Premium Essay

The Oil Sector

In:

Submitted By Bebo321
Words 1127
Pages 5
Earnings season is a busy time for the stock market. And the January/February season--when most companies report fourth quarter results--is the busiest of them all. That's because companies typically offer a look at the year ahead, shedding some light on new themes to consider.

There's a handful of companies I watch more carefully than others; I see these firms as key "tells" for the energy market. One such firm is oil services giant Schlumberger (NYSE: SLB). The reason I watch this stock so carefully and listen to all of management's conference calls and presentations is that Schlumberger has its hands in every region of the world and in every conceivable type of oil project currently underway. If you're looking for the 35,000-foot view of the oil market, Schlumberger is your best bet.
The era of cheap oil and natural gas is over and we're in the middle of one of the most powerful bull market cycles of the 21st century. There are no major pockets of untapped "easy" oil left to be exploited. In other words, the easy and cheap-to-recover onshore oil fields are mature and, for the most part, already seeing declining production.

The world's new potential growth plays in oil: deepwater reserves, Artic reserves, oil sands and other technically more-difficult-to-produce reserves. For such resources to be developed, crude oil prices will need to average well north of $55 per barrel.

There's a distinction to be made between the idea that the world is running out of oil and the concept of the end of easy oil. The world will never truly run out of oil; the last barrel of oil will never even be produced. The simple fact is that production from a reserve tops out long before that reserve is even halfway produced. Just because there's a good deal more oil left in the ground doesn't mean you can produce it quickly or even that it's economical to do so.

The

Similar Documents

Free Essay

Oil Sector

...1 .STUDY OF VEGETABLE OIL SECTOR 1.1 Introduction Food sector takes its source from the beginning of the human life so it has an agelong past, and it keeps its existance. The acceleration of food consumption rises in connection with the growing world population and that threats the adricultural activities and the foodstuff potentials. To get one step forward in this market; while the searches for new technologies and new methods have been developed to increase the productivity, some of them are trying to be seperated from this competition by different alternatives like organic agriculture. With the fluctuation in the market, especially in raw materials the challenge is getting tougher. One of these raw materials are the oilseeds that contains sunflower, corn, olive, soybean. In vegetable oil business even the variations don’t be observed, the comsumption is growing up. In the world market the vegetable oils are seperated into three groups as olive and nut, sunflower and corn, and cotton. The agriculture characteristics and production types change from one country to another. For example in USA and Italy soybean is the major vegetable oil but in Turkey and Spain sunflower takes the first place. Besides; USA, Brasil and China are leading the oilseed production in all over the world. In Turkey the oils that has produced are mostly from the sunflower(nearly 50%). Nearly 35% of the vegetable oils are produced from the cottonseed and remains are produced...

Words: 3908 - Pages: 16

Premium Essay

Palm Oil Sector

...11 March 2011 Food Producers Palm Oil – Extracting Value Rachel Galvez +44 20 7444 0679 rachel.galvez@religarecm.com Palm Tree Nursery Palm Oil Sector – Extracting Value We launch coverage on the London listed Palm Oil sector with a positive view as we believe the industry will continue to grow and current production will struggle to meet global demand. In our view, companies (such as the ones under our coverage) that have; agricultural land rights in equatorial regions (where oil palms thrive), industry expertise, experienced management teams, and access to capital, have defensible competitive advantages and are likely to experience earnings growth and margin expansion going forward. New Britain Palm Oil (NBPO LN, BUY, 1,197p price target, 23% upside) NBPO produces sustainable and traceable Palm Oil in Papua New Guinea (PNG), which it sells to European markets. We believe the company’s competitive advantages, (the traceability and sustainability of its oil, above industry average yields, land and other assets, management team and industry relationships) will enable it to increase sales, expand margins and maintain a market leading position going forward. Asian Plantations (PALM LN, BUY, 345p price target, 29% upside) Source: MP Evans Palm Tree Plantation Asian Plantations is involved in the acquisition and development of Palm Oil plantation land in Sarawak, Malaysia. We believe the company will be able to execute on its strategy (acquiring undeveloped land...

Words: 26936 - Pages: 108

Premium Essay

Global Recession, Oil Sector and Economic Growth in Nigeria

...Volume 01 Issue 06 GLOBAL RECESSION, OIL SECTOR AND ECONOMIC GROWTH IN NIGERIA. BY S. O. OLADIPO (M.sc) Department of Economics and Accounting Bells University of Technology, Ota. E-mail address: giftsamniyo@yahoo.com AND PROF. J. O. FABAYO Department of Economics, Obafemi Awolowo University, Ile-Ife ABSTRACT This study investigates global recession and the oil sector, based on its effects on economic growth in Nigeria. No doubt the global economy has been experiencing some disturbances. Major economies of the world have been affected and so has the major sectors of these economies especially the ones that has a direct bearing with international trade been affected. The oil sector particularly has been one of the hit. For a country like Nigeria whose international trade is majorly in oil, the effect has become an issue. Empirical analysis using the Ordinary Least Square (OLS) reveals that there was a negative relationship between GDP and oil produced (domestic consumption and export) which is significant at 5% lever of significance i.e. (P < 0.05). The result also showed that there exists decline in the oil sector due to the global recession despite all measures given by government to curb it effects. It was Jan 2012 recommended that the federal government needs to deregulate the sector for efficient performance, and also come up with more rigorous policies that will reduce this effects on the real sector most especially the oil sector whose contribute the largest portion of...

Words: 5684 - Pages: 23

Premium Essay

A State Intervention Approach to International Trade and the Right to Health in the Crude Oil and Natural Gas Sector of Nigeria

...the Crude Oil and Natural Gas Sector of Nigeria Table of Contents A State Intervention Approach to International Trade and the Right to Health in the Crude Oil and Natural Gas Sector of Nigeria 1 Chapter 1 General Introduction 6 1.1. Background 6 1.1.1. Definitions 14 1.1.2. Trade Liberalization 14 1.1.3. International Trade Law 15 1.1.4. Right to Health 16 1.1.5. Human Right Laws 17 1.2. Research Questions 18 1.3. Justification of the Research 21 1.4. Research Objectives 30 1.5. Research Methodology 31 1.6. Research Structure 37 Chapter 2 Theoretical Framework and Literature Review 40 2.1. Introduction 40 2.2. International Trade Rules and Protection of People’s Right to Health 41 2.2.1. Sources of International Trade Rules 41 2.2.2. Trade Liberalization and the Protection of the Right to Health 44 2.3. Scope of the Right to Health 54 2.4. Brief Overview of State Intervention Theory 59 2.5. States Duty towards the Fulfilment of the Right to Health 65 2.6. Legislative and Institutional Regulations Protecting the Right to Health in Nigeria 73 2.6.1. The International Covenant on Economic Social and Cultural Rights (ICESCR) 1966 76 2.6.2. The African Charter on Human and People’s Rights (ACHPR) 78 2.6.3. The International Health Regulations, 2005 81 2.6.4. The Nigerian Constitution 82 2.7. Conclusion 83 Chapter 3 State Intervention in the Negative Effects of Trade in Crude Oil and Natural...

Words: 78399 - Pages: 314

Premium Essay

Economy Growth in Malaysia

...econjournals.com Effects of Oil Price Shocks on the Economic Sectors in Malaysia Mohd Shahidan Shaari School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, Malaysia. Email: shahidanshaari@unimap.edu.my Tan Lee Pei School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, Malaysia. Email: pui_tlp@yahoo.com Hafizah Abdul Rahim School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, Malaysia. Email: hafizahrahim@unimap.edu.my ABSTRACT: This paper aims to examine the effects of oil price shocks on economic sectors in Malaysia. A unit root test was conducted, in which data were shown to be non-stationary in all levels, and stationary in the first difference for all variables. The co-integration model was applied, and the results indicated that one co-integrating equation exists, suggesting the long-term effects of oil prices on the agriculture, construction, manufacturing, and transportation sectors. Finally, Grange causality test was performed, and the results implied that in Malaysia, oil price shocks can affect agriculture, similar to Hanson et al. (2010). Oil price instability also influences the performance of the agriculture sector, contrary to the results of Alper and Torul (2009). In addition, the construction sector was found to be dependent on oil prices. Therefore, the current study has an important implication for the Malaysian government in formulating policies on oil prices. The Malaysian government...

Words: 3901 - Pages: 16

Premium Essay

Diversification of Income Resource in Saudi

...Diversification of Income Resource in Saudi Arabia as Result Decrease Oil Price Names Institutional Affiliation Abstract The main objective of this paper is to study the idea of diversification of the income resource of Saudi Arabia due to the effects of the instability in the oil market. Saudi Arabia as a country has developed due to its oil source which makes it the kingpin in the world oil market. Approximately 85% of the country revenue is earned from the oil economic sector. This is a sign of over reliance on the oil market making the country economy vulnerable because of changes of oil prices. The instability of the oil prices in the global market has signaled the need for economic diversification to build a stable economy (Shoult, 2006). This paper discusses the possible ideas which can be used to up bring diversified economy which does not depend on a single or few sectors of income generation. Introduction Saudi Arabia is a country that is located in the western part of Asia. It is the world largest producer and exporter of petroleum products. The economy of Saudi Arabia has in the past been pivoted on the oil as source of revenue due to the fact that the strength of the economy, foreign investor’s ideas and development of the infrastructures were all dependent on the oil. Fluctuations in the oil prices and demand in the world market has greatly affected the economy of Saudi Arabia and well as a source of livelihood to the majority of the citizens. The country...

Words: 1429 - Pages: 6

Premium Essay

Effect of Deregulation of Pol Products

...INTRODUCTION The recent moves of the government to gradually deregulate the Petroleum, Oil and Lubricants(POL) sector in India as part of the agenda of ‘neo-liberal reform’ has generated discontent among the people. In the run-up to complete deregulation, there are instances of increase in the domestic price of POL products that are proportionately more than the rise in their international prices. In the most recent instance (of 13th September, 2012), the diesel price was raised by Rs.5 per litre at one go, even without any rise in international prices. These steps are being taken to eliminate the government subsidy on these products in a step-by-step manner. Deregulation of the POL sector is bound to eliminate the direct or indirect subsidies completely. And reduction in subsidy, according to the government, is the need of the hour in order to reduce the fiscal deficit as proportion to GDP. Deregulation is also necessitated in the current neo-liberal environment because if the government keeps subsidizing the public sector owned oil marketing companies (OMCs) like Indian Oil, Hindustan Petroleum and Bharat Petroleum, then the private companies like Reliance and others would not get a ‘level playing field’ and they would not be able to compete in price. In this way, the present subsidy regime indirectly restricts the private players from entering the oil marketing sector. Hence, if the priorities of the government in power are the reduction of subsidies and ensuring...

Words: 3693 - Pages: 15

Premium Essay

Oil and Gas

...Turn risks and opportunities into results Exploring the top 10 risks and opportunities for global organizations Oil and gas sector Contents Introduction Executive summary Part 1: Risks Ernst & Young sector risk radar The top 10 risks 1. Access to reserves: political constraints and competition for proven reserves 2. Uncertain energy policy 3. Cost containment 4. Worsening fiscal terms 5. Health, safety and environmental risks 6. Human capital deficit 7. New operational challenges, including unfamiliar environments 8. Climate change concerns 9. Price volatility 10. Competition from new technologies 1 3 6 7 8 8 10 12 14 16 18 20 21 22 23 24 25 26 26 28 29 30 32 34 36 38 39 40 42 Part 2: Opportunities Ernst & Young opportunity ladder The top 10 opportunities 1. Frontier acreage 2. Unconventional sources 3. Conventional reserves in challenging areas 4. Rising emerging market demand 5. NOC-IOC partnerships 6. Investing in innovation and R&D 7. Alternative fuels, including second generation biofuels 8. Cross-sector strategic partnerships 9. Building regulatory confidence 10. Acquisitions or alliances to gain new capabilities Methodology Introduction While risk continues to dominate the business agenda, competition is also becoming just as dominant a feature. Market volatility, pricing pressure, variations in market performance, demanding stakeholders — all have contributed to a global economy that encourages competitive drive. And with that drive comes...

Words: 17439 - Pages: 70

Premium Essay

Potential for Resource Curse in Uganda

...Methodology & Organisation of the paper 3 Methodology 3 Organization of the paper 3 Section 2: Potential Pitfalls of oil extraction in a developing country 4 2.1.1 Dutch Disease effects in the resource curse 4 2.1.2 Governance related aspects of the resource curse 4 2.1.3 Environmental and public health related effects of the resource curse 5 2.1.4 Institutions 5 2.2 How do these points relate to management in countries? 6 2.2.1 Management of oil discovery and exploitation in Norway 6 2.2.2 Management of oil discovery and exploitation in Nigeria 6 2.3 Is Uganda's current economy at risk of being cursed? 6 Section 3: Uganda Oil & Gas Policy 8 3.1 Conceptualizing the Oil & Gas Policy Framework 8 3.1.1 Linkages of the National Oil and Gas Policy to the Country’s key policy frameworks 8 3.1.2 Using Finite Resources to Create Lasting Benefits to Society 9 3.1.3 Transparency and Accountability. 9 3.1.4 Competitiveness and Productivity. 9 3.1.5 Capacity and Institution Building 10 3.2 Issues arising in the Oil & Gas Policy 10 3.2.1 Institutional Development 10 3.2.2 Size of oil reserves 10 3.2.3 Oil and Gas revenue management 10 3.2.4 Investment promotion 11 3.2.5 National Participation 11 3.2.6 Public anxiety and expectations 11 3.2.7 Contribution of oil and gas resources to the energy mix 11 3.2.8 Impact of oil and gas activities 12 3.3 Crosscutting Issues 12 3.3.1 Impact on national economy 12 3.3.2 Impact on Land Ownership...

Words: 8574 - Pages: 35

Premium Essay

Nnnnnnnnn

...Oil India had about 5.6 billion barrels (890,000,000 m3) of proven oil reserves as of January 2007, which is the second-largest amount in the Asia-Pacific region behind China.[23] Most of India's crude oil reserves are located in the western coast (Mumbai High) and in the northeastern parts of the country, although considerable undeveloped reserves are also located in the offshore Bay of Bengaland in the state of Rajasthan. The combination of rising oil consumption and fairly unwavering production levels leaves India highly dependent on imports to meet the consumption needs. In 2006, India produced an average of about 846,000 barrels (134,500 m3) per day (bbl/d) of total oil liquids, of which 77%, or 648,000 bbl/d (103,000 m3/d), was crude oil.[23] During 2006, India consumed an estimated 2.63 Mbbl/d (418,000 m3/d) of oil.[24] The Energy Information Administration (EIA) estimates that India registered oil demand growth of 100,000 bbl/d (16,000 m3/d) during 2006.[24] EIA forecasts suggest that country is likely to experience similar gains during 2007 and 2008. Sector organisation India’s oil sector is dominated by state-owned enterprises, although the government has taken steps in past recent years to deregulate the hydrocarbons industry and support greater foreign involvement. India’s state-owned Oil and Natural Gas Corporation (ONGC) is the largest oil company, and also the country’s largest company overall by market capitalisation. ONGC is the leading player in India’s upstream...

Words: 1204 - Pages: 5

Free Essay

Abdulla Saleh

...The Rentier State of Kuwait Prepared for DR. Marta M. Trynza By Group # 10 Mohammed Mal-allah Mohammed Hussein Saleh Al-Rashaid Mohammed Al-Hayyan Abdulla Al-Oraifan 16th of July 2012 Abstract Kuwait is state country used to get its income through sea activities like Pearl diving and trading with other countries like India through Families of traders. These families have provided the necessary tools for the country to survive and providing products and service that. After the discovery of oil in 1930s, the country has enjoyed a new source of income that would make the government independent from taking taxes the private sector. Currently, the state is having great resources of funds that would provide an easy life for the citizen, since the price of oil went on increasing through the last century. Until recently, 2008-2009 the price of oil has declined and it was a warning that the state is actually depending on oil too much. This paper I will discuss the rentier state aspects in Kuwait and the process that under gone to become one. By describing the both Public and Private with the Kuwaiti society. And finally, suggestion to mitigate the effect of the rentier effect on the Country. 1. Introduction Rentier state is an economic term used prevailed in the20th century. Describing the states which are dependent on external income and revenues originated from the process of selling abundant resources or renting. In our case, we will talk about Kuwait and...

Words: 4440 - Pages: 18

Premium Essay

The Impact of Multinational Companies a Case Study of the Energy Industry in Saudi Arabia

...rapidly. With increased international development and cooperation, the MNCs have been able to create such a network that their budgets, organizational structure and influence on the world trade stage rivals many nations [ (UN Conference Proceedings, 2006) ]. With their immense economic power and strong political connections and the fact that globalization is seen as a “Business driving phenomenon”, MNCs are in a strong position to influence the economies of the countries they operate in [ (Nourafchan, 2011) ]. Today, MNCs not only impact the trade and the economy of the nation in which they operate but also impact the social and cultural aspects. In the world energy market dominated by oil, the role of multinational companies in the oil exploration and supply has been tremendous. As oil became the most important commodity in the energy market, the...

Words: 3164 - Pages: 13

Premium Essay

Uae Economy

...Economic and Social Report On United Arab Emirates List of Tables and Graphs LIST OF TABLES | Table | Page no. | 1.Macroeconomic Indicator | 7 | 2.Sectoral Contribution | 8 | 3.GNI over the years | 13 | LIST OF GRAPHS | Graphs | Page | 1.GDP Over Years | 6 | 2.Sector Wise Contribution(2005-09) | 9 | 3. Average retail rents/region Comparitive Hotel Occupancy Rates | 11 | 4. Comparitive Hotel Occupancy Rates GNI of UAE over the years | 11 | 5. GNI of UAE over the years | 14 | 6. GNI per capita of UAE over the years | 15 | 7. Unemployment Rate 2006-2012 | 16 | 8. Unemployment and UAE Nationals Participation in the labour market. | 17 | * 9. Inflation in UAE in recent times | 18 | * 10. Average Retail Rents/Region * | 19 | * 11. Current Account Balance of UAE 2004-2014 | 20 | Contents Topic | Pageno. | 1.Introduction | 4 | 2.GDP of UAE | 6 | 3.Factors affecting GDP | 6 | 4.Contribution of different sector | 8 | 5.GDP of UAE in 2013 | 9 | 6.Hydrocarbon Sector | 11 | 7.GNP of UAE | 13 | 8.Unemployment rate in UAE | 16 | 9.Implication of unemployment rate | 17 | 10.Inflation | 18 | 11.BOP | 20 | 12.Fiscal Policy | 21 | 13.Monetary Policy | 21 | 14.Analysis of exchange rate | 22 | 15.Recovery from global Recession | 23 | 16.Conclusion | 24 | INTRODUCTION Thirty years ago the United Arab Emirates was considered...

Words: 5738 - Pages: 23

Premium Essay

The Role of Agriculture in Nigeria’s Economic Growth

... Simeon Ehui Sector Leader, Sustainable Development Network World Bank Country Office, Nigeria (contact: sehui@worldbank.org) Marinos Tsigas U.S. International Trade Commission, Washington, DC June 28, 2009 Abstract Blessed with abundant land and water resources, Nigeria’s agricultural sector has a high potential for growth, but this potential is not being realized. Productivity is low and basically stagnant. Farming systems, which are mostly small in scale, are still predominantly subsistence-based and for the most part depend on the vagaries of the weather. Many agricultural policies have also been ineffective, either because they have been misguided, or because their impacts have been swamped by macro policies affecting inflation, exchange rates, and the cost of capital. Recognizing these challenges, the Federal Government of Nigeria has identified the modernization of the agricultural sector as a major priority. In this paper we have applied the Global Trade Analysis Project (GTAP) framework to estimate the growth potential of agriculture in Nigeria. Our results show that although a 1% percent technological progress in the oil sector gives the largest welfare benefits in dollar terms ($142.72 million), when we abstract for size several food and agricultural sectors have a value that is higher than that for the oil sector. Some subsectors in the agricultural sectors (e.g. cattle, fruit and vegetables) outperform some of the oil and manufacturing sectors in terms to return...

Words: 3958 - Pages: 16

Premium Essay

The World's Oil

...and World’s Oil Suppliers [Draft] February 21, 2014 History of Petroleum The world petroleum means literally rock oil. It was thought to be a completely different oil than that which comes from vegetable sources such as the olive, but modern research has traced its origin to the lipids (oil) of planktonic (free floating) plants and animals which live in brackish water such as blue-green algaes and foraminifera. The brackishness is essential because aerobic bacteria does not live in brackish water. Aerobic bacteria would decompose all of the organic matter. In brackish water the organic matter of the planktonic plants and animals sinks to the bottom and is incorporated in clay sediments which ultimately become sedimentary rocks. This is the origin of the oil shales (www.sjsu.edu). Today, petroleum or crude oil, is the most traded commodity in the world. It is the most important commodity because of its common use in everyday life. The cars we drive today heavily depend on crude oil refined products such as gasoline and motor oil. The plastic products we use daily are created using by-products of crude oil. Crude oil is essential to our daily life, therefore making it a very highly demanded commodity. Unfortunately, because of the world’s dependency on oil, an increase in oil prices has huge effects on everything. Food prices dramatically increase when there is a shift in oil prices. Transportation costs for transporting food increases with higher oil prices, resulting...

Words: 1600 - Pages: 7