Exxon Mobil and the Chad-Cameroon Pipeline 1. Is this an attractive opportunity for Exxon mobile? Considering the financial perspectives of the project, the project was bound to create huge revenues for all the parties involved in the project. According to World Bank, this project would create a revenue of $2billion for Chad and $500 million for Cameroon. Along with this, it would also produce a sum of $5.7 billion for ExxonMobil and its partners. That being said, in projects like these, money or revenue isn’t the only aspect to be considered while deciding a project. Thus, even though the project looks financially very attractive, the actual risks and the treats will be discussed in the next part of the paper. 2. What are the biggest risks …show more content…
However, the case talks about high levels of corruption in the countries and ExxonMobil could have both internal and external concerns around it. The ExxonMobil has to ensure that the economic growth that it has planned for the people of Chad and Cameroon reaches to the public as planned. The involvement of the World Bank will ease this process. Also, it needs to ensure that the corruption does not delay the actual implementation of the pipeline project in any way. If that happens, there are fluctuation risks involved as well. 5. What role should concern for the environment play in the managerial decision making? As time passes, the importance of environmental considerations is increasing more and more in the society. For projects like these, ExxonMobil must realize that they are affecting the ecosystem, air, biodiversity, human population, fodder, forests, agriculture etc. and this means a lot to Chad and …show more content…
Is this a good place for EM to build an image as a responsible environmental citizen? Few events that happened in the past have led to creating a bad image of ExxonMobil in the minds of the common people. A few of those incidents include the very recent and extremely huge spill Exxon Valdez disaster of 1989, which causes irreparable damage and took years to recover, and total recovery was never possible. Another incident here was when miscommunication caused a life of a poor peasant in the Doba areas. Exxon had already lost a lot of reputation. Also, there was no way to mitigate the risks caused by the environment. Hence, I am of the opinion that this is not the best place for EM to build an image as a responsible environmental citizen. 7. Would you build the pipeline? Why? No, I would not build the pipeline in the current scenario, given the high risks and potential threats. However, if the involvement of World Bank is ensured to stay away from corruption. The economic growth that is promised is undertaken, and if there is an innovative way to reduce the human and environmental risk and the project still ends up being financially attractive, I might revisit my
On the other side of the Dakota Access Pipeline conflict is the company building the pipeline, Energy Transfer Partners, and to an extent, the Army Corps of Engineers. Seeing as Energy Transfer Partners are constructing the pipeline, they are obviously in full support of the pipeline. On the website that Energy Transfer Partners has created to provide the public with their perspective the pros and cons of constructing the pipeline, they outline many reasons as to why the pipeline should not be opposed (Dakota Access Pipeline Facts, 2017). They begin by displaying a map of the proposed pipeline that shows that the pipeline will not cross Standing Rock Sioux Reservation, and in fact, it is located entirely on privately owned land except for a 1,094 ft portion that is owned by the federal government.
Opponents of the project argue that the negative effects of the pipeline on the environment would outweigh the economic benefits of the pipeline. Since the pipeline would be built over several important landmarks including the Ogallala Aquifer, the “most heavily used aquifer in the United States [which] supplies about 30 percent of the groundwater pumped for irrigation nationwide” as well as provide a major source of drinking water, the potential for leaks and spillages in the pipe could cause the water to become contaminated (Song). Nearby plants and animals would also be affected by the chemicals of the oil sands. The issue of greenhouse gas emissions also raises concerns. According to Janna Palliser’s, The Keystone XL Pipeline:
With the unemployment rate of the United States already decreasing slowly due to the economy being in a recession, the construction of the Keystone XL Pipeline would finally lift the U.S out of a high unemployment rate. Amidst such a huge construction opportunity, people will be required to work around the clock to complete the project in an efficient amount of time. Therefore, the Keystone XL Pipeline would provide the U.S with 100,000 blue-collared jobs over the next 4-5 years (Conca).
The author of the article Greg Ip, believes that despite Obama’s statement, the President knows very well that even though the pipeline will not go into fruition, fossils fuels will still
Running from Alberta oil deposits to refineries in the Gulf of Mexico, the pipeline would be able to pump oil in a direct path, as an extension of the Keystone pipeline that already exists. Competing
I’m sitting in my room in my house in Washington and all of a sudden I hear a knock on the door. It’s the government and they said that they will be digging up my backyard for an environmentally friendly piece of equipment. Sounds absurd, right? Well, this is what happening in the Dakotas to Native Americans.
Environmental America urges citizens to reach out to the Obama Administration in saying “save our coast, no offshore drilling”. Meanwhile, smaller actions can be preformed, by holding companies personally responsible for clean up cost, which would entice them to do everything in their power to prevent future spills. Another option would be follow Federal Commissions recommendation, and undertake full environmental protection reviews at all offshore drilling locations. A lot can be accomplished to stop further risk of harming wildlife as a result of drilling. Likewise, there is a series of morally persistent reasons on why it is urgent to the health of our planet and all species that live on it.
The Prince William Sound, a long-travelled route for the transfer of oil, fell claim to the wreck of an Exxon-Valdez oil tanker, polluting the water and costing Exxon Valdez several billion dollars in reparations. 1,181 miles of the coastline of Alaska were affected and the marine life of Alaskan coast was devastated due to the millions of gallons of crude oil spilled. [1] Due to the nature of the spill, Exxon Valdez could be held directly accountable for the spillage, with no fault falling on ship construction and very little being attributed to the individual crew. In comparison, the First Energy Corporation’s malfunctions caused a chain reaction of the mistakes and unfortunate timing of malfunctions across many other companies in a catastrophe of communication.
Bill McKibben is considered to be America’s first environmentalist activist. His project 350.org works to spread awareness of climate change around the world. Without his push to end projects such as the Keystone Pipeline, the planet would quickly reach the uninhabitable state he fears. While it’s too late to reverse the damages already done, he encourages everyone to do their part to keep the world from getting any worse. His efforts, along with activists around the world, have successfully divested $2.6 trillion in oil drilling funds, and while the few oil companies are still hanging on by a thread with support from large private businesses or people like the Koch family, clean sources of energy are becoming increasingly popular in the
Exxon exercises unique geoscience capabilities and understanding of the global hydrocarbon endowment to identify and prioritize all quality resources in a cost-effective manner. Exxon’s strategy is a cost leadership strategy in the upstream segment by outperforming the competition—creating a comparable value at low-cost—using core competencies: industry-leading technology and capabilities, disciplined approach to investing and cost management, and operations
Risks 4 7. Stakeholders 4 8. Project Milestones 4 9. Project Roles and Responsibilities 5 10. Authorization…………………………………………….
In the Oil & Gas Industry the competition is significantly intensive, with the market being ruled by big giants such as Exxon Mobil, Total, ConocoPhillips, British Petroleum, Chevron and the Royal Dutch Shell etc. Appendix A shows the market values of these super majors. The market is over ruled by three different types of players. 1.
The corruption and violence led people to migrate to developed countries as refugees or asylees for a better and safe future. However, the people who could not leave the country immersed in depression that resulted in addiction of drugs and alcohol, and as a whole increased the crime rate. Since the lack food is still a major issue for an average algerian citizen. Industries involving with waste and pollution are unmonitored due to the corruption, due to not having an agency like the Environmental Protection Agency (EPA), that is responsible of monitoring companies (World Report). These complications have overall afflicted with the infrastructure and countries perception on
Today’s society has used and continues to use guilt as a way to get people to do the right thing. Making people feel guilty about their actions is a good thing, it makes them want to change their actions for the better. After all, people listen to others because of guilt, if one feels guilty because of their actions they will try to fix the wrong. Society should not make people loathe themselves or feel overly guilty. Instead, to get things done or make people see the reality of it, scaring or inflicting guilt will help the aim of society, which is making people do things out of guilt.
PUBLIC FINANCIAL MANAGEMET REFORMS IN GHANA: THE CASE OF GIFMIS Introduction The recent Third Conference of Finance for Development underscored the role of prudent public financial management in the attainment of the Sustainable Development Goals. Following the Paris Declaration (2005) and the Accra Agenda (2008), development partners increased aid commitments to developing country treasury's consolidated revenue fund account. The development led to an increased interest in the performance of Public Finance Management (PFM) in the countries that receive budget support.