Natural Oil Companies and Value Creation : Volume 2. Case Studies
Approximately two billion dollars a day of petroleum are traded worldwide, which makes petroleum the largest single item in the balance of payments and exchanges between nations. Petroleum represents the larger share in total energy use for most net exporters and net importers. While petroleum taxes are a major source of income for more than 90 countries in the world, poor countries net importers are more vulnerable to price increases than most industrialized economies. This paper has five chapters. Chapter one describes the key features of upstream, midstream, and downstream petroleum operations and how these may impact value creation and policy options. Chapter two draws on ample literature and discusses how changes in the geopolitical and global economic environment and in the host governments' political and economic priorities have affected the rationale for and behavior of National Oil Companies' (NOCs). Rather than providing an in-depth analysis of the philosophical reasons for creating aNOC, this chapter seeks to highlight the special nature of NOCs and how it may affect their existence, objectives, regulation, and behavior. Chapter three proposes a value creation index to measure the contribution of NOCs to social value creation. A conceptual model is also proposed to identify the factors that affect value creation. Chapter four presents the result of an exploratory statistical analysis aimed to determine the relative importance of the drivers of value creation. In addition, the experience of a selected sample of NOCs is analyzed in detail, and lessons of general applicability are derived. Finally, Chapter five summarizes the conclusions.
| Summary: | Approximately two billion dollars a day
of petroleum are traded worldwide, which makes petroleum the
largest single item in the balance of payments and exchanges
between nations. Petroleum represents the larger share in
total energy use for most net exporters and net importers.
While petroleum taxes are a major source of income for more
than 90 countries in the world, poor countries net importers
are more vulnerable to price increases than most
industrialized economies. This paper has five chapters.
Chapter one describes the key features of upstream,
midstream, and downstream petroleum operations and how these
may impact value creation and policy options. Chapter two
draws on ample literature and discusses how changes in the
geopolitical and global economic environment and in the host
governments' political and economic priorities have
affected the rationale for and behavior of National Oil
Companies' (NOCs). Rather than providing an in-depth
analysis of the philosophical reasons for creating
aNOC, this chapter seeks to highlight the special
nature of NOCs and how it may affect their existence,
objectives, regulation, and behavior. Chapter three proposes
a value creation index to measure the contribution of NOCs
to social value creation. A conceptual model is also
proposed to identify the factors that affect value creation.
Chapter four presents the result of an exploratory
statistical analysis aimed to determine the relative
importance of the drivers of value creation. In addition,
the experience of a selected sample of NOCs is analyzed in
detail, and lessons of general applicability are derived.
Finally, Chapter five summarizes the conclusions. |
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