...(5): 102 - 115 The impact of petroleum on economic growth in Nigeria Michael Baghebo Niger Delta University, Bayelsa State, Nigeria baghebomichael@yahoo.com Timothy Okule Atima Niger Delta University, Bayelsa State, Nigeria Abstract The study examines the impact of petroleum on economic growth of the Nigerian economy. Data covering the period 1980-2011 was collected from the Central Bank of Nigeria Statistical Bulletin, and transparency international Agency annual publications and analyzed using econometric approach. The stationary status of the time series data was examined using Augmented Dickey Fuller test. The regressand is Real Gross Domestic Product (RGDP), The regressors are Foreign direct investment (FDI), Oil revenue (OIL), Corruption index (CI), External debt (EXDEBT). The series attained stationary after differencing. The Johansen cointegration test was conducted to ascertain the long run equilibrium condition of the variables in the model. The variables were cointegrated because four cointegrating equations were found. The Parsimonous model was established to account for the short run dynamic adjustments required for stable long run equilibrium. It was discovered that the variables: oil revenue and corruption index impacts negatively on Real GDP, while FDI and EXDEBT have positive impact on the growth of the economy. This means that the resource curse theory is proven to be true in Nigeria. The study concludes that, if the petroleum industry bill is passed and implemented...
Words: 5041 - Pages: 21
...PETROLEUM IN BRAZIL: Petrobras, Petro-Sal, Legislative Changes & the Role of Foreign Investment ANDREW D. FISHMAN George Washington University Washington, DC 20052 (860) 690 - 7553 AFishman11@Gmail.com Introduction On November 8, 2007, the state-owned Petróleo Brasileiro S/A (Petrobras) announced that it had discovered a “monstrous” reserve of light oil in the Tupi field of the Santos basin, off the coast of southern Brazil. A day later it removed 41 adjacent exploration blocks from a scheduled government concession auction to reanalyze how to best exploit the new resources.1 Since opening its petroleum industry in 2007, Brazil has attracted hordes of foreign corporations and created hundreds of thousands of jobs. In 2009 President Lula proposed sweeping changes to the industry in the form of four bills that would greatly increase the government’s involvement and relegate foreign oil companies to the role of “subservient partners.” In that same year, Petrobras successfully executed a public stock offering worth almost $79 billion (bn). Yet despite the largest public offering in history and tens of billions of barrels in proven and expected reserves, analysts at Credit Suisse and Deutsche Bank, among others, have downgraded Petrobras’ investment rated to “neutral” and “hold,” respectively. Despite incredible potential, uncertainty over the potential increase in government control, over-ambitious targets, infrastructural bottlenecks, technological capabilities, and corruption...
Words: 8713 - Pages: 35
...To: Bill MacGregor From: Cost Accounting 3/24/2014 Executive Summary This report looks at Ajax Petroleum’s financial situation regarding their look into the addition of a new piece of equipment. This equipment would allow them to turn their crude oil into feedstock for their catalytic cracker which would turn this crude oil into gasoline. This gasoline would sell for far more than the crude oil itself however, the new equipment would be costly and would not turn profit until nine years after the purchase of the equipment. This study focuses on the decision at hand for Ajax Petroleum. I. INTRODUCTION Ajax Petroleum Company is an oil refinery in Middletown, Ohio. The company is currently being managed by Bill MacGregor, who always listens to his subordinates’ recommendations. John Patterson, general superintendent for the cat cracker, is currently pushing for the addition of a solvent-decarbonizing unit (SDU) in order to turn the No. 6 Oil which is normally wasted, into feedstock for the cat cracker which would be turned into gasoline. The question at hand is whether the addition of an SDU would benefit the company or be too costly to it without enough benefit. II. Analysis – Solvent Decarbonizing Unit As stated previously, the addition of a SDU would allow Ajax to utilize the No. 6 Oil by turning it into feedstock for the cracker, creating additional gasoline. This would require Ajax to report the No. 6 oil as a joint product because it would be highly utilized...
Words: 766 - Pages: 4
...Student ID British Petroleum case study 1. Company background 2.1. Amoco Oil Amoco Oil, previously known as ''Standard Oil of Indiana'', started of small in 1889; consisting of only one faciliy near Whiting, Indiana, but with a huge name backing it up – John D. Rockefeller. By Decemeber 1997, when the talks of a merger/joint venture started Amocco had $32.4 billion in assets and operated in 30 countries with 43,400 employees. The company's business consisted of three main segments: A) Exploration and production sector B) Refining and marketing sector C) Chemicals sector Exploration and production sector had the task of exploring, developing and producing crude oil and natural gas around the globe. Focusing on Amoco's proven developed reserves which were at the time 1,766 milion barrels of oifl and 13,904 milion cubic feet of natural gas. Refining and marketing sector of the company was among the largest sellers of gasoline in the United States through its 9,300 retail outlets. From their five refineries through 15,000 miles of owned or simply operated pipelines Amoco transported crude oil, refined products, carbon dioxide and natural gas. Their chemicals sector produces industrial and commercial chemicals. These three sectors combined generated $36.2 billion in sale in 1997, 78 percent of it was generated in the United States. In it's petroleum business; which generated approximately two thirds of its revenue and less than one fifth of...
Words: 871 - Pages: 4
...Company which is now known as British Petroleum (BP) was founded in 1909 and is one of the world’s leading international gas and oil companies. The multinational British company’s headquarters is located in London, United Kingdom and is one of the five largest oil companies in the world. The pioneer of the Middle Eastern oil industry, BP discovered oil in Iran before World War I and eventually became involved in all aspects of the oil industry, from exploration to marketing. Offering an array of services that expand from providing fuel for transportation to providing energy for heat and light, BP has become one of the leaders in energy sourcing across the globe. (Company History Index, n.d.) BP is also known for petrochemical products for everyday items and retail services. BP is one of the leaders of the energy industry. The company has high standards and uses the most modern technology in order to deliver long-term value and to meet energy needs. As a global company all activities and interest are held or operated through subsidiaries, associates or joint ventures which are governed by the laws of many jurisdictions. Around the world there are 16,400 BP service stations. (Company History Index, n.d.) Specify the nature, structure and type of products or services of Apple, and Identify two (2) key factors in the organization’s external environment that can affect its success. Provide explanation to support the rationale. British Petroleum (BP) is one of the world’s leading...
Words: 1639 - Pages: 7
...According to the American Petroleum Institute, the industry is divided into sectors to cover all the procedures involved in finding, producing, processing, transporting and marketing oil and gas. These sectors include: 1. Upstream: involved in exploration and production of oil and gas using advanced geology to high-tech offshore drilling platforms 2. Downstream: involved in refining and marketing. It also includes the transportation of products using tankers from local terminals to service stations and ownership and operations in retail outlets. 3. Pipeline: involved in the movement of oil from ocean platforms and wells on land to refineries and finally to terminals where they are released to retail outlets 4. Marine: comprises all aspects of petroleum and its products movement by water, including port operations, maritime fighting and oil spill response. 5. Service and supply: includes companies that provide supplies, services, design and engineering support for exploration, drilling, refining and other operations. As with all other industries, there exist features that are peculiar to the petroleum. Common amongst these as identified in the 2007 UNCTAD report are: t finite supply of the product as it is non-renewable t differences in cost between production sites as a result constraints in technology, environment, etc that may exist in one site and not in the other t the industry is capital intensive and as such the risk level is high t in terms of demand and supply...
Words: 353 - Pages: 2
...Pioneer Petroleum Corporation’s (PPC) has been through a diverse amount of changes throughout the years. They were originally were a merger of several different independent firms operating in the oil refining, pipeline transportation, and industrial chemicals fields. PPC then integrated vertically into exploration and production of crude oil and marketing refined petroleum products, but horizontally into plastics, agricultural chemicals, and real estate development. They decided to restructure the company into a hydrocarbons-based company, concentrating on oil, gas, coal, and petrochemicals. They needed to decrease their overall risk and optimize their overall performance and would only be able to by collaboration and coordination among their refining and marketing network divisions. PPC were spending billions of dollars on capital expenditures and were expecting an increase in the next year. These expenditures were allowing for the company to process heavy Alaskan crude oil more efficiently and also provided good returns. In the next five years, the company was going to need to meet new environmental standards, which meant more spending increases. Along with these expenditures and regulations were expected higher growths because now the company truly could utilize and capitalize on their strength. PPC’s management and board are weighing out two alternative approaches in order to determine a minimum rate of return. They had to decide if a single cutoff rate based on the...
Words: 778 - Pages: 4
...Kyle Moran Dr. Proctor BP Case In the case regarding our refinery plant in Lima, Ohio, I do believe it is in the best interest of not only British Petroleum, but the people of Lima to have the plant remain open. This area remains one of the foundation grounds in which one of our mergers, Standard Oil Co., struck oil years ago. In 1992, Vice President James Schaefer spent 3 years in an attempt to improve productivity and cut cost to save $7 million. According to his reports, the Lima plant actually attained $30 million in savings and added productivity over that period. After spending the effort and investment money to turn this plant around (an improvement of 30% in productivity), it wouldn’t make sense to shut down a revenue generating plant. This refinery is responsible for 500 jobs in the Lima area, generating a payroll of $31.5 million. The plant generates $26 million in annual fees to local utilities, and $11 million to local vendors. The 160,000 barrel-per-day oil refinery supplies Ohio with roughly 25% of their daily oil consumption. The demand for oil has only continued to rise and shows no signs of slowing down. If BP decides to part ways with this plant, it only seems right that we at least auction it off. This will give us money, but also keep the town of Lima with jobs and revenue. With all of these positive scenarios, shutting down the plant completely, I believe would give BP negative attention in the media throughout the United...
Words: 264 - Pages: 2
...PETROL INDUSTRY INTRODUCTION Petroleum industry in India Petroleum Industry Research is a very important aspect related to Petroleum industry all over the world. Petrochemicals are chemical products derived from petroleum. Some chemical compounds made from petroleum are also obtained from other fossil fuels such as coal or natural gas, or renewable sources such as corn or sugar cane. The petrochemical industry in India has been one of the fastest growing industries in the country. Since the beginning, the Indian petrochemical industry has shown an enviable rate of growth. This industry also has immense importance in the growth of economy of the country and the growth and development of manufacturing industry as well. It provides the foundation for manufacturing industries like construction, packaging, pharmaceuticals, agriculture, textiles etc. Its significance is increasing with the passage of time due to the following aspects:- • Petroleum is a non-renewable resource and is available under the earth's crust in limited quantity. So, research becomes essential in case of exploration of petroleum so that the supply side of it remains viable during the near future. • Petroleum Industry is generally accompanied by huge amount of pollution emission which required to be checked for social welfare. Hence, extensive Petroleum Industry Research is required in this field for the innovation of cutting edge technologies...
Words: 1205 - Pages: 5
...BACKGROUND The British Petroleum (BP) which was originally called the Anglo-Persian Oil Company is a multinational British company headquartered in London, United Kingdom. It was founded in 1909 to explore the oilfields of Persia (now Iran). British Petroleum is one of the world’s leading international oil and gas companies. Its services are mainly to provide their customers fuel for transportation, energy for heat and light, retail services and petrochemical products for everyday items. BP operates at the frontiers of the energy industry. The company uses world-class assets, technology, capability and know-how to meet energy needs and deliver long-term value. BP’s business model is to create value across the entire hydrocarbon value chain which starts with exploration and ends with the supply of energy and other products that are fundamental to everyday life. The company is focused on finding, developing and producing essential sources of energy, and turning these sources into products that people need. As a global group, the company’s interests and activities are held or operated through subsidiaries, branches, joint ventures or associates established in – and subject to the laws and regulations of – many different jurisdictions. By operating across the full hydrocarbon value chain, the company believes they can create more value for shareholders, as benefits and costs can often be shared by their two segments. They can develop shared functional excellence more efficiently...
Words: 374 - Pages: 2
...Daniel Hughes FINA 450 MID TERM Pioneer Petroleum Corporation Case 2-27-13 Background: Formed in 1924 by a merger of several firms, Pioneer Petroleum Corporation (PPC) is in the business of refining oil, building pipeline transportation and creating industrial fields. Pioneer is currently one of the primary producers of crude oil in the United States and is one of the top producers of Alaska crude oil. PPC is currently the lowest cost refiner on the western side of the globe, and has been expanding capital investments in numerous countries. Pioneer began expanding beyond their current industry into several capital ventures. Some have included vertical investments through the production of crude oil to the marketing of refined petroleum products, and horizontal investment interests into real estate, agricultural chemicals and plastics. However, in 1985 the company was restructured and concentrated on oil, gas, coal and petrochemicals. PPC spends billions in capital expenditures each year and are currently expecting an increase in capital expenditures in the upcoming years. Last year’s (1990) revenues exceeded $15.6 billion with net income over $1.5 billion, and capital expenditures were about $3.1 billion. It is expected that next year’s (1991) will rise to $4.5 billion, with some of these expenditures resulting in more efficient processing of crude oil. Other capital expenditures directly relate to the new standards of government regulations. These capital expenditures...
Words: 1208 - Pages: 5
...The Petroleum Institute Eisa Mohammed Al Nuaimi 200504377 Cohort - 06 Introduction Over the past four decades, companies and organizations in the UAE aimed to strengthen their competitive advantage by applying state of the art methods, practices, and heavily trading with other countries. This interaction led to the integration of markets and technologies and is defined by Globalization. The Organization of interest to the research is the Petroleum Institute a University & a Research Centre which was established in Abu Dhabi in 2001[i] and one of its aims is to become a renowned institution in engineering education and research hub for the energy industry. The importance of the oil industry in UAE is of significant importance because the UAE ranks as the 6th largest proven oil reserves[ii]. This report aims to look closely on how Economic Integration affects the oil industry as a whole and the Petroleum Institute in specific by applying a S.W.O.T. Analysis to the PI to stress several issues regarding its competitiveness in the regional and international economy. Background The Petroleum Institute is a private university located in Sas Al Nakhl, Abu Dhabi, UAE. The P.I. was established in 2001 by the Emiri Decree of H.H. Sheikh Khalifa bin Zayed Al Nahyan. The institution started with sponsoring from Abu Dhabi National Oil Company (ADNOC) and four international oil companies which are British Petroleum, Japan Oil Development Company, Shell and Total[iii]. The...
Words: 638 - Pages: 3
...The price of petroleum as quoted in news in North America generally refers to the WTI Cushing Crude Oil Spot Price West Texas Intermediate (WTI), also known as Texas Light Sweet, is a type of crude oil used as a benchmark in oil pricing and the underlying commodity of New York Mercantile Exchange's oil futures contracts. WTI is a light crude oil, lighter than Brent Crude oil. It contains about 0.24% sulfur, rating it a sweet crude, sweeter than Brent. Its properties and production site make it ideal for being refined in the United States, mostly in the Midwest and Gulf Coast regions. WTI has an API gravity of around 39.6 (specific gravity approx. 0.827) per barrel (159 liters) of either WTI/light crude as traded on the New York Mercantile Exchange (NYMEX) for delivery at Cushing, Oklahoma, or of Brent as traded on the Intercontinental Exchange (ICE, into which the International Petroleum Exchange has been incorporated) for delivery at Sullom Voe. Cushing, Oklahoma, a major oil supply hub connecting oil suppliers to the Gulf Coast, has become the most significant trading hub for crude oil in North America. The price of a barrel of oil is highly dependent on both its grade, determined by factors such as its specific gravity or API and its sulphur content, and its location. Other important benchmarks include Dubai, Tapis, and the OPEC basket. The Energy Information Administration (EIA) uses the imported refiner acquisition cost, the weighted average cost of all oil imported into...
Words: 432 - Pages: 2
...Donald Williams English Composition 102 Mr. Vincent Wake up, America. The time has come for us to cut our ties to petroleum based fuels and to place more emphasis on expanding our technology of alternative fuels. With the energy crisis as dangerous today as it was five years ago, we alone hold the keys to our own future vehicles--TODAY. With the investments that we have already made on alternative fuel vehicles, why not continue to strive to perfect the technology? If we choose not to continue these programs, we will see consistently rising prices at the gas pump, and ever shrinking wallets. Yes, alternative fuel vehicles are more expensive, however, look at what we pay now for vehicles and the fuel we put into those vehicles. Last year alone, I spent approximately $5,200 on fuel for my Jeep Commander and $2,000 on my Eagle Talon. That is $7,200 that could be coupled with government incentives and tax credits to purchase a “green vehicle.” Over the past few years, many different groups of people have started to look for an alternative fuel to use instead of petroleum due to its decreasing abundance and increasing pollution. Many different options have arisen for alternative fuel use, each having its own strengths and weaknesses. Currently all major automakers have projects under way to develop a reliable and sustainable alternative fuel, each having its own direction or focus for which alternative fuel to use. The fuel choice focus for each company ranges from hybrid...
Words: 927 - Pages: 4
...The American Petroleum Instit PHL/266 September 26, 2012 A trade association refers to an organization formed and financed by businesses that operate in a particular industry. (Bradley, 1965) The main goal of forming trade associations is to increase the bargaining power of the members and to articulate their issues to related parties. They focus on educating their members and providing a conducive environment for business. The main purpose of this essay is the American Petroleum Institute (API). One of the main functions of trade associations is the provision of information to its members. Both Economic and Business related information is important to have effective trading. The associations assumed the responsibility of supplying such information to its members. The information provided includes that on past and present sales, production costs and production levels. Another important function of these associations is to market their members’ products and services. The associations are most likely in the frontline in marketing the industry’s products. According to Bradley (1965), this may take the form of organizing and sponsoring trade fairs for the industry as well as carrying out industry advertising. Regulation of industry’s marketing, practices is also done to effectively monitor the level of competition among the members. The American Petroleum Institute is a trade association located in the U.S. that operates in the oil and natural gas industry. The association...
Words: 1054 - Pages: 5
