...OPEC OIL IN 2010: ECONOMIC EVENTS, TRENDS IN DEMAND AND SUPPLY AND IMPACT ON PRICES Etuwat James J.O., American University of Leadership, 2012 1.0 INTRODUCTION This submission is on an organization known by its acronym OPEC but its full name is Organization of the Petroleum Exporting Countries. The write up seeks to identify economic events related to 2010 that have influenced the trends of the supply and demand of OPEC oil and the impact of these events on oil prices. My focus will be on the period of 2010 and to an extent prior to that year. According to their website (OPEC 2012) , the Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization and was created in the Iraq capital of Baghdad after endorsement of accord in 1960 by the founding members, Kuwait, Iraq, Saudi Arabia, Islamic Republic of Iran and Venezuela. Others came in later in alphabetical order: Algeria (1969), Angola (2007), Ecuador (1973), Gabon (1975), Indonesia (1962), Libya (1962), Nigeria (1971), Qatar (1961), United Arab Emirates (1967). However, Ecuador deferred its membership in the period December 1992 to October 2007, Gabon ceased its attachment in 1995. Indonesia shelved its commitment from January 2009. At the moment, OPEC has Member Nations. OPEC had its head office in Geneva, Switzerland, for five years since its creation but transferred Vienna, Austria in 1965. The governing charter of OPEC differentiates between the Founder Members and Full Members...
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...of potato. Cambridge: Cambridge University Press, 1985:250 20. Mancini F. Il problema della alimentazione maidica. Ricerca Sci 1954:24;53 21. Guggenheim KY. Paracelsus and the science of nutrition. J Nutr 1993;123:1189 22. McCollum EV. A history of nutrition. Boston: Houghton Mifflin, 1957 23. Willet WC, Sacks F, Tricopoulou A, et al. Mediterranean diet pyramid: a cultural model for healthy eating. Am J Clin Nutr 1995;61(suppl):1402S Nutrition Transition and Global Dietary Trends Adam Drewnowski, PhD From the Departments of Epidemiology and Medicine and the Nutritional Sciences Program, University of Washington, Seattle, Washington, USA Poverty and wealth have profound effects on the global diet. Whereas chronic undernutrition results from poverty, economic growth gives rise to what has been called the nutrition transition.1,2 As incomes rise and populations become more urban, diets high in complex carbohydrates and fiber give way to more energydense diets that are higher in sugar and fats.1,2 These global dietary trends are accompanied by a demographic transition that is a shift...
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...Oil prices to average $33/barrel on low demand: Moody's Business Standard, 22 January 2016 Increased supply of oil from Iran and concerns over demand growth in countries like India and China will drive oil prices yet lower in 2016 as output vastly exceeds consumption, Moody's Investors Service has said. The rating agency estimates crude oil prices to average $33 per barrel in 2016, $10 lower than its previous estimate and expects rates rising by $5 a barrel each in 2017 and 2018. "We are reducing our oil price estimates in light of continuing oversupply in the global oil markets, with Iran poised to add more than 500,000 barrels per day (bpd) to global supply while demand growth remains tepid," Moody's said in a statement. Stating that it has adjusted its view downward for the likely range of prices, the rating agency said it saw "a substantial risk that prices may recover much more slowly over the medium term than many companies expect, as well as a risk that prices might fall further." "Even under a scenario with a modest recovery from current prices, producing companies and the drillers and service companies that support them will experience rising financial stress with much lower cash flows," it said. Oil cartel OPEC and many non-OPEC oil producers continue to produce without restraint as they battle for market share, and the addition of Iranian oil to the market in 2016 will offset or exceed a roughly 500,000 bpd decline in the US production, it added. ...
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...ExxonMobil MGT/521 Management Profesor Clance Doelling, MBA, BSME May 28, 2012 Introduction ExxonMobil is recognized as one of the world’s prominent oil and gas companies. They control market products and facilities nationwide. ExxonMobil is involved in marketing, gas, and oil exploration, transportation and production in approximately 200 countries. They manufacture aromatics, petrochemicals, polyethylene, olefins, and polypropylene plastics (ExxonMobil, 2012). ExxonMobil provides services and products under brands names Mobil, Esso, and Exxon. ExxonMobil is recognized as one of six of the largest oil refineries in the world. They own subsidiaries, such as the imperial oil limited in Canada and the sea river maritime a petroleum shipping company. The company is divided into different operating categories, such as upstream, downstream, and chemical. ExxonMobil has been successful because of their adaptation to change, its diversity, and desire to eliminate barriers. To remain successful in every aspect of the oil industry they must be at the leading edge of the competition. For this to be possible ExxonMobil must require the corporations operational, financial, human, and technological resources be evaluated frequently and used wisely. ExxonMobil makes every effort to improve productivity through learning, implementing best practices, sharing, and improving efficiency. ExxonMobil also strives to achieve superior operating and financial results as they adhere...
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...Strategic Management Case Analysis: Southwest Airlines Southwest Airlines Co. (Southwest) is often cited as a success story in terms of strategic management. Southwest is a passenger airline that provides scheduled air transportation in the United States. Primarily, the company offers passengers low-fare, point-to-point air transport services in 72 cities in 37 states all throughout America (MarketLine, 2012). Southwest is headquartered in Dallas, Texas, and has about 45,392 employees as of FY2011. For FY2011, the company generated revenues of $15.658 billion, increasing by 29.4% over FY2010 (MarketLine, 2012). Southwest reported net profit of $178 million in FY2011. It must be noted that the airline industry is famed for its cut-throat competitiveness. However, since its inception in 1971, Southwest has been able to steadily rise to the top of airline rankings due to its Low Cost Leadership strategy (Muduli & Kaura, 2011); Box & Byus, 2009). Southwest also consistently offers on-time arrival that, combined with low-priced fares, makes it highly favorable for passengers. Southwest is able to achieve its strategy by using a linear, point-to-point network and does not have an airport hub (Tierney & Kuby, 2008). As a result, the company’s aircraft are seldom idle while its competitors spend prolonged idle time while passengers switch planes at the hub (Tierney & Kuby, 2008). Because of the impact of this strategy on passengers and the industry as a whole, competitors tend to...
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...MICROECONOMICS TERM PAPER: AN OVERVIEW OF THE CRUDE OIL INDUSTRY Group 3: ASEEM ROHATGI | PGP 14 -010 | DHEER VORA | PGP 14 -015 | KARANVIR SIDANA | PGP 14 -025 | PURBASHISH GANGULY | PGP 14-046 | SIDDHI AGARWAL | PGP 14 -067 | SPREHA KANIKA | PGP 14 -069 | THE CRUDE OIL INDUSTRY Crude oil industry is the largest industry in the world in terms of dollar value. Crude oil or petroleum satisfies almost 33.6% of the world energy needs. It is also the most traded energy resource in the world. The demand side factors are guided by the energy needs of the world which is still dependent on non-renewable sources, while supply is determined by oil rich countries. The prices are fluctuating owing to influence of the spot market. Trends in Demand An above average GDP growth in non OECD countries has significantly pushed the demand for all types of energy in an upward direction. Where the consumption of energy by OECD countries has remained steady with the growth rate of 0.9%, the non-OECD nation’s growth rate reached 5.5% in 2010. Even though there has been a significant upsurge in all types of energy, oil still remains the world’s leading fuel. In the current scenario, where the global oil consumption is surging, the production is unable to match such high growth. In the year 2011, the demand grew by 3.1% whereas the increase in supply was only for 2.1%, attributing to the implementation of OPEC production interruptions since late 2008. Therefore the unmatched...
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...Oil Alternatives Examine the changing importance of three energy alternatives to oil [20 Marks] 1200 words. Correct citations. Oil has been an important resource for humanity for centuries. It is easily accessible and efficient and over time has been extremely versatile in its uses. Today oil is used for fueling cars, cooking food, cosmetics, lubricants, paintings, organic chemistry, etc. For a long time oil has been the primary and main provider of energy, but due to increasing environmental effects, scarcity, and global inflation, it seems as if it will not last much longer. This essay will highlight the growing importance of three alternatives of oil that may rise to prominence in the future: algae biofuel, nuclear energy, and hydroelectric power. The first alternative that will be discussed is algae biofuel. In essence algae biofuels are the same as normal fuels except that the components of the fuel are organic and biological rather than fossil fuel based. Production is caused through a series of chemical reactions and is nontoxic and renewable. Algae sources can be re-replaced through more farming. The standard production method consists of planting lots of algae pods and letting them interact with the sun and bacteria to create oil. (Howstuffworks) Although this method releases a lot of CO2 it is all taken back again through growing more algae. This is of the many advantages of algae biofuel. Firstly its production yield far surpasses that of other variations...
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...Kevin Keller-Goralczyk refinpb@yahoo.com Research Paper: Trends Upend the Global Energy Industry Recent history has shown energy commodities to be a fairly unstable industry, and petroleum products are certainly no exception as they dominate the global marketplace. The factors affecting supply around the world are almost innumerable, ranging from political stability to exhausting reserves. At the same time, demand for petroleum based energy has become very inelastic in the modern world, and its supply has at times both propelled and suppressed economic growth. When these two realities clash, it is sure that a shortage of supply ultimately brings one certain result: skyrocketing prices. At the heart of this circumstance is the issue of security, and its associated effects on economies and living standards often bring it to the forefront of political stages around the industrialized world. The gravity of this reality is so substantial that even forecasted supply can have dramatic effects on the market. Anxiety and speculation over oil and gas futures cause prices to rise and fall exaggeratedly, creating a perilous game of long and short for money managers willing to take the risk. Today, the market is no less volatile. The most recent developments are raising hopes that energy security is becoming a worry of the past for the largest consumers around the world. The growth of global energy demand has all but come to a grinding halt, a result of economic and social circumstances...
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...complex organization like General Motors? Strategic decision making is often met with cognitive biases that are formed around prior victories or defeats. From the Chevy Volt case, we can see that GM is a large complex organization and has a lot of processes to make any decision in changing their strategic plan. Moreover, they sticked to the past failure that they had experienced. Therefore, they moved too slow and missed the opportunity to change or adapt themselves to the external trend or a better opportunity. The nature of strategy made was based on the following factors • Increase in oil price • Limit carbon emission go green • The cost of manufacturing lithium ion batteries was falling 2. What trends in the external environment favoured the pursuit of the Chevy Volt project? Trends included increases in oil prices :-Gas price was increasing sharply because of growing demand in developed countries including China and India -Global Warming become a significant concern so people trend to use the car which produce less Carbon Dioxide. -The cost of Manufacturing lithium ion batteries was falling and new technology make them more powerful, competitive use of battery technology for fuel efficiency. -Demand for fuel efficient car like Prius (Toyota) that utilize new battery technology shows the customer demand for fuel efficient cars 3. What impediments to pursuing this project do you think existed within GM? Cost is one of the most important hurdles in pursuing...
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...in 2020 Outlook for the Gulf and the Global Economy A report from the Economist Intelligence Unit Sponsored by the Qatar Financial Centre Authority The GCC in 2020: Outlook for the Gulf and the Global Economy About this research T he GCC in 2020: Outlook for the Gulf and the Global Economy is a white paper written by the Economist Intelligence Unit and sponsored by the Qatar Financial Centre (QFC) Authority. The findings and views expressed in this briefing paper do not necessarily reflect the views of the QFC Authority, which has sponsored this publication in the interest of promoting informed debate. The Economist Intelligence Unit bears sole responsibility for the content of the report. The author was Jane Kinninmont and the editor was Rob Mitchell. The findings are based on two main strands of research: l A programme of in-depth analysis, conducted by the Economist Intelligence Unit, which drew on its own long-term forecasts and projections for the six GCC economies, along with other published sources of information. l A series of interviews in which economists, academics, and leading experts in the development of the GCC were invited to give their views. In some cases, interviewees have chosen to remain anonymous. Our sincere thanks go to all the interviewees for sharing their insights on this topic. March 2009 © The Economist Intelligence Unit Limited 2009 The GCC in 2020: Outlook for the Gulf and the Global Economy Executive summary O ...
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...the company, the Horizontal analysis, Vertical analysis and also the trend analysis. Finally, the report will provide conclusions and recommendations. This report was based on the balance sheet, income statement and some professional information from BEACH ENERGY LIMITED. Introduction BEACH ENERGY LIMITED is a long established oil and gas exploration and production organization. The company is based on the Adelaide, South Australia and Beach Energy Limited (ASX: BPT) is a creation of the long-oil and gas exploration and production companies. The company is headquartered in South Australia in Adelaide, through balanced global portfolio of tenements held by the oil and gas reserves and ongoing exploration projects. BEACH ENETGY LIMITED is the major Australian company and was established in 1961. Beach Energy, original beach Petroleum, founded in the early 1960s, registered by the late Dr. Sprigg, a highly regarded Australian oilman, geologist, explorer and environmental experts. With the election of a new board of directors in the 1990s, the company has returned to its focus on its traditional role of the oil and gas exploration. Beach what the board of directors as a comprehensive exploration and production tenements and exciting mix. The corporate goal of BEACH ENERGY LIMITED is to domestic and international recognition as an innovative and successful explorer, discoverer and development of oil, gas and energy resources; industry peers...
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...After the Civil War, a wave of industrialization introduced new economic trends to America; the growth of railroads allowed for expanding markets and easy transportation, and the use of steel, electricity, and other resources created a foundation that was able to foster a Second Industrial Revolution. The different regions of America were affected in various ways: specifically, this new industrial period and trend of market expansion impacted the Northeast/Midwest and the South both differently and similarly. Between 1865 and 1900, the Northeast/Midwest regions became purely industrial, establishing a hub for great wealth and industry in America, whereas the South, which undoubtedly also had moments of industrial prosperity, experienced a more...
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...it contributes the world economy with a gross output of over US$7 trillion, employing 11% of globe’s workforce, forming 11.5% of global GDP. While in Brazil, White (2006) found that the industry contributes 3.2% of the total country revenue in year 2005. According to World Tourism Organization (WTO), due to the devaluation of American Dollar against the Brazilian Real has made a favorable trend in International tourist arrival to Brazil to grow dramatically in 2007 and in early 2008. In spite of this, statistic in Table 1 shows that revenue had risen from USD 4.3 billion in 2006 to USD 5.7 billion in 2008. Table 1 Brazil International Tourism Arrivals 1995-2011 Year | International tourist arrivals (x1000) | Annual growth (%) | Total revenue (millions USD) | Annual growth (%) | 1995 | 1,991 | - | 972 | - | 2000 | 5,313 | - | 1,810 | - | 2003 | 4,133 | - | 2,479 | - | 2004 | 4,794 | 16.0 | 3,222 | 30.0 | 2005 | 5,358 | 11.8 | 3,861 | 19.8 | 2006 | 5,019 | -6.3 | 4,316 | 1.1 | 2007 | 5,025 | 0.1 | 4,953 | 14.8 | 2008 | 5,050 | 0.5 | 5,780 | 16.7 | 2009 | 4,802 | -4.9 | 5,305 | -8.2 | 2010 | 5,161 | 7.5 | 5,919 | 11.6 | 2011 | 5,400 | 4.6 | 6,775 | 14 | (Source:World Tourism Organization 2011) However this favorable trend changed in late 2008 and 2009 when both visitors and revenues fell as a result of the global financial crisis and economic recession that has made tourism industry severely affected globally. This economy recession fact is...
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...controlled the mainframe market (hardware, software and applications). Presently, IBM has the reputation as an enormous, innovative information technology company (Blankenhorn, 2005). Their reputation is no longer based on control but the quality is experienced by customers. Their expansion has reached not only mainframe customers, but customers and businesses across the entire IT market. It is the opinion of the customers which influence how the company is perceived. Politcal - Conflict in Iraq and Afghanistan has a negative impact on the U.S. economy. The wars significantly impact the U.S. government budget (Hubpages, 2012). It was believed the end results of the conflict would be a model of democracy in the Middle East and controlled oil prices. Some argue the money could have been used to combat...
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...analysis of a particular industry and thereby, prepare a project report on the chosen industry. The objective behind preparing this project report is to relate the management subjects taught in the classroom to their practical application and to get insight into practical situation. Petroleum Industry is considered to be the back bone of an economy because this is the main source of energy till date. Any economy around the world would fail to advance a single step in the absence of Petroleum Industry. The Petroleum Industry is divided into two segments namely Upstream Sector consisting of Exploration and Production of crude oil while the Downstream Sector consists of Refining, Processing, Storing, Marketing and Distribution of petroleum products. The most important part of the Petroleum Industry is the Petroleum Refining Industry which refines the crude oil to convert it to the usable fuel. It also derives many derivative products out of the crude petroleum like natural gas, naphtha, etc which can be used in various ways. Hence, for these reasons, we have chosen the Downstream Sector of the Indian Petroleum Industry for our Macro Analysis project. As this is a Macro Analysis project, we have concentrated on the Indian Petroleum Industry and that too focusing on the Downstream Sector for our study and not gone into the in depth analysis of the various players and their functioning. This project is prepared for academic purpose and inspite of our best efforts there may...
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