Russian Oil Industry Essay

Moreover, oil can be used to control countries due their high demand and dependent on the resource. As a result, the more oil reserves a country has, the more influence they have on other nations, and therefore the more likely they are to be a superpower. The figure shows that Russia has 60 billion barrels of oil, which therefore contributes to the nations superpower status.

The chapter by Manabu Shimizu focuses on Japan’s efforts in oil exploration and the country’s future goals in the oil industry. Since Japan imports all of its oil, the “challenge is to establish a long-term, sustainable oil supply” (Shimizu 113). Japan has begun to fund Central Asian oil exploration in the hopes of a big oil market being produced for that region. However, Japan does not intend to import oil from Central Asia, rather they want other regions to do import. By doing so, some of the production pressure is lifted from the Middle East, which is where most of Japan’s oil comes from. At the moment, the Middle East is the main producer of oil for many countries with great power over the market, and Japan hopes to create another market

&nbsp;First, the laws and political hurdles in Russia (and most countries) take significant time to sort out and bypass. &nbsp;In Russia, it is necessary to have political connections in order to even gain access to the oil markets. &nbsp;These relationships take significant time to build. &nbsp;Also, once a firm established political support, it needed to find a site with enough oil to make it worthwhile to build operations. &nbsp; The testing process to find a well is also a lengthy process. &nbsp;Next, the drilling and pipelines are built and the oil is retrieved, treated, and transported to the market or storage. &nbsp;This process is also very time consuming. &nbsp;As a result of these factors, firms interested in gaining access to these regions often wait many years before they become established producers of oil products. &nbsp;It takes even more years to be profitable. &nbsp;Therefore, by gaining early entry into the Russian oil market, a foreign firm can gain many strong years of prosperity and growth. &nbsp;<p>

The oil age has become an age of inequality. The discovery of oil has brought the wealth of a few people, and has brought misery to most people. Many oil rich countries suffer from the distortion of the economic development, the financial instability, the increasing gap between the rich and the poor, the serious

How is it that the country that possesses the world’s largest supply of oil will have to import oil? Venezuela is a study in contradictions. In 1922 oil was discovered in Venezuela and developed and exploited by United States oil companies. During the 1940’s the leftist government negotiated favorable terms for Venezuela, after which the economy grew continuously until it was the strongest in South America. In fact in 1950, Venezuela became the world 's fourth wealthiest nation per capita. In 1960 Venezuela was one of the founding members of OPEC (Organization of the Petroleum Exporting Countries) OPEC was, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. By 1973 Venezuela voted to simply nationalize the oil industry allowing it to create a massive refining and marketing system to export its oil. There was no doubt that a country rich in natural resources and largest oil reserves in Latin America and one of the largest reserves in the world, and a current population of over 30 million, that Venezuela has tremendous potential.

One of the world's largest collections of oil fields lies beneath the great Caspian Sea. However, as the sea is landlocked, oil transportation to the West poses a complication. Previously, all the transportation routes for oil transport from this area were constructed through Russia but their usage became inconvenient with the collapse of the Soviet Union as Russia declined to participate in any such activities ("BP/BTC Pipeline Project"). The option of transport through Iran was also considered inappropriate due to the growing conflicts between the American and Iranian governments. So the idea of construction of oil and gas pipelines through central Asia was proposed and greatly appreciated. With this aim, a collection of different foreign oil companies under the leadership of British Petroleum (BP) signed the 'contract of the century'; a 30 year agreement with the leading oil company in Azerbaijan that is SOCAR. According to the agreed terms and conditions, an average of 80,000 barrels of oil was to be produced on daily basis (Babali 2005) (Bagirov 1994). BP was also given responsibility for the development and improvement of the oil fields in the rest of the Caucasian region, which was likely to contain almost 5.4 billion barrels of oil reserves (Bagirov 1994).

China is the world 's second-largest consumer of oil and the largest net importer of oil in 2014. China holds 24.4 billion barrels of proven oil reserves, the highest in the Asia-Pacific region. China 's total oil and liquids production, the fourth largest in the world, has risen by about 54% over the past two decades and serves only its domestic market. Oil sector has long been under state direct and dominated by national oil companies. The market is highly controlled by the government and oil price barely reveals the real costs of oil.

The oil industry is a globally influential process. It includes the exploration, extraction, refining, and marketing of petroleum products. These are broken down into three sectors upstream, midstream, and downstream. The Oil industry is vital for both the US and Saudi Arabia and their economies. The United States being a major importer, in 2015, the US imported 9.4 million barrels of petroleum a day, one barrel equals 42 U.S. gallons. (EIA 2015) Saudi Arabia being 2nd highest import to the US, and Canada being number 1. The US Exported 4.7 million barrels a day.(EIA 2015) Saudi Arabia, on the other hand, one of the world 's largest oil exporters, producing 9.9 million barrels of petroleum a day, as of 2011, (IEA 2011) exported 7,571,000 bp/d, (POB) 17% of the crude petroleum going to the United States. (OEC 2011) the biggest oil company for the US, based on revenue of 2015, Exxonmobil with 268.9 billion USD, and Saudi Arabia’s Saudi Aramco which was on top of the world leaderboard with 478 billion USD (Forbes 2012). The oil companies can range in types, Integrated having both upstream and downstream ops like the top businesses of the countries. Independant companies have either upstream or downstream but not both. Oil service companies which provide products and/or services to the oil companies, and then the oil equipment manufacturers providing the equipment for the oil companies (PSAC 2016). In Saudi Arabia, the oil supplies have gone through what is known as

In the modern world energy has become very important since it helps drive most industrial as well as home based activities. For more than a hundred years, oil has been used to provide to this vast energy requirements. Oil companies around the world have facilitated the exploration, drilling, refinery and distribution of oil in their defined regions. The industrial part that oil companies play can be considered to be much greater than the domestic role. Oil companies produce diesel, petroleum, liquid petroleum gas and other products which are used to drive industrial machines used in production of various commodities. By this virtue, oil companies become an integral part of an economy (Marcel, Valerie, and John V. Mitchell, 98).

petroleum monopoly. While both Russia and LUKoil must export to meet their economic objectives, political relations within and outside of Russia could impair LUKoil’s future ability to export. Thus, foreign investment and ties to Western oil companies are very important to the firm’s ultimate success. Controlling 19 percent of Russia’s oil production and refining capacity and employing more than 120,000 people in its operations worldwide, LUKoil has become Russia’s largest oil company. It is also the first Russian oil company to integrate from “oil wells to filling stations.” High market prices have enabled LUKoil to amass sufficient

By wielding this power, Russia, along with other oil-rich nations, can change the playing field to their favor.

Oil companies operate in defined regions where oil exploration and possible drilling is done. However some companies such as Shell BP engage in international drilling and distribution of oil products. Below are some of the most renowned oil companies in their constituent continents: Africa: Sasol of South of South Africa and National Petroleum Company of Congo. In Asia some of the leading oil companies include Nobel Group and the Bahrain Oil Company. It is important to note that Asia has a lot of oil resources and hence have extensive oil drilling activities. In Europe we have Partex oil and Gas Company, in South America three is Bridas Corporation based in Argentina. North America has one of the most advanced technology in the oil industry. These companies have extended their activities around the globe in a bid to discover more oil resources to sustain future energy requirements. Some North America companies include Shell Oil Company and the Apache Corporation. This paper will focus on the importance of oil companies over and above the problems that they pose to the environment as well as the political stability of the world. For practical examples I chose to use the state of Alaska where oil companies have based their operations as a case study.

"Rosneft" is the leader of the Russian oil industry, and the largest public oil and gas company in the world. The main activities of JSC "NK" Rosneft " are search and exploration of deposits of hydrocarbon, oil, gas, gas condensate, the developing of offshore fields, processing of the extracted raw materials, sales of oil, gas and refined products in Russia and abroad.

Firstly, Australia which first drill was in Australia in 1892 however, they then moved Offshore, and drill there first well was drilled in Albany harbour in 1907. On the other hand, Australia’s first oil field was at Lake Bunga in the Gippsland Basin in 1924. Moving on, a discovery was made by WAPET a joint venture company. Oil was discovered at Rough Range 1953 a depth of 1099 metres. The 1960's was an important year for Australian petroleum industry. The biggest success was in the Gippsland Basin, offshore from Victoria. In March, 1969 Brisbane was the first city with natural gas in from the onshore Cooper Basin. In that year 1969 key milestones happen, a large-scale offshore natural gas production from Bass Strait. Then Adelaide first

LUKOIL, a vertically integrated oil company, and carries out exploration, acquisition, integration and subsequent efficient development of oil and gas fields outside the Russian Federation to facilitate the transformation of LUKOIL into a transnational energy corporation.