Europe’s Influence On The World’s Oil And Gas Industry

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    The oil and gas business has been a profitable business for companies and it is one of the highest in-demand commodities in the world. Almost every contraption, automobiles and types of machinery that humans created runs on oil and gas energy. This made both oil and gas important for humans. In this world, there are several oil and gas mining hotspots such as the South China Sea, rural regions of South America, the Middle East and lastly, Europe. The mining hotspots around the Middle East, Europe and the South China Sea have been deemed as one of the most abundant mining areas in the world. In the matter of Europe, there are several countries that stand out more than the rest in terms of producing and manufacturing oil and gas. According to the 2020 research and statistics, the first country that produces the most oil and petroleum products is Denmark with 8 Mtoe (Million Tonnes of Oil Equivalent), Italy with 4 Mtoe and Romania as the third country and produces 3.4 Mtoe. Even if they are not currently the bigger players anymore, after contributing such a number of petroleum products for the world, Europe’s voice became very influential on the World’s Oil and Gas industry. 

    In the world’s oil and gas industry, countries are competing against each other for the battle of oil. As we all know, both oil and gas are as widely used as they are, both of these resources are becoming scarce. As the EU (European Union) has been one of the pioneers in the oil and gas industry, they are the ones that helped the UN (United Nations) form policies that will maintain the consumption, demand and supply of both oil and gas. These regulations that they have formed together with the UN helps control the oil and gas global prices. As we all know, in the current year, both the Middle East and Russia have one of the biggest supplies of oil in the world. Without a proper and spot on regulations, they can monopolize the industry and will severely hurt other countries (especially those without the resources). It is assumed that the EU is currently playing a crucial role in the industry and the world’s economy.

    In regards to the EU’s experience in the field, their skills on extracting, processing, and producing the materials are still unparalleled. The UK (country within the EU) is one of the countries that started oil and gas exploration through the British Empire’s conquests in the early 1800s and flourished in 1913, they controlled over 24% of the world’s total land area. Along with the land, they also controlled all the resources and knowledge of various fields (science, medical, politics, military and last but not least, the oil and gas industry). The commonwealth’s knowledge in this field is proven by their MNCs (Multinational Companies) that became the giants of the industry. British Petroleum and BHP Billiton are two of the companies that became global. Moreover, by partnering with local companies such as Altus Malaysia Supply Chain (an integrated logistics company in Malaysia), their presence becomes more affirmed throughout the world. With their knowledge, scientists, researchers and professors that study the field came to the UK and the EU to study the oil and gas industry. 

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    All in all, with the EU’s experience and years of expertise in the industry, they have become the world’s barometer and consultant in the industry. The European nations have also become a beacon of hope for small and under-income countries because they prevented the oil and gas monopolization and reduce risking them to pay more for oil to the leading countries (Russia and the Middle Eastern Countries). Nevertheless, the industry is becoming looming because of them. The EU deal on reducing carbon emissions has been hurting the industry because more people are converting from oil and gas energy to alternative energy sources such as solar, electrical and nuclear energy. Their standpoint made the world shift their focus from a depletable source of energy into more sustainable and renewable energy. MNCs such as Tesla, BMW, Mercedes Benz have rallied behind them and they are currently formulating automobiles that do not run on oil fuel.

    To conclude, renewable and sustainable energy still has a long way to go. In terms of the oil and gas industry, it is important to partner with a logistic company that can help you strategize approach on the logistic department on your oil and gas business ventures (i.e. Altus Malaysia services).