Metal Pollution Records in Core Sediments - Case Study Example

Key Words: Master Gas system, Saudi Arabia, Saudi Armco, Oil Reserves, Petroleum products, Country project Part This study seeks to discuss in-depth about a multinational enterprise dealing with oil and natural gas that I ought to establish in Saudi Arabia. It also explores different environmental surroundings in Saudi Arabia that may affect daily operation of Saudi Armco as a company either positively or negatively. Saudi Armco intends to be fully integrated global company situated at Dhahran, which will be the principal producer of gas and oil (Tait). According to our business strategies, Saudi Armco will produce an estimate of 8 barrels annually and manage over 100 oil and gas fields in Saudi Arabia (Tait). In addition, it has 300 trillion scfd of natural gas oil rich reserves estimated to have a yield of approximately 260 million barrels, hence explaining why it accounts to be the leading daily oil producer globally (Fernandez). Some of these prominent reserves embrace Ghawar and Shaybah, which are the world’s principal oil fields ever unveiled. In addition, Saudi Armco boasts of having the world’s largest hydrocarbon network, which is mainly the Master Gas system - MGS. MGS is a gas gathering and processing system built in 1975 that will enable Saudi Armco to sell all its gas products obtained during oil production as well as from gas reservoirs (Badr 1). The system will also become Saudi Arabia’s industrialization main resource ever since it can produce large amounts of natural gas on a daily basis. (Fernandez). In addition, Saudi Armco hosts several goals it ought to accomplish like producing about 10% of energy consumed globally on daily basis (Zuhur 149). To maintain its petroleum production capacity, Saudi Armco will constantly involve itself in varied investments with the intention of heightening its good publicity, be the most reliable energy producer and a global supplier. All the company’s activities will encompass exploring, refining, chemical processes, distribution, marketing and production, which will all be exclusively under supervision of Ministry of petroleum and mineral resources in conjunction with the supreme council for petroleum and minerals. Initially, Saudi Armco’s plans were to use Cray supercomputers in its EXPEC computer centre (ECC) in aid to process large quantities of data from exploration (Badr 2). However, plans are underway to ensure we integrate a new supercomputing system with a storage capacity of 1050 terabytes to enable it support major explorations in the Red sea region. Currently, Saudi Armco owns five domestic refineries in Saudi Arabia, which will be primarily for availing adequate oil products to the local market. In addition, together with other stakeholders, the enterprise expects to buy a half of each of the two existing in-kingdom refineries located at Yanbu and Jubail. According to our objectives, apart from marketing crude oil, petroleum products and natural gas together with liquids, Saudi Armco will also export crude oil to other global regions using tankers. The Company will also actively participate in the fight against environmental degradation like air and water pollution. For instance, the management board has already rolled out Saudi Armco’s environmental plan incorporating all intended departmental branches (Badr 2). In this context, Saudi Armco will be able to play a major role in advocating for technological solutions to environmental issues not only now but also in the future. Consequently, this will prompt the company to maintain all its projects while under in operation aim at minimizing their environmental pollution by use of high classic technological knowhow (Badr 3). Part 2 Saudi Arabia Physical and demographic environment Advantages to business Most oil and gas reservoirs explored by Saudi Armco their respective locations are in Saudi Arabia. This is a great advantage to the enterprise because it does not incur costs of transporting raw materials to the refineries before shipped to varied market regions both internally and outside the country. In addition, Saudi Arabia hosts vast oil wells and other natural resources that highly boost the country’s economy. In addition, extensive coastlines on the Persian Gulf and red sea will act as a great advantage in terms shipping of products processed by Saudi Armco. This is especially through the Persian Gulf and Suez Canal. Because Saudi Armco distributes oil and natural gas to diverse states not only those bordering it but also others globally. Therefore, having deep harbors and large water bodies around its location shuns the company from incurring high expenses in terms of transport costs. Disadvantages to business Saudi Armco has experienced criticism in Saudi Arabia over coastal pollution caused by oil spills from the wells located along the coastline. This results to tarnishing its good publicity and reputation as a corporation whose core intention is to preserve environment globally besides marketing oil products. In addition, most of Saudi Arabian population comprises of the youth who luck adequate education due to their preference to work in industries at a very tender age. Many of these youths acquire employment as casual laborers in Saudi Armco where the corporation subjects them to harsh working conditions besides paying them meager earnings. This will prompt the company have a bad publicity due to having sweatshops that subject workers in extremely deplorable conditions. Saudi Arabia Cultural Environment Advantages to business Saudi Arabia is a complete society that highly appreciates foreigners which is why foreigners constitute a larger percentage of the entire population. This will be a big merit to the business because Saudi Armco workers will constitute mainly of foreign persons who have the necessary expertise. Disadvantages to business Saudi Arabia prohibits public worship of other creeds besides Islam in her public settings. This will majorly demoralize foreign skilled officials who will want to work at Saudi Armco work because they prefer practicing their own religions in public. Saudi Arabian citizens constitute majorly of illiterate people based on studies so far contacted. Many of this state’s citizens do not have adequate skilled prowess due to poor education system in the entire country besides lack of insistence on the part of parents. Education remains solemnly tied to Islam teaching because many youths conform to Islam laws besides adoring Quran teachings. Therefore, Saudi Armco’s will only rely on foreign skilled worker, which will make the business incur higher costs while employing. Language barrier is also a major obstacle in Saudi Arabian community. Hence, numerous foreign workers travelling to work in Saudi Armco will encounter communication predicaments because most of natives throughout the entire state do not converse in proper English (Akers 173). Saudi Arabia Economic Environment Advantages to business Over the years, Saudi Arabian industrial base has highly experienced gradual development based on kingdom’s reports, hence increasing the demand for natural gas (Alkharashi 1). This is because gas is a core resource in industrialization all over the world in the provision of energy used to run machines (Simmons 5). Therefore, this aspect will work in favor of Saudi Armco, which will drill and produce oil in Saudi Arabia .The gas is mainly for generation of power and aids as feedstocks for the petro chemical industries located in Saudi Arabia. This turns out to be a major merit for Saudi Armco because it is always in business and acquires major profits from its sales (Simmons, 8). According to “World Fact Book”, the majority of Saudi Arabia population comprises of unlearned youths (“Central Intelligence Agency”). This is lack of proper educational systems set by the government in Saudi Arabia. However, following the government’s will to build more universities and increase attendance among youths, Saudi Armco will be able to get skilled employees from the local labor pool. Saudi Arabia Legal & Ethical Environment Advantages to business The AOC Government Relations representative can assist business parties wishing to travel to the Kingdom of Saudi Arabia on business with either AOC or Saudi Armco (“Central Intelligence Agency”). This will make it easier for foreign investors as well as Saudi Armco as an entity to settle in Saudi Arabia and conduct business due to lack of challenges in getting the necessary documents before travelling. Disadvantages to business Saudi Arabian has always been subject to several terrorist attacks, which prove to be a predicament in setting a business of an oil nature in the country. In addition, Al-Qaida up to date has attempted to setting Saudi Armco in Saudi Arabia will be the main target for terrorists (Badr 2). According to US Department annual report, there are varied ethical issues in Saudi Arabian society that undermine good working conditions of non-Muslims and foreigners (Akers 174). Repots cite internal security officials use extra judicial force on non-Muslims and foreigners in Saudi Arabia. This is a challenging issue to Saudi Armco, which will always lose proficient employees to the brutality of Saudi Arabia police. Trade & Investment In Saudi Arabia Advantages to business Increased need for consumer products and agricultural products prompts Saudi Arabia to be a good investment hub for an agri-business (Alkharashi 1). Most of Saudi Arabia imports comprise agricultural products, as their climate is not favorable for cultivation. Saudi Armco will invest extensively in this sector by participating in importation of agricultural products with the intention of selling in the local market. Presently, the government is trying to increase employment opportunities for her largely unemployed youth population as stipulated in its five-year plan. This is because of Saudi Arabia's accession to WTO in December 2005 besides promotion of foreign investment in the kingdom (Simmons 5). Therefore, Saudi Arabia is a good hub for private investors who mainly need to set up industries to invest. Besides, there will be sufficient energy in Saudi Arabia supplied by Saudi Armco when it starts its operation in the country for running varied industries. Disadvantages to business However, many foreign private investors do not prefer investing in Saudi Arabia because it comprises of staunch Muslims who do not fully accommodate foreigners and non-Muslims (Akers 174). This chases away investors who would have otherwise been potential customers of Saudi Armco for supply of energy and setting up firm in the state. Works Cited Akers, Deborah S. "Saudi Arabia: Culture and Customs of Saudi Arabia." The Middle East Journal 61.1 (2007): 173-4. ProQuest. Web. 10 Oct. 2013. Alkharashi, M. A., & Nickerson, I. (2012). The Oil Economy of Saudi Arabia. Allied Academies International Conference.Academy for Economics and Economic Education.Proceedings, 15(1), 1-4. Retrieved from http://search.proquest.com/docview/1272095297?accountid=458 Badr, Nadia, B., et al. "Metal Pollution Records in Core Sediments of some Red Sea Coastal Areas, Kingdom of Saudi Arabia." Environmental monitoring and assessment 155.1-4 (2009): 509-26. Web. 10 Oct. 2013. Fernandez, Francis. "Saudi Aramco Shifting Regional HQ to Malaysia." New Straits Times: 38. Nov 03 2006. ProQuest. Web. 10 Oct. 2013. Simmons.R,Mathew. Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy. New York: John Wiley & Sons, 2006, Print. Tait, Carrie. "'Tremendous' Uncertainties seen for Oil Industry." The Globe and Mail (Index- only). Sep 21 2013.. Web. 10 Oct. 2013. “The World Fact Book.” Central Intelligence Agency. n.d. Web. 27th Sept. 2013. . Zuhur, Sherifa. Saudi Arabia. Dhaharn: ABC-CLIO, 2011, print. Read More