Government Intervention On Kazakhstan 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.

a. Primary National Interest: Republic of Azerbaijan works to ensure sustained economic growth by protecting and exploiting proven oil reserves from deepwater Caspian Basin oilfields and its transport to growing western markets via the Baku-Tblilisi-Ceyhan (BTC) oil and associated South Caucasus (SCP) gas pipeline. Azerbaijan leverages this energy development to build strategic partnerships & ensure international attention for its independence, and attempt to influence attitudes toward the Nagorno-Karabakh (NK) conflict.

Currently Saudi Arabia is one of the leading producers of oil in the world. However, it is losing its foothold on the market. Many countries, like North America, are increasing their oil production and are looking for ways to become less dependent on foreign oil. The increased competition has caused oil prices to decrease. By producing their own oil, countries not only will increase their revenues, but will also reduce their need to rely on foreign oil. By reducing their need foreign an oil a country does not have to worry that their oil supply will be cut off if they go to war.

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.

Ever since the day that Spindletop started to gush, oil has been very important to the region.  Oil has lead to new inventions and also expansions to places like schools.  It also gave people jobs because people can get paid for locating and drilling oil.

According to Diamond, oil-states can be generally defined as countries whose economies are dominated by oil. Among “the twenty-three countries whose economies are most dominated by oil today, not a single one of them is a democracy. (Diamond 74)” When oil initially becomes a large source of revenue for countries, negative effects immediately occur. One major reason for this is that when an economy is dominated by

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

It is also used to make some chemical products, such as detergents and paints. Every country in the world uses oil, however, many countries do not produce it. The top Countries that produce a large quantity of oil in the world include China, Saudi Arabia, United Stated, and Russia, and the top countries that consume tons of oil every day include China, Russia, United States, Japan, and Germany. Some studies showed that by 2039, the world might face oil crisis due to the current rate of oil consumption (Oilprice, 2009).

Oil is one of the most important natural resources known to mankind. For most societies in the world, oil is the principal natural resource that fuels their economies. Then why, in this great age of communication and technology, do we need to be concerned about a natural resource like oil? Simple. Nearly 98% of everything you have or do is in some way related to crude oil. Heat for your home, gas for your car, 2 liter plastic bottles for pop, and petroleum jelly are just a few examples of products created from crude oil. The United States has the greatest standard of living in the world, as well as the largest economy. Why? Because we have always tried to maintain control over the supply, as well as price, of oil. Over the last 10 years, the U.S. economy has undergone the largest economic expansion in history and cheap oil has fueled this unprecedented growth. (Faulkner)

This ties in with some recent reports that Kazakhstan has one of the fastest growing economies in the world (Robinson, 2015). Hugely because of the oil reserves found in the country, Kazakhstan has benefited from averaging 8% growth rates since 2000 for their GDP and has given significant rise to the per capita income (International Monetary Fund, 2013, p. 3). These large oil reserves have given many countries great interest in the country and continue to provide money to this region to help ensure their own interests are secure in regards to providing oil for their own

To examine the role of the Middle East and Russia in the energy market and why in the last 5-10 years, the oil, coal and gas market has been deemed insecure.

In 1908, oil is first discovered by the British in Iranian soil. The oil industry continues to be a major influence in modern Iran and a source of wealth for the nation.

The petroleum technology and the work culture that was brought by the British and American oil companies were very new to the workers and the employees in India. It took them some time to adopt the work culture but they started restraining from the British and the Americans. This is how they started organizing themselves into trade unions and seeked for legal actions instead of resorting to strikes because they were new. Like any other industry, the oil industry also faced with the problem of multiplicity of trade unions but there were only two trade unions namely the NPWU affiliated to INTUC and AIPWF affiliated to AITUC which sat for collective bargaining only for a long time settlement at the national level. The workers organized themselves with internal unions at various locations but they ultimately fell under the umbrella of NPWU and AIPWF.

The oil industry is one of great power that countries are invest in. Russia is one of the leading contenders in producing oil and exports the goods to various countries. With great resources comes great strength. Oil is of the utmost important to every country therefore, Russia has an upper hand in some respects. Moreover, the history behind the oil pipelines and how Russia connects to different countries allows for insight into the power they withhold politically and economically, and on the improvements that need to be made to continue growth in this industry.

Energy resources are essential for national security, technological development, overall contemporary life style, etc. In this respect, oil is the main source for worldwide economy. Peak oil would imbalance countries' economical situations and may lead to a chain reaction with negative effects on multiple layers. Evidently, there is mutual interest to prevent such a thing from happening but the possibility is nevertheless considered. OPEC's initial goal to ensure stable prices on petroleum markets in order to avoid any negative fluctuations did not always correspond. The organization actually favored inflation more than in one occasion but its influence in controlling oil prices dropped considerably since 1973. It was proven that, having quadrupled the price of oil, OPEC had in its hands the power to inflict economic hurt on the rich countries. (Beenstock 2007, p. 134) Although OPEC does not completely control the oil market today, it nevertheless continues to be influent because its decisions to reduce production may lead to either a decrease or increase of oil prices. OPEC's existence is dependent on the future of oil. Whether or not oil will dominate as the main energetic source for worldwide economy will decide its future. Considering that OPEC's oil has been a vital source of energy during the last half of century, (Khusanjanova 2011, p. 19) and that oil is expected to play a similar role within the next century, we can assume the organization will at least maintain its