Government Intervention On Kazakhstan Oil Industry Essay

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.

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

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

To start with, it is evident that oil is an essential for the United States which is used as gasoline, heating oil, etc. However, after an explosion damaged the Deepwater Horizon oil rig operated by BP there has been much debate about banning deepwater oil drilling. Bearing in mind that the need for oil is inevitable one must consider the economic costs of banning deepwater oil drilling. First of all, banning oil drilling which may be a leading energy source will affect the economy for years. One must consider that banning oil drilling will result in a great deal of job loss to people already in the industry. According to Dr. Joseph R. Mason, chair of banking at the Ourso School of Business at Louisiana State University, “In the Gulf economies,

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

Over many decades oil has supplied the global market with a realatively inexpensive method to provide energy and countless products. Without oil the world would not be as well developed as it is today. Large countries such as the USA and China thrive off oil and without it would come to abrubt halt. [1]

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.

Russia is the largest country in the world. It borders two oceans, spans two continents, and its landscapes range from Arctic tundra to subtropical beaches. Much of that land is undeveloped and uninhabited. Russia’s borders encompass twice the surface area of the United States, but has a third of the population. Natural gas and oil are abundant in Russia because of its sheer size and the variety of climates. West Siberia is Russia’s main oil-producing region and has several large oil fields, one of which has been producing since 1969 (EIA). West Siberia’s population is mainly concentrated into a couple cities, leaving much of the land untouched. This is the prime

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

The geopolitics in Eurasia along with the implications of energy security as well as the risks and opportunities it creates for the U.S. is understood when the layers of conflict and negotiations are analyzed through the various topics that affect international policies. Through the concepts based on energy, politics, security pipelines in Eurasia, international transit integration, and the energy world order, can the conceptual argument be made that natural resources are temporary allocations and not solutions to energy or security. The research and material covered through The Politics of Energy Security as a course, exposes and substantiates why the geopolitics in Eurasia are only business opportunities and offer no final

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.

Since 1989, President Nazarbayev has ruled Kazakhstan when it was still part of the Soviet Union. In 1999 Nazarbayev sworn into office for another seven years, although his political rivals thought he cheated because he won on a technicality. Despite his authoritarianism, he is a very popular leader. Kazakhstan has the potential for becoming one of central Asia's richest countries because of its huge mineral and oil resources and its liberalized economy. In 2000, they discovered oil in Kazakhstan's portion of the Caspian Sea. The largest oil find in 30 years. In March 2001, the government Kazakhstan opened a pipeline to transport oil from the Tengiz fields to the Russian Black Sea port of Novorossiysk. The government also made a deal with China that would allow them to open their own pipeline. Kazakhstan, the largest of the former Soviet republics, excluding Russia, owns enormous amounts fossil fuel reserves. The country also has minerals and metals, such as uranium, copper, and zinc. The agricultural sector of Kazakhstan contains vast amounts livestock and grain. Kazakhstan in 2002 became the first country of the former Soviet Union received an investment-grade credit rating. The Mineral and Oil industries have been and always will be the greatest contributed of Kazakhstan's economic growth. They are also taking every opportunity to gain other means of economic

Thus the oil industry plays a huge role in the economy of Russia and is always a hot topic. The strategic task of the oil industry is a smooth and gradual build-up of production with the stabilization of its