Generally, in many countries, market forces determine the process of setting up inventories and the determination of their size. Producers, consumers and speculators will arbitrage prices so that it will be profitable for someone to hold inventories to moderate fluctuations in the balance between production and consumption—if indeed it is profitable to do so. Similarly, the extent to which producers maintain excess production capacity is a decision made by individual producers based on the profitability of doing so.
David Victor, Amy Myers Jaffe, and Mark Hayes ask whether natural gas could be the “new oil,” in Natural Gas and Geopolitics: From 1970 to 2040 (New York: Cambridge University Press, 2006). “Not just because I was an editor,” Jaffe adds, “this is the best and only book on this important topic.”
Slowly, quietly, the oil world has been transformed. The major international oil companies that dominated energy markets throughout the latter half of the 20th century — the ExxonMobils, BPs, and Royal Dutch Shells — now own less than 10 percent of the world’s oil and gas. They’ve been pushed aside by government-controlled national oil companies, which now command close to 80 percent of the world’s remaining oil reserves, overwhelmingly dominate oil production and pricing, and aren’t afraid to flex their geopolitical muscle.
Venezuela’s launch of a new bidding round for foreign direct investment in its oil-rich Orinoco Belt region this past December, and Hugo Chavez’s decision last week to allow Western energy companies to bid for them, signals a reality check for international oil players. Despite all the hullabaloo about resource nationalism, re-nationalization, and energy weapons, there is nothing like a good market correction to focus the mind.
UPDATE: Andrew Barkett is leaving his post as senior engineer at Facebook to bring his decade of experience in Silicon Valley to become the first-ever chief technology officer for the Republican National Committee.The June 4 announcement has stirred a whirlwind of media coverage, including the Huffington Post and Washington Post.Bark
Agilent Technologies’ Electronic Measurement Group is a $3.6 billion business that over the past decade has seen a dramatic shift in its customer base from U.S., and Western European customers to predominantly Asia-based customers. Today, the majority of the division’s revenues are generated outside of the U.S., with an increasing concentration in China.
(Davis, CA) — The UC Davis Graduate School of Management’s full-time MBA program has been ranked among the top six percent of AACSB International-accredited programs nationwide, according to U.S. News & World Report’s latest graduate business school rankings released today.