Homework Question on Oil Production in Russia
- Each student will choose an operations topic that is currently in the news in a foreign country (e.g. oil production; pollution control), review the current business literature on that topic, and submit a written report.
- The report should discuss the topic in the context of the country chosen and the operational policies that impact globally on society. Two scores are given.
- The first is based on the relevancy of the topic to the country of interest; and the second is based on the ability to identity appropriate impacts on multiple global societies.
Homework Answer on Oil Production in Russia
Russia is the eighth largest oil producer and the third largest energy consumer producing 12% of the world’s oil and related products. The leading oil producing companies include Rosneft, Lukoil, Gazprom among others. It is also the principal exporter of natural gas. A turn around to its production began in 1999 analysts attributed it to privatization of the industry others to technology and some to the increases in demand in the Asian countries due to their increased economic growth at the time. The production increased to 10.2 million barrels per day (David, 2014).
Currently there has been an increased supply of oil from The United States which has led to lowering of world oil prices, but global events like violence in Iraq and the demonstrations in Libya have also played apart. Their increased oil production has also led to maintaining and keeping prices at a fairly constant level. The United States uses hydraulic splintering and directional puncturing on private and state lands where federal policies have diminutive effect.
If they were not producing oil the prices would have been very high due to the events mentioned earlier that are occurring in some of the countries producing oil. According to International Energy Agency, United States is presently the world’s biggest oil and natural gas producer surpassing Russia and Saudi Arabia. The oil production is expected to increase from the current 8.48 million to 9.8 million barrels per day by 2015; this will reduce their dependence on oil imports by as much as 22%.