Factors And Challenges Of The Oil And Gas Industry

The international energy agency (IEA) report that global upstream expenditure and development in oil and gas industry has a strong growth by averaging 11 percent per year in 2000 – 2012 and

‘Peak oil’ refers to the prime of any field’s production, after which goes into terminal decline. Most major US oil fields are beyond peak oil. The largest US oil field, Prudhoe Bay, has been depleting since 1979 (Prudhoe, 2012). The US Energy Information Administration indicates much production, particularly in the Alaskan North Slope, depends on world oil prices (Energy, 2012). Geophysicists and politicians debate over specifications regarding overall US peak oil, arguing the year in which US peak oil occurred.

The currently world, based in a capitalistic system, has a huge concern of in the economy growth. With the increase of the economy, a government can bring several benefits to the society. This big bother to the development made the oil and gas industry one of the largest

Oil and gas have been the world’s commercial energy sources in recent century and it still remain this important role in the 21st century. As industrial productions have grown by approximately 50 times during the 20th century, this led to tremendous increasing of the energy consumption. Presently, oil and gas account for almost 40 per cent of the world energy sources because they are unique commodities and easy to transport in many areas with low costs. The advances of technologies make petroleum become cleaner, safer and more efficient energy. Consequently, oil and gas could meet more strictly environmental regulations and comply with the widely demands of sustainable development. However, petroleum is a scarce resource and the demands of energy consumption will be increased. Humans try to improve recovery rates by enhancing technology and developing infrastructure for better accessibility. Presently, the volatility and high prices of oil market have been a significant cause for concerning among many countries. Even the increasing price trend in recent year, the market has still remained

Thus most industrial nations wanted to change their dependency upon oil, which sparked many efforts in oil conservation, restrictions, and research into alternative energy resources. This issue has caused many problems in international relations there and even today it is the root of political skirmishes. Many countries believed that the oil companies should be broken up so that there would not be any monopoly in this giant industry. This time of exploration was iconic because of the pressure in the oil industry. Also, there was a prediction during this time that made a close connection between economic health and the control of oil resources.

Oil prices hike or drop is normally a major concern to researchers, industries as well as the government. Oil majorly affects the operations of all sectors of economy in any nation. From analysis and monitoring of oil prices, it has been observed that oil prices went down from the second half of 2014. This was unexpected because oil prices had stabilized for about four years with each barrel costing 105 US Dollars (Miller 11). According to a research and simulation done by researchers in 2014, there was a prediction speculating oil prices would remain low in 2015 and marginally rise in 2016. However, in 2015 there has been a very sharp decline of oil prices. It is out of this concern that this papers the aims at addressing the following questions.

The demand for natural resources and other earthly materials continue to rise exponentially throughout the world, especially due to rising populations. Some issues that are in support of fracking include having the opportunity to access an alternative source of fuel, creates more jobs in the oil and gas industry, lowers taxes for Americans by using domestic oil, helps to make certain countries less dependent on others for their resources, stimulates the economy, and also helps to improve overall air quality by using natural gas for electricity instead of coal. According to a study on the “Economic Impacts of the Oil and Natural Gas Industry on the US Economy in 2011” done by Price Waterhouse Coopers LLP “The US oil and natural gas industry’s total employment impact to the national economy in 2011, combining the operational and capital investment impacts, amounted to 9.8 million full-time and part-time jobs and accounted for 5.6 percent of total US employment.” Fracking to access more natural gas and oil not only has helped many to be employed in these industries, but also has a great impact on the way one attains electricity. Some values in support of fracking include profit, quality of life capitalism, sustainability, and economic power.

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

The anticipation and sense of optimism that income from the notion that oil discovery would foster development of local community and countries is yet to be realized by most developing oil producing nations. Hayward C. 2009 and Business Monitor International 2006 highlight measures and actions to be implemented in case of oil discovery are to grow the

These economies are highly connected with the Oil and Gas, this might cause an effect

The oil and gas industry has turned into the heart of the worldwide vitality business sector and dominant part of the general public utilize these vitality in high sum.

Petroleum engineering has always provided the world 's economy with numerous jobs until recently where it has seen barrels of oil for less than 35 dollars. This is not the first time the oil and gas industry has been in a down turn, and it will probably not be the last. However, petroleum engineers are problem solvers and with the many different specialized branches of petroleum engineers this setback is another problem to be solved.

The oil industry can not be discussed without mentioning the name John D. Rockefeller. Rockefeller changed the business of oil distribution. In the 19th century Rockefeller began his humble beginnings with a small investment, along with two other partners, in the oil refining business. Eventually Rockefeller upset at the direction of the company bought out his partners. He was now buying into refining and developing kerosene and other petroleum-based products. He later named this company The Standard Oil Company which by 1872 nearly owned all the oil refineries in Cleveland. In 1882, Rockefeller took all his holdings and merged them into the Standard Oil Trust. Through smart business

There is almost nothing in this world where there is no risk involved. Risk involved is a major topic of concern in everyday life more than ever before. This report gives an overview about the risks involved in everyday life and especially in the oil and gas industry.

Gas and oil development plans are branded by huge capital investments. Exploration and production operations incorporate numerous activities, reaching from undertaking geological surveys, finding hydrocarbon resources, and commercially exploiting them. Projects in this area are of a high risk nature in physical trading, and political sense as it is hard to know in advance the presence, degree and value of hydrocarbon resources, as well as production costs and the price oil of oil in the global world market Kaiser, Mark .J (2007)