BP and Gazprom - The role of TNCs in energy production, procession and distribution in a globalising world

Question 1

TNCs and Energy

Answer 1

Most TNCs are involved in all stages of oil and gas production, from exploration of potential reserves, through refining crude oil to usuable rpoducts, to selling it to consumers around the world.

Question 2

BP

Answer 2

BP is involved in oil and gas exploration and production worldwide, in the USA, UK, Egypt and Russia.
- In 2016 it daily oil and gas production was over 3 million barrels.

Crude oil is then transported to refineries and petrochemical plants, BP has refinieris in for example the USA, Netherlands and Germany, and refined 1.7 million barrels of oil a day in 2016.

The products are then sold to industry and individuals across the world, BP has 18000 retial outlets.

Question 3

Gazprom

Answer 3

Some TNCs are partially or completely state owned, Gazprom is partially controlled by the russian state and extracts, processes and sells russian gas.
These TNCs can exter global influence and may shut privately owned TNCs out of the energy matkets in some parts of the world, or can be used to help build political alliances.

Gazprom also owns the world’s largest natural gas reserves, owning 16% of the global gas reserves and over 70% of the Russian gas reserves.