The Feasibility Of Chicago Bridge & Iron Company

Venezuela’s reputation has been well established regarding its supply of oil and how it was being used for medicinal use and other purposes. It was not until the first oil well was drilled in 1912, when Venezuela became the world’s second largest oil producer behind the US, and the world’s largest oil exporter (Wilpert, 2003). With the well drill in the country it attracted many major oil producers that wanted a piece of anything they could get. The Royal Dutch Shell and Rockefeller’s Standard Oil became the main producers of the oil and maintained a high status. Everything was going great for the company, “ between 1920 and 1935 oil share’s exports went up from 1.9% to 91.2%”(Wilpert, 2003), but not everything goes according to plan. The country had a dramatic impact towards its economy that many recall, “The Dutch Disease.” “The utmost important magnitude of the Dutch Disease was that agricultural production declined to almost nothing and the country fell behind in industrializing, relative to other Latin American countries” (Wilpert, 2003). Thus, Venezuela had passed a reform oil policy that was the Hydrocarbons Act, which was from the oil revenues based on the income of the mines (Wilpert, 2003), bringing the state’s income to stability.

A once strategic sector in Ecuador, petroleum, has become one of lesser interest to multinational companies under Correa’s administration. Ecuador reaped economic growth when Correa introduced policies that would nationalize the industry at the expense of Chevron. Additionally, by kicking out Chevron and holding

Currently Energy Transfer Partners “ETP” produces oil and gas with propane as a byproduct for local delivery within the United States and southern Canada. ETP main entity is installation of oil and gas pipe line within the United States and southern Canada. Looking to expand the refinery division ETP is looking to expand globally by exporting their product to other counties. ETP has collected an analysis about exporting product overseas and has decided it wants to move forward.

In the modern world energy has become very important since it helps drive most industrial as well as home based activities. For more than a hundred years, oil has been used to provide to this vast energy requirements. Oil companies around the world have facilitated the exploration, drilling, refinery and distribution of oil in their defined regions. The industrial part that oil companies play can be considered to be much greater than the domestic role. Oil companies produce diesel, petroleum, liquid petroleum gas and other products which are used to drive industrial machines used in production of various commodities. By this virtue, oil companies become an integral part of an economy (Marcel, Valerie, and John V. Mitchell, 98).

Around the globe, the oil and natural gas industries are a major part of stable and growing economies, as well as, the individual lives of most people. As individuals we use it to run our vehicles, heat our homes, cook, and much more. Economies, on the other hand, rely on the oil and natural gas industries for the jobs they create, the product they supply, and the added value created by government revenues. In 2011, these industries in the United States made up 5.6 percent of the nation’s total employment, providing $394 billion in labor income (6-15, American Petroleum Institute). They also contributed an estimated $410.3 billion to the nation’s economy through wages, capital spending, and dividends totaling 7.1 percent of the United States’ gross domestic product (GDP) (25-26, American Petroleum Institute). Those percentages may not seem like much alone, but when you consider that one industry, out of hundreds in the United States, makes up those numbers, they seem a lot larger. During the 1990’s, oil and natural gas production had hit a snag spreading worry that the U.S. would become reliant on foreign imports (Inman). One of the world’s leading countries in the industry were beginning to fear the end of a resource that they relied so heavily on.

In his book, Black Gold: The story of Oil in our lives, Albert Marrin said, “By the fall of 1918, it was clear that a nation’s prosperity, even its very survival depended on securing a safe, abundant supply of cheap oil.” Crude oil is one of, if not the most important commodity in the world. And it has become something that is highly tied to the global economy as a result. The rise and fall of oil prices are used as indicators of what’s to come and how to prepare for it. The very prosperity of some nations is directly indeed directly tied to oil production or procurement. In this paper, I will be discussing the

An archetypal example of an oil state and primary exporting country, Nigeria is the largest oil exporter in Africa and the world’s tenth largest oil producer (Pyagbara 2007: 1). As of 2010, crude oil and petroleum gas accounted for approximately 80% of the country’s overall exports, totaling over $50.3 billion in revenues the next year (Pyagbara 2007: 2). Despite maintaining a lucrative resource that could arguably catalyze momentum towards economic development, poverty plagues Nigeria and continues to rise despite efforts to forge positive, developmental changes. In fact, areas showing the largest amounts of oil like the Niger Delta happen to be the country’s most economically marginalized region. A significant impetus of these tumultuous changes has been multinational oil corporations like Shell that have been extracting oil in Nigeria since 1956. This paper seeks to examine Nigerian development in the face of oil extraction and how MNCs such as Shell have played a role in the country’s development. I will argue that MNCs, specifically Shell, have had an adverse effect on development within Nigeria as a result of oil extraction and the establishment of dependency on oil, both of which are amplified by the deep-rooted intrastate issues present despite MNC intervention.

Oil is an important component in many industries and the majority of global energy needs are generated by oil. Hence, it is unsurprising that the annual global consumption of oil is around 30 billion barrels and it accounts for around one-third of all energy consumed . According to the U.S. Energy Information Administration (EIA),Venezuela and Saudi Arabia are the top 2 countries with the most proven crude oil reserves and over 90% of their export revenues come from oil . In addition, since 1980, OPEC’s share of oil revenue in total exports has been consistently over 60%, with the net export revenue at US$730 billion . Hence any disturbance in the oil sector will cause a drastic impact on these economies. This can be illustrated in research where it has provided evidence for a negative relationship between resource abundance and growth. For instance, since the 1970s, Nigeria has been exporting around $10billion worth of oil annually but during same period the proportion of its population living on less than $1 per day has doubled from 36% to 70% (Sala-I-Martin and Subramanian, 2003). Nevertheless, recent studies have shown that there can also be a positive relationship. Countries rich in oil, such as Malaysia and Norway have managed to achieve sustained economic growth.

In his book, Black Gold: The story of Oil in our lives, Albert Marrin said, “By the fall of 1918, it was clear that a nation’s prosperity, even its very survival depended on securing a safe, abundant supply of cheap oil.” Crude oil is one of, if not the most important commodity in the world. And it has become something that is highly tied to the global economy as a result. The rise and fall of oil prices are used as indicators of what’s to come and how to prepare for it. The very prosperity of some nations is directly indeed directly tied to oil production or procurement. In this paper, I will be discussing the effects of oil surplus and shortage on the economy as well as the effect of oil prices as well. I will also be looking at the effect of recent development, new technology and oil substitutes on the industry and the economy by extension.

In the last twelve months, the decline in oil and gas activities has not only led to retrenchment of workers in the oil and gas sector in the Niger Delta region in Nigeria, mainly within the International Oil Companies (IOC”s), but has also affected non-related oil and gas sectors such as the contractors and vendors to the Oil and Gas sector; this has triggered several thoughts outside the box to welcome an industry diversification. The Nigerian Government, which solely depends on the oil and gas exports has also been majorly affected by the downfall in oil prices, which has kept other government sectors such as works, healthcare, transportation, and mostly agriculture paralyzed in these twelve months.

In the context of Economic Development of the country and Energy Security, the role of petroleum and petroleum products as a vital fuel will continue to be there though with a changing face. To address the global needs and demand over next 20-30 years and beyond, substantial increase in Energy Research especially in Hydrocarbon Sector is critical . The high capital investment is required for highly uncertain gains as well as a need to rely on highly expensive foreign technology for accurate exploration and production activities. Oil and gas legislations varies in every country, they depend on the purpose and the intention of regulating the countries strategic assets . However, the main objectives of each State party are the same, to take control of its assets and to get revenue for the economic development. In order to develop and to make use of its assets, the State will cooperate with International Oil Companies (IOCs) which has the ability, knowledge and experience in this industry. The adoption of an effective regime for petroleum development is strongly influenced by the geological prospects of a country and the technological and financial resources needed for exploration and production of hydrocarbons. By requiring substantial capital investments and sophisticated technical skills, petroleum developments are often beyond the resources possessed by most governments but are likely to be provided by

ABSTRACT: One of the most crucial challenges facing Nigeria is being able to meet the energy need of the energy hungry populace; the exponential population growth makes it even more challenging. The approach adopted to meeting this need has impacted severely on the economy of the nation as reflected in the year-on-year economic figures. This can be attributed to her choice of net importer of petroleum products status to the much more economic domestic refining option. This paper analyses the best economic option between refining crude oil and importing the products in Nigeria, at the end making probable suggestions.

The Petroleum industry in Nigeria is the largest source of government revenue and it occupies a pivotal position in term of foreign exchange earnings with about 90 percent and over 80 percent contribution to the Gross domestic product. Petroleum sector is the mainstay of Nigerian economy since its discovery in commercial quantity in Oloibiri, Bayelsa State Nigeria in 1956. From 1970 to 2009, the income from petroleum stood at 82 percent with 18 percent from non-oil revenue. According to the world bank, “Nigeria is the biggest exporter of oil in Africa with the largest natural gas reserve in the continent”.

Even though it has caused Ghana 's economic growth to slow, Ghana 's economy has been able to persevere through the global recession. This is through the exportation of oil. (Isser) In recent years Ghana 's industrial sector has grown consistently especially in 2011 with 36% increase. Besides oil, mining and quarrying have been quite productive by growing by over 250%. Ghana happens to be a large exporter of plastics and electronic goods, as it is home to Volto Aluminum Company (VALCO), a large distributor of electronic goods (AEO.) It is expected that Ghana has a fruitful future when discussing oil. It is "on the verge" of being a significant producer of oil. (GPJ)

• Analyze Ghana’s most recent oil and gas performance and highlight the specific challenges and constraints.