{"id":45597,"date":"2015-10-27T11:37:35","date_gmt":"2015-10-27T06:07:35","guid":{"rendered":"http:\/\/vskills.in\/certification\/blog\/?p=45597"},"modified":"2024-04-03T13:13:48","modified_gmt":"2024-04-03T07:43:48","slug":"oil-and-gas-crisis-and-what-it-means-for-todays-world","status":"publish","type":"post","link":"https:\/\/www.vskills.in\/certification\/blog\/oil-and-gas-crisis-and-what-it-means-for-todays-world\/","title":{"rendered":"Oil and gas Crisis and what it means for today’s world"},"content":{"rendered":"

\"FACING<\/a><\/p>\n

Oil and Gas price crisis is not a new phenomenon; previous instances in 1970s and 1980s had resulted in skyrocketing of oil prices. But the issue is making headlines because of the scarcity of the resource, this means that such emergency will manifest later on too. The statistics does not support the preposition altogether though with better technology and expertise in the field of oil extraction and other conventional oil resources, the oil reserves have increased by 60% of what they were about two decades ago and the production of oil has gone up by 25% too. The current crisis can be attributed to the sudden emergence of the US, as its production to a half a century high. This has put pressure on the OPEC countries which house maximum of the world\u2019s oil reserves. Since these questions their supremacy in the oil industry OPEC has not budged and reduced its production. This has created a competitive environment in the industry by achieving record low prices per barrels. Future Estimates put china as one of the biggest consumers of oil with an increase in demand by 9.4 million barrels per day by 2030. The regions with spurting refinery capacities are OPEC nations, India. US and China. This spells out an excellent opportunity for capacity augmentation as the consumption trends will increase in these regions especially Asia. Estimates also say that several fields in China are yet to reach their peak output.<\/p>\n

The Company in focus here is not a part of the Major two geographies discussed above i.e. the US and the OPEC, Sinopec is a Chinese oil and gas company based in Beijing, it is a state owned company and in terms of the revenue generated, it is one of the largest oil companies in the world. Apart from oil and gas refining and exploration Sinopec is also into production and sales of petrochemicals, chemical fibres, chemical fertilizers, and other chemical products; storage and pipeline transportation of crude oil and natural gas; import, export and import\/export agency business of crude oil, natural gas, refined oil products, petrochemicals, and other chemicals. Sinopec has made some good acquisition in Europe and Africa, specifically Africa (Angola, Nigeria, Cameroon, Egypt, Ethiopia, Sudan and Gabon).<\/p>\n

The Chinese oil and Gas industry can be disrupted by some factors both internal and external.<\/p>\n

Internal Factors:<\/p>\n