Gas Producing Nations - Essay Example

Evaluation Report on Oil & Gas Producing Nations Table of Contents To What Extent Should The Government Of An Oil Or Gas-Producing Nation Seek AdviceFrom Outsiders On How Its Oil Or Gas Reserves Should Be Developed And The Resulting Revenues Should Be Used? 3 How Far Should An Oil Or Gas Company Go In Supporting The Development Of Local Communities In Which It Operates And To What Extent Should It Take On Government Responsibility For This? 5 Responsibility For Environmental Management: To What Extent Should The Government Of An Oil/Gas-Producing Nation And/or an Oil Company Seek Specialist Advice From Outsiders, Including NGOs, On How Environmental Issues Should Be Managed? What Rule Should Apply To Ngo Activities? 6 References 9 To What Extent Should The Government Of An Oil Or Gas-Producing Nation Seek Advice From Outsiders On How Its Oil Or Gas Reserves Should Be Developed And The Resulting Revenues Should Be Used? Oil and gas is a huge sector, which affects economies and creates value in the market. The development of Oil or Gas industry helps in enhancing revenues with the help of idea of government as well as outsiders also. The strategies and policies of the government of an Oil and Gas producing nation are beneficial for the improvement of the industry. The trade policies help in enhancing trades for the benefit of economies. Oil and gas industry mainly ties up with the government for the development with the help of monetary and fiscal policies (Mitchell & et. al., 2012). The objectives of Oil and Gas industry is to expand and enhance security of energy and economic, re-distribution of wealth, economic development, which can be achieved by applying the policies of government of Oil or Gas producing nation. With the help of political influence, the government of the Oil or Gas producing nation indulges into commercial practices for increasing the revenues of the nation as well as the economies of scale. For improvement of the Oil or Gas producing nation the government should take the advice of the outsiders for greater expansion (Petroleum Council, 2013). Government are taking relevant advices from the outsiders to seek advice regarding the policies that are implemented by nation. The government implements various taxes and with the help of the advisers, assistance is taken regarding its applicability. The advice from the outsiders can help the government to obtain the new idea as well as strategy of the outsiders and obtain the knowledge of the new technology along with policies relevant. The new idea along with new technology can be beneficial for the economic development of Oil or Gas producing nation. Exploration and development investment is an important concept for the industry and thus considering outsiders view to a certain extent might prove to be effective in this context. Advice from the outsiders can also be helpful for the Oil or Gas producing nation for developing innovative new ideas by incorporating the same for a better market position in the global market based on the trade policies and tax system (European Communities, 2008). With the advice from outsiders, the government of Oil or Gas producing nation can obtain knowledge about the financial market and the real market figure as well as expectation. Therefore, the policies of government of Oil or Gas producing nation and the advice from the outsiders both are important for the improvement of the Oil or Gas producing nation for seeking advice regarding the tax rate (KPMG, 2011). The advice from outsiders can also benefit the government of Oil or Gas producing nation for the development of the reserves along with the revenue. In the year 2012, Oil and Gas reserves and its exploration increased regions due to implementing new and advanced technologies during the time of production of Oil or Gas (EY, 2013). Oil and Gas industry reserves raise the income by increasing exports. By analysing the financial market of Oil or Gas industry, the government expand the business of national Oil or Gas companies into the international market through the government policies and tax system (FAS, 2007). Through the help of advanced technological techniques and exploration oil and gas, industry should enhance revenues and help in the development of the nation through economic growth. How Far Should An Oil Or Gas Company Go In Supporting The Development Of Local Communities In Which It Operates And To What Extent Should It Take On Government Responsibility For This? The oil or gas company should support the development of local communities because people of local communities of Oil or Gas Company are the co-workers of company. The co-workers play major role for the development of the company as well as economic development. Therefore, it is the corporate responsibility of the company to look after the needs of the co-workers along with the development of the local communities (Visser & Larderel, 1997). The corporate responsibility of the Oil or Gas Company is to maintain healthy and stable environment to employees or co-workers, to fulfill the demands of the co-worker by providing them required facilities and by satisfying them. Another responsibility of the company is controlling the external perception and attaining competitive advantage through the development of local communities of Oil or Gas Company (EBI, n.d.). There are certain responsibilities of the government for the development of local communities such as taking care of the environment and providing facilities required. With the help of government, company can provide better and sustainable environment to co-workers or employees so that they can perform their work effectively for economic improvement of the company. For the development of local communities, one of the corporate responsibilities of the managers of the company is to maintain good and healthy collaboration as well as relationship with the co-workers (Baumuller & et. al., 2011). With the help of government, company should identify negative impacts of the local authority and find out the solutions for the improvement of local communities. For the development of the communities, the Oil or Gas Company should provide better infrastructure to the employee or co-workers and improve the standard of living of the co-workers (Frynas, 2005). The investment amount provided by the government for the oil and gas development and exploration can be used for the welfare of people. By developing the local communities, company can also motivates the co-workers to improve their performance for the economic development and expansion. With the help of government, company can implement new and advanced technologies for the development of the local communities. One of the major roles of government for development of local communities of Oil or Gas Company is to improve the living condition of the co-workers. It is evident that without development of the local communities the improvement of the company cannot be possible (Marchant, 2015). The managers also of the Oil or Gas Company also should develop equal right policy with the help of government so that people of the local community can maintain good relationship with each other. It can be helpful for reducing the disputes of the community and development. The managers of the Oil or Gas Company should take the initiative to reduce issues of the environment and social for the development of the local communities (Crown, 2013). The revenue collected from the industry is used for the welfare of the society and improvement. Responsibility For Environmental Management: To What Extent Should The Government Of An Oil/Gas-Producing Nation And/or an Oil Company Seek Specialist Advice From Outsiders, Including NGOs, On How Environmental Issues Should Be Managed? What Rule Should Apply To Ngo Activities? Environmental issues are also considered as the global issues, and need to be managed. Environmental issues leads to the harmful effects of the human action. Therefore, the government of Oil or Gas producing nation should take the specialist advice from the outsiders and NGOs to manage the environmental issues (Marcel, 2013). NGO works for the safety of the organisation and its surroundings. Government of Oil or Gas producing nation should identify the environmental issues to manage it. By taking, the advice from the outsiders and NGO’s government can implement new technologies to manage environmental issues and sustainable development of the company. The advice of outsider and NGO can be beneficial for the government of Oil or Gas producing nation to enhance the environmental condition and human health (OGP, 2002). The Oil or Gas Company faces certain operational issues, which can be difficult for the company to manage the environmental issues. Therefore, government should take the advice to overcome the operational issues of the company form the outsiders and NGO. The government should take the advice related to the new technologies to decrease the quantity of emission of air to manage the environmental issues (Seelke & et. al., 2015). The government also should implement new and advanced technologies to prevent pollution to improve the environmental condition and enhance the human health. By applying, advice of the outsiders and NGO along with the idea of Government Oil or Gas Company can be helpful for in developing the infrastructure and enhance land acquisition to manage the environmental issues. To manage the environmental issues government also should increase the water resources by applying the technology from outsiders. The advice from the outsiders and NGO also helps the government to develop new techniques to manage the environmental issues such as climate change (OECD, 2008). NGO activities should apply certain rules for the development of the Oil or Gas Company or the Oil or Gas producing nation. NGO play a major role in the collaboration of community and the Oil or Gas Company so that both can understand their expectations and it helps in the development of the company along with the community. Other action of NGO is resolution of conflict through which the operational issues can be overcome and it can help the company for the future success (Nelson, 2007). Another action applied by the NGO, which can be helpful for further development of the company is to increase awareness of the managers related to the delivery services and social issues for the improvement of human health. NGO also deliver information related to the safety of environment to the Oil or Gas Company. NGO also provide information about the planning and implementation of the technology for further development of the company (Acorn, 2012). NGO applies rule regarding human rights so that there cannot be any conflict among employees. Therefore, the managers of Oil or Gas Company should reduce the transparency issue for the sustainability of the company. The activities of NGO are the beneficial for the development of the Oil or Gas Company also for the local communities as this is a wide sector and helps in creating economies of scale (ZSL, 2014; IFAW, n.d.). References Acorn, 2012. Oil & Gas and NGOs: New Rules of Engagement. Local Content & Global Assurance, pp. 1-4. Baumuller, H. D. E. & et. al., 2011. The Effects of Oil Companies’ Activities on the Environment, Health and Development in Sub-Saharan Africa. Directorate-General for External Policies of the Union, pp. 7-59. Crown, 2013. Developing Onshore Shale Gas and Oil – Facts about ‘Fracking. Department of Energy and Climate Change, pp. 2-11. EY, 2013. Global Oil and Gas Reserves Study. Building a Better Working World, pp. 1-108. European Communities, 2008. The Economic Aspects of the Energy Sector in CIS Countries. Economic and Financial Affairs, pp. 1-376. EBI, No Date. Integrating Biodiversity Conservation into Oil & Gas Development. The Energy & Biodiversity Initiative, pp. 1-58. Frynas, G. J., 2005. The False Developmental Promise of Corporate Social Responsibility: Evidence from Multinational Oil Companies. International Affairs, Vol. 81, Is. 3, pp. 581-598. FAS, 2007. The Role of National Oil Companies in the International Oil Market. Congressional Research Service, pp. 2-17. IFAW, No Date. NGO Statement on proposed construction of new Sakhalin II oil & gas platform off Sakhalin Island (Southern Piltun). Pacific Environment, pp. 1-2. KPMG, 2011. Shale Gas – A Global Perspective. KPMG Global Energy Institute, pp. 2-18. Marchant, J., 2015. Corporate Social Responsibility A Role in Government Policy and Regulation. The University of Bath, pp. 1-90. Mitchell, J. & et. al., 2012. What Next for the Oil and Gas Industry. The Royal Institute of International Affairs, pp. 1-108. Marcel, V., 2013. Guidelines for Good Governance in Emerging Oil and Gas Producers. The Royal Institute of International Affairs, pp. 4-36. Nelson, J., 2007. The Operation of the Non-Governmental Organizations (NGOs) in a World Corporate and Other Codes of Conduct. Harvard University, pp. 1-35. OGP, 2002. Key Questions in Managing Social Issues in Oil & Gas Projects. International Associations of Oil & Gas Producer, pp. 1-46. OECD, 2008. Natural Resources and Pro-Poor Growth. The Economics and Politics, pp. 3-166. Petroleum Council, 2013. Responsibly Energizing a Growing World. Official Publication of the 21st World Petroleum Congress, pp. 13-54. Seelke, R. C. & et. al., 2015. Mexico’s Oil and Gas Sector: Background, Reform Efforts, and Implications for the United States. Congressional Research Service, pp. 1-21. Visser, P. J. & Larderel, D. A. J., 1997. Environmental Management in Oil and Gas Exploration and Production. An Overview of Issues and Management Approaches, pp. 1-67. ZSL, 2014. Joint NGO Statement on No-Go and No-Impact Measures for Extractive Activities in Natural and Mixed World Heritage Sites. Final Approved Version, pp. 1-3. Read More