Sunday, December 22, 2019
Petroleum Industry A Stiff Neck Competition - 3472 Words
Oil is one of the many natural resources on high demand. To safeguard the oil, countriesââ¬â¢ producing it has to take caution in the exploration and the sale of their oil. This explains why some oil producing countries in such as Nigeria has found themselves in the scramble with big states like the U.S and the China, which are competing to get a share of the oil. The rush for the oil has attracted new political and economic forces, giving the petroleum industry a stiff-neck competition. Every state is interested in this rare and natural resource. The oil producing countries also is highly dependent on the oil and cannot, therefore, gamble with the idea of putting their economy booster at risk. Oil-producing countries like Nigeria are left with no option but to take great caution when dealing with new scramble for Africa. Nigeria produces large amounts of oil, enabling it to export 10-12 per cent of the oil to the U.S. Without proper evaluation and calculation of their dealings, they stand to lose miserably on their main source of income. The Middle East has over the past 15 years experienced a crisis as a result of interests in their oil by the U.S. In the recent past, however, Nigeria has been hit by cases of political instability resulting in insecurity which has affected some of the oil companies like the Chevron and the Royal Dutch Shell. Escalation of major insurgencies has reduced the revenue obtained from oil as a result of the cut national output. 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