Technological Power as a Strategic Dilemma: CO2 Capture and Storage in the International Oil and Gas Industry

2012 ◽  
Vol 12 (1) ◽  
pp. 8-29 ◽  
Author(s):  
Andreas Tjernshaugen
Keyword(s):  
Climate Change ◽  
Comparative Analysis ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Change Strategies ◽  
Gas Industry ◽  
Mitigation Option ◽  
Long Time ◽  
Oil And Gas Companies ◽  
And Storage

This article offers a comparative analysis of the emergence of CO2 capture and storage (CCS) activities and strategies in three multinational oil and gas companies. Exxon/ExxonMobil was first to make plans for a major, pioneering CCS project, but later pursued a relatively cautious strategy. In contrast, BP showed little interest in CCS up until 1997, but from that point on developed a particularly ambitious strategy. Statoil, meanwhile, has been relatively strongly involved in CCS activities for a long time. An explanatory framework with potential for wider application is developed, highlighting how the overall compatibility of CCS with oil and gas industry characteristics created a strategic dilemma for the companies. In explaining their responses, the article emphasizes the process towards institutionalization of CCS as a widely recognized mitigation option, and the three companies' different climate change strategies.

Industry: Turning the Titanic

2021 ◽  
pp. 119-154
Author(s):  
Deborah Gordon
Keyword(s):  
Climate Change ◽  
Greenhouse Gas ◽  
Oil And Gas ◽  
Self Regulation ◽  
Ghg Emissions ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Combat Climate Change ◽  
Oil And Gas Companies

Chapter 5 examines the structure and role of the oil industry and details the various actors that make up the industry. It argues that self-reported greenhouse gas (GHG) emissions are not comprehensive or trustworthy. There are too many ways that companies can game emissions reports. Different companies are surveyed to separate the leaders from the laggards. The investigation reaches beyond multinational and national oil and gas companies and touches upon industry actors in the wings: investors, industry advisers, traders, and certification agents. Efforts to establish industry benchmarks are laid out. The chapter recommends rethinking self-regulation and concludes with a challenging premise about whether the goal is to defeat or partner with the oil and gas industry to effectively combat climate change.

Sustainability trends in oil and gas

2019 ◽  
Vol 59 (2) ◽  
pp. 738
Author(s):  
Piers P. Tonge
Keyword(s):  
Climate Change ◽  
Business Models ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Company Strategy ◽  
Net Zero ◽  
Global Investors ◽  
Oil And Gas Companies

This paper addresses multiple examples of sustainability across the oil, gas and energy sectors, and relevance application to APPEA members. The sustainability of oil and gas companies is now a key issue for the financial and investment sectors. Investors’ concerns over environmental, social and governance (ESG) risks and business models that may destroy value are growing, with clear analogues from the coal sector. Companies need to maintain their focus on safety, social licence issues and compliance of human rights. Mainstream global investors are increasing pressure on companies to address the long-term risks associated with climate change, as investors look to reduce the carbon-emissions footprints of their equity portfolios. The oil industry is still largely reactive, and not perceived by investors and society to be a part of the climate change solution. Investor pressure to address climate change is driving change in oil and gas company strategy and sustainability activity. Companies need resilience and credible plans to reduce scope 1, 2 – and in the future scope 3 emissions – and to achieve the net zero objectives of the Paris Agreement. Investor and societal scrutiny on the oil and gas industry is likely to increase with plastics an area of growing focus, with implications for future oil and gas demand.

EBITDA and DACF multipliers as an indicator of investment attractiveness of domestic vertically integrated companies

2021 ◽  
Vol 20 (4) ◽  
pp. 718-752
Author(s):  
Oleg V. SHIMKO
Keyword(s):  
Oil And Gas ◽  
Stock Exchange ◽  
Oil And Gas Industry ◽  
Financial Economic ◽  
Consolidated Financial Statements ◽  
Gas Industry ◽  
Debt Burden ◽  
Fixed Assets ◽  
Settlement Agreements ◽  
Oil And Gas Companies

Subject. The article addresses the EV/EBITDA and EV/DACF ratios of the twenty five largest public oil and gas corporations from 2008 to 2018. Objectives. The purpose is to identify key trends in the value of EV/EBITDA and EV/DACF ratios of biggest public oil and gas corporations, determine factors resulted in the changes over the studied period, and establish the applicability of these multipliers for assessing the business value within the industry. Methods. I apply methods of comparative and financial-economic analysis, and generalization of consolidated financial statements data. Results. The study revealed that EV/EBITDA and EV/DACF multiples are acceptable for valuing oil and gas companies. The EV level depends on profitability, proved reserves, and a country factor. It is required to adjust EBITDA for information on impairment, revaluation and write-off for assets that are reported separately from depreciation, depletion and amortization costs, as well as for income or expenses arising after the sale of fixed assets and as a result of effective court decisions or settlement agreements. It is advisable to adjust DACF for income, expenses and changes in assets and liabilities, which are caused by events that are unusual for oil and gas companies. Conclusions. The application of EV/EBITDA and EV/DACF multiples requires a detailed analysis and, if necessary, adjustments of their constituent components. However, they are quite relevant in the context of declining profitability and growing debt burden in the stock exchange sector of the global oil and gas industry.

On Approaches to Taking into Account the Risks of Changing Climatic Conditions when Planning and Implementing Oil and Gas Projects

2021 ◽  
Vol 18 (1) ◽  
pp. 52-65
Author(s):  
P. N. Mikheev
Keyword(s):  
Climate Change ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Climatic Conditions ◽  
Qualitative Assessment ◽  
Physical Factors ◽  
Gas Industry ◽  
Climate Risks ◽  
The Impact

The article discusses issues related to the impact of climate change on the objects of the oil and gas industry. The main trends in climate change on a global and regional (on the territory of Russian Federation) scale are outlined. Possible approaches to the identification and assessment of climate risks are discussed. The role of climatic risks as physical factors at various stages of development and implementation of oil and gas projects is shown. Based on the example of oil and gas facilities in the Tomsk region, a qualitative assessment of the level of potential risk from a weather and climatic perspective is given. Approaches to creating a risk management and adaptation system to climate change are presented.

scholarly journals Iran’s Oil and Gas Legal Framework: from Exploration to Revolution

2019 ◽  
Vol 6 (1) ◽  
pp. 15-22
Author(s):  
Mahmoud Fard Kardel
Keyword(s):  
Comparative Analysis ◽  
Turning Point ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Legal Framework ◽  
Gas Industry ◽  
The Third ◽  
Second Period ◽  
Petroleum Oil

The main purpose of this article is to examine Iran’s legal and contractual framework for their petroleum, oil and gas industry. Basically, the legal and contractual framework of the Iranian oil and gas industry has been classified into three periods. The first period is from the exploration and discovery of oil in Iran to nationalisation (1901-1951), the second period is from nationalisation to revolution (1951-1979), and the third period is from revolution to the present day (1979-20016).Because each period has its own features and importance two articles will examine this topic. The first period (from exploration to nationalisation, 1901-1951), and second period (from nationalisation to revolution, 1951-1979), has been examined in this article with legal and comparative analysis, and the third period (1979-2016) will be covered in a later article.It should be mentioned that each contractual framework was a turning point regarding to opportunities and circumstances that they have been in that time and also each of those petroleum contractual regimes were a step toward to contractual framework evolution in Iran.

Assessment of Conflict Management in Niger Delta and Implications for Sustainable Development of Oil and Gas in Nigeria

2021 ◽  
Author(s):  
Humphrey Otombosoba Oruwari
Keyword(s):  
Conflict Management ◽  
Niger Delta ◽  
Oil And Gas ◽  
Ecological Factors ◽  
Oil And Gas Industry ◽  
Negative Effects ◽  
Gas Industry ◽  
Secondary Sources ◽  
Positive Elements ◽  
Oil And Gas Companies

Abstract Nigerian oil and gas industry have over the years witnessed incessant conflicts between the stakeholders, particularly the host communities in Niger Delta region and the oil and gas companies in partnership with the Federal Government. Conflict which is here defined as manifestation of disagreement between individual and groups arising from differing and mutually incompatible interests has both positive and negative effects depending on how it was managed. Managing conflicts is all about limiting the negative aspects. The study examined conflicts management in Nigeria oil and gas industry and how best the positive elements of conflicts can be maximally exploited for the mutual benefit of both oil and gas company and the host communities in Niger Delta. The study adopted the multidisciplinary approach, literature review, case study and relied on secondary sources using analytical method of data analysis. The study findings revealed that the major factors that precipitate conflicts between the oil and gas industry and host communities in Niger Delta include economic, social, political, and ecological factors. There are available strategies that can be used in conflict management. These include avoiding, accommodating, or smoothing, competing, or forcing, compromising, and collaborating. Any of these strategies can be used to manage conflict depending on the situation, the environment factor, and the nature of the conflict. The problem is that the oil and gas companies in partnership with the Nigerian government often adopted the wrong approach in dealing with the conflict with host communities, using avoiding or forcing strategies. The study recommends collaboration strategy which ensues long term-term solution to mutual benefits.

Applying asset-and equity-based multipliers in the valuation of oil and gas corporations

2021 ◽  
Vol 27 (1) ◽  
pp. 129-167
Author(s):  
Oleg V. SHIMKO
Keyword(s):  
Oil And Gas ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Oil And Gas Industry ◽  
Comparative Approach ◽  
Consolidated Financial Statements ◽  
Gas Industry ◽  
Market Capitalization ◽  
Economic Analyses ◽  
Oil And Gas Companies

Subject. This article explores the ratios of the company's market capitalization and value to the balance sheet value of assets and equity of the twenty five leading public oil and gas companies between 2008 and 2018. Objectives. The article aims to identify key trends in the changes in market capitalization and value ratios of the company to the balance sheet value of assets and equity of the largest public oil and gas companies, identify the factors that have caused these changes, and establish the applicability of these multipliers to estimate the value of the business within the oil and gas industry. Methods. For the study, I used comparative, and financial and economic analyses, and generalization of materials of the companies' consolidated financial statements. Results. The article establishes that the multipliers studied are acceptable for assessing the value of oil and gas companies, but it is preferable to use asset-based ratios. Conclusions and Relevance. The overall decline in profitability and the increase in debt load in the stock exchange sector of the global oil and gas industry should be taken into account when using multipliers based on assets and shareholder capital in the assessment of the value of oil and gas corporations through a comparative approach. The results of the study can be used to assess the possible value of oil and gas assets as part of a comparative approach and develop measures to increase the market capitalization of public oil and gas companies.

The Impact of News on the MICEX Oil & Gas Index: Textual Analysis

2018 ◽  
Vol 2018 (4) ◽  
pp. 79-99
Author(s):  
Elena Fedorova ◽  
Oleg Rogov ◽  
Valery Klyuchnikov
Keyword(s):  
Oil And Gas ◽  
Pearson Correlation ◽  
Oil And Gas Industry ◽  
Stock Index ◽  
Gas Industry ◽  
Negative News ◽  
The Russian Federation ◽  
Oil And Gas Companies ◽  
The Impact ◽  
Oil Gas

In this study, a relationship between the mood of news and the response of the oil and gas industry index of the Russian Federation was revealed. The empirical base of the study included 8.5 million news from foreign sources. Research methodology: fuzzy sets, naive Bayesian classifier, Pearson correlation coefficient. As a result of the research, it was discovered that: 1) negative news affects the stronger than the positive on the stock index; 2) news on companies affect the value of the index, and news on the industry affect the volume of trading; 3) the sanctions did not significantly affect the coverage of Russian oil and gas companies.

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