The consumer will benefit with an increase in the oil production because not only will it be affordable, both frequent oil crisis will be a thing of the past.
Oil crisis causes escalation of the prices of all other products even those which are basic for human survival. However, the independent oil companies may not compete favorably with the state-owned companies due to capital restrictions. Nevertheless, their impact is being felt. Their contribution in the oil industry cannot be underestimated.
There are two major problems facing the giant oil firms. First, they are finding it difficult to survive in the prevailing conditions. The emergence of companies that are owned by the state has been a great blow to them.
These companies that are owned by the state are given exclusive rights by the state in terms of exploration and production of oil as well as getting support to carry out downstream activities which include refinery and distribution. They are financially stable. They are not affected adversely by the political objectives. Since these firms had heavily invested in the oil production sector, they are presently running into losses. For any oil company to stand firm in the oil industry, it must have ability to locate new oil reserves.
New oil reserves serve to replace the exhausted oil reserves that have been used in the previous production. The ability of the company, whether integrated or independent, to acquire new reserves is a measure of its commercial strength. For the integrated firms, this ability has diminished. The fact that there are restrictions imposed by the states on foreign firms accessing their oil reserves makesit even harder for the integrated oil firms to replace their reserves. If the problem persists, it can reach a point that the firms can run out of business.
Political dimensions also limit the ability of the integrated firms in acquiring new reserves. Therefore, state control, coupled with the domestic political atmosphere reduces the ability of the foreign integrated oil firms to grow. These problems are likely to persist into the future and these giant oil firms are likely to surrender. Accessing oil reserves in another country is not an easy task. The National Oil Corporations, the integrated firms as well as the independent firm need to negotiate with the state from which they want to access the oil resources.
The negotiations are to do with the terms and conditions of the access. Politics is at the core in these negotiations. Economic power of the firm is assessed in order to gauge the negotiation atmosphere. The state that has the resource plays hard to grant access to the foreign firms.
Politics surrounds the negotiations. As the states restrict equity participation by firms that are foreign, the integrated firms and the National Oil Corporations are left with no choice but surrender. Oil is a very precious commodity. It is an expensive commodity by the same measure. The reason why this is so is its scarcity. It is limited to some areas and absent in others. Those that are privileged to have this resource enjoy its benefits.
Those that lack it remain to covet. Judging by its value, oil runs the economy of the world. There has been a series of wars intimated to be due to oil resources. In Nigeria, there was a civil war that was threatening to tear the country apart. The reason for the war was emanating from the poor management of the oil resources by this country.
Sudan has already split into two nations. Currently, there is South Sudan and Sudan. The split resulted from an unending war due to oil resource that is in the country. Surprisingly, even after the split, the two nations are in quarrels. In Nigeria, the civil war that broke out in disrupted oil production greatly. The struggle was aimed at forcing Nigeria to acquire equity stakes in the foreign companies, such as Shell, that operated in Nigeria.
Nigeria has achieved this goal but has not gained absolute control of the operations Frynas and Mellahi, , These are a few illustrations to demonstrate that oil has been the cause of both civil and even international wars. There are advancements that are taking place in the oil sector. New discoveries of oil reserves are making the sector thrive. However, as many oil reserves become available, the prices of the oil products will be going down. This will benefit the consumers. The producers of the oil will suffer losses due to low prices.
It is a bitter truth on the side of the nations that rely on oil but good news to the consumers. There are negotiations that are being carried out between states. These negotiations are among the members of OPEC.
They are looking for a solution to the decreasing oil prices. One of the options they are thinking of using is decreasing the amount of oil being produced in their countries. However, this is unlikely to happen because not all countries can agree to limit the quantity of oil produced. In addition, mergers and acquisitions are taking shape in the oil industry Inkpen, , Finally, advent of new and alternative sources on energy may reduce the dependence that is put on the oil as a source of energy.
The national oil companies are likely to expand more. As the reserves get exhausted, it is likely to be harder in the future to do exploration Inkpen, , Oil supply chain is a very sophisticated network. Many actors are involved in the activities that regard oil supply chain. The supply chain has three levels which include the upstream, the midstream and the downstream. At each level, there are many actors in charge. For a long time, integrated firms had had absolute control on all the aspects of the oil sector.
Lately, National Oil Corporations that are supported by the states have emerged. These are becoming stronger than the integrated firms in the control of the oil production, refinery and distribution to the consumers.
Besides, states have come out strongly to control this valuable commodity. First, the states have emerged as landlords and, therefore, owners of the oil resources. Secondly, they have emerged as the champions in the business taking part in the production and distribution of the oil products through National Oil Corporations. Thirdly, they have come out as regulators of the oil firms. They make conditions to be followed by the firms that work within their boundaries. The future of the oil sector is encouraging as more oil fields are being discovered by independent firms.
Political risks as firm-specific dis advantages: Evidence on transnational oil firms in Nigeria. Thunderbird International Business Review.
January 01, A case study of supply chain management in oil industry. A structure for supply-chain information flows and its application to the Alaskan crude oil supply chain.
Identifying added value in integrated oil supply chain companies — a case study. Horizontal and vertical transmissions in the US oil supply chain. The Global Oil and Gas Industry. Accessed September 14, Leave your email and we will send you an example after 24 hours If you contact us after hours, we'll get back to you in 24 hours or less.
How to cite this page Choose cite format: How about make it original? Experimental solar and fusion engines are yet to become available to the public making this an impractical solution. The final argument to assuage the rising gas prices is to drop our trade tariffs on incoming foreign oil. This solution gives us a quick and effective resolve to our countries problem.
Our current system, which was designed to support America and American run industries, puts a certain cost percentage on all incoming non-domestic fossil fuels and thus increases prices higher than they should. If we were to impose no tariffs on the incoming oil then that extra percentage of cost would disappear.
Not only is this an effective solution to the problem, it is a fast acting one. The effects of this resolution would be quickly discovered in a matter of months, and though it is only a small amount of decrease, it allows a small relief to the public and gives more time to create a more long lasting and efficient cure for our nations growing problem.
You can order a custom essay, term paper, research paper, thesis or dissertation on Gas Prices topics from our professional custom essay writing service which provides high-quality custom written papers at an affordable cost.
Order a custom written paper of high quality Professional Writers only. Free Quote or Order now. Tips for Buying a Car in University. On becoming a student, each one gets a sense of freedom and adolescence.
This kind of feeling is rather tempting, as young people realize they. Public Universities vs Private Universities. The moment comes, when you need to enter a university and get a higher education. Hundreds of students-to-be face a real academic dilemma: Rock Geomechanics Theories 2.
Putting granular material 5. Using high fluid loss slurry 6. Heating the wellbore 8. Rigid-plug forming treatment 10 Ultra-low fluid loss muds With these methods, principles and models in introduced in this project, wellbore strengthening can be achieved if they are properly practice in oil and gas drilling field. Also loss circulation, wellbore instability, differential sticking , kick and blowout , number of excessive casing running and cutting removal problems will be prevented by wellbore strengthening technics.
Methods of wellbore strengthening 4. Measures for wellbore strengthening 5. After this project, will be able to understand the physics behind the wellbore strengthening as well knowing the process of handling the various factors that leads to wellbore failure in formation during or after drilling also solving the problem as well. Essay UK - http: If this essay isn't quite what you're looking for, why not order your own custom Miscellaneous essay, dissertation or piece of coursework that answers your exact question?
There are UK writers just like me on hand, waiting to help you. Each of us is qualified to a high level in our area of expertise, and we can write you a fully researched, fully referenced complete original answer to your essay question. Just complete our simple order form and you could have your customised Miscellaneous work in your email box, in as little as 3 hours. This Miscellaneous essay was submitted to us by a student in order to help you with your studies.
The oil and gas industry.
Essay on The Impact of the Oil and Gas Industry on the World Words 10 Pages The production of oil is a multi-billion dollar industry that affects the world on many different levels including environmental and economic, and these affects could be considered either positive or negative.
In this essay I would be discussing the effects, and the disasters off shore oil drilling has caused to our environment and what is being done to prevent further harm to the environment. When oil spills its not a easy process to clean. 1st of all oil is a very thick substance and it spreads in a high velocity/5(9).
The oil and gas industry is essential to survival of the economy for different purposes. The industry provides energy and chemicals to the economy vital for transport, companies and household in U.K. Through the industry the government earn valuable and substantial tax . The production of crude oil can include up to three different stages and they are primary, secondary and tertiary. The tertiary method is also.
- Chevron and Oil Trade Dominance Chevron Corporation is a publically traded world leader in the energy market, trading oil and its byproducts, natural gas, as well as participating and leading in research into alternative energy sources such as solar and geothermal. Essay on Gas vs Diesel. engines have made the fuel economy difference between gas and diesel engines much smaller than before. Seredynski said that regardless of fuel, the end goal is the same: maximum power from the minimum amount of fuel.