Stabilisation in Investment Contracts and Changes of Rules in Host Countries: Tools for Oil & Gas Investors

Since 2004 the UK has been a net importer of natural gas, as the North Sea reserves have been exploited and nearly exhausted. Today, ten years later, the UK has become even more dependent on foreign gas with over 50% of demand for gas satisfied by foreign supply (Gloystein, 2013). This increasing dependence on foreign countries is a worrying trend, due to the adverse effects it can have, which include being subjected to price shocks, supply shortages and manipulation both economically and politically. Energy insecurity has arisen through a lack of investment in other

| 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.

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 two of the largest oil and gas firms in the world, The British Petroleum Company p.l.c. (BP) and Amoco Corporation (Amoco) had a long history of competitive encounters. This rivalry continued into the 1990s in a variety of locations ranging from the United States to the North Sea to, more recently, the Caspian Sea—a region that had opened up to exploration by Western oil companies following the breakup of the Soviet Union in 1991. In describing this rivalry, one analyst wrote:

Many petroleum companies recognise, for example, that their prospects of gaining new licences or access to new commercial opportunities are significantly enhanced by showing that governments, partners, and suppliers want to work with them on non-financial as well as commercial criteria.

The first section of this assignment will give an overview of the global energy industry and investigate how British Petroleum (BP) positions itself in the market for global competition. An analysis of industry relationships with other MNC’s and governments followed by how BP’s performance against competitors impacts their position in the market for global competition will be conducted. This will be followed by an evaluation of the strategic options open to multinational corporations to enhance global competitiveness.

It’s a particularly noteworthy development when oil prices are down by 50%. During the past decade, the price of oil has traveled from $60 per barrel to its peak of $146 during 2009, then in 2015 it fell into a steep decline again to below $50. Since oil is sold in a global market, the increase or decrease of its price has a tremendous impact on all economies throughout the world. This research goes in depth on how the shift in oil prices has affected Saudi Arabia and the US’s economies, the world’s biggest oil producers. The issue will be broken down to three components; a brief summary of the laws and regulations that possibly affected the change in oil prices, how it is currently affecting the US and Saudi Arabia’s economies, and their quest for alternative solutions. The purpose of this research is to analyze how both the United States and Saudi Arabia have been affected and what progressive measures they are willing to take in response to the steep decline of oil prices.

One characteristic of MNEs is that their affiliates must be responsive to a number of important environmental forces, such as competitors, customers, suppliers, financial institutions, and government. In some case different force are work in home country and host country. For example, BP’ staple market is Europe, according to the characteristic of modern oil industry development, most country’s energy sources were controlled by MNE. The multinational corporation, such as BP , could get all industry chain’s profit. But in China, BP only invested in petroleum’s downstream field and the derivatives in derivatives. Base on the policy of China government, it is not allowed MNE to mining for oil in China. Even though Bp entered China in the 70s but the major core business is natural gas manufacturing, generate electricity to petrochemical complex and oils sales in China. The main reason for BP could not mining oil in China is MNE must cooperate with China oil industry and holding by the Chinese side. Actually, BP did not agree with the control power but BP entered China as joint venture enterprise with Sinopec and CNPC (China National Petroleum Cooporation) to solve the difficult position.

Contrary to the results obtained from the two statements on transparency presented in 10.5.5.1 and 10.5.5.2 above, the majority of the stakeholders have a neutral opinion on this statement, (median = 3.00) (table 7.5). Although it may be understood that the oil and gas contracts may contain commercially sensitive information, information on core aspects of local content should be released to the stakeholders (NGRI, Publish What You Pay, Global Witness, & others, 2012). Where such information is confidential, there should be an explanation of that fact (Lahn, 2007). For example, there are no full and detailed information or facts and figures on the level of local value-added achieved. Stakeholders were only presented with summaries that the

This essay will critically evaluate the statement in segments whilst explaining their available remedies, sanctions and objects within the context of contract law, tort law and criminal law. The validity of the entire statement will further be considered using the evidences established prior reaching a conclusion.

The petroleum industry is well on its way to becoming a global business. Major international firms like EXXON Mobil, Shell, BP, and CNPC are getting even larger and account for an even more significant market share of the global petroleum business, which is estimated at 95.34 production and 93.30 consumption million barrels per day in 2015. Most of these major suppliers are now also managing their petroleum business on a global basis. Clearly, some regions will enjoy significant growth while others will decline. From a volumetric standpoint, the Asia-Pacific region is expected to continue to show the most robust growth. Scientific research has shown that 0.4 % of gross domestic product could be saved in terms of energy in Western industrialized countries if current tribological

Promissory estoppel was designed by the obiter dictum provided by Lord Denning in the case of Central London Property Trust Ltd v High Trees Ltd[ Central London Property Trust Ltd v High Trees Ltd [1947] KB]. In this case the principle of promissory estoppel was described elaborately. The application of this doctrine was actually followed by a pervious decision of which Justice Denning relied on. In the case of Hughes v Metropolitan Railway[ Hughes v Metropolitan Railway (1876) L.R. 2 App. Cas.] the Court in this case confirmed the continuation of promissory estoppel in the contract law. In the case of Tool Metal manufacturing v Tungsten[ Tool Metal Manufacturing v Tungsten (1955) 1 WLR.] , the court also apply the proposition of consideration and its relation with the contract

The world is changing more rapidly; consequently organizations are promptly the way they operate as well to ensure survival and growth in high velocity turbulent markets. To succeed an organization has to anticipate, react and even lead in terms of strategic decisions to enhance profits. It is pertinent to understand that a series of systematic decisions is undertaken before an investment abroad is carried on with. According to Sundaram & Stewart 1992 there is a "system of decision making that permits influence" which refers to the firm 's ability to coordinate and control endogenous organizational variables and quasi-endogenous market variables (coupled with exogenous factors (e.g exchange rates, regulations, tariffs and political set up). Investment decisions are critical for the performance of an organization. From a micro perspective, they are fundamental for the growth of individual companies, increasing their efficiency by reducing per unit costs, enhancing profits by tapping new market segments and exploiting more resources. At a company’s level, an investment decision abroad is much more complicated and requires more research; it is more of a multi-criteria process taking into account numerous factors. These are primarily economic and risk factors, political and social environment and government regulations. Naturally, the effects of these factors on decisions of individual companies may vary significantly. Each of the risk has been separately defined

This study examines the sensitivity of investments to changes in investment opportunities for diversified and single-segment firms. Because investment opportunities are unobservable and because many concerns have been raised about existing proxies, I introduce a new proxy based on financial analysts' estimates. The findings are consistent with the idea that firms respond efficiently to changes in investment opportunities. Specifically, firms increase (decrease) their capital expenditures when there is a favorable (unfavorable) change in opportunities. More importantly, I find that diversified firms are more sensitive to changes in investment opportunities than are single-segment firms. Much of differences in investment behavior between

In this report, we will offer our thoughts on what we believe are the best approaches to regulation, both on the national and international levels. We will start by examining the international level, paying attention specifically to the ‘top-down’ and ‘bottom-up’ approaches to regulation identified in the Kyoto Protocol and the Lima Agreement. We will then move on to discuss the most preferred and well-suited regulation method on a national level, comparing Command and Control approaches to New Governance Mechanisms of self-regulation. After these discussions, we will offer a conclusion laying out the most suitable regulatory methods for the oil industry, as well as