Environmental regulation of oil and gas
Demand and supply
The global oil and gas industry face an External Environment that is more dynamic, more challenging, and more diverse; less understood and has greater information symmetry. These Environmental factors include: Political, Economic, Technological, Legal, Environmental and social factors.
Political Environment: This involves the risk that political decisions and events that occur worldwide can affect the profitability and sustainability of the investment in the global oil and gas industry. Political decisions are very diverse thus they influence the oil and gas industry. For example, if there is political unrest in the major Oil Producing and Exporting Countries (OPEC) there could be no smooth operations of the oil and gas industry, thus oil and gas companies tend to prefer countries with stable political systems and a history that can guarantee long-term Leases.
Economic Environment: The economic development directly influences; the policymakers, citizens managers and institutions. The Gross national income (GNI) generated by both the domestic and international production activities of national companies and the Gross Domestic Product (GDP) of countries do generally shape the global industry of oil and gas. The economical factors include; Inflation rate, Prevailing interest rates, unemployment level and the level of disposable income and income distribution.
Technological environment: These relate to the applications of new innovations such as Websites Internet as a business tool. Thus the oil and gas organizations need to be aware of the latest relevant technologies for them to succeed and surf the wave of change.
Dubai as significant producer of oil and gas
Dubai is a major player in the world market and its role in international trade cannot be overemphasized since it contributes almost 10 percent in this trade. This country has repeatedly dominated the international market arena due to the following reasons, one it occupies a very strategic position in the middle of U.A.E coast and additionally it has one of the most efficient harbors in the world hence playing a crucial role in the transportation of goods between East and West markets. Also Dubai in the recent years has pursued to strengthen its strategic location by pursuing a free and balanced economic policy therefore gaining an international reputation which has not only seen the increase of Foreign direct investments (FDI) and also growth of service, commercial and industrial fields. Dubai is also endowed with natural resources like oil, gas just to name a few and also it has one of the best infrastructure in the world and therefore this resource and proper systems has seen the economy of Dubai take off in a way never witnessed before. The aim of this paper is to explore Dubai as a primary producer of oil and gas and its place in the international trade of oil and gas arena.
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