Energy Players Flashcards
Name X5 energy players
- OPEC / cartels
- public consumers
- governments
- TNCs
- industry
When did Indonesia leave OPEC?
2008
Why did Indonesia leave OPEC?
because they were no longer a net-exporter of oil
In 2008 election which party opposed the opening up of the Arctic National Wildlife Refuge to Oil and Gas exploration?
Democrats
What did the Democrats oppose in 2008 which Republicans accused them for raising energy prices with?
opening up the Arctic National Wildlife Refuge to exploitation
What geopolitical threat in 2008 pushed up oil prices in relation to Israel?
Israel threatened to attack Iran
How many members are in OPEC?
12
Name X6 OPEC members
Iran, Iraq, UAE, Nigeria, Ecuador, Libya
Qualification to be an OPEC member;
- net exporter of oil
- must agree to quota / pricing rules
When was OPEC formed? With what agenda?
1960
protect the interests of oil producing countries
X4 key aims of OPEC
- protect member interests
- coordinate stable prices + avoid fluctuations
- regular supply to consumers
- fair return for investors
Critics may see OPEC as monopolising the market and being a …
cartel
What fraction of the world’s oil reserves does OPEC hold?
2/3
What % of global crude oil production does OPEC control?
45%
OPEC has been accused of holding back supply in order to do what to prices?
raise prices
How many barrels a day of oil does Saudi produce more than the 2nd largest OPEC member?
5.5million barrels more than 2nd place
X3 major oil producing but non-OPEC countries
Canada USA Russia
How many of the top 5 oil companies are state owned?
3
What are government controlled oil companies essentially part of?
their governments arm of foreign policy
Private companies and political influence - what is the relationship?
private companies relatively free from political influence
yet private companies HAVE political influence
example of private companies having political influence in the USA
US elections since 1990:
oil and gas companies have invested $180million +
what % of oil and gas company funding goes towards Republican campaigns since 1990?
75%
What was an example of where a corporation lobbied the government and was successful in relation to land?
Exxon Mobil lobbied US govnerment for access to federal land and was successful
What did Koch industries contribute in 2008’s presidential race?
$942,000
The majority of top 20 energy companies have what type of operations? What does this demonstrate?
increasingly diverse range of energy activities
shows they recognise the demise of fossil fuels and their volatility
Name a company with 100% state ownership which is the largest oil corporation globally
Saudi Aramco
Out of the OPEC nations who is the top exporter by volume to the USA?
Nigeria
Which OPEC nation has the USA historically not sourced oil from?
Iran
What is notable about the top 6 OPEC suppliers of oil for the USA?
3 are African
What does the fact that the USA’s top oil suppliers are not all from OPEC and are not concentrated in the middle east suggest?
they are trying to diversify regions of supplies and are not reliant on OPEC cartel
X3 disadvantages of OPEC for consumers;
- collectively OPEC may raise prices
- may withhold information (e.g about new reserves)
- may deliberately restrict output
X3 disadvantages of OPEC for members;
- may be forced to adopt same policy as other members
- may be enthused by high profits, leading to overproduction
- may have to lie about proven reserves to increase quota and earn petrodollars
Name X3 factors that can influence how long oil and gas reserves will last
- how we react to global warming
- whether we continue with business as usual or become more efficient
- whether technology allows us to find new reserves
Campbell’s quote on energy and fossil fuels
“the glass starts full and ends up empty - the faster you drink it, the quicker its gone”
What are estimates of global reserves largely reliant on?
large amount of honesty from countries
What did Goldman Sachs declare oil companies as in the 1990s - what does this suggest about oil?
a ‘dying industry’
clearly it is not yet - shows new reserves and technology constantly allowing oil to go further
Define : proven reserves
reserves with a high standard of evidence and only represent oil which is economically and technologically extractible now
Why is proven reserves not a useful statistic for how long reserves will last?
only looks at oil technologically and economically extractable now
What have OPEC countries been accused of doing in terms of reserves?
systematically over-estimating to be allowed larger quotas
What did Carlyle suggest about OPEC reserve estimates?
“no one should trust OPEC reserve estimates”
Where was a large oil field discovered in S.America? How much oil was there?
In Brazil 2km below seabed
150billion barrels worth
Inevitable factors contributing to decrease in energy security;
- increase in energy demand
- increase in population
- possibility of peak oil
- concentration of oil production in middle east as elsewhere reaches peak oil
Factors which can increase energy security;
- discovery of new energy technology
- switch to renewables
- undiscovered oil / gas reserves
- contribution of ‘unconventional’ sources
- greater energy efficiency
How many years of crude oil do we have left at current estimates (2016)?
53.3years
How many barrels of oil does it take to produce a car?
20
How many billions of cars are there globally?
1.2billion
