Oil And Gas External Environment Analysis

The gas and oil prices impact all the sectors of the economy; including transportation and

The consensus from the 1970s and 1980s was that there was an inverse relationship between oil prices and real economic activities. This belief later changed when the oil price crash of the mid-1980s failed to boost economic growth. Researchers then believed that increasing oil prices negatively affect the economy whereas falling oil prices have very little impact and by the 1990s this impact was assumed to be minimal (DePratto, de Resende and Maier 2009). More recently, researchers have found that increases in the oil prices adversely affect the economy whereas the impact of a decline in oil prices on GDP growth is only negligible (Jimenez-Rodriguez and Sanchez

The oil production in Canada has several significant issues that depict the destruction nature of the industry. These issues can be categorized as environmental, political, economic, and social. The environmental issues lead the pack; in that the environmental destruction associated with the industry is extensive. The environmental problems are climatic, land, water and air related (Best & Hoberg, 2015). Under climatic effect, studies indicate that the development of the tar sides has resulted to three times more greenhouse gases (GHGs) than in production of conventional oil. These environmental issues are caused by the composition of the tar sands. Unlike the convention oil, tar sands are a mixture of bitumen and sand. The process of separating the two results triples GHGs emissions when compared to conventional oil production (Koring, 2013).

I would like to share my viewpoint besides this industry does have environmental side effects; we cannot overlook a number of jobs this industry is providing to the job seeker. According to environment journalists, oil refineries emit a lot of greenhouse gasses, but this scenario is also covered up with the requirement to develop further on research and development of many eco-friendly techniques for the extraction of oil from the mining.

The other adverse effect of the Canadian oil sands is that pipelines and massive processes of refining oil sands in Canada are a source of pollution that pose a great threat to air, water, and land as well as human health. Additionally, the use of its products like natural gas that is used to run medium-sized turbines that produce electricity releases greenhouse gases. These emissions are mostly produced when steam is injected to reduce the viscosity of the crude and during refining. These further increases to the global warming effect that is already out of hand and it also negates the gains made by society by exposing them to the adverse negative

Due to the amount of oil that America uses, there will be harmful environmental effects that will change conditions for generations to come. Burning oil at power plants produces nitrogen oxides,

The operation and refining processes alongside transportation of the refined oil pose a significant risk to the environment. From the digging and excavating that occurs up north, to the refineries that refine the oil sand, to the pipelines that transport our oil, we are harming the environment. Tailing ponds, carbon emissions, destroying of wildlife habitat and oil spills are just a few of the many large issues that plague our oil sands industry. We essentially place our blind faith in the oil companies that reside within our province to reduce and possibly eliminate the impact that the oil sands have on the

In the United States, more than 50 percent of oil used is imported from other countries, and is shipped over by large tanker ships (Energy Quest 2012). Petroleum is made into various products such as gasoline/ diesel fuel, home heating oil, fertilizers, and plastic products (Energy Quest 2012). 74 percent of our oil is used for transportation including, trucks, buses, cars, and planes (Energy Quest 2012). Drilling of the oil is a costly process and has severe effects to the environment. Drilling on land requires a lot of space, disturbing the natural animal habitats, while drilling at sea impacts surrounding marine life (ELI 2015). Petroleum is toxic and not biodegradable, so when oil spills at sea, oil slick spreads rapidly over the water killing vast numbers of marine plants and animals (ELI 2015). Refineries emit toxins into the air and water supply as petroleum is processed to a usable oil, as it is used, petroleum products are emitted into the air contributing to global warming (ELI 2015). Additionally, other by-products have been linked to respiratory illness as well as heart disease in humans (ELI 2015).

With the fast advancement and development of the vitality area, a vocation in the oil and gas industry has unquestionably turned into a standout amongst the most imminent in the business sector today. In UK, for instance, the industry has seen a colossal venture running regarding billions of pounds in the most recent quite a while. This implies that there is a normal high rate of making of new employments and opportunities in this field. Then again, of course, the essential aptitudes and learning advancement will be

Is it true what experts say, when the price of oil drops the economy gets better, and when the price of oil rises the economy suffers? Of course as consumers we love to pay less at the gas pumps, but as we play much less now for gas then we did last year many of us are suffering due to the dramatic drop in the price of oil. As I strongly agree that the low cost of oil is hurting the economy in general, as I was one who fell victim to the recession working for an oil company up until January 2015, but fell victim to lay off due to the big drop in prices.

With the current and projected oil sands development, the green house gas emission is expected to grow significantly in the near future in Alberta. The increase in the greenhouse gas emission leads to more carbon dioxide in the atmosphere that traps the heat, which will eventually lead to global warming. Furthermore, some green house gases like ozone are extremely harmful since it creates respiratory problems for humans and it also disrupts the ecosystem by damaging crops. Thus, the oil sands development has led to an unhealthy environment in the communities of Alberta over the past couple of years by releasing a great deal of greenhouse gases.

There are many phases of the oil industry. One way of segmenting the industry is by looking at it as upstream and downstream. Upstream phases include oil extrapolation and refining services. Downstream events include the buying and selling of oil and gas at the retail level. This could mean gas stations or even electricity from which natural gas has been used. Each of these phases combined makes up a huge industry in which large profits are made. (Industry Handbook, Oil Services, 2014)

A goal that GCC monarchies should strive for is greatly reducing domestic consumption of hydrocarbons. This would free more resources to be exported and thus boosting government revenues. As it has been stated, Saudi Arabia’s internal consumption of oil and gas is increasing at 7% yearly, and it is expected to double in a decade; a similar occurrence is taking place in Qatar and other wealthy countries of the Persian Gulf. In this regard, Reiche (2008) put forth the case of Norway: the Scandinavian country is a net provider of fossil fuels, yet, according to the Norwegian government , roughly 98% of its electricity is generated by hydropower, which emits no greenhouse gas. This allowed Norway to devote almost the entirety of its oil

Biofuel has captured much of the attention of many countries around the world. To ensure future energy security and reduce global green house gas, several companies across the world are investing on biofuel production as a renewable alternative energy to co-exist with fossil fuel, which is now becoming scarce (Royal Society, 2008). BP is one of the significant producers of Biofuel, which is producing biofuel from sugarcane in Brazil. However, the expansion of biofuel production has raised the concern about the negative environmental and social consequences related to sustainability. It depends on how biofuel development is designed. Brazil has lot of positive experiences in biofuel production, yet debate is still continuing on negative impacts of ethanol production from sugarcane. Negative impact sometimes outweighs positive impacts (UN Energy, 2007). Land that are used for ethanol production cause loss of natural resources (Faaij and Dieperink, 2007) and affect food production in developing countries as land is used in different pattern for sugar cane production (Doornbosch, 2007). Number of sustainability standards as well as environmental and social policies has been developed over the years to minimize the risk of negative impact. For sustainable biofuel development, BP participates in different stakeholder activities such as Roundtable for Sustainable biofuel and better Sugarcane Initiative (Bonsuro). Effective management of stakeholders is critical to

In the United States, one of the biggest impacts on its economy and its people are the businesses that reside in the country. These companies all have an influence on how much people pay for everyday necessities in their lifetimes. One of the most important things being oil and gas. Oil and gas companies have a big impact on society in the way of supplying people with fuel and oil for their vehicles. However, prices constantly fluctuate throughout the industry, and at times, they hit all time lows affecting the companies, employees, and Americans. Most Americans do not realize the effects of these companies on the planet such as emissions, and the effects on their wallets, even though it is an everyday problem. However, it can easily be solved by the government and its people coming up with compromises. Usually when gas and oil companies are doing well, it has a negative impact on the people, and when they are doing bad, it has a positive impact on the people. The relationship between the oil companies in America has a negative correlation because of the drastic change that directly affects the other.