Impact Of The Energy Industry On The Oil And Gas Industry

2.0 RATIONALE NNPC was founded in 1977 to manage Nigeria’s interests in the oil and gas industry. Prior to this, the oil industry was run by the international oil companies (IOCs), restricting the state’s involvement to collection of production leases, exploration license fees and regulation. In 1971, Nigeria joined the OPEC, whose major requirement was that the oil industries in the member states were to be nationalized. On the heels of that came a nationalization program which required the Nigerian government to own 60% equity of all investments made in the economy. In line with this, the NNOC (Nigerian National Oil Company), a progenitor of the NNPC, was established to handle the country’s major stake in the oil industry with respect†¦show more content†¦If properly managed, exploitation of these resources can yield huge revenue streams that would alleviate poverty and encourage growth. Weak or bad governance however, would escalate crime, corruption, increase pove rty and ultimately erode human rights. This however, is no excuse for oil and gas companies operating in such an environment to shirk their responsibility in respecting human rights. This then makes it all the more challenging. Managers therefore, should be conversant with the elements within their environment that wield power, and can impose their desires on the organization. Power and urgency should as a matter of high importance, be dealt with for managers to deliver the legal and moral interests of all legitimate stakeholders (Mitchel, et al., 1997). In managing this paradox, there must be trust existing within all concerned parties i.e. the JV partners (NNPC and CNL) and all relevant stakeholders, and that the parties concerned trust that the partners will conduct themselves in a societally responsible manner, up to denying itself profits (De Wit, 2014). CNL for example, is known to operate by an ethical policy which states; Do it safely or not at all. There’s always time to do it right (Chevron, 2015); and this cuts across all its intents from crossing the pedestrian walkway to its deep drilling operations. This has been distilled into the organizational culture and manyShow MoreRelatedThe Oil And Gas Industry1293 Words   |  6 PagesThe oil and gas industry is characterized by many processes, including exploration, resource extraction, refining, transport, and the trade of products. These resources are important to a number of other industries, and have become vital to the maintenance of industrial civilization. Not o nly does energy affect the big businesses on the coasts and across the oceans; but it also affects everyday people in rural America, from pump jacks to coal mines. It’s easy to see that technology affects retailRead MoreThe Canadian Oil Industrys Impact On Canada1477 Words   |  6 PagesCanadian Oil Industry’s Impact on Canada The Overview: Diverse and multi-faceted, the Canadian business market is one of the strongest functioning mixed market economies in the world. Within the Canadian economy, the oil and gas sector stands as one of the largest and most influential sectors. The oil and gas industry is unique as it affects almost every person and sector of the economy worldwide, whether it is through commodity or material input costs. In Canada, this growing industry could allowRead MoreEssay about JWI515 Week 5 Assignment 21521 Words   |  7 Pagesstructure of its industry and stake out a position that is more profitable and less vulnerable to attack. By understanding how the five competitive forces that shape strategy influences profitability in a particular industry, executives can develop a strategy for enhancing their company’s long-term profits (Porter, 2014). Define the relevant industry: The Oil Service Industry The oil/energy industry is one of the largest industries in the United States. According to the Department of Energy (DOE), fossilRead MoreExxon Mobil And Mobil Corporation1224 Words   |  5 Pagesthe seasons to gas prices. Many of the changes we are used to today, took a long time to become what they are now. For example, Exxon Mobil Corporation, also known as, Exxon Mobil, is an American multinational oil and gas corporation headquartered in Irving, Texas, United States. Exon Mobil is an industry leader in almost every aspect of the energy and petrochemical business, they operate facilities or market products in most of the world’s countries and explore for oil and natural gas on six continentsRead MoreHydraulic Fracturing Has Recently Grown In Popularity As1516 Words   |  7 Pagesrecently grown in popularity as a means of energy production. There are advantages and disadvantages, mainly relating to the environment and the economy, of this industry. Although there are p ros and cons to both sides of the issue, a compromise needs to be found for both the safety of the environment and to be able to support affordable energy production. Hydraulic fracturing, as an industry, has had a large economic impact by creating jobs. Using natural gas from hydraulic fracturing, instead of coalRead MoreGovernment Intervention On Kazakhstan Oil Industry Essay1449 Words   |  6 PagesName : Tinglin Zhang Subject : Assignment : Essay Topic : Government intervention in Kazakhstan Oil Industry The world concerned problem today the energy problem. Among other reasons of its country is growing thirst for oil and gas made thus a matter of strategic energy security. Oil is the stratagem industry of the development of economy and society. With the development phase of Kazakhstan’s oil resources is speeding, the world big powers seek the benefits here, Kazakhstan becomes the new focusRead MoreFactors And Challenges Of The Oil And Gas Industry1455 Words   |  6 PagesChallenges to the Oil and Gas Industry Dr. Saman Aryana â€Æ' Contents Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦....2 Challenges to Oil and Gas Sector†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..2 Worsening Fiscal Terms†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..3 Conventional Reserves in Challenging Areas†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..3 Environmental and Health Issues†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..4 Issues Related to Petroleum on Economy†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4-5 Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...9 â€Æ' Introduction Oil and Gas sector is oneRead MoreGovernment Intervention On Kazakhstan Oil Industry Essay1535 Words   |  7 Pageseconomics and economic theory in practice Assignment : Essay Topic : Government intervention in Kazakhstan Oil Industry The world concerned problem today is the energy problem. Among other reasons of its country is growing thirst for oil and gas made thus a matter of strategic energy security. Oil is the stratagem industry in the development of economy and society. As the Kazakhstan’s oil industry is speeding developing, becoming one biggest world resources station, that is the main reason for KazakhstanRead MorePestel Analysis Is A Marketing Framework Used To Identify748 Words   |  3 Pagesanalyze the macro-environmental factors surrounding an industry or an organization. The frame work consist of five components: Political, Economic, Social, Technological, Environmental, and Legal. Political The Oil and Gas industry is heavily impacted by political factors by means such as tax policy, import export, exchange rate, and so on. Below are most recent change in global political context. †¢ The relationship between the US dollar and oil prices. When the USD strengthens, the price of commoditiesRead MoreThe Economic Report On Fracking, Is It Worth It?1465 Words   |  6 Pagesforeign oil and natural gas has created a vulnerability affecting our national security and economic stability. Up until this past decade there was an appreciable decline in our oil and natural gas production in the US and we were tied to world market price fluctuations. Oil prices and natural gas prices rose and fell based on OPEC’s and other large oil and natural gas producers’ production and pricing decisions. Beginning in 2005, things began to change in the US oil and natural gas industry. New