Oil And Gas/Energy Companies Continue To Deal With Evolving

The board carries out the duties in regard to the interest of the companies’ shareholders, staff,

Throughout the years there have been an influx of regulatory failures referenced to the government as “Regulation Dilemma’s” (Mills, 2010, p.8). The U.S. Securities & Exchange Commission (SEC) and Minerals Management Service (MMS) are two companies that have a high volume of regulatory violations. The SEC’s financial crisis and the MMS’ oil spill in the Gulf of Mexico have caused the government agencies to address the issues with the regulatory programs (Mills, 2010).

The Oil & Gas industry boomed after world war two. A new cultural change based on automobiles led the world oil consumption to overtake production, a scarcity that would allow the company to grow its revenue by more than 100% in 10 years from 1958 to 1968, something that the Organization of Petroleum Exporting Countries (OPEC) would also soon take advantage.

The U.S. was supposed to be the world’s new swing oil producer, able to nimbly open and close the taps in response to market forces, thanks to its bounty of shale fields.” In the past a barrel of oil has been one hundred dollars, recently it has dropped to thirty dollars. Though some wells can be profitable at low prices it puts a serious strain on the oil industry as explained in this article.

In the early stages when WTI oil was first becoming useful the price was at an all time low of just $15.01 US per barrel back in January 1946. The price of oil had its first major spike in January 1974 when the price jumped from $22.44 US to $50.30 US per barrel, which was an impactful price change as money was not in high quantities. When the price climbed and reached $114.51 US per barrel in April 1980 the demand for oil dropped as people did not have to the money to afford petroleum, which caused a downfall in price to $27.23 US per barrel.

Within the last year, oil prices in the United States have dropped significantly. As oil drilling in the United States has reached its highest level in over 30 years, consumers are reaping the benefits. Among these gains are record-low prices at the pump, and cheaper oil to heat homes. However, oil prices did not just drop on their own; multiple factors contributed to the fall. Increased domestic production, declining global demand, and competition from other oil-producing nations had led to rapidly dropping oil prices across the United States.

From 2014, the crude oil price has dropped in a sudden since the global economic downturn, oversupply of crude oil and the appearance of new energy. Global economy fatigued, and thus the demand of crude oil was not strong,

| Economic 1. Downturn in the economy has negatively affected the manufacturing and construction sector – resulting in some clients going out of business, and having implications upon credit insurance 2. The financial system remains vulnerable to setbacks in both the global economic recovery

The article entitled “4 Reasons Why the Price of Crude Oil Dropped” by Evan Tarver offer some of the possible reasons. According to Tarver the strength of the US dollar could be one of the reason for drop in the oil prices. Tarver also reveals that Organization of the Petroleum Exporting Countries (OPEC) is unwilling to stabilize the oil market and this has an effect on the oil prices. Other reasons identified in the article include the oversupply of the crude and the declining of the demand.

drop in oil prices in the global market has directly affected the energy sectors and highly influenced

The firm was prepared for the economic downturn. It got ready for this eventuality by making sure that it had strong, positive cash flow. That required selling some of its assets to other companies. The prices of natural gas had become very volatile, and so

Concerns about energy were not high on the list of American priorities, but that situation was about to change dramatically. As a result of the OPEC oil embargo the price of oil has risen from 3 dollars per barrel to nearly 12 dollars per barrel globally. US prices were significantly higher. The domestic oil industry could not make up the shortfall in supply caused by the embargo this led to rationing and long lineups at gas stations some up to four miles’ long. The average domestic price of gas climbed to 83 cents per gallon from 38 cents per gallon. Sales of smaller, more fuel efficient cars sky rocketed. At the same time declining demand for the big, heavy gas-guzzlers that most American car companies were producing spelled disaster for the domestic auto industry . During this period U.S. GDP fell 3.2 percent the ensuing recession marked the end of the general post World War II economic boom. This recession differed from previous recessions in that it began with stagflation, where high unemployment coincides with high

In order to ensure successful compliance, it is essential that every department shares information and works together to communicate about maintaining compliance with requirements. Be sure to involve the IT and HR department in all compliance processes and system. Avoid delegating compliance to a single manager or department. Current business practices involve a variety of departments that may not realize their impact on regulation compliance. For instance, maintenance personnel may not realize that improperly disposing of chemicals and products, such as paint, may result in hefty environmental fines. Entry-level customer service reps may not realize that openly discussing confidential client information in public is wrong.

But the energy industry has seen its fortunes go down, as global crude oil prices has continued to sink. While cost of crude

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).