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Planning and Organising International Business Enterprise in Russia - Essay Example

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There are large numbers of companies operating in this industry. It has been found that there are significant future business opportunities in this industry as the demand of energy is…
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Planning and Organising International Business Enterprise in Russia
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Planning and Organising International Business Enterprise in Russia

Download file to see previous pages... Longwell also estimated that to meet the expected demand almost 80 million oil-equivalent barrels might need to be added per day and this need to be done by 2010 (Longwell, n.d.) Demand of natural gas is increasing rapidly because world is looking for more environment friendly, efficient and clean energy source. So it is quite clear that there are huge business opportunities worldwide for the oil and gas exploring companies.
There are many companies dealing with oil drilling technology, but most of these companies are from USA. It is a fact that Russia is one of the leading exporters of natural gas and oil. As far as oil reserves are concerned Russia is eighth in the world but the country is holding first position in terms of natural gas reserves. Saudi Arabia, largest oil exporter in the world, is the major competitor of Russia as far as oil exporting is concerned. In the field of natural gas Canada, United States and Norway are the major competitors of Russia as they also produce and export large amount of natural gas. So it can be assessed that the upcoming firm would face international competition to great extent. Even few years back, the technical aspects of oil drilling like horizontal drilling and hydrofracs were primarily provided by western nations but today many of the Russian companies also provide the services.
The geographical environment is primarily favourable to the prospective oilfields in Russia as the country has vast resources of nature like oil, coal and natural gas. Most of the oil reserves in Russia are located in the Siberian region. But various factors like climate, distance and terrain act as obstacles in the process of exploration and production of oil and natural gas in the region.
As far as economic conditions are concerned in 2008 Russia’s GDP growth rate was 5.6%. Since 1998 Russia had been able to retain its average growth rate at 7%. Major portion of its GDP comes from export of oil and natural gas. Country has almost ...Download file to see next pagesRead More
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