...Sri Lankan Oil Market Introduction Crude oil was naturally occurred a period of millions years ago. It has found in certain rock formations in the earth. It is not appearing all the area in the earth. Only few of countries are drilling crude oil in the world. This substance is a dark, sticky liquid known scientifically known as a hydrocarbon. That is a compound of carbon and hydrogen, with or without metallic elements such as oxygen and sulfur. Combination of these elements make the oil burned in case of excitation. Process does not stop after absorption of crude oil. There are lots of steps such as extraction the crude oil into category such as petrol and etc. Let’s look at measurement of crude oil. Not like other substances crude oil is measured in barrels. In the 19 century, it was stored in the wooden barrel in developed countries. In present, one barrel equals 42 US gallons, or 159 liters. Also, it is measured in ton scale. We clearly know that number of barrels contained in each ton varies depending on the type and density of each crude (average-7.33 barrels per each ton). Extraction procedure of petrol Petroleum is extracted crude oil which was absorbed from oil wells found in oil field. There some technologies to extract the petroleum but few of them are improved technologies such as fisher-Tropsch process. With higher demand for hydrocarbons miscellaneous method are used in petroleum exploration and development to optimize the recovery of oil and gas known as...
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... I N T E R N A T I O N A L M O N E T A R Y F U N D INTERNATIONAL MONETARY FUND Research Department Global Imbalances: In Midstream? Prepared by Olivier Blanchard and Gian Maria Milesi-Ferretti1 Authorized for Distribution by Olivier Blanchard December 22, 2009 Disclaimer: The views expressed herein are those of the author(s) and should not be attributed to the IMF, its Executive Board, or its management. Before the crisis, there were strong arguments for reducing global imbalances. As a result of the crisis, there have been significant changes in saving and investment patterns across the world and imbalances have narrowed considerably. Does this mean that imbalances are a problem of the past? Hardly. The paper argues that there is an urgent need to implement policy changes to address the remaining domestic and international distortions that are a key cause of imbalances. Failure to do so could result in the world economy being stuck in “midstream,” threatening the sustainability of the recovery. JEL Classification Numbers: E21, E22, F32, F33, F36, F41 Keywords: Current account deficits, saving, investment, portfolio choice. Authors’ E-mail Addresses: oblanchard@imf.org ; gmilesiferretti@imf.org 1 One of the series of “Seoul papers” on current macro and financial issues. We are grateful to Caroline Atkinson, Nicoletta Batini, Tam Bayoumi, Christian Broda, Matthieu Bussière, Paul Cashin, Nigel Chalk, Menzie Chinn, Stijn Claessens, Charles Collyns, Carlo Cottarelli...
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...Earnings Management Study Oil & Gas Industry Abstract This study mainly focused on the earnings management in oil and gas industry and we used Jones model to detect discretionary accruals in the subject companies. Specifically, we examined three oil and gas sample companies that have been required to restate their financial reports due to the oil reserve overestimation. After running the regression and comparing statistics with other oil and gas companies, we found that the sample companies do revise oil reserves to manipulate the DDA expenses, thus achieving their goals of earnings management. Some recommended auditing guidance to detect such manipulation were given at the end. Introduction/Assumption Earnings management, in accounting, is the act of intentionally influencing the process of financial reporting to obtain some private gain. Earnings management involves the manipulation of company earnings towards a pre-determined target. This target can be motivated by a preference for more stable earnings, in which case management is said to be carrying out income smoothing. Management may also overstate the income for personal interests. Other possible motivations for earnings management include the need to maintain the levels of certain accounting ratios due to debt covenants, boost earnings to beat analyst targets, or intentionally understate the earnings to get rid of the...
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...The price of gasoline has a close relationship with the price of oil. According to Wikipedia, Crude oil is the primary raw material used to produce gasoline and from the mid 1980s to 2003 the price of a barrel of oil was generally under $25. In 2003 the price reached $30 per barrel and by 2005 was up to $60. It peaked in 2008 at almost $150 per barrel and has been causing great economic hardship for societies across the globe. There are several reasons for the increase such as declines in petroleum reserves, tension in the Middle-East and oil price speculation. (Wikipedia.com) The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of twelve developing countries including Saudi Arabia, Nigeria and Venezuela, who pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations. It secures a steady income for its members while ensuring an efficient and reliable supply of petroleum to consuming nations and a fair return for investors in the petroleum industry. OPEC’s influence has been criticized since it became effective in determining production and prices. (Wikipedia) Even though this paper focuses on gasoline prices, it is impossible for me to speak about gas and not also mention oil. Economies around the world are very dependent on oil which is vital to providing petroleum for motor vehicles as well as generating electricity. A decade ago...
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...Fiscal Policy and ExxonMobil Introduction Government spending has been an instrumental component and reflection for the United States economy. As an integral part of the business cycle, the last several years have been through the trough since the recession in 2008. While government spending has been increasing, for a couple years it did reduce in addition to maintaining a steady quantity of spending up until the past few years of recovering and growth. As a result, there has been a steady increase of spending in the past three, with anticipation of greater spending in the years ahead. While the overall amount of spending has been increasing as a result of a stronger economy, there has been a surplus of oil and petroleum drilling. Given the lower demand for drilling, the oil and petroleum industry has been greatly affected with Exxon Mobil reporting lower profits, and BP has been reporting a loss, with anticipation of mass layoffs ahead. (Krauss, 2016) Fiscal Policy, Tax Rates, and the Economy Roughly 35-36% of our total government spending accounts for the gross domestic product (GDP). After the government bailout funding for banking and stimulating the economy with an additional $700B after 2008, over 42% of the annual GDP was of government spending. Federal income tax hovering between 16.8-17.2% for median class income has been consistent for the past several years. “Today's government spending levels are indeed too high, at least relative to the average level of tax...
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...Gasoline And Oil Prices: Present And Our Future Antony T. Zavatter Com 150 Professor Johnson April 25, 2010 Imagine someone at the gas station on a beautiful spring day. As they are filling the tank, they look up and see the price has risen five cents overnight or comparing in their mind, the most recent gas bill from the previous month. “Where do these prices come from?” This is a question most people have asked themselves at one point or another in their lives and the answer is not as simple to give as most of us would think. The complexity of the oil industry and controversies that surround them are not so simply placed in just black and white. The gray areas in the world of oil and petroleum products is vast, and in an age of growing populations with more demand on the natural resources we have, we are racing toward a turning point in the worlds’ economy with the drain on our fossil fuels reaching a boil. The oil industry from start to finish is fragile at best, and must be treated with a great deal of care or the whole world breaks. Many variables are evaluated when placing the ever changing price tag the average gas consumer view. The process is not as simple as raising prices when a barrel of oil goes up. Four main elements exist that are incorporated into the equation before pricing is adjusted. Those elements are: crude oil cost, taxes, refining, and distribution...
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...the world are facing this problem and in less developed countries the situation is specially worsen because of the availability of limited resources. There are so many problem faced by developing countries like poverty and unemployment, which puts negative impact on GDP and on the masses. Why are these problems visible in a country like Kenya? Because so many other problem are putting multiplier times negative impact on GDP and other macro economic variables such as inflation. Oil and other petroleum products are scarce commodities in the world. Like prices of other commodities the price of crude oil experiences wide price swings in times of shortage or oversupply. The crude oil price cycle may extend over several years responding to changes in demand as well as OPEC and non-OPEC supply. Throughout much of the twentieth century, the price of U.S. petroleum was heavily regulated through production or price controls. In the post World War II era, U.S. oil prices at the wellhead averaged $28.52 per barrel adjusted for inflation to 2010 dollars. In the absence of price controls, the U.S. price would have tracked the world price averaging near $30.54. Over the same post war period, the median for the domestic and the adjusted world price of crude oil was $20.53 in 2010 prices. Adjusted for inflation, from 1947 to 2010 oil prices only exceeded $20.53 per barrel 50 percent of the time. (See note in the box on right.) Until March 28, 2000 when OPEC adopted the $22-$28 price band...
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...1. ARTICLES This article first appeared in The Edge Malaysia Weekly, on December 14 - 20, 2015 [pic] A construction industry executive recently rented a high-end condominium for about 30% less than the going rate a year ago. Why was the condominium so cheap? The property agent replied that the previous tenant — a high-ranking oil and gas (O&G) official — had lost his job. “It’s quite common now for O&G expatriates to lose their jobs, so the property market has also been impacted,” the agent said. According to a senior executive in the once-booming oil and gas sector, as many as 7,000 to 8,000 executives have lost their jobs after the second round of industry-wide retrenchments in the country. He has been told by colleagues that Petroliam Nasional Bhd (Petronas), Scomi Group Bhd and UMW Oil & Gas Corp Bhd have put a freeze on hiring and the list of companies doing the same is getting longer. “Worse still, MMHE [Malaysia Marine and Heavy Engineering Holdings Bhd] is looking to discontinue the services of as many as 800 contractual workers, and Petronas is also mulling over a similar move,” he says. Such moves are often denied and never publicised. An MMHE official tells The Edge that the company only makes such announcements internally, but adds that she has not heard of recent staff-reduction exercises. “MMHE, like most businesses, is operating in a very competitive industry and under tough economic conditions. Regrettably, this often has an unavoidable impact on staff,” an MMHE...
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...population is settled now. Out of that 26 million people in Saudi Arabia, is has been found that the annual per capita income is anywhere from $11,500 to 24,500. This sounds kind of ridiculous because the country is known to the world to be oil rich. At first glance, one would view economic statistical indicators and convey the fact Saudi Arabia is a developed nation. However, close analysis of political and social statistical indicators would suggest that their standard of living and individual freedoms are severely suppressed. Believe it or not, this 'developed' nation has abnormalities in its statistical indicators which are similar to those that characterize third world nations. As a person who was born into this culture and is originally of Saudi Arabian descent, I find these statistics hard to believe. During my time there I never witnessed despair or poverty. These indicators and information is why I chose to research this topic and see for myself what this once wealthy nation is in fact doing now. Economic Success Saudi Arabia was a poor country until oil was discovered beneath the eastern deserts in the late 1930's. The country suddenly found itself very wealthy as it became an important exporter of oil in just a few years. The price of the oil increased very dramatically from just $3 a barrel to over $40 a barrel. This economic success ensured that the leaders became very wealthy. The GNP per...
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...is ever climbing on a perpetual price ladder. The price of gas has doubled in the past decade and will continue to rise at an even faster rate than ever before. Why do gas prices continually swell? Who owns the oil being drilled and pumped from all over the world? Oil is a non-renewable resource owned by oiling companies such as Exxon Mobile, Chevron, BP, and other name brand gas providers. The prices are skyrocketing because of supply and demand. The world supply of natural oil is being syphoned and used every day at an alarming rate. Oil companies have gotten and are still getting their more than fair share of money for providing these fuels. In fact, these big oil companies have enough money to change their businesses almost over night. So why don't they, you might ask? The simple answer is that they are stubborn. Oil companies still see a profit to be made and seem to write off the pollution of machines and burden of the gas prices on every day citizens of the United States and the rest of the world. What am I proposing? Big oil companies have either nothing to lose or everything to lose depending on whether or not they choose to reinvent themselves to support alternative energy or stubbornly decline alternative energy to further pursue Earth's dwindling oil supply. Let's take a look at how oil businesses think and what drives their way of thinking. The supply of oil and natural gas is on the decline, especially for American oil companies. The land in the United...
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...with the rate of the GDP. When the economy is going good, unemployment is usually low and wages normally increase. The stock market is usually effected with a big change, up or down, in GDP. Negative GDP growth plays a role in determining a recession, a period when real GDP falls for six months. “Real GDP does not always grow smoothly—sometimes it collapses suddenly, and the result is an economic downturn.” (O’Sullivan, 2014, p. 302). Sometimes this economic downturn can lead to a depression, a severe recession. Moderate contraction and expansion cycles are part of the normal economic system. Throughout history there have been many fluctuations in the GDP of the United States caused for various reasons such as drastic changes in the stock market, oil prices, world events, and wars. Some fluctuations have had more wide-spread, lasting effects than others. The Great Depression was the time from 1929 to 1933 when the real GDP took a nosedive, creating the “most severe disruptions to ordinary economic life in the United States during the twentieth century.” (O’Sullivan, 2014, p. 303). The effects of the Great Depression were felt throughout the world. In 1933, the United States GDP was sitting at -45.32%. The country was still with the grip of the Depression. Many things contributed to that dark time in our history...
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...Federal Trade Commission DEBORAH PLATT MAJORAS ORSON SWINDLE THOMAS B. LEARY PAMELA JONES HARBOUR JON LEIBOWITZ Maryanne Kane Charles H. Schneider Susan A. Creighton Lydia B. Parnes Luke Froeb William Blumenthal Anna H. Davis Nancy Ness Judy Maureen K. Ohlhausen Donald S. Clark Chairman Commissioner Commissioner Commissioner Commissioner Chief of Staff Executive Director Director, Bureau of Competition Director, Bureau of Consumer Protection Director, Bureau of Economics General Counsel Director, Office of Congressional Relations Director, Office of Public Affairs Director, Office of Policy Planning Secretary of the Commission Report Drafters and Contributors Louis Silvia, Assistant Director, Bureau of Economics David Meyer, Bureau of Economics Sarah M. Mathias, Office of General Counsel Policy Studies Michael S. Wroblewski, Assistant General Counsel Policy Studies Phillip L. Broyles, Assistant Director, Bureau of Competition J. Elizabeth Callison, Bureau of Economics Jeffrey Fischer , Bureau of Economics Nicolas J. Franczyk, Bureau of Competition Daniel E. Gaynor, Bureau of Economics Geary A. Gessler, Bureau of Economics James F. Mongoven, Bureau of Competition John H. Seesel, Associate General Counsel for Energy Christopher T. Taylor, Bureau of Economics Michael G. Vita, Assistant Director, Bureau of Economics Anthony G. Alcorn, Bureau of Economics Sarah Croake, Bureau of Competition Madeleine McChesney, Bureau of Economics Guru Raj, Bureau of Competition Natalie Shonka...
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...Malaysia into a high-income nation ,and change the country's main productivity from the agricultural to the Industrialization by 2020. The Economy transformation programme is follow a quite different way from the past to develop the economy . This programme planning to focus on the core development area : the 12 national key economic areas(NKEAs) ,including oil gas and energy ,palm oil and rubber, financial services,tourism,business service,electrical and electronic,wholesale and retail ,education,healthcare , Communications Content and Infrastructure; Agriculture; and Greater Kuala Lumpur/Klang Valley.which are choose from the Malaysia' s advantage industry and the future potential industry.those key economic areas will bring a huge amount of profit contribute to Malaysia 's economy ,and those areas will be acquired the public investment and government support in prior。Besides,those Key economic area will be get policy reforms such as the remove the economic competition barriers and market liberalization .This program will involve the deliberate choices and trade-offs. Prioritize investment in key economic sectors means less investment in other areas. To bring about meaningful change for the country, the selection of key economic sectors must really have a real impact on the resource. the concept of prioritize is include other government assistance such as the cost of operations and the specific areas of policy and regulatory changes in the economic field. If the economic...
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...technologically powerful economy in the world, with a per capita GDP of $49,800. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many...
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...Technology Ethanol in Brazil Team A I. Introduction 3 II. Brazil 4 a. Short history 4 b. Brazil during the oil crisis in the 70’s 6 III. Ethanol as bio-fuel 7 a. Extraction process 7 b. Energetically self sufficient ethanol plants in Brazil 8 c. Energy from Ethanol 9 d. Flex-Fuel Vehicles 10 IV. Economic Effects of Ethanol as Bio-Fuel 10 a. Brazil not endangered by a new oil crisis 10 b. Export 12 c. Vertical industries 13 d. Environmental benefits 14 V. Ethical and Social Implications 15 a. A market not dominated by oil barons 15 b. Independent economy 16 VI. Brazil in a global economy and ethanol in the US 18 a. Future of ethanol as bio-fuel in Brazil 18 b. Ethanol in the United States 19 c. E85 21 VII. Conclusion 22 VIII. Works Cited 23 I. Introduction Fuel, at its simplest, makes us go. It is a necessity to modern day life. Even if everyone were to walk, rather than drive, there would be a need for it. This is one thing that is in common around the world. The dependence on oil based gasoline has many of the most powerful countries forking out quite a bit for their fuel. This is, of course, the case in the United States. There is no doubt that this country needs an alternative fuel, or to cut back on its use of the current fuel. However, because we are so dependent at this time on oil based gasoline and other fuels, Americans tend to be a bit hesitant of truly switching over to some of the other products...
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