Joint ventures within the energy sector Essay Example | Topics and Well Written Essays - 2500 words

Joint ventures within the energy sector - Essay Example A combined force of Shell and Aramco strengthens the venture’s competitiveness. For instance, Saudi owns oil reserves, but lacks the ability to exploit them (Johnson, 2011). Therefore, this influences the government of Saudi to strike a deal with Shell. The state of Saudi has efficiently exploited the oil resource, while the investor gains some profit. The energy sector takes different forms, this report will primarily focus on oil and gas as sources of energy. Apart from that, market factors in the petroleum sector contribute significantly to the well-being of an economy. Therefore, key stakeholders in this micro-economy continue to effect and affect the industry (Johnson, 2011). The primary players include National Oil Companies, International Oil Companies, and petroleum organizations. Therefore, when these parties’ work in harmony, petroleum players realize an increase in the efficiency of oil production. However, economic factors such as demand, supply, and industrial regulations influence the pricing and distribution of petroleum products. Consequently, competition among stakeholders increases since oil is a rare commodity. Motive enterprise is a joint venture between Shell (an IOC) and Saudi Aramco (an NOC). Both of the shareholders own equal shares of the company. The company has its headquarters in Houston Texas. In 2004, the company posted a fiscal net profit of 24 billion dollars. Motiva owns and operates three oil refineries in the United States. Important to say, the expansion of Port Arthur refinery increased its capacity to 600000 meters cubic per day (Stevenson, 2011). Subsequently, Port Arthur refinery became the largest in North America and the fifth largest in the globe. Motiva produces diesel, petrol and petroleum liquid gasses and other crude oil products. United states are the fundamental customers of the company’s products. Joint ventures between national and international firms can be realized through

International Relations Essay Example | Topics and Well Written Essays - 1750 words

International Relations - Essay Example In Constructivism, human values, ideas, and shared beliefs are important because the world’s practices are constantly affected by how people speak about them (Tickner & Blaney, 2012). This theory heightens the ordinary citizen’s personal sensitivity to their socially constructed interests and identities. When considered against the backdrop of international relations, constructivism stresses on how nations perceive themselves as well as their national identity (Tickner & Blaney, 2012). Â  For instance the identification with words like ‘middle power’ or ‘superpower’ and the implied meaning that comes with these expressions determines the subject’s conduct; and so the theory’s ideas influence how states and their rulers conduct themselves on the international stage. Classical Realism and Neorealism The realism focuses on the world as it really is instead of reflecting on how it ought to be. Basically, this is an empirical and not a normative model (Tickner & Blaney, 2012). Freudian observation appear to support the realist’s beliefs in the examination of personal behaviour within groups. This seeks to define how primary human instincts lead people to engage in the avoidance of all kinds of pain, the never-ending pursuit of personal objectives, and the importance of employing foreceful tactics when dealing with other people, organizations, or nations. Realism is essentially a pessimistic theory that stresses on the intermittent patterns of power politics as evidenced by repeated rivalries, conflicts, and wars (Tickner & Blaney, 2012). In this theory, the factors that are predominant include the security dilemma and the balance of power. Realists also view the state as the main factor of importance in international affairs. The world’s superpowers or richest nations are given the most attention as they have the greatest leverage on the global stage. Additionally, it is the national interest that influences state behavior, according to this theory. Realists also maintain that the allocation of power is responsible for deciding international outcomes. Neo realism adds to realism in that it deems that international conflict is the result of the chaotic international system (Tickner & Blaney, 2012). Conversely, in neo realism, the state is not viewed as being superior to the system; which is the case in