With increased use of technology, every answer of our queries is satisfyingly answered by our search engines. These searches bring information to our doorsteps by just a click of our fingertips. Nevertheless, these sources can also be trusted as they are very authentic and save a lot of time too. For one of the oil company, I looked into a journal which had a list presenting the oil companies worldwide. I looked into the section showing the Iraqi companies in the Kurdistan region.
Therefore, with the facility of journals and information online, an informative report was easily prepared. Journals also turned out to be a great source of information for this report but it consumed a lot of time to find relevant content and then, separately write it out. But I gave to look from the journal and instead, looked for material online as it is million ways better than to look in journals for material such as this.
First off is the Gulf Stone Company which is has been a source of foreign exchange in this region and makes an integral part of the economy.
This company is an independent style of Oil Company and its policy of sustainable development increases the reputation of the country. Therefore, results in the simulation of trade and promotes industrialization and urbanization at the same time. This company also takes care of the environment after the drilling of oil has taken place. They carry out recycling procedures which reduces pollution and creates a clean environment to live in.
It also generates employment opportunities and the purchasing power of the people increases which releases the burden on loans. It results in a larger yield for crops such as wheat and barley etc. It is also beneficial for the livestock as through this many pools have been dug in the past few years. Its administrative policy is also effective as it seems to create a sense of devotion among the employees and makes a workplace a peaceful place. On the other hand, this company has also transported oil through pipelines which is very cost effective and has reduced the burden on the economy.
Value chain lets the owners to have a look at their activities and search their other fields for investment. Gulf Keystone has its vision to generate value for all the stakeholders thorough a strategic increase in the production at Shaikan, and maintaining firm economical discipline and a healthy record of safe operations. The various activities involved in order to have milestone success are: Asset development- Shaikan has used its knowledge for the underlying reservoir and has its eyes on reducing the risks of its strategic planning and the expansion of the license. In hand with the partner, they together look after the international project and have strategic investment which involves minimal risk chances It searches for a full proof and revised field Development Plan, that is beneficial for the company. Gulf Keystone has its aim to have increased output from Shaikan. The staged investment plan is on track to attain growth production in output in Q3 2020. The management team is aimed to attain value for the shareholders of the company. This can be achieved by a strong focus on costs, safe and trustworthy operations and reaching field performance for which it has announced annual dividend. The strategic priorities are safety for reducing risks, providing better management; bring about competitive prices and good production output.
Local content is referred to as a percentage of investment, time limit, the tools produced or the amount of job creation. Increasing the local content of projects is technique of improving skills and increasing the building industrial capacity in host countries. A job in this sector can only be achieved by a labour force with sufficient skills in order to be able to perform the activities like oil drilling and its transportation etc. However, the potential of the oil is not guaranteed but this can only be recognized if we are provided with serious investors. It also helps the industries to find people who in the rural industries which would bring out employment opportunities. On the other hand, it could also lead to disguised employment. It would also increase the level of technology and so, things would be way smoother than before. This would also develop the infrastructure which would also lead to mobilization of the work force and drilling would be easier. Furthermore, more and more sites would be excavated to check for oil where other things like mineral resources and water etc. could be used up by foreign investors , increasing exports at the same time. However, if the policies of this LCRs are not finely implemented , this would mean that an oil company wouldn’t be able to derive enough benefits from these programmes, and so, all investments would be wasted. There is also a chance that some information may be leaked which would lower the efficiency of a company and would result in conflicts too. Through these kinds of initiatives produced by the government, it results in economic and social growth of some specific areas. It ultimately leads to a gradual rise in the living standards of the people. In other terms, it results in globalization shortening distances. These LCRs overcomes the mismatch of demand and supply in labour as people with well gifted skills only approach the oil companies. It also reduces the chance of market failure.
Export Processing Zones would also be established with the increase in infrastructure. But the misuse of such policies would increase the crime rate having a negative impact on the economy as the government may have to pay fines and special tariffs and taxes. Moreover, the government would have to organize training programmes which are time consuming a require a large amount of funds. It also decreases the burden on foreign loans and so, a countries becomes independent on its own efforts.
In 2015, the Gulf Keystone Company gave out an announcement saying that they were looking for serious investors who would take apart in a treaty which would last for a number of years and wasn’t a short term treaty. They particularly focused on the development of an oilfield at a place named Shaikan. They were producing almost 33,000 barrels of oil every single day which is an extremely large amount. This shows the progress of the company in the past years. After six months, the amount of barrels showed a rapid increase providing 6 million barrels of oil. Later, they with signed a pact with a Norwegian oil and gas company which gave a bid of 300 million . This alliance with the company created a number of incentives for Kurdistan\'s economy. The Gulf Stone Petroleum had also integrated with an advertising platform which attracted customers. The executive director of this company has also got into a number of deals. Asher is a part of an advisory group related to investments which is controlled by Imperial College and an associate of London Business School. He has also been an affiliate of the Beta oil refinery at a place named Wilhelm shaven in Germany. After this, he has formed processions with many companies. Asher has also been the person for the flourishing of some companies and has caused rapid development for some of the companies that were underdeveloped.
With a close look to the growing advancements in the world, it is indeed guaranteed that conflicts may arise which would lead to widespread unrest. It has a number of problem which lowers its potential to be developed . There would be further problems as people may start to compete over who is better and provincial conflicts would arise.
Oil forms an integral part of the source of income for the people of Kurdistan and so, it is essential that it shall be maintained. There are various conflicts between the federal government of Iraq and the provincial government of Kurdistan over the possession and handling of the resources of petroleum. However, these problems could further be solved if peace agreements were organized. The two governments should try to reach an agreement as fast as possible , because investors may lose interest and make deals with some other country. Most of the investors have also observed the fact that most of these conflict have found their way into elections which requires a long term deal to be organized. It would result in an increase in the collection of revenue which would reduce corruption too. A research carried out by Ministry of Natural Resources (MNR) showed that gas production was about 3-4 billion cubic metres in 205 which is said to increase five times by 2035, which is an enormous amount of oil and gas. There are different fluctuations in the political events of an area like Kurdistan and so, investors must make sure they invest at a time where peace is obtained in Iraq. The inventors must also make sure that there is strict enforcement of law as a lot of mismanagement may have been carried out. There are many people who may do some sort of fraud or corruption and so, safety of the goods should be taken great care of. A continuous mismatch of demand and supply is present and the investors may not always find the skilled workforce they require. However, these factors require strict enforcement of law and introduction of awareness programmes which is quite costly and may consume a lot of time.