Trans-National Corporations

Question 1

TNCs

Answer 1

BP- exploration: seeking new oil reserves mostly in difficult conditions, mostly in LEDCs.
Drilling: working with the governments of different countries for the right to extract the oil.
Transport: BP moves crude (unrefined) oil all over the world to refineries.
Refining: most profitable part, located in ‘safe’ locations.
Transport: direct to customers by garages.
Sales: garages,
Research: finding alternative energy supplies for when oil runs out.
TNC’s can affect the price of oil: controlling the whole supply chain, they find new oil reserves- they’re very influential.

Question 2

Influencing Politics:

Answer 2

Oil and politics, especially in the USA are inextricably linked.
The USA is the biggest consumer of oil at 24% in 2007.
Since the 1990 US election cycle, the oil and gas industry has contributed
They do this to exert their influence: e.g. Exxon Mobile successfully lobbied the US government t gain access to federal lands (national forests and nature reserves).
Chevron Texaco lobbies on all energy issues, opening up the ANWR.
Some of the big oil companies are state owned and governed by their country’s government; they are public rather than private sector companies; more active in the realms of geopolitical.

Question 3

What is it like having BP or another TNC operating in your country- pros.

Answer 3

Jobs: improving people’s quality of life.
Adding to the local economy which can be reinvested into improving infrastructure or building schools etc.
Government gets money from the company’s- oil revenue.

Question 4

What is it like having BP or another TNC operating in your country- cons.

Answer 4

Loss of culture.
Disruption to towns and cities.
Damaging to the environment and creating added pollution.
Reliant.
Resources run out.
Importing companies own workers in.

Question 5

Environmental Pressure Group:

Answer 5

Greenpeace: when Shell announced they would not be drilling for oil in the Arctic anymore in 2015, it was a huge victory for Greenpeace because they believed it was due to their campaigning. However, others argued it was due to financial reasons.
Russia arrested the Arctic 30 and put in prison for 6 months for trying to storm the Gazprom oil rig as they thought to believe it was about to start drilling for oil.
The environmental pressure groups increased their spending but the oil and gas industry outpaced them by spending nearly eight fold.