Jack Gerard, the CEO of the American Petroleum Institute, or API, spoke at a lunch for business leaders in New Orleans on Thursday, July 17. In his speech, Gerard called for policy changes on the part of the Obama administration in regard to its approach to energy policy.
Gerard called the Obama administration’s current approach to energy policy irrational and stated that the nation needs the White House to take on a more significant and proactive leadership role to help it to make necessary adjustments for the era of energy abundance and security.
Gerard feels that the country is currently standing at an energy crossroads, but that government policy will play a key role in deciding how the United States continues in the industry in the future. It is currently the world’s largest producer of both oil and natural gas, but, according to Gerard, the energy policy of the Obama administration has not done much to help fuel that growth and is not doing anything to maintain it.
For more on Jack Gerard’s speech and opinions, read the full article at http://www.nola.com/business/index.ssf/2014/07/american_petroleum_institute_h.html
Governor of Texas, Rick Perry sent a fiery letter to President Obama attacking the president’s policies, and lack of action particularly on energy issues. The letter was sent on Friday May 16 and made public on Monday, May 19. In his letter, Governor Perry criticized the president’s failure to grant approval for the Keystone XL Pipeline, as well as his current approach towards energy. He added that President Obama’s stance on energy is suffocating the industry and encouraged him to replicate Texas’ energy approach on a nationwide scale.
Perry also hurled a string of criticisms in his letter regarding the regulations implemented by the Environmental Planning Agency (EPA). The EPA has implemented new rules relative to coal fired plants which Texas has since challenged. One of the rules is that states will be held accountable for pollution that drifted into other states. Despite the challenges to the new rules, they were upheld by both the Supreme Court and the federal appeals court.
Energy reforms in Mexico have allowed for Texas companies to begin investment in the Eagle Ford Shale zone which runs along the Texas-Mexico border. With new investments in the area, the Eagle Ford Shale play could see up to $1.2 trillion in investments.
Now that the Mexican government has opened up the oil and gas industry to private investment, ventures will able to take hold on both sides of the border. The Mexican government does not have the money or the resources to tap into the shale deposits that is has on its own soil. However, it believes that it can partner with big money and get into those deposits.
This change means that millions of jobs and billions of dollars will be created through the exploration of the shale zone along the border. Texas companies will win the biggest, but the entire state will be able to tap into greater energy resources as a result of this change in Mexican policy.
Mexico’s new president has been radically changing the state of the country. With massive improvement on the country’s education system and a more precise, stronger effort to help maintain Mexico’s infamous drug industry. One of Mexico’s largest problems was that it was not allowing foreign investment into its oil industry, or allowing the oil’s exportation.
Mexico has massive untapped oil reserves just waiting to be used within the Gulf of Mexico. Until today, Pemex, the leading company responsible for Mexico’s internal oil production, did not have the resources to tap those reserves remaining in the Gulf. With the new president’s actions taking effect, he will have to continue to map out the new international oil trade in Mexico. Both the public and the critics support his actions and he has already proven competent in other areas of his office.
The oil industry in Canada has seen a more than ninety percent drop foreign investment from last year. While those within the industry have tried their hardest to change things for the better, they simply do not have the resources.
Foreign investment is so vital to Canada’s oil industry that those within the country risk losing a large amount of their capital. Foreign investment accounts for roughly twenty five percent of the funds put into Canada’s green projects. In order to help stop the bleeding from the oil industry, Canada has been seeking assistance from the Chinese, the world’s second largest supporter of green industries. Only time will tell if Canada’s oil industry can recover from the crippling loss of its main investors. With China’s help and the support of the government though, anything is possible.
To read more on this story, visit http://www.ibtimes.com/canadas-oil-industry-may-slow-after-government-limits-foreign-investments-1413672.
The world of oil production and distribution is complex and fierce. With over 1.5 trillion barrels in oil reserves and the average production rates coming out to about 89 million barrels a day, it’s no wonder that it’s such a popular market. Private companies and governments from all over the globe fight for local and global oil sales. However, in a world as competitive as this there are bound to be some players who are higher ranked than others, and they maintain the highest sales and production rates of them all.
Government-owned national oil companies hold the top spot in both production and oil reserves. Oil companies that are backed by the government tend to have a different marketing strategy than international oil companies. Government-owned oil companies tend to have more of a focus on providing jobs for their citizens and providing more affordable energy than international oil companies. Despite not usually having a highly competitive intention with international oil companies, government-owned oil companies still hold the top spot in reserves and production. A study done in 2010 showed that government-owned national oil companies hold 85% of the world’s oil reserves and that they account for 58% of all oil production.
International oil companies adhere to government regulations on oil, but they are not backed by the government. Instead, these companies are backed by numerous shareholders who aim to sell their oil as fast and efficiently as possible. The intentions of these companies is usually to maximize profits for their shareholders and to do what is in the best interest of the company. Because of this, their prices tend to be somewhat higher than government-owned companies. International oil companies account for the remainder of the world’s oil reserves, which is about 15%. They also produce the rest of the oil for the world’s oil market by producing roughly 42% of the world’s oil.
Another major player is OPEC, which stands for the Organization of the Petroleum Exporting Companies. This is a group of some of the most oil-rich countries on the planet. While they mostly deal with the workings of government-owned national oil companies, the privately owned international oil companies are still allowed to work in their territory. OPEC owns around 73% of the world’s oil reserves, and they produced over 40% of the world’s oil in 2012. In addition, OPEC also accounts for over 60% of the overall oil that has been traded internationally thanks to having high producing countries such as Saudi Arabia, the largest exporter of oil in the world, in their group.