Oil and Gas Industry Assignment

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Added on 2020-11-23

Oil and Gas Industry Assignment

Added on 2020-11-23

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Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Critically analyses of two approaches....................................................................................1How they can be operationalised to mitigate a potential blockade........................................2Describing the potential impact that Strait of Hormuz will have on oil and gas industry.....3CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5

INTRODUCTIONEnergy growth is directly linked to the well being as well as prosperity in the globe. Thepresent report is based upon a case scenario of oil transportation of the routes of Gulf and Straitof Hormuz and the entire international energy market is depended upon transport routes. At thattime there are other vulnerability with potential disruption scenarios which are ranging fromsmall scale local terrorism and creates conflicts with interstate. The report present twoapproaches and how they can be mitigate the blockade along the Strait of Hormuz and further itdescribe the potential impact which Hormuz will have by using specific examples. MAIN BODYCritically analyses of two approachesAs the security of energy exports and energy transit from MENA region and further italso gives the importance of global economy and further the region is also have the history ofdisruption to oil as well as gas production and transportation (Beccue and et.al., 2018). For morethan 60 years the energy sector has contribute its best part for the welfare of the economy of acountry. The route through Gulf and Strait of Hormuz has also some interstate conflicts that iswhy there are two approaches which help to mitigate the supply disruption and these arementioned below:By cooperative sharing, these interstate conflicts can be mitigate. For example, thegroups which come in between the routes of Strait of Hormuz and Gulf can strengthen upthe institution and mechanism in order to deal with energy supply disruption. Therefore,it will help to overcome the vulnerability between the routes and as a result, the oiltransportation can easily be managed (Li, Jin and Shi, 2018). Even the cooperativesharing from each groups will also help to deal with the energy supply disruption.However, it has been critically evaluated that this is a simple and inexpensive methodwhich help oil and gas industry to solve their issues such as small scale local terrorismand conflicts between interstate conflicts. Another approach is constructing and upgrading the infrastructure which helps to providean alternative export routes and then protect the existing ones. Moreover this approach isalso useful to overcome the temporary disruption and can export the oil and gas in theirexact destination. If this is applied by the all transportation then it will definitely help to1

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Oil and Gas Industry Assignment