Oil Companies And Economic Power

In 1900, Oil was discovered in Texas, USA, and the Hamill brothers orchestrated the drilling of the wells. The Hamills used a steam engine to drill the well. At 11000, they reached the oil reservoirs. Initially, the oil reservoirs were projected to produce 50 gallons a day but surpassed to 80,000 gallons, making the USA the largest oil producer in the world. This reflection paper seeks to discuss how the discovery of oil in Texas enhanced the economic growth in the country.

BP is mainly engaged in the production and marketing of all types of energy products including oil, gas, and petroleum. It discovers the energy resources in potential geographical locations and uses them in its production units to bring the refined energy products for the general consumers. The production units of BP are present in more than 30 countries while the distribution of the finished products is done in around 90 countries in all the corners of the world. The company has a large scale operations related to refining of petroleum and oil products. It also has a large supply chain network spread in all the major geographical regions of the world which is responsible to deliver

Oil has often been referred to as any economy’s lifeblood. Although this is an overemphasis, oil has been the key, nonhuman resource of the economy throughout the largest part of the 20th century. In the book “The Prize: The Epic Quest for Oil, Money, And Power” by Daniel Yergin, the author illustrates the political, societal, economic, and geo-strategic importance of this product.

ExxonMobil is identified as one of the world’s leading oil and gas businesses. It manages market commodities and means countrywide. ExxonMobil is entail in “marketing, gas, and oil exploration, transportation and production in roughly 200 nations” (ExxonMobil, 2015). This company furnishes assistance and products under label names such as “Mobil, Esso, and Exxon. ExxonMobil is known as one of the biggest oil industrial installation where a substance is refined in the nation” (ExxonMobil, 2015). This essay discusses ExxonMobil’s strategic initiative from

In the United States oil consumption is an everyday occurrence, for every citizen. Our country without oil would not be able to function properly within all aspects of life. Our political, transportation and economics systems would all encounter drastic affects if there were no oil to transform into petroleum. Due to our huge dependency on petroleum products, oil companies like British Petroleum (BP), Exxon Mobil, and Saudi Aramco hold extreme power over many countries and make billions off our need to live our daily lives. The extraction of oil from these companies are causing life altering effects for future generations, by causing major environmental complications. Each of the three main oil companies have experienced oil spills that were damaging to the environments around them and gain the global attention, because of the size of the oils spills and the lack of effort to accurately clean the spills.

A.) The Organization of Petroleum Exporting Countries has a membership of 11 countries. The members of OPEC currently supply more than 40 per cent of the world's oil and they possess about 78 per cent of the world's total proven crude oil reserves.

Oil is a very important fossil fuel that is used for various sources of energy. Oil supplies power to industries, fuel for transportation, heat for buildings, and provides raw material for plastics, paints, textiles, and other materials (hybrid cars). To access this fossil fuel, oil drilling is used. Land-based oil drilling became less productive and as the global stipulation for energy increased, technology, law, and geology impacts stepped in and pushed the exploration of oil away from shores (CITE). With its historical background, offshore oil drilling is one of the most important aspects of today’s economy although we are faced with its risks and consequences, such as the BP Deepwater Horizon explosion of the Gulf of Mexico.

To start with, it is evident that oil is an essential for the United States which is used as gasoline, heating oil, etc. However, after an explosion damaged the Deepwater Horizon oil rig operated by BP there has been much debate about banning deepwater oil drilling. Bearing in mind that the need for oil is inevitable one must consider the economic costs of banning deepwater oil drilling. First of all, banning oil drilling which may be a leading energy source will affect the economy for years. One must consider that banning oil drilling will result in a great deal of job loss to people already in the industry. According to Dr. Joseph R. Mason, chair of banking at the Ourso School of Business at Louisiana State University, “In the Gulf economies,

The oil and gas industry is crucial to the U.S. economy and plays a central role in its environment, society, and economic development . The U.S. consumes more oil than any other country. Products derived from oil include medicine, recreational sports items, cosmetics, plastic, chemicals, transportation liquids, etc... This is to say, crude oil is the most important natural resource of the industrialized nations, as it has assisted in the technical expansion and discovery of new sources and production of existing oil fields (Wintershall, 2015).

The first section sets the foundation for Roberts’ discussion by discussing the current environment surrounding the oil business. According to Roberts, energy is related to flourishing and decline of the human race. Only when a community has the ability to provide enough energy to meet the demand of the population can that community thrive (Roberts 2004). Roberts argues this correlation explains how and why the international community has become dependent on oil. The second section discusses the present situation and introduces what Roberts calls the energy order, which is a term that describes a social hierarchical ranking of countries based off of their energy consumption, their ability to produce or access to oil. The third and final part combines the discussion of parts one and two in relation to the future. Roberts argues that the current model with currently have is not working and offers a discussion on transitioning to a new model with less demand for oil. In order for this to occur, the United States, which consumes the most energy annually and has enough political and economic influence, must lead the way (Roberts

There are a lot of different between different regional oil, for example, the viscosity, the freezing point (30 to -60 degrees Celsius), boiling point (over 500 degrees Celsius). It can be dissolved in a variety of organic solvents , insoluble in water, but it can form an emulsion with water. Experienced workers can distinguish oil from different regions by the composition and appearance. Oil is regarded as the world 's most important energy, even some people agree that oil is the blood stream of the world economy. In 2012, 88% of oil is used as fuel, the other 12% is used as raw material for the chemical industry. From the geographical knowledge, the world 's oceans cover 360 million square kilometers, about 2.4 times compared with the land. Continental shelf and continental slope cover about 55 million square kilometers, equivalent to the total land area of sedimentary basins. It has proven that a quarter of oil resources on the Earth is buried in the seabed; therefore, it can be predicted that there will be more people working in the ocean for oil resources instead of land in the future.

This research focuses on finding a variety of sources in books, magazines and Internets on the effect of the oil industry on world trade. Its purpose is for finding and analysis the source, which is related to the following issues through Robert Harris?s theory (2007) and CARS theory.

Historians look back upon the beginning of the industrial age as the beginning of the coal era; future historians will surely look back at this modern day and describe it as the oil era. Between transportation, heating, and industry oil can be found in many different forms throughout the entire world. Oil is as much an economic and political tool as it is a fuel; politicians haggle with it, wars are fought over it, and the absence of it can send entire economies into a decline. With such a large dependence on oil the question is raised, what will happen when the oil, like other limited fossil fuels, is gone? How will this crisis affect the regions of the world that rely on oil and the regions that produce

Oil-exporting economies need to save more of their resource windfall, rather than increasing investment and consumption. They should save the difference between the budgeted and the actual prices of crude oil for example. This would be a stabilization fund for strategic, economic and political interests (Kolawole, 2014). This increase in savings would lead to an increase in the demand for dollar-denominated assets, which ultimately would enable the expansion of the US current account deficit (Setser, 2007).

The purpose of this chapter is to give an introduction to the motive for selecting the implications and importance of oil and gas investment as the main subject of this project work. The background and history of this project are followed by the subject, providing an introduction to the main theme of this work. The problems for discussion are further presented in order to illustrate the main problems of this study. This chapter was completed by illustrating the structure of this study by presenting a model giving the reader an introduction to the main stages of this project.