territory for such constitutional authorities had a more permanent effect. In Iraq, for example, the grouping of ethnic Kurds with Sunni and Shi'a Arabs within the same monarchy territory proved disastrous, as continuing ethnic strife led to the eventual dissolution of the state and the rise of events leading to the wars of the last decades of the 1900s and the first decade of 2000. The establishment of Palestine, and the subsequent favoring of Jewish immigration to the region, leading to the establishment of a Jewish state following WWII and the Holocaust, placed people of distinctly different belief systems and ethnic grudges in close proximity together (Grenville, 428-429, 431-437). This pattern of drawing up of territorial arrangements that suited the British interests rather than accounted for Arab differences…… [Read More]
il Production Project
These are essentially changes that will occur as a direct result of the project.
They can positively or negatively affect the following:
The local residents
The benefits of the oil production project and services have a positive upshot on the economic welfare of project stakeholders, hinterland and local authorities.
Presenting the outcomes of the project to an audience using an approved format and appropriate media by using a PPT to elucidate the benefits in terms of outcomes of the project.
The outcomes result from direct changes of the project being implemented. The changes would create a difference in the lives of the stakeholders, local community and surroundings, and can be beneficial or disastrous. The outcomes of oil production are also associated with economic well being of members as well as people living in the neighborhood (Chuong, 2007). There would also be increase in…… [Read More]
Take the oil drain pan and, using the funnel, empty the old oil into the milk jugs for easy disposal. Seal them up tight and wipe any spills off.
ipe off the funnel and put it in the oil filler hole under the hood. Pour in as many quarts as it will take -- usually about six for the 2005 Chevy Silverado. As you wait for the oil to fill, you can start cleaning up. Throw away the newspapers and wipe down any tools that got dirtied up. Be sure to recycle the oil containers instead of just throwing them out. After the oil is all in, screw the cap back on and check the dipstick for the oil level just to be sure you got the right amount in. Place the old filter in the Ziploc bag and seal it up.
To check for leaks, start the engine and…… [Read More]
structure o the global oil industry b. The structure of the global gas industry.
The integrated oil and gas companies (IOCs) are vertical, tall, or centralized structures where producers refined 100% of their production and then marketed refined products through their retail outlets. Production and distribution was downward. Today many of these IOCs combine verticality with a certain horizontalness with many spreading their tasks over various fields and involved in various simultaneous activities. They operate in many segments, whilst also buying and selling oil and gas to and from other firms. The companies are therefore centralized around a certain core management with specialists in each field clustered in tiers underneath.
The vertical structure denotes uses a hierarchical structure with downward directives and management span of control where underneath tiers are controlled by and responsible to upper levels of management. Again, each of the firms demonstrate this vertical structure in diverse…… [Read More]
IONY IN BIECE'S OIL OF DOG
IONY IN OIL OF DOG
IONY IN BIECE'S Oil OF DOG
Ambrose Bierce's Oil of Dog is a dark, macabre and humorous, even though it is a short story it is very rich, compact and filled with irony. The irony which is the dominant and most outstanding element in Oil of Dog functions in several significant and symbolic ways. Bierce presents to the reader an inverted or upside down world where right is wrong and wrong is right. He portrays his parents and their trade which is murder and thievery as honorable while at the same time presenting the righteous as guilty. The constable, a representative or law and order is described like this: "young as I was, I had learned that a constable's acts, of whatever apparent character are prompted by the most reprehensible motives" (12).
He also states that the town's people…… [Read More]
price of oil has fallen from around $120 per barrel about a year and half ago to around $50 per barrel. This has resulted in a sharp fall in revenues for all oil companies and specially the smaller companies that have a limited cash or revenue reserve. IN this condition this paper studies the possible strategies that can adopted by smaller oil companies to tide over the situation.
For this study we take the case of BNK Petroleum. The study reveals that the company expended more than three forth of its revenue of exploration which was one of the major causes of losses. It was recommended that the company should reduce its exploration expenses and look to venture into new markets of South America and Africa. To enable financing of marketing expenses in these markets, it has also been recommended that the company dilute some of its equity. To further…… [Read More]
oil drilling and towards this end this study will examine issues related to oil drilling and specifically as oil drilling relates to the environment.
According to 'Live Science' when it comes to oil drilling "there are extremes on both sides." (2014, p. 1) Firstly, the attempt to "pin down the impact of seismic waves on wildlife often must rely on caged animals" when it comes to experiements in the laboratory. (Live Science, 2014, p. 1) I ti sreported that Exxon Mobile has to suspend Madagascar exploration for oil when in exxcess of 100 whales ended up beaching themselves. (Live Science, 2014, paraphrased) There are however, some important advances in the process of drilling oil in terms of bringing about a reduction in the environmental footprint and stated specifically is that the oil companies "are now able to drain several oil fields from one platform. And new horizontal drilling techniques allow…… [Read More]
The problem which the oil and gas industry is currently experiencing is similar to the issues confronting most industries today—volatility. The year 2018 has been one of the most economically volatile years on record. At present, oil prices are rising, although they are considerably lower than their record highs of 2011. Oil and gas companies must find ways to continue to exploit current price trends while hedging their risks.
The great strength of the industry is that much of the world remains dependent upon oil. Recent oil prices are expected to remain in place in the short term but over the next ten years they are predicted to rise (Biscardini, et al., 2017). The world continues to industrialize at a rapid pace, likewise driving the level of demand.
However, most oil companies remain historically very expensive to operate, both in terms of supply chain delivery as well…… [Read More]
As a result, the artists are both directly challenging the traditional Paris Academy style (Stokstad, 2011, pg. 928, 978)
The differences in the paintings are evident in subject matter and style. Fuseli is telling a story through: imagination and creating an incubus to trouble the woman. The main colors in the painting are hues of red with the woman clothed in white (perhaps a reference to purity and virtuosity). Fuseli is in line with other Romantics, with his personal touch to a situation, intertwining passion and fear in a highly imaginative portrayal of a woman being seduced. The idea that the seduction is unwarranted by the woman is identified through: the name of the piece -- the Nightmare.
Manet's Olympia is a prime example of the Realist period. The painting appears to be realistic display of his use of light. The effects of this on the painting were…… [Read More]
There are numerous examples of rights violations on the Explorer IV oil rig. The absolute authority of the single American Expatriate is the greatest indicator of inequality on the rig. Further manifestations of inequality include the living conditions on the rig. The Angolan workers for example are far more than the Expats, yet they are expected to live and work in quarters of the same size. Inequalities also exist in the quality of life on the rig. Angolans have no privacy whatsoever in their sleeping quarters, while the Expats are semi-private. Luxuries such as galley, game room and movie room are also reserved for the Expats. The quality of food is also vastly different for the two levels, with Expats receiving a far better quality of food than the Angolans. This is related to the galley budgets, which are similar for both sections, despite the fact that the…… [Read More]
A large body of literature has treated many different aspects of these influences on Asia, Europe and the United States (Busser & Sadoi, 2003). The importance of the study relates to the current trends taking place in Libya where aggressive steps have been taken in recent years to normalize relations with the international community. For example, Libya opened up its programs to develop weapons of mass destruction to international scrutiny and renounced terrorism as a political tool (Libya, 2010). Moreover, the country's political leadership has been equally forthcoming in its efforts to normalize their relations with Western nations since 2003 (Libya, 2010). More recently, Libya has been removed from the U.S. State Department's list of states that sponsor terrorism in 2006 and in 2008, Libya joined the United Nations as a nonpermanent member on the UN Security Council during the 2008-2009 term (Libya, 2010).
Other signs that clearly point to…… [Read More]
The implications of this vulnerability to volatile oil prices is simple; 'high crude prices must encourage European governments to make investments in energy sources other than oil' (Wielaard, 2005, p.1).
The negative economic impact of rising oil prices is typically more severe for developing countries than for OECD (Birol, 2004, p.2). This is currently the case as high oil prices 'are badly affecting many developing countries' (Schlein, 2005, p. 1). The U.N. Conference on Trade and Development (UNCTAD) recently stated that 'the high cost of oil is placing a heavy burden on poorer nations that spend around five-percent of their gross domestic product on oil. This, compared with the two-to-four percent that wealthier nations pay' (Schlein, 2005, p.1).
There are several reasons why oil-importing developing countries struggle more over high oil prices than their developed counterparts. Energy dependency and intensity is greater in developing nations than developed ones; this is…… [Read More]
Oil replays 1980s bust discusses the collapse in oil prices in the mid-80s versus the collapse in oil prices in the second half of 2014. He notes that while the pace of decline was similar, than the reasons behind the decline are different. The author notes that time is an important variable. Prior to hydraulic fracking, oil projects were massive in scope and scale, and took many years and billions to bring to fruition. As a consequence of this, the supply of oil on world markets was fairly easy to predict. New oil would not suddenly materialize from just anywhere. Today, the time lapse between when oil is discovered and when it hits the market is much shorter, and the cost is lower. The wells in the shale fields are smaller, so the entire exploration and extraction cycle (i.e. The cash conversion cycle) is shortened considerably. This also encourages new…… [Read More]
Houston's economy is heavily dependent on the oil industry. Thus, when oil prices decline, the fortunes of Houston's economy should be expected to decline. In economics, the concept of stickiness applies. This means that the price of goods will move differently in the short run vs. The long run. Things like jobs and housing are generally sticky, so it would not be expected that the economy of Houston would change much, based on a short-term change in the price of oil. People will still have their jobs, and thus would still keep their houses. But when the change in the price of oil persists over a longer period, companies will begin to adjust, bringing about what should be noticeable changes in both the job and housing market. The GDP will adjust a little bit faster, given the oil values are going to affect the GDP directly. At this point in…… [Read More]
Exxon Mobile Analysis
Exxon Mobile operates in the oil and gas industry which is one of the most valuable industries in the world. Oil fuels much of our modern lives and allows us the mobility granted by the automobile and the infrastructure that allows for easy transportation. Within the industry, ExxonMobil is the world's largest publicly traded international oil and gas company (ExxonMobil, N.d.). The industry is multifaceted and is composed of many different segments -- everything from the exploration of oil, the refinement process, and the transportation via ship, tanker, or pipeline. The industry as a whole can be thought of as containing three primary components: upstream, midstream, and downstream. The oil and gas is of critical importance to the world's economy because there are many other industries are directly dependent upon these fuels. For example, oil can be used as a raw material to produce many…… [Read More]
Exxon Mobile and Game Theory Analysis
ExxonMobil is the world's largest publicly traded international oil and gas company that operates in an industry that is dominated by several large firms (Exxonmobil, N.d.). On the international level, there are barriers to entry that make it difficult for new entrants to emerge, the product is considered a commodity, and as a result many have argued that this industry most likely follows the oligopoly market structure. The oil and gas industry as a whole is made up of three main types of activities in either upstream, midstream, or downstream industry segments which include such functions as exploration, extraction, transporting unprocessed raw materials, processing the materials in refineries, and further downstream conversions which will eventually lead to the finish products.
The oil and gas industries is arguably the most important industries in the world given the fact that it fuels much of the energy…… [Read More]
Oil Price Fluctuation
Actions adopted by the government to reduce or limit price fluctuation
Oil Price Fluctuation iii
This report will focus on the actions adopted by the government to reduce the fluctuation in oil prices. A brief introduction is discussed in the assignment. The reasons are also described in the assignment for which the oil prices fluctuate. This assignment also puts light on the price stability and why governments need to intervene to reduce the volatility in oil prices. Strategies adopted by the government to stable the oil prices are also discussed.
easons of price fluctuation
Government intervention to stable the oil prices
Strategic oil reserves
Actions adopted by the government to reduce or limit price fluctuation
The prices of oil were increased in 2007 to 2008. The oil prices were highly fluctuating in 2007 between the months January…… [Read More]
il and Gas
Development of Two Important Materials in Earth's Early History
According to scientists, Earth began its life 4.6 billion years ago, when cosmic dust collided to form increasingly large particles. These particles, after millions of years of colliding and increasing in mass, eventually formed the Earth, with a mass similar to what it is today (5.9736 x 1024 kg or 5,973,600,000,000,000,000,000,000 kg) . Soon, the Earth's atmosphere began to form, as well as various minerals within its core. Studying the Earth is a fascinating endeavor, yet one that comprises extensive research and writing. For the purposes of this paper, I will examine two elements that are of vital importance to human life today: oil and gas. In this study, I will thus speak both about the development of the two materials in the Earth's early history-how they developed, what factors contributed to this development, and when this development…… [Read More]
Oil Drilling Technologies
The nature of Oil drilling technology varies depending on the topographic situation of the drilled place. With time, several technologies have been applied and are all geared towards achieving the best product at the limited time possible. Most of the technologies are now over a century old and are applied differently. Currently, the technologies have developed to integrate superior orientations like computer-aided simulation. In fact, the technologies have improved to withstand different pressures of various topographies. This study will present four decisive technologies applied in oil drilling, their variations, merits, and demerits.
The Direct otary Drilling
This technology was first implemented in 1808 at uffner's Oil in UK. This methodology was developed to increase the rate of the drilling process. To reach greater depths, the bale tool technique was applied. These techniques include rotary bucket auger or rotary bucket auger drilling. The rotary methods involve rotating a…… [Read More]
Oil prices across the globe are characterized by major swings and fluctuations, which have attracted considerable attention from scholars, policymakers, and practitioners. The increased attention in oil prices are attributable to the fact that they have significant impacts on the global economy. Based on academic literature, oil prices fluctuate for various reasons including supply disruptions, changes in global demand, and precautionary intentions. For instance, in the aftermath of the 2008 global economic recession, oil prices fell because of an overall decline in global demand (Lee & Huh, 2017). Fluctuations in oil prices have been evident since 2012 to the end of 2016 because of various factors that contribute to changes in these prices. Despite these various factors, there are several measures that are utilized to predict oil prices in the future. This paper discusses the reasons for changing oil prices, oil price fluctuations between 2012 and 2016, and prediction of…… [Read More]
Cross-oundary Offshore Oil & Gas Resources
Joint Development Agreements & Frameworks
[Type the company name]
Table of Contents
1. Introduction 3
2. The rule of capture 3
3. The CooperationApproach 4
4. Legal framework to develop trans-boundary offshore O&G resources 5
4.1 Cross-border unitization agreements 6
4.2 Joint Development Agreements (JDA) 6
4.3 National law and its application in Co-operative Agreements 7
4.4 ilateral treaties for trans-boundary oil and gas exploration 7
4.5 The Framework Agreement Approach 9
4.6 The Third Party approach to dispute resolution 10
5. Conclusion 10
Treaties & Conventions 11
Subsea resources such as petroleum and natural gas are important sources of meeting the energy demand of countries. Cross-territory disputes are arising among different countries. Advancement in technology in exploration and extraction of subsea resources has expedited the overall procedure of competitive drilling. This…… [Read More]
High Oil Prices and Effect on the Economy
Global oil prices have maintained a creeping trend since 2004, following the 2001 initial oil crisis (Pahl & ichter, 2009). The increase in oil prices and the expected further increase in the future pose a serious threat to the stability of the global economy. This study looks at how high oil prices affect the economies of both developed and third nations, which makes them remain vulnerable following an unstable period of fluctuating oil prices. It draws and contributes to the existing literature carried out by researchers globally. This study is based on the most recent dynamics of high oil prices and the effect on the global economy. Oil is a significant factor of production in many countries; the fluctuation of its price to a high level has a significant negative effect in the growth of global economy.
High oil prices and effect…… [Read More]
John Perkins (2007), likewise, examines how the modern American Empire has affected our economy and our society in his book the Secret History of the American Empire.
Perkins reveals nothing new when he contends that the United States makes up "less than 5% of the world's population…[yet] consumes more than 25% of the world's resources" (p. 5). What he does do with this information is use it as a platform from which to analyze America's position in the global arena. How is America able to consume so much? According to Perkins, "this is accomplished to a large degree through the exploitation of other countries, primarily in the developing world" (p. 5).
As Howard Zinn points out, European powers, beginning in 1897, were pushing their way into China, a potential nation ripe for exploitation. The only problem was that America was not in on the action. What Zinn shows is how…… [Read More]
Regulating Oil and Gas Drilling and Transport
The American economy runs on energy produced from oil, coal, natural gas, hydroelectric power, nuclear power and renewable sources like solar and wind energies. In fact according to a report in the Congressional Research Service, oil provides the United States with 40% of its total energy needs. It is used in myriad ways, providing "…fuel for the transportation, industrial, and residential sectors" (Ramseur, 2012). Because of the great need for energy to fuel the American economy, oil in "vast quantities" enters the country and moves through the country by ships and by pipelines, Ramseur explains in the Congressional Research Service. Hence, it is inevitable that some spills will occur, and they certainly do occur, notwithstanding the attempts by the industry to conduct its business safely.
The U.S. Energy Information Administration (EIA) reports that the U.S. consumed 6.87 billion barrels (about 18.83 million barrels…… [Read More]
Oil Offshore and Gas Installations: Safety Culture
The offshore oil and gas installation industry is one of the most notoriously hazardous due to its extreme and remote conditions. Both acute and chronic health and safety issues plague offshore oil and gas industry workers. However, offshore oil and gas installation sites are not more hazardous than other natural resources-related occupational sectors; moreover, the occupational safety in the offshore oil and gas industries are on par with other industries (U.S. Department of Labor, Bureau of Labor Statistics, 2011). The same is true for offshore oil and gas installation sites in other countries like the United Kingdom, where it was found that "the sector demonstrates a relatively low lost time injury rate and has, for many years, outperformed a number of comparatively lower hazard industrial sectors (Oil & Gas UK, 2012).
The hazards of working in offshore oil and gas installations…… [Read More]
9 times greater" than the daily average imported in 1973 (www.ecologicinvestor.com). The importation of oil is the "largest single component" in the U.S. annual trade deficit; the U.S. Bureau of Economic Analysis, quoted by Ecologic Investor, points to the trade deficit for the first 8 months of 2008 -- $281.14 billion. That translates to $4.21 billion annually (estimated).
Saudi Arabia needless to say generates a majority of its revenue from the exporting of petroleum; and while the U.S. trade deficit grows based on oil imports, Saudi Arabia accumulates a surplus, based on oil exports. And meantime Saudi Arabia and fellow members of the Gulf Cooperation Council (GCC) have been attempting to "promote higher levels of trade between themselves by removing barriers to the free exchange of goods, services and capital," but their efforts are being challenged by the lack of a "common external tariff" (Nations Encyclopedia). That goes to indicate…… [Read More]
A petroleum geologist against drilling in the area writes, "For all practical purposes, the refuge is utterly pristine. It also encompasses an area 26 times larger than Yosemite National Park, almost nine times the size of Yellowstone" (Herndon). While few visitors seek out the Refuge, there are several small native villages in and around the area, and these Native Americans rely on the bounty of the Refuge for their continued survival. These Gwich'in people oppose drilling in the ANWR for a number of important reasons. They feel it will permanently damage the tender tundra, which is easily damaged and non-renewable once it has been damaged, and it could affect the Porcupine Elk herd, which migrates through the area, as well. Drilling could disrupt their traditional birthing and nursery grounds, which could cause them to migrate along a different route. Since the Gwich'in people rely on the caribou for sustenance, this…… [Read More]
Anyanwu and Obire (2009) note that oil spills like those seen in the Niger Delta leave soil barren for years, devastating not only the resources that were present at the time of the spill, but eliminating any resources that could be reaped from the area in future years (Anyanwu and Obire 211). This notion was mirrored by a 2009 agricultural study conducted in the area of the Niger Delta, which found that the negative impact of the oil spills on agricultural production was found to, reduce crop yield, pollute the rivers for fishing, and reduce land productivity and farm income, along with the standard of living of the Nigerian people (Aviomoh, Okoh and Ojogwu 62).
The future state of the affected area continues to look bleak, especially from the outside world who is largely incapable of understanding Nigerian motivations to continue serving the oil industry in a manner that sacrifices…… [Read More]
Pacific Oil-Strategic Plan
Pacific Oil Startegic Plan
IMPLEMENTATION PLAN-OGANIZATIONAL STATEGY
ISK Management PLAN
esponding of isk management Process
Evolution of isk Management
Policies and Procedures
152011 Identified isks
Pacific Oil-Strategic Plan
This paper presents a strategic plan or Pacific Oil. The paper starts with organizational background consisting of business mission, vision and the corporate values. The nature of the business of Pacific Oil has been clearly identified with some highlights on the business divisions operating in the oil industry. An environmental scan has been performed in order to have a clear insight into the circumstances in which the Pacific Oil is operating. This environmental scan for Pacific Oil is accompanied by a SWOT (Strength, Weakness, Opportunities & Threats) Analysis. Strengths and weaknesses of Pacific Oil relate to internal organizational environment while opportunities and threats relate to external environment of…… [Read More]
This invariably means reducing the profit margin for the producers, which economists feel has long-term implications. That is the lack of smooth inflationary shock transmission leads not only to reduction in production output but also contributes to reduction in future investments. Thus, inflationary shocks due to oil price hikes are more long lasting in China. [Tang et.al, 2009]
The impact of Oil price explosion is nowhere as pronounced as in sub-Saharan Africa and in particular the oil importing countries. Among the lower economies those that are oil intense such as the sub-Saharan countries are bound to suffer more -- as much as 3% of their GDP. Oil dependence has not change much with only 6% reduction between 1990 and 2005. This is because these countries have a total dependency on oil as their major source of energy compared with other developing countries in Asia. For instance, India and…… [Read More]
The simple fact is this that the initiation of offshore oil drilling can be used effectively as a threat to lower the overall importing prices of oil from the Middle East States. The actual drilling, if looking at its impact internally, might or might not result in the actual decrease in gas prices or increase of alternative fuel and energy production. But in the recent times, the real reason for such a high debate on the offshore drilling aspect has been to use it merely as a strategy and a negotiation tool.
This approach and application of this strategy is something that neither I, nor people like who think that offshore drilling has more negative effects then positive, have a problem with. I do have a problem however with how offshore drilling is portrayed as the savior for the American dependency on foreign oil. Its like love is cast off…… [Read More]
(Drawing the Line on Energy) the newly emerging economies are also trying to find more and more oil for their economies to advance rapidly.
There is a lot of difference among the countries in terms of the amount they produce and in terms of the quantities they export. In terms of production the order is Saudi Arabia, United States, ussia, Iran, Mexico, China, Norway, Canada, United Arab Emirates, Venezuela, United Kingdom, Kuwait and Nigeria. In terms of exports, the order is Saudi Arabia, ussia, Norway, Iran, United Arab Emirates, Venezuela, Kuwait, Nigeria, Mexico, Algeria and Libya. It is clear that USA does not export as it consumes all the quantities that it produces. The need is for USA is to ensure that it gets all the oil it needs and that was probably the reason to attack Iraq. One of the persons contributing to that view was the Vice President…… [Read More]
It was from this lesson that legislators began to understand the need to put away large percentages of their oil profits and to not depend so much on spending that cash flow.
After the recession of the 1980s, Norway drastically re-examined its oil policy from both a fiscal and regulatory perspective. Up into the late 1980s, "foreign oil policy followed what was called a 'purely commercial line.' That is, it was not desirable to declare officially that political evaluation were included in its design," (Austvik 1989, p.1). This lead Norway to be established as a "free rider" within the global oil market. According to research, "As a 'free rider' in the market, Norway was then also in the best possible position; she could increase her production and at the same time reap the price benefits deriving from other counties' production reductions," (Austvik 1989, p.1). The recession of the 1980s lead…… [Read More]
So far, this is not the case, and oil companies only pay royalties on production. This is another area under scrutiny in the MMS scandal. There are reports, dating back to 2008, that the royalty offices of the MMS, located in Denver, routinely accepted oil company numbers on the amount of oil they produced, rather than independently auditing the numbers. No one knows how much lost revenue to the government that practice resulted in, and there is no way of finding out now. Clearly, future policy formation on the industry needs to include more oversight, more regulations, and a much less cozy relationship between the regulators and the companies they are regulating.
Future policy formation on other energy sources
The Gulf spill has helped to change public opinion on oil and its production, and on how it is regulated. It seems much clearer after the spill that we are a…… [Read More]
In addition to energy crisis, an effect of U.S. dependence of foreign oil that many believe has already been exploited is the political affect. According to Feldstein, "the political leaders in the Middle East know that our dependence on their oil gives them leverage over our policies." Some believe that many of the United States' interventions in the Middle East have been in the name of oil. Many of these also believe that oil has been the cause of American deaths, domestic, and foreign policy concerning both oil and the Middle East. Further dependence on foreign oil, which is projected, can only further increase the effects of said dependence on United States politics, both foreign and domestic.
Finally, a third effect of the United States' dependence on foreign oil is economic volatility. Although gas prices have begun to go down, high prices during the summer of 2008, and in other…… [Read More]
(Braunschweig; Day, 150)
Most of the current generation of project managers expects the project management tools to furnish them with almost real-time knowledge in order to facilitate their decision-making. Some of these tools like DOFF, "Field of the Future," "Smart Fields," Microsoft's "Oilfield Connectivity" and i-Fields are currently being examined by exploration and production oil companies. Some of these tools have the capability of generating information from apparently incongruent data and helping managers take important decisions based on them. (Oilfield Connectivity - Capturing the Value of the Digital Era)
There is substantial amount of risk in oil exploration and production since the concerned target is located many thousands of feet under the ground. There are a number of factors that can cause uncertainties and risks in these fields which may include the weather, people, geology, safety, and availability of tools and equipment. Agility is an important requirement in the oil…… [Read More]
Heinberg notes that peak oil is not just a simple supply-demand problem. Because peak oil signals an irreversible, steady decline of oil supply, prices of oil will never stabilize. The global economy has been based on a spurious foundation: faith in fossil fuels. Economic growth under the current market system depends on cheap oil. If oil is no longer cheap, we are facing a worldwide economic, social, and political disaster.
3. The most shocking aspect of the readings on peak oil was the litany of products that are made with petrochemicals and their impact on health and the environment, listed on "Oil, Chemicals, and Plastics." Products we take for granted, like the ballpoint pen, depend on petroleum.
Similarly, the use of petrochemicals in agricultural pesticides is shocking. To know that for so long people have put up with such harmful pollutants in their food and water supply is astonishing. Short-sightedness…… [Read More]
Surging Oil Prices on the U.S. Economy
Although the lingering effects of the Great ecession of 2007-2009 continue to dissipate and economic growth resumes, volatile global oil prices remain a source of concern for economists and consumers alike. While the experts debate the precise date at which peak oil will be reached and the search for alternative energy sources has assumed new importance and relevance, it is clear that the world's commercial infrastructure will depend on fossil fuels well into the foreseeable future. Indeed, some authorities caution that unless drastic steps are taken today, the world will deplete its fossil fuel resources long before commercially viable alternatives become available. In this environment, determining how surging oil prices affect the U.S. economy represents a timely and valuable enterprise. To this end, this paper provides a review of the relevant peer-reviewed and scholarly literature to determine the impact of surging oil prices…… [Read More]
However, this calmness did not translate into crisis management success. Although BP seemed to not be significantly affected by the situation, Hayward stated that the company was overwhelmed by the media attention. The former CEO blames the press for the image that the public has formed on the company in response to its handling of the situation.
The control that the company was supposed to reveal did not match the intensity of the crisis. BP did not show that it fully controlled the situation. The fact that the company tried to share the blame with the rig owner and the drilling company reveals the fact that the company was not in control of the situation. The numerous attempts and strategies that the company developed and implemented in order to stop or reduce the oil spill also prove the lack of control from BP.
The lack of control showed by BP…… [Read More]
Of course, this does not include such amenities as drilling exploratory wells, the cost of pipelines and floating facilities, such as oil platforms from which most of the drilling takes place. However, several important advantages linked to this discovery and to similar oil endeavors is that oil companies "will have to pay the U.S. less taxes, royalties, oil payments and other levies" as compared to drilling for oil within the national water boundaries of other oil-producing nations" (Gold, 2009, Internet), many of whom are members of OPEC.
In addition, there are plans for exploring a second Lower Tertiary site in the Gulf of Mexico known as the Chinook and Cascade Prospects which was discovered by a Brazil-based oil exploration company earlier in 2009. However, as compared to the BP discovery, this site will require a hugely expensive floating production platform which will be used for storage and as an off-loading…… [Read More]
All these factors have added too many variables to the Middle East, an important region for crude oil production" (Xuequan, 2008).
The improved standards of living have contributed significantly to an increase in the population's demands. And to satisfy these demands, with the ultimate scope of registering higher profits, the American corporations have abused the natural resources and are now moving towards the resources in other countries. Two such vital resources are crude oil and natural gas. The situation of gas is quite stable, but that of oil is critical. Based on limited natural resources, a weakening American dollar, speculative operations on the international market, but also the regulations implemented by OPEC and the conflicts in the Middle East, the price of oil has sky rocked - and it is likely to continue its ascendant trajectory.
Leonard, a., 2008, the Story of Stuff, http://storyofstuff.ethicalbrand.org/last accessed on May…… [Read More]
The workforce should be clear about the implementation of technologies for protecting natural resources, through formulating strategies.
atification of the International Maritime Organization (IMO) 1984 Protocols
Domestic legislation on compensation and liability is needed to implement two IMO protocols related to compensation and liability. The United States should ratify the 1984 Protocols to the 1969 Civil Liability and the 1971 Fund Conventions. Expeditious ratification is essential to ensure international agreement on responsibilities associated with oil spills around the world' (A eport to the President: Executive Summary).
Introduction of Safeguards
It is imperative to establish such environmental safeguards so as to minimize the possibility of oil spillage, by improving transportation, production, storing facilities. 'The infrequency of major oil spills in recent years contributed to the complacency that exacerbated the effect of the Exxon Valdez spill' (CNN: Exxon found guilty).
Legislation on liability and compensation is needed
The Exxon Valdez incident has…… [Read More]
Environmental Science class.. Title the Oil Industry Environment
APA Guidelines format 4-6 References I 4-6 Pages ritten text photos / data tables
The effects of the Oil Industry on the Environment
In spite of the fact that society has experienced significant moral progress in the recent decades, people continue to associate well-being with financial profits regardless of the effects that their actions have on society and this is reflected by the fact that the oil industry has inflicted great damage on the environment in the last few years. The fact that society has come to depend on oil makes it especially difficult for someone to experience positive results as a result of criticizing individuals involved in the oil business. Communities who have access to free oil wells are privileged and society has virtually learnt to exploit any oil source that it can possibly find. This has devastating consequences on the…… [Read More]
Course Number & Name:
elationship between retail price of gasoline and price of crude oil
In USA gasoline accounts for 50% consumption of petroleum products therefore it is closely monitored by public and research pundits. It is found that, there is asymmetric relationship (asymmetric defined: where one has much more power than the other or putting it differently, when two halves are not equal or same) between retail gasoline prices and crude oil prices -- particularly gasoline prices are more responsive to rising crude oil prices than falling crude oil prices. This is attributable to Market power, search cost, consumer response to changing prices, inventory management, accounting practice and refinery adjustment costs.
Basically, it's a competition that drives gasoline prices sharply upwards because of unspoken agreements between dominant players. When crude oil prices increases, gas stations increase the gasoline price and pass on to consumers immediately. In case…… [Read More]