Commentary on Chapter 10-12 of the Quest

The Quest:  Chapter 10-12 Commentary

        While reading through Chapters 10-12, I drew interest into one particular part of chapter 12.  In the "Abovegroud Risks" section, author Daniel Yergin spoke of the long list of many different risk areas including, but not limited to, economic, political and miliary.  This sparked my interest in the fact that no matter what sort of view one would look at the energy sector, risks would always be a prominent factor within the situation.  The following commentary discussed goes through the different risks stated within this specific section of the text.

        The first of the many questions asked what policies do governments make.  When looking at this specific question, the thoughts that would run through the mind would be governments make all kids of policies in many different areas what is so different about the energy sector.  After research and knowledge from other courses, I then realized that the government is developing and putting in place many policies and regulations that affect all aspects of the energy sector in detail the oil and gas industry.  The next question would be what terms do they require.  Governments require many terms in the industry and sector in order to be able to get the full effects and the correct information of the companies.  How would they implement their choices?  These companies have implemented their choices in many ways and have determined the correct risks they are willing to take in order to maintain a healthy and thriving company.  FInally the quality and timeliness of their decision making would have a large impact upon how the company would thrive within the industry.  If a company were to wait to long to enter the oil market per se, the price of oil might take a down turn per barrell that would plument the company into further debt from the beginning.  

        The next set of questions asked include: Do countries provide companies with access to develop resources and do companies gain a license to operate?  Yes countries would provide companies with access to develop resources if the political ties between the countries are peaceful.  Treaties must be signed and agreements must be made before the access to these resources can be gained.  The costs within the oil fields have been fluctuating for many years.  The costs to refine and produce the oil is growing.  The price consumers have paid for the barrells of oil fluctuate as well with the uncertain supply and demand of such a resource.