Petrobras - Strategic Review

The U.S obtains more than 84% of its energy from fossil fuels including oil, coal and natural gas. This is because people rely on it to heat their homes, power industries, run vehicles, manufacturing, and provision of electricity. It is apparent that the country’s transportation industry highly depends on conventional petroleum oil, which is responsible for global warming, thus threatening economic opulence and national security. Apart from that, increasing consumption of fossil fuels have elevated health problems in the state, destroyed wild places, and polluted the environment. After conducting Environmental Impact Assessment, projections showed that the world energy consumption would increase by more than 56% between 2010 and 2040. However, fossil fuels will cater for more than 80% of the total energy used in 2040. Sadly, it will be a trajectory to alter the world’s climate, as well as, weaken the global security environment. Importantly, the rate at which the US relies on fossil fuels needs to reduce since it has adverse effects on the planet’s supplies. The society needs to realize that fossil fuels are nonrenewable, thus taking millions of years to form (Huebner, 2003). Notably, the country can reduce dependency on fossil fuels by practicing energy conservation and efficiency,

Why are we as a global society so hooked on fossil fuels? Put simply, we can’t live without it. Few people-- outside of aspiring reality TV stars and the Amish-- would be willing to give up their precious electronics and

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

Between 1990-91 and 1995-96, total fossil fuel subsidies in 14 developing countries that account for 25 percent of global carbon emissions from industrial sources declined 45 percent, from $60 billion to about $33 billion)…Within the past six years, India, Mexico, South Africa, Saudi Arabia, and Brazil also cut fossil fuel subsidies significantly…Many developing countries are also actively promoting energy efficiency and renewable energy.

Renewable energy has currently become a significant aspect in the countries generation, combination, and a constitution focus of government policy for energy, and environmental protection. As a result of public’s growing responsibility for the environment and constantly binding rules, and regulations of emission in the electric power industry, government has facilitated policies to boost the amount of renewable energy in the electricity generation portfolio. Additionally, the generation of electricity from renewable resources creates insufficient, and frequently, zero emissions of pollutants that comes from traditional fossil fuel production technologies. The additional use of renewable energy aids utilities in their emission agreement obligations. Furthermore, the anticipation of agreement with any future carbon emissions management would further toughen the incentive to move towards cleaner electricity creating technologies (Langwith, 2009).

These sources of energy have a great upside, but right now are incredibly inefficient compared with fossil fuels because of the lack of funding and worldly push (2009). If there isn’t a bigger investment in these alternative energies, fossil fuels are going to maintain their stranglehold on all the economies of the world (Lomborg, 2009).

Despite all these positive economic impacts, this industry is plagued with contention and conflict. (Sagebien, 2008) Anti-development effects of mining thought of as the “resource curse” includes twisted economics, unfavourable social and environmental consequences at the community level, domestic economic dependence on extraction to the exclusion of other more sustainable industries, loss of

Energy, especially from fossil fuels, is a key ingredient for all sectors of a modern economy and plays a fundamental role in improving the quality of life in less developed economies. In 2007, India is ranked fifth in the world in terms of energy demand; accounting for 3.6% of total energy consumed, and is expected to grow at 4.8% in the future. India imports 70% of the oil it uses, and the country has been hit

Working as Petrobras as a Head of Planning and Enterprise Performance I was responsible to build and coordinate the relationships with the strategic partners of the different oil fields my company had in Joint Venture. One occasion in December, an expensive bottle of whiskey was sent on my name as a present from one business partner who had just joined that year the Joint Venture. Presents are not rare in this relationships, however there are clear limits applicable to the presents so decisions are not influenced by those presents. The present sent to me clearly exceeded the limit stated in our ethic code so first, I reported the case to my direct manager and second, I sent the present back to the business partner explaining the company policies

The U.S. Energy Information Administration (2015) reports that the United States consumed approximately 19.4 million barrels of petroleum products daily, which calculated to an overall total of 7.08 billion barrels by the end of 2015 (para. 2). The United States population consumes a huge quantity of oil alone, in addition to all of the other fossil fuels that it also greatly depends on. Fossil fuels are a natural resource that is in limited supply, and they provide an efficient and consistent supply of power to communities all over the planet. Many people are pleased with the short-term advantages these

Coal and natural gas are the United States’ main fossil fuels used as energy sources. These fossil fuels both contain mixtures of hydrocarbons, which is a chemical compound of carbon and hydrogen (Olah, 2005). Currently, fossil fuels provide eighty-five percent of commercial energy, such as businesses, worldwide and this eighty-five percent does not even account for residential use. Imagine if the residential energy use was accounted for in that eighty-five percent (Davison, 2007). According to Goodell (2006), “Between 1950 and 2000, the world population increased by 140 percent and fossil fuel consumption increased by 400 percent. By 2030, the world’s demand for energy is expected to more than double,” with most of the electricity

The world is depended on oil and soon oil will become more valuable than gold and could lead to a worldwide war. Price for oil could soar to above two hundred fifty dollars per barrel. Oil and other fuel cell also cause green house gases which contribute to global warming. China is consuming two times more petroleum than 1996 and India is projected to consume three times the oil it currently does by 2050. Global house gas emission has increased by twenty percent from 2003 to 2006. Energy consumption has increased exponentially throughout the globe. The U.S. department of energy projects energy consumption will increase seventy percent from 2003 to 2030. The world has agreed to reduce emission by twenty five percent before 2020 and by over

The most of global energy production produces from fossil fuel such as coal, oil and natural gas. The vast fossil fuels generate energy which use for many purposes for instant residential, transportation and industrial sectors. While the rate consumption of fossil fuel higher than their formation leads to oil price crisis. Another concern of fossil fuel combustion is the impact on the environment. Global warming is a significant problem which results in increasing concentrations of greenhouse gas in the atmosphere. These problems drive researchers and societies to search alternative energy such as switching to renewable energy or carbon-free energy to replace fossil fuels. For example Nakata et al., (2011:465) show ‘low-carbon society’

World oil demand is increasing as emerging economies need more energy to increase their living standards. Estimates, shown below, are that by 2030, China and India as emerging markets will import over 70% to 90% of their fossil fuel needs (1) . Coupled to a continued high and growing demand for oil, makes this a robust market for the next 30 years.

The oil spill in the Gulf of Mexico in 2010 resulted in considerable damage to the environment, economy and human livelihoods. While BP, as one of the parties involved in the operation of the oil drilling on Deepwater Horizon rig, suffered huge financial loss and reputation loss, it was found to be the one to be mostly blamed due to its lack of risk management. As poor risk management can lead to an astonishing disaster like this, it appears to be necessary for every business to learn from BP’s mistakes and try the best to prevent such disaster from happening again. This report studies this case, focusing on two issues identified in BP’s risk management practices, namely its sloppy preparation for risks and its inappropriate communication strategy after the crisis happened. No evidence showed that BP had a sufficient emergency plan for the worst-case deep-water oil spill although the depth of the oil drilling was one of the deepest. BP’s unseriousness towards safety was also indicated in their attempt to shift blames to its contractors and the unaccountability shown by the words of BP’s executives during interviews. Based on the examination of BP’s deficiency in risk management, the lessons that can be learned from it are discussed. In brief, firstly, accurate risk assessment and appropriate emergency plan should be available before the operation is started. Secondly, post-crisis communication should show the world that the company cares and is accountable