Holding Operators in the Nigerian Petroleum Industry to a Higher Environmental Standard

2021 ◽  
Vol 2 (2) ◽  
pp. 202-216
Author(s):  
Ayodele Morocco-Clarke
Keyword(s):  
Petroleum Industry ◽  
Oil Industry ◽  
Developed Countries ◽  
Oil Companies ◽  
Environmental Standard ◽  
Foreign Earnings ◽  
Regulatory Authorities ◽  
Exploration And Production ◽  
Land Water

The oil industry drives the Nigerian economy as oil can be credited for most of Nigeria's foreign earnings. The exploration and production activities by operators in the Nigerian oil industry have for numerous decades resulted massive pollution of land, water and air within the jurisdiction of Nigeria and consequently there have been bitter complaints about the degradation of the environment. Though there are scores of legislations, regulations and policies governing the oil industry, it is clear that the multinational oil companies operating in Nigeria do not conduct their operations on the high levels they do in developed countries. However, the problem does not basically lie with the issue of ‘sub-standard’ legislations, but with the fact that the legislations in place are not routinely and uniformly enforced by the regulatory authorities and are often not complied with by the oil companies. This paper examines the twin problems of enforcement and compliance and tries to find a path out of the regulatory quagmire in Nigeria.

scholarly journals The Nexus between Stock Returns of Oil Companies and Oil Price Fluctuations after Heavy Oil Upgrading: Toward Theoretical Progress

Economies ◽  
2019 ◽  
Vol 7 (3) ◽  
pp. 71 ◽  
Author(s):  
Sedighi ◽  
Mohammadi ◽  
Fard ◽  
Sedighi
Keyword(s):  
Stock Market ◽  
Crude Oil ◽  
Stock Returns ◽  
Petroleum Industry ◽  
Oil Industry ◽  
Oil Price ◽  
Investment Policies ◽  
Price Fluctuations ◽  
Oil Companies ◽  
Petroleum Companies

This study attempts to discover the nexus between crude oil price fluctuation after heavy oil upgrading and stock returns of petroleum companies in the U.S. Stock Exchange for the years 2008 to 2018. One of the methods of upgrading heavy crude oil is to extract asphaltene from crude oil. Considering the Asphaltene Removal (AR) as a factor in the nexus between oil price and the stock market is an innovation in the literature of energy finance. Asphaltenes cause many problems in the petroleum industry, which increases the cost of oil production and reduces the financial efficiency of oil companies. The AR is certainly one of the significant matters of the oil industry and can affect the price of oil. Therefore, changes in the price of oil can influence the price of oil company stocks. Hence, changes in stock prices will certainly affect the stock returns of oil companies. In an effort to solve this puzzle, the four financial models were employed to explore the nexus between oil price fluctuations and stock returns. The analysis of the results demonstrated that the oil price fluctuations caused by the removal of asphaltenes influence the stock returns of petroleum companies. Eventually, the theoretical hypothesis was confirmed by considering the USA as a case study. The outcomes of this investigation are a theoretical progression in areas related to the petroleum industry and the stock market that could lead to the adoption of new investment policies in the petroleum industry including investing in new procedures to manage and decrease the costs and time of the AR process, which would result in the advancement of petroleum companies. In fact, we have introduced a modern investment strategy in the oil industry aimed at reducing oil production costs, improving financial statements and increasing the stock returns of petroleum companies. Eventually, we will present new investment policies in the oil industry that can lead to economic growth and development of financial markets especially stock market, derivatives market, futures exchange, commodities exchange, as well as bond market.

scholarly journals Group Collaboration And Group Decision Making Information Technologies In Petroleum Industry

2005 ◽  
Vol 9 (3) ◽  
pp. 47-52
Author(s):  
Alpana M. Desai
Keyword(s):  
Decision Making ◽  
Group Decision Making ◽  
Management Practices ◽  
Business Processes ◽  
Oil And Gas ◽  
Group Decision ◽  
Petroleum Industry ◽  
Oil Industry ◽  
Oil And Gas Industry ◽  
Oil Companies

The technical management of important natural resources such as oil and gas resources is a challenging responsibility that faces oil companies. The increasing global demand for oil and gas coupled with declining oil and gas reserves has forced the oil industry to make significant changes in its business processes. Major oil companies have exploration and production operations that span several continents. Massive amount of data that is generated at all levels in an oil company has to be stored, analyzed and disseminated. In this paper, the changes in the management practices and business processes in the oil industry are traced over the past several decades. The use and application of information technology as change agents is also explored and evaluated. In particular, this paper focuses on the role of visualization centers in the oil and gas industry in revolutionizing effective group decision making that has enabled teams to be more productive, innovative, and outcome-focused.

Caspian Region Challenges1

1999 ◽  
Vol 1999 (1) ◽  
pp. 87-89
Author(s):  
Kit Tennant
Keyword(s):  
Oil Industry ◽  
Contingency Planning ◽  
Caspian Region ◽  
The Caspian Sea ◽  
Oil Companies ◽  
Oil Transportation ◽  
Birth Place ◽  
Contingency Plans ◽  
Exploration And Production ◽  
Further Development

ABSTRACT The Caspian Region is to all intents and purposes the birth place of the oil industry. Following the break up of the USSR and the ensuing conflicts much of the production facilities and infrastructure were not afforded a comprehensive maintenance and monitoring programme. With the independence of the oil producing states, the impetus of oil exploration and production has again gathered pace with many alliances being established between oil companies and between the oil industry and governments. The increase in production due to new fields and the improved production of existing fields has dictated that the methods of bulk crude oil transportation have had to be improved or put in place. Much of the focus on the oil transportation infrastructure has been on the renewal and repair of existing pipeline systems and proposals for new pipeline routes. Writing or updating existing contingency plans for pipeline routes as well as the coastline surrounding the Caspian Sea is also an area of great importance when considering the pristine nature of the aquatic environment. Further development in the Caspian Region is bringing together more oil industry players and governments. The contingency planning for such developments is in the fore of everyone's mind.

The Petroleum Industry in Transition: Antitrust and the Decline of Monopoly Control in Oil

1980 ◽  
Vol 40 (4) ◽  
pp. 815-837 ◽  
Author(s):  
Joseph A. Pratt
Keyword(s):  
New Jersey ◽  
Market Structure ◽  
Petroleum Industry ◽  
Oil Industry ◽  
The State ◽  
Oil Fields ◽  
State Laws ◽  
Oil Companies ◽  
Regulatory Policies

The discovery of vast oil fields in Texas after 1901 encouraged competition in an industry previously dominated by Standard Oil of New Jersey. The manner in which the state of Texas enforced its antitrust and corporation laws hastened the growth of several major new oil companies, most notably Gulf Oil and The Texas Company, by constraining the activities of Standard in the new fields. In so doing, these Texas laws shaped the transition from near monopoly to near oligopoly in the oil industry. Such beneficial results of state laws were, however, largely accidental, since weaknesses in the government's capacity to monitor changes in the burgeoning industry undermined its ability to define and implement systematic regulatory policies. Problems of adjustment that accompanied government's early efforts to regulate market structure in oil have continued to hamper subsequent efforts to regulate other aspects of the industry's operations.

scholarly journals Decolonization of Petroleum Education and Training in the Indonesian Oil Industry, 1950-1968

2021 ◽  
Vol 17 (1) ◽  
pp. 88
Author(s):  
Farabi Fakih
Keyword(s):  
The Netherlands ◽  
Tertiary Education ◽  
Petroleum Industry ◽  
Oil Industry ◽  
National Education ◽  
Oil Companies ◽  
University Departments ◽  
Netherlands Indies ◽  
Training Schools ◽  
The 1950S

The article explores the decolonization of education within the Indonesian petroleum industry. The Netherlands Indies had one of the largest petroleum industries in the world with many major petroleum players involved. Despite this there was a lack of investment in training and schooling of engineers and workers in the Netherlands Indies. The article showed that the development of training and tertiary education in the 1950s was conducted by both the major oil companies and Indonesian government which invested in creating vocational training schools and university departments to meet industry needs. This development allowed for the creation of a government-run national education and research institute based in Java. The article shows that the role of the oil companies was still indispensable for the decolonization gap before the development of state-owned education institutes and the inclusion of Indonesian participation in the industry during the 1950s and 1960s. The active participation of the foreign oil industry in the Indonesianization of the industry was part of its ‘exceptionalism’ and the specific role oil played in the Indonesian economy.

Environmental pollution in offshore operations

1978 ◽  
Vol 290 (1366) ◽  
pp. 179-185
Keyword(s):  
North Sea ◽  
Meteorological Data ◽  
Arabian Gulf ◽  
Oil Industry ◽  
United Nations Environment Programme ◽  
Mutual Aid ◽  
Oil Companies ◽  
The North ◽  
Exploration And Production ◽  
The North Sea

The oil industry has made contingency plans from the earliest operations to clean up any spills due to accidents during exploration and production. The Oil Industry International Exploration and Production Forum (E & P Forum) was established in 1974 to coordinate oil industry opinion with governments and intergovernmental agencies. The United Nations Environment Programme and the Intergovernmental Maritime Consultative Organization are working together to organize regional oil spill clean-up arrangements both on the apparatus and on the financial side. The E & P Forum member companies have formulated a computer program to estimate the cost of clean-up following any hypothetical blow-out in the North Sea. This program is applicable, provided the appropriate meteorological data are available, to other areas of the world such as the Mediterranean, the Persian/Arabian Gulf, the Gulf of Mexico, the Malacca Straits, etc., where U.N.E.P./I.M.C.O. are proposing to set up multi-national conventions. In places such as the North Sea, the oil companies have mutual aid organizations which maintain stocks of dispersant, suitable vessels and spreaders, skimmers and booms to minimize any oil that may be driven to the shore. Looking to the future, there may be some problems associated with harvesting manganese nodules or mining the Red Sea mineral-rich lands. However, conservation is today part of any general planning of an operation and new processes that are developed will take into consideration adequate anti-pollution measures.

scholarly journals A long-term outlook on Russian oil industry facing internal and external challenges

2019 ◽  
Vol 74 ◽  
pp. 72 ◽  
Author(s):  
Nikita O. Kapustin ◽  
Dmitry A. Grushevenko
Keyword(s):  
Petroleum Industry ◽  
Oil Industry ◽  
Liquid Hydrocarbon ◽  
Transport Infrastructure ◽  
Russian Government ◽  
State Budget ◽  
Oil Companies ◽  
Oil Resources ◽  
The Government ◽  
The Impact

Russian petroleum industry plays a vital part in both the country’s economy and international hydrocarbon market, providing a third of state budget revenues and over 13% of global liquid hydrocarbon exports. Yet, nowadays the industry is facing a number of serious challenges, which threaten to undermine its sustainability. These challenges include depletion of the conventional oil resources, technological and economic sanctions and stagnating demand for liquid fuels, especially apparent in Russian traditional export destinations – Europe. The authors attempted to evaluate the impact of these issues and compile a forecast of Russian oil industry using state-of-the-art modelling tools. The calculations show, that even under fairly negative scenario assumptions, Russia is capable of maintaining crude oil and refined products exports above 250 mtoe up to 2040, remaining the world’s second liquid hydrocarbon supplier. This, however, is still a huge drop from 425 mtoe of exports in 2018. To ensure sustainability the government and oil companies need to work in conjunction in several fields: facilitate geologic survey of conventional and promising oil and gas basins; domestic development of new oil extraction technologies for accessing unconventional and low-margin oil resources; provide transport infrastructure for remote fields; reforming tax system to better suit the new environment. This way, crude production can be maintained above 500 mtoe in the forecast period and exports even surpass 2018 levels. In any case, however, the need for massive investments and tax incentives coupled with global movement away from fossil fuels means, that in the future oil will be becoming less and less profitable for the state budget, thus Russian government needs to redouble efforts on economic diversification and energy transition.

scholarly journals Institutional Considerations for Emergency Response in Developing Nations: Indonesia, Brazil, and Angola

2001 ◽  
Vol 2001 (1) ◽  
pp. 523-527
Author(s):  
Louis Armstrong ◽  
Sergio Feld ◽  
Jay Clare
Keyword(s):  
Emergency Response ◽  
Oil Spill ◽  
Petroleum Industry ◽  
Developing Nations ◽  
Oil Companies ◽  
Contingency Plan ◽  
Reporting Requirements ◽  
Exploration And Production ◽  
Production Increase ◽  
Environmental Process

ABSTRACT As exploration and production increase in developing nations, multinational oil companies have to deal with new institutional requirements for emergency response. These can range from plan submission requirements to reporting requirements for a spill to dispersant application regulations. In each country, the institutional requirements can be hidden under several different agencies, changing on a regular basis, or nonexistent. For example, in Indonesia, detailed regulations exist defining the response agencies depending on the distance from the shoreline, but institutional capacity is lacking. In Brazil, there are contingency plan format requirements as part of the environmental process for drilling, strict dispersant permit requirements, and newly published regulations (February 2000) requiring oil spill reporting. In Angola, there are no existing regulations regarding spill response; however, there are emerging regulations targeting the petroleum industry, and a National Oil Spill Contingency Plan is under development. This paper represents regulations and decrees that are valid as of October 2000.

Tax maneuver in the oil industry: Provisional results and risks for further implementation

2020 ◽  
pp. 28-43
Author(s):  
A. S. Kaukin ◽  
E. М. Miller
Keyword(s):  
Oil Industry ◽  
Oil Products ◽  
Oil Refining ◽  
State Budget ◽  
Tax Rate ◽  
Oil Companies ◽  
Reform Plan ◽  
Alternative Variant ◽  
Calculation Results ◽  
The Cost

The paper analyzes the consequences of the abolition of the export duty on oil and oil products as a necessary step to stimulate energy efficiency of Russia’s economy and eliminate underdevelopment provoked by a long-term subsidizing of inefficient oil refining sector in Russia. The calculation results have shown that even taking into account several deviations from the planned scenarios of changing the parameters of tax regulation of the oil industry in 2014— 2019, the tax maneuver brought over 3.5 trillion rubles (in 2019 — 148 billion rubles) to the state budget in 2014—2017, mainly due to an increase in the base mineral extraction tax rate, and contributed to an increase in the depth of oil refining from 72% to 85%. In addition, the article analyzes possible risks associated with the current plan for reforming the taxation of the industry until 2024 and proposes an alternative that could level some of them. A comparative analysis of the effects of the tax maneuver under the current reform plan and the alternative variant suggests that the latter will allow to achieve a greater total budgetary effect in four years, reduce the cost of subsidizing domestic oil refining, increase the efficiency of Russian vertically integrated oil companies, and reduce the growth rate of oil products prices in the retail market.

Drilling and Service Contracts in Offshore Oil and Gas Operations

1973 ◽  
Vol 11 (3) ◽  
pp. 480
Author(s):  
J. M. Killey
Keyword(s):  
Oil And Gas ◽  
Oil Industry ◽  
Offshore Drilling ◽  
Oil Companies ◽  
Drilling Rig ◽  
Service Contracts ◽  
Oil And Gas Operations ◽  
Offshore Oil And Gas ◽  
Offshore Oil ◽  
Offshore Operations

As onshore oil and gas deposits are becoming more difficult to locate, and as the world demands for energy continue to increase at an alarming rate, oil companies are channeling much of their exploration activities towards offshore operations, and in particular, towards operations centered off Canada's coast lines. Because of the environment, offshore drilling presents problems which are novel to the onshore-geared oil industry. J. M. Killey discusses in detail many of the considerations involved in drafting the offshore drilling contract, concentrating on problems such as the liability of the various parties; costs; scheduling; pollution; conflict of laws; etc. Similarly, he discusses service contracts (such as supply boat charters; towing services; helicopter services; etc.^ which are necessity to the operation of an offshore drilling rig. To complement his paper, the author has included number of appendices which list the various considerations lawyer must keep in mind when drafting contracts for offshore operations.

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