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 allow for the country to be the one of the “biggest energy producers in the world” leading to a massive paradigm shift globally.
Exxon and Chevron are no doubt some of the leading incorporated oil companies on the globe. Exxon Corp. is the second largest oil firm after Royal Dutch Shell, it is respected for getting the biggest revenue return in 2008 which no company in the U.S. have ever reported before. According to Wilson (2009) Chevron has managed to show a lot of profitability in the market despite the decease in its oil production. It graded as one of firms which made a billion dollars profit within a week in the period of July to September 2008. Regardless of profitability trends set by the two oil firms in the U.S. market, they have been facing financial decline like the rest of the companies in other industries. The two firms are like two sailing ships which are taking longer time to sink. In the last few years, the production capacity of Chevron and Exxon has decreased and their listings on the stock market have become weak. The continuation of construction and drilling which requires billions of dollars in expense of oil production might make them experience a bigger financial crisis (Wilson, 2009).
Almost 95 million barrels of oil and fuel are produced each day in order to provide energy and fuel to people the world over. A major component of the oil industry is the transportation of oil through various means including oil pipelines. These pipelines are capable of transporting thousands of barrels of oil thousands of miles per day. In the United States one possible pipeline has caused a lot of controversy and discussion on the impact it will have on the United States. The difficulty in deciding if the Keystone XL Pipeline should be built is in whether the possibility of economic growth outweighs the possibility of environmental destruction. In order to make a decision, one must first look into the history of oil pipelines. It is crucial
Pollution is already a huge ongoing battle in the United States and if constructed the pipeline would send about 800,000 barrels of hazardous oil a day along with tons of greenhouse gases. The US Department of Environmental Protection estimates the greenhouse gas emissions from the Canadian oil will be more than 80% greater than oil refined in the US. That is roughly equivalent to the same amount of emissions released by 5.7 million passenger vehicles. Unfortunately, when emissions are passed into the air, the air cannot be cleaned, and since oxygen is a vital component in keeping humans alive, adding an oil pipeline that would put that much emissions into the air is far too dangerous for the public’s health what it’s
The production of oil is one of Canada’s greatest assets as it brings in lots of profit but British Columbia is one the most beautiful places in the world and is a prime tourism area. This leads to the question is oil transportation right for British Columbia? Enbridge plans to build two pipelines that will carry oil from “central Alberta to coastal BC” (Alternatives Journal, 2012). Enbridge Incorporated is a company that is a main transporter of natural gas, crude oil and other liquids in Canada, as well as a major operator of pipelines in North America. Their plan is to run two 1170-kilometer pipelines across BC that will eventually be moving about 520,000 barrels of oil per day; this
This paper will describe the problem that Pacific Oil Company faced as it reopened negotiations with Reliant Chemical Company in early 1985. Secondly I will identify and evaluate the styles and effectiveness of Messrs, Fonatine, Guadin, Hauptmann, and Zinnser as negotiations in this case. Finally I will outline what Frank Kelsey recommend to Jean Fontaine at the end of the case? Why?
The Alberta Oil Sands have affected many stakeholder groups such as government, residents, researchers and employees. However, we will focus on how it affects the Alberta Government; specifically, Ed Stlemech of the Conservative Government. As my stake holder, Ed Stlemech does not live within the Alberta Oil Sands area as well as have any direct relevance to it, I will instead examine how it has affects the citizens of Alberta and more importantly, those who live in and near the Fort Chipewyan area. In this way, the environmental, the economical as well as the societal impacts will impact Albertan voters and therefore impact the Conservative Government in way of the Alberta General Election.
As a way to directly link the unrefined tar-sands oil from Alberta, Canada to the refineries in Texas, there is no doubt that the Keystone XL Pipeline remains a topic of controversy. As with many large projects, there are both positive and negative consequences that result from its construction. While there are potential economic benefits like the creation of infrastructure-related jobs and a potential shift from energy dependence, there are many dangers to the building of the pipeline. The notion of building a pipeline that connects Canada and the United States for economic reasons is neither completely unjustifiable nor unreasonable, but given the current circumstances, in which ecological damage and neglect on the part of TransCanada are likely, I cannot support the building of the Keystone XL pipeline.
The Keystone XL Pipeline is an oil pipeline system that runs in parts of Canada and the United States. The pipeline runs from the Western Canadian Sedimentary Basin in Alberta, Canada, to refineries in Illinois and Texas with a distribution center in Cushing, Oklahoma. The pipeline has provided several jobs throughout the two countries. Many people have concerns about spills, emission, and the amount of oil left. This paper explains the location of the pipeline, the problems and concerns that surround it, and the positive outcomes it has created.
The TexasAgs oil company case study gave us insights on different aspects of a negotiation that can happen in real world scenarios. It elegantly portrayed the importance of having a BATNA, setting target and restriction points, impact of the fluctuating markets on the ongoing negotiations, downside of the emotional behavior, importance of having a third party member or mediator in the negotiation. The case illustrates that the negotiations should be based assumptions as they may or may not be right. Having facts and understanding the other parties true objectives and goals are truly essential in negotiation. It is a typical example of how the current power on one side can dominate and take complete advantage of their position.
1. Evaluate the economics of Gulf's exploration and development program in net present value terms. How do Gulf's outlay for exploration and development compare to cash returns Gulf generates from these activities.
When entering into contract negotiations, the objective of each side is to obtain a contract of greatest benefit to their organization. This desirable outcome never happens by chance; it is always the result of careful planning. A critical part of this planning is understainding the role of power. This includes determining who possesses the power in bargaining, and establishing strrategies to bargain with individiuals who have more power than you. This power is needed to obtain the advantage in negotiating which will increase the liklihood of obtaining the goal (Lewicki, Saunders & Barry, 2011). Once in the heat of negotiation, it can be too late to try to catch-up on planning which failed to occur before the negotiation process began.
The Pacific Oil Company a well-established oil company with an assorted diversified product line including “Vinyl Chloride Monomer (VCM)”. (Lewicki, 2010, p. 583) As one of the pioneer producers of VCM, Pacific Oil cornered the market share for contracting, distributing and selling their niche product, VCM worldwide. One of Pacific’s longtime customers was Reliant Corporation. This partnership was more than a decade old and was strong. However, if Pacific Oil decided to further diversify its product line to include Polyvinyl Chloride (PVC) a VCM derivative, “it would not want to be in the position of supplying a product competitor with the raw materials to manufacture the product line, unless the formula price was extremely