Petroleum and Oil

991 Words4 Pages
INTRODUCTION: LUKoil was one of several firms created in 1991 out of Russia’s state-owned petroleum monopoly. While both Russia and LUKoil must export to meet their economic objectives, political relations within and outside of Russia could impair LUKoil’s future ability to export. Thus, foreign investment and ties to Western oil companies are very important to the firm’s ultimate success. Controlling 19 percent of Russia’s oil production and refining capacity and employing more than 120,000 people in its operations worldwide, LUKoil has become Russia’s largest oil company. It is also the first Russian oil company to integrate from “oil wells to filling stations.” High market prices have enabled LUKoil to amass sufficient…show more content…
The roles of the two governments are quite different in the sense that Costa Rica set about developing acquired advantages in targeted industries, while Russia chose to exploit its given natural resources in order to compete in global export markets as it transitioned to a market-based economy. Although exports of coffee and bananas are still important to Costa Rica, high-tech manufactured products (electronics, software, and medical devices) are now the backbone of that country’s economy and export earnings. On the other hand, as Russia moved through the transition from a centrally-planned to a market-based economy, it fashioned competitive enterprises such as LUKoil from its state-owned assets. Those firms have since had to rely on their earnings in order to develop or acquire needed products, processes, facilities, and/or
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