Referring to the Canadian Energy Research Institute, it has become evident that oil sands have impacted nearly every community within Canada, exponentially increasing the need for new job opportunities and economic growth. Since Alberta has one of the largest oil reserves within Canada, the petroleum industry has impacted “…over 239,000 Albertans”(Canada’s Industry 2012). However, with a closer eye on the impact of oil sands on the economy, it is proven that these oil sands provide jobs outside the country as well. Such as the services, and materials which are used in the construction of oil sands, come from not only across Canada, but also form many other foreign countries. Many components are needed for a process which seems so simple.
BP has 3 options to settle the dispute: 1. buy AAR’s stake and operate as a majority owned business 2. terminate JV by selling its own stake 3. resolve the current crisis and continue with the JV My analysis shows that option #3 is the best alternative for BP. Hereunder I also list my recommendations for successful implementation of this alternative. Analysis: Industry Attractiveness: The Russian oil industry is very attractive to existing players. Entry barriers are high mainly because of very high capital investment requirements for establishing infrastructure and acquiring oil/gas fields . Since 1999, oil prices have been going up amidst strong consumer demand largely because of growth in world economy, particularly in the higher-growth economies such as India and China.
In the United States, most offshore oil drilling takes place in the Gulf of Mexico. However, the 2010 oil spill disaster there made people lose confidence in offshore oil drilling. Moreover, a lot of states’ ecosystem, fish industries and other businesses dependent on different resources around the Gulf were severely affected because of millions of gallons of oil were spilled. On the other hand, due to economic concerns, the American government is starting to consider offshore oil drilling again because it is one way to boost America’s economy. They don’t want to over rely on outside oil sources from politically unstable countries.
Also being America we are always in great demand for energy and being that 25% of our electricity comes from natural gas production it will only increase in the future. Since hydraulic fracturing is becoming more used today than it ever has new laws and regulations are being changed and enforce to protect the interest of the public. There is a lot of contamination associated with this type of drilling and proper disposal is a necessity and to be followed accordingly to ensure the environment does not be permanently affect. I truly believe that hydraulic fracturing is the future and we will be hearing more about it and hopefully it will be a logic solution to our energy
Australia has recently signed to Kyoto Protocol which aims to reduce greenhouse gas emission by 4 million tonnes becoming 2010. Companies have improved scrubbers, which clean sulfur from the smoke before it leaves the smokestack. Awareness is growing when considering pollution from coal. Here in Australia while we are monitoring carefully the atmospheric pollution caused by coal burning it can be stated categorically that Carbon dioxide emissions from vehicles have far more reaching effects than the pollution created from coal. Coal will continue to be used extensively in Australia because of it's abundance.
This coupled with an increase in living for the majority of the world, especially RICs such as India where its oil consumption had increased by 40 million tonnes over a 6 year period, makes supplying the world’s energy demands a very difficult task. The main source of energy for the majority of the world comes from fossil fuels; however this reliance is a large cause for concern as these are finite and cause great environmental damage. It is believed that we have reached peak oil production, meaning that we are producing more than we ever have or ever will in the future. It is thought that at current levels of consumption we only have 40 years of oil supplies remaining. Resulting in increasing prices and increased reliance on unstable oil rich nations that can limit supply so as to earn
This,without a doubt, is something that we will need at some point in the future seeing as we have a limited supply of oil. Some people who support offshore drilling seem to believe that we can drill our way to some kind of energy independence. This is just a dark fantasy; it has been established that we have a limited amount of oil in our earth even if it will last us tens of hundreds of years more. A time will come where we will be forced to find other power sources for our vehicles. And if we want to replace China as top economy once more, this would be a great way to start.
Prices in gas have changed how much food cost since the transportation of these goods needs gas. This rising tide has also sent the price of rubber and plastic product soaring. Yet, the biggest problem due to these prices is car sales. Transportation of food in America is mainly by semi-trucks or trains. With the cost of diesel gas almost breaking five and a half dollars per gallon, many companies cannot afford to transport their product.
Natural gas is an energy source that is clean, safe and extremely useful. Natural gas is colorless, odorless, and shapeless when it is in its pure form (Naturalgas.org). This gas however gives off a great deal of energy when it is burned. Natural gas can directly play a part in reducing greenhouse emissions, strengthening energy security and helping the growing economy (aga.org). The United States consumes roughly 600 billion cubic meters of natural gas every year while we only produce about 500 billion cubic meters.
(Deepwater Oil Exploration, 2006-2010). Although the process is extremely costly, the increase in oil prices beginning in 2007 made it a desirable industry in order to meet the insatiable need for oil in this country. Although there has been a segment of the population that has never been happy with our involvement in deepwater drilling, the Gulf oil spill this year has caused people to finally take a look at whether or not the process should be banned, given the unbelievably high price to pay when there is a spill of the nature that was experienced in