The Relative Importance of Named Players in the Global Supply of Energy

Topics: Peak oil, Petroleum, Natural gas Pages: 2 (1059 words) Published: January 20, 2015
Assess the relative importance of named players in the global supply of energy Players are those who have an active role in world affairs. In this case some of the major players in the energy chain are major TNC’s such as BP, Shell and Gazprom; governments, OPEC and consumers worldwide. The global supply of energy is dominated by gas. The exploration of oil is regulated by OPEC. Their objective is to co-ordinate and unify petroleum policies among member countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry. This essay will assess each player’s importance in the global supply of oil and gas. Trans-National Corporations (TNC’s) are responsible for the exploration and production of oil and gas. Sometimes these TNC’s are partially government owned, e.g. Gazprom in Russia. They have a key role in securing supplies now and in the future; their investment today ensures future supply, however the decisions they make can sometimes cause detrimental impacts on our energy security. For example, the over pumping of Saudi fields means too much oil is being extracted at once. This will cause future shortages as we use up their supply now. The refining of oil can be described as a possible supply bottleneck; this is because even though the oil is easily extracted, it is hard to distribute it to all of the consumers due to a lack of tankers or other forms of transport. Other TNC’s that are major players in global supply of energy are BP and ExxonMobil. BP were formerly majority state-owned, until the British government privatised the company in stages between 1979 and 1987. BP merged with Amoco in 1998 and acquired ARCO and Burmah Castrol in 2000. The British government sold 80 million shares of BP at $7.85 in 1979 as part of Thatcher era privatisation. This sale represented slightly more than 5% of BP’s total...
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