Gulf Oil Synthesis Essay

The Middle East is one of the birthplaces of human kind’s civilization. Since the Ancient Egypt, Sumer, the Arab Empire, Turkey Empire, or even to present day, the Middle East has always been a valuable strategic point for not only because of its geographic location but also it full of petroleum and nature gas. According the OPEC (Organization of the Petroleum Exporting Countries) that 66% of the global oil reserves are in the Middle East and only 6% in North America, this makes a lot of powerful countries want to share a pieces of the Middle East, Stephen mentions “Much of the world 's oil wealth exists along the Persian Gulf, with particularly large reserves in Saudi Arabia, Kuwait

Valuation is the estimation of an asset’s value, whether real or financial, based on variables perceived to be related to future investment returns, on comparison with similar assets, or, when relevant, on estimates of immediate liquidation proceeds (Pinto, Henry, Robinson, Stowe; 2010).

The Standard Oil Company of California(Socal) is trying to determine how much to bid on the Gulf Oil Corporation. George Keller, the CEO of Socal, would need to borrow 14 billion dollars in order to make a substantial bid. While banks are willing to lend the money because of Socal's low to debt ratio, the loan would put the company in a highly leveraged position. In order to alleviate that debt, some of Gulf's assets could be sold. Keller has to consider the value of Gulf's exploration and development program when calculating future returns. Two billion dollars were being spent on the exploration and development program. This money could instead be used to reduce the debt if Socal acquired the company. However, the exploration program

As a form of retaliation the Arab countries members of the Organization of Petroleum Exporting Countries (OPEC) imposed an embargo against the United States, this was also extended to other countries supporting Israel like Portugal, the Netherlands and South Africa.

The Importance of Oil in U.S. Foreign Policy During the oil and energy crisis of the mid-1970s Americans became painfully aware of the consequences of the United States dependence on foreign sources of oil. Unfortunately, research and exploration for alternative sources of oil in North America has not been pursued vigorously enough to cease such foreign dependence. As a result, in the mid-1990s Americans find themselves in the same precarious position as they were during the 1970s. The Persian-Gulf War in 1991 was all the proof needed to convince the United States of how strongly oil still influences our foreign policy and international relations in general. Oil and U.S. Foreign Policy: Historical Issues The United

The United States has been involved in the affairs of the Middle East for decades and they’ve had various reasons for being there, whether it was to wage war or to prevent outside influence that would undermine their own influence in the region, it always seemed to revolve around one thing: oil. As we all know, oil is a very profitable resource and it’s a huge part of many nations’ economies and because this is the case many wars are fought over this black liquid. The U.S. is no different in that they did just about anything to maintain their access to Middle East oil. As a result, United States actions in the Middle East today has been formed through the decades long desire for their oil.

Oil was found at Masjed Soleyman in southeastern Iran on May 26, 1908, and three years later was piped down to a newly built refinery at Abadan on the Iranian side of the Shatt-Al-Arab, not many miles below Basra.1(Stephen, 1991) Its global importance eas immediately recognized, not just by the Admiralty in London, looking for new sources of supply for its oil-fired battleships, but in other European capitals as well leading to a brief British-German-Turkish skirmish for control of the pipeline at the start of World War 1.2(Wilfred, 2007) Oil was next found in the Persian Gulf, beginning with Bahrain in 1931; there were subsequent discoveries in Kuwait, Qatar, Saudi Arabia, the Trucial states, and Oman. By 1960 the smaller Gulf states were producing 15 percent of the world 's oil, with another 10 percent or so coming from Iraq and Iran.3(Longrigg, Oil in the Middle East) By 1970 this had risen to 30 percent.4(BP Statistical Review, 2006) The story of the discovery, exploitation, and importance of Middle Eastern oil has been told in many different ways, and from many different points of view. For some it has been a source of Western triumphalism as in the case of the Aramco story , in which brave Texas "pioneers" conquer the world 's last oil frontier.5(Wallace, 1971) For others, like the Arab novelist Abad Al-Rahman Munif, it is a tale of woe, as the lives of nomadic people are disrupted by the appearance of prisons and exploitative local officials.6(Cities of Salt, 1989)

In 1973, an oil crisis began when the members of the OAPEC (consisting of the Arab members of OPEC, plus Egypt, Syria and Tunisia) proclaimed an oil embargo in response to the United States decision to resupply the Israeli military during the Yom Kippur War. The embargo happened when 85% of American workers had to drive to work every day. President

On October 6, 1973, on the eve of Yom Kippur (the most holy day in the Jewish religion) Egypt attacked Israel. Israel proceeded to defend itself and for the third time since World War II the small Jewish state triumphed against one who greatly outnumbered it. The defeat humiliated the Arab nation; it retaliated with its most powerful weapon, an oil boycott. Arab members of the Organization of Petroleum Exporting Countries (OPEC) primarily aimed the oil embargo at the United States, for their decision to re-supply the Israeli military and gain advantage in the post-war peace negations. However OPEC members also protracted the embargo to other countries that supported Israel. These included the Netherlands, Portugal, and South Africa. The 1973 Oil Embargo acutely stained the U.S. economy, one that had grown increasingly dependent on foreign oil.

In the “The Prize: The Epic Quest for Oil, Money, And Power,” Yergin undertakes the reader upon a thorough and enjoyable journey through oil history, from the first 1859 well drilling by Colonel Edwin in Pennsylvania during up to the invasion of Kuwait by Saddam Hussein in a wrathful grab for oil and wealth in 1990 August. Yergin explores the role of oil in warfare, depicts the ever-changing organization of the oil sector, and examines the prominent, as well as often flamboyant petroleum players. The book is a well-researched and well-written, and supplement to a history branch, which until very lately, had been regrettably neglected—history of business.

crude oil allowed in at the bottom of the tower at a time so that the

The first oil well was drilled in 1859 by Edwin Drake. It burned to the ground

In the last few months, much has been said of Iraq’s invasion of Kuwait in 1990. Interestingly enough, one of Iraq’s motivating factors was economics. Kuwait provided Iraq with a pretext for war as it violated the economic policies of the Organization of Oil-Exporting Countries by exporting oil above its quotas. This is but one chapter in the complicated history of OPEC. OPEC is an international assembly of nations which co-ordinates and unifies the petroleum policies of eleven countries and has enjoyed the highs and weathered the lows of oil prices in the last few decades. To solve their problems, both member countries and oil-importing countries must address the complex nature of oil price

The oil and gas industries involve a high amount of documentation for both transportation as well as extraction and field services. Activities are highly regulated, and subject to oversight from Federal Energy Regulatory Commission (FERC), the Department of Transportation (DoT), the Environmental Protection Agency (EPA), and the Department of the Interior (DoI). That said, the process of regulation is trending toward a more digitized system, with organizations like FERC having their own submission portals that implement a “fill-in-the-blank” platform to complete forms. However, not all forms have yet been converted to digital submission even in agencies with online portals, and other agencies still remain reliant on

In 2016, the crude oil price movement prices were unpredictable. The OPEC reference basket dropped 10 percent to $43.22 per pound. The ICE Brent and NYMEX WTI both went down by 8.4 percent with ICE Brent at $47.08 per pound and NYMEX WTI at $45.76 per pound. This showed that there were uncertainties in the petroleum market. The future prices were predicted for 2017 that it would move higher. The World’s economic growth predictions was the same at 2.9% for 2016 but increased to 3.1% for 2017. Because of the 3rd quarter of 2016 in Japan and US, the OCED growth went from 1.6% to 1.7%. The demand for oil growth in 2016 has been increasing slightly to 1.24 mb/d. In 2017, the demand will be predicted with a decrease to 1.15 mb/d. OECD will