Worldwide oil business sector is more prominent in size than the global gas market. Primary makers of oil incorporate Saudi Arabia, Iran, Russia, and the United States. The worldwide oil business has an intergovernmental association which comprises of twelve fundamental nations which deliver oil. Each nation obliges oil in view of its broad utilization in each industry. Essentially, nations import or fare oil through ocean courses, for example, with the assistance of oil tankers. On the other hand, volume delivered in the universal gas business sector is littler regarding volume created in the oil showcase all around. Primary players of the gas business sector comprise of Russia, United States, Canada and European Union
1. What are the most important differences between international oil and gas markets?
2. How is Russia situated in these markets?
3. How much protection do Production Sharing Agreements (PSA’s) provide for foreign investors?
4. Why are PSA’s so controversial in Russia?
5. Should Shell’s managers proceed with Sakhalin II, and invest another $10 billion in Russia, despite the fact that the project’s legal issues have not yet been resolved?
6. How can Shell’s managers mitigate the risks associated with this project?