Thursday, December 19, 2013

Oil And Gas Joint Venture Developments

By Eugenia Dickerson


Large energy related companies and conglomerates dominate the oil and gas joint venture industry. The costs associated with energy related ventures require very deep pockets and access to large fund pools. Global in scope, the sector is dominated by specialists of many disciplines including science and technology. These joint ventures are regulated and overseen by public and private governing bodies that are national and international in scope.

Energy has been a part of human life for generations. In the world today energy needs are considered critical to the efficient running of business, government and individuals. No modern nation state, region or local economy can function well without their respective energy needs being met. The vibrant global oil and gas industry are significant sources of fuel used to power electricity.

Nature related disasters as well as human participation on occasion caused loss of power to homes, businesses and other customers. This immediately changes the dynamic of day to day workings. Household necessities such as fridges, freezers, microwaves, television sets become nonfunctional. Computers also need power to operate. These computers may be individual used. However sophisticated computer systems run many critical infrastructure processes and any interruption of the workings of these systems can create panic.

Many of the energy sector joint projects are designed to share the potential risks. In addition collaborating with locally based companies can appease governments who increasingly want to share in more of the wealth created as well as access the technology used in the industry.

Many of the companies operating in the energy sector are public companies. This means that their shares are traded as company stock in stock exchanges around the world. They are most often run by a team of management specialists. Because of their public nature they have to justify any costs associated with these projects. Shared risks are often applauded by many investors as this is associated with prudent management abilities.

The public invest in energy related projects in a number of ways. Many workers and pensioners have money managed by specialist fund management groups. These management groups are often approached by major conglomerates looking to fund their various projects. By fund managers investing in these types of projects the public indirectly helps the sector grow.

In a number of countries in all regions of the globe, new sources of oil and gas are being explored, extracted and refined. The global energy needs trend is rising rapidly. More as well as increasingly sophisticated joint ventures in the industry will also grow. The nation states where new discoveries are found want a larger share of the pie in terms of wealth and technological sharing.

Oil and gas joint venture related companies and conglomerates have to have deep pockets financially speaking. These ventures require international cooperation from both the private and the public sector. Investors are often more willing to back management of companies seeking funding if partnerships are formed as this spreads any risks. Joint ventures in the industry will continue to increase as the need for more energy grows.




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