International Accounting Financial Standards Of The Oil And Gas Industry

The United Oil Company of California (Unocal) made the decision in the 1990’s to invest in energy projects outside of the United States and chose to invest in the “Yadana field” pipeline. There are many stakeholders involved in the international “Yadana Field” natural gas project. Unocal, Thailand’s PTT Exploration and Production Public Co., Total S.A., and the Burmese government (Myanmar Oil and Gas Enterprise) along with the employees of these companies are all major stakeholders in the project. These were the main participants that would directly benefit as a result of the project. The people who were living in the area that the pipeline was to be

The question that has arisen from this shift is whether or not the Canadian oil and gas industry inclusive of the upstream, and midstream sectors, has a net positive benefit to Canada. This essay will explore and seek to understand the myriad of issues that this industry faces daily.

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

In addition to the US peak oil situation, the US Oil Drilling and Gas Extraction Industry faces heavy foreign market competition. In 2011, the US ranked 3rd in oil production, behind Saudi Arabia and Russia (Energy, 2012). Saudi Arabia’s OPEC governor expects Saudi output to rise steadily beyond 2030 with a 1.5 million barrel per day spare production capacity then (Energy, 2012). Russia holds the world’s largest

Kuwait is one of the 12 members of the OPEC countries, the Organization of Petroleum Exporting Countries. According to the organization, these members produce about 81 percent of the total oil produced in the world. In the recent past, there have been rumors about the country not producing as much oil as it is proving that it does (Cobb, 2012). It cannot be said with certainty whether or not the oil reserves of Kuwait are depleting, however, this subject is important for discussion because the whole world depends on oil reserves of the major oil producing countries. All the issues, economic or political, revolve around one country wanting to take over the other for its all reserves. In this paper, we shall discuss the presence of oil reserves in Kuwait and some news pertaining to their depletion and overstatement. We shall also address this topic in another aspect; the oil depletion protocol.

During this time Venezuela also pursued two other types of contracts: joint agreements and exploration agreements. In the first two rounds of OSAs, the IOCs’ recovery included the initial investment plus interest (capital fee) and additional per barrel production operation fee to cover costs without sharing the profit oil. The third round OSAs however were different since a share in the produced oil was given to the IOC through a sliding mechanism based on the projects’ internal rate of return in each year and an incremental value of the production (market value of produced oil – costs, royalties, fees). This has made Venezuela’s OSAs similar to

| Legal impacts on oil and natural energy extraction and production are determined at a local level and thus the main issues which arise typically relate to cross-border transactions and the legal issues of transportation (SMI, 2010). International legal issues in the industry are constrained to safety considerations such as decommissioning given the highly hazardous nature of the raw materials and production process. This in part explains the high infrastructure investment costs as Petrobras must ensure the safety of any new exploration and extraction venture.

Recently, the government has passed a legislation which allows companies other than Petrobras to operate blocks in the pre-salt. The government has also created new projects that would support onshore exploration, as well as biofuels. Furthermore, for the first time ever, Brazil has announced that is has approved the calendar for ten bid rounds. In these bid rounds, the government hopes to attract foreign companies by offering attractive concession contracts and production sharing contracts in unitizable and pre-salt areas. With these measures, Brazil is not only offering one of the most attractive blocks for exploration in the world but it also granting companies with the largest window of opportunity for investment in decades, said Decio Oddone, General Director for the National Petroleum, Natural Gas and Biofuels Agency

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.

In 1973, the United States government restricted the export of domestically produced crude oil. At the time, this was largely regarded as a sound decision. Not only was domestic production in a decline, but the global political climate was fundamentally inhospitable. However, in recent years, the oil and gas industry has exploded into a huge upswing, due in no small part to the evolving technologies surrounding hydraulic fracturing and horizontal drilling. Between 2009 and 2013, crude oil production in the United States increased by roughly 2.1 million barrels per day and, according to ICF estimates, is projected to increase another 3.2 million barrels per day through 2020 (ICF International 2014). This has led to a high profile discussion regarding the removal of the export ban which peaked in October of this year when President Barack Obama stood firm against repealing the ban, even threatening to veto the bill completely, despite the House of Representatives voting to pass it. With domestic oil and gas production at an all-time high, continuing with the ban makes little economic sense, and this report will further explain the belief behind why the ban should be repealed and why it would make a positive impact on independent exploration and production companies.

"... an open and attractive oil sector for foreign investment, with the appropriate arrangements to explore new fields."

Introduction Petrolera Zuata, hereinafter referred to as Petrozuata, was the first joint venture in a series of strategic associations between PDVSA, Venezuela 's state-owned enterprise entrusted with the task to "efficiently develop and manage the country 's hydrocarbon resources and promote economic development", its subsidiaries and foreign

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.

As stated by Jones et al. (2006) “Reexamining the relationship between owners and suppliers, which involves rethinking the contractual framework and increasing the level of constructive cooperation so that both parties can jointly address current and future concerns.” Although, setbacks are sometimes inevitable it also good business to reevaluate suppliers if they can’t perform the task necessary oil and gas companies can either modify or terminate the contract to help avoid legal issues or any breach of contracts. It is also necessary to track any changes that have been implemented. Contract management can be challenging but it would high complex if contract were not met. Given the flux environment of oil and gas there are many variables that feed into the contract changes. Whether it be added supplier, added countries, changes in product production track and changes can help with risk management and help with any issues and solutions that are necessary with in the contract to help keep limited liabilities at all levels.

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)