ENERGY ECONOMICS

ENERGY ECONOMICS



ENERGY ECONOMICS

Introduction

Making investments in an oil company is more complicated than in the high technology all stages from exploration to transportation and refining, plus no less complex system of management and decision-making. For oil companies today, primarily the highest responsibility, and its most important task is the careful use of groundwater resources, effectively turning them into the desired end product to the consumer and its timely delivery to the destination. It is well known, under any scrutiny (and sometimes biased) media attention, environmentalists, just active citizens working all the oil industry. The other responsibility of the company lies to its investors. Requirements and principles of sustainable development of large industrial, including oil companies have now become relevant to most countries of the world community. But whether they can be applied to the conditions of Caribbean and West African country, located in the transition to a market economy (Aissaoui, 2001).

The volume of oil production Marine Petroleum Company is much greater than the volume of processing, in connection with the company seeking to acquire additional capacity. Marine Petroleum Company is also used for the processing of their oil refining capacity of other oil companies. Company has an active policy in the Caribbean region, signing cooperation agreements with the administrations of West African regions of crude oil and petroleum products, construction, oil depots, petrol stations and industrial facilities and carrying out other activities. Despite a significant increase in revenue, net profit, however, fell slightly negative impact on the dynamics of the rate of profit of the company had a decline in exports. This further negatively affected and grown excise rates on oil, transport and energy tariffs (Bromma & Bromma, 2004).

This paper gives a general idea of what the management and both internal and external variable factors affect the organization, we are ready to consider positive and negative aspects of the “Land oil Resources” and “Marine Petroleum Company” in making an investment framework in oil and gas sector. This chapter discusses the investment framework, process of selecting crude oil selling prices and how to achieve them. We will learn about the components of appraising the investment risks and, the opportunities faced by the investor. This discusses the factors affecting the investment in each country, influence the factors of fiscal policy upon production sharing agreements.

The strategy in the oil industry includes the growth of reserves and efficiency, Support for production growth, custom development of existing fields, active acquisition of new fields, Reduction of production costs, increasing the efficiency of operations at existing fields, and carrying out expansion to areas with lower costs of production. The transfer of production to areas with lower costs reduces transport costs, increases the share of sales in the global market and improves the quality of extracted raw materials (Davis, 2003).

The increase in the market share of foreign operations is one of the components of the Company's growth strategy. There is increase in the share of foreign operations of the Company indicating the gradual transformation of ...