The document discusses the effects of the recent decline in oil prices on different regions and countries. It finds that net oil exporting nations like those in Africa will see decreased revenues, currency devaluations, and limitations on public spending and GDP growth. Gulf states are generally better prepared to handle low prices due to sovereign wealth funds. Europe benefits as a net oil importer with lower costs. Russia is negatively impacted due to its heavy reliance on oil revenues.
Devaluation of Crude Oil and its Impact on World EconomyRushita Thakkar
Lower oil prices are having significant financial and economic impacts around the world. Oil exporting countries like Russia, Saudi Arabia, Venezuela, and Iran are facing budget deficits and recessions as their oil revenues decline. Meanwhile, oil importing countries benefit from reduced costs, which can help support growth, though some oil producing areas within these countries are struggling. The declines are largely due to increased supply from the US and lower global demand.
Promoting Export-Led Economic Growth in Nigeria –The Export Processing Zone O...inventionjournals
The volatility in crude oil production in Nigeria, which in recent times, have been heightened by militant attacks on critical oil installations in the Niger Delta area and the continued price spiral in international oil market has once again brought to the front burner anxieties about the future of the oil sector in the Nigerian economy. The unfolding scenario has again exposed the Nigerian economy to downside risks of volatility in oil prices with attendant consequences and multiple effects on the economy and businesses as well.. Since the third quarter of 2015, fallen prices of crude oil and fluctuations in crude oil production in Nigeria have conspired to put the country’s economy in dire straits. The oil price has fallen by more than 50 percent since June 2014, when it was $115 a barrel. It is now consistently below $50 and has been as low as $37. These developments have put the nation’s fiscal operations in quandary. The government has rightly responded by putting in place various fiscal and monetary measures to stem the tide. The federal government has adopted some austere measures to cushion the effect of the persistent drop in revenue. However, the implementation of these short-term measures to shore up revenue could be impeded by political exigencies which often times overrides economic rationality. Thus, a more comprehensive and alternative approach that will promote non-oil export will be a better option. To this end, the authors recommend the revitalization and retooling of the Export Processing Zone (EPZ) Scheme in order to effectively diversify the economy away from oil to an export-led economy.
This document discusses how falling global oil prices since mid-2014 have undermined Nigeria's economy by gutting government revenues from oil exports. Lower prices have reduced Nigeria's oil production and export volumes as demand has weakened. The growth of US shale oil production has significantly reduced US imports of Nigerian oil and increased competition in global oil markets. These factors threaten Nigeria's economic growth and fiscal stability, potentially undermining the government's ability to address security challenges like the Boko Haram insurgency. Corruption in Nigeria's state-owned oil company also hinders the country from maximizing gains from its oil resources.
1) OPEC's oil production rose slightly in July from June, with Libya seeing the largest increase while production fell in Iraq and Angola. However, unrest in countries like Libya, Iraq, and Angola continues to affect supply.
2) Within OPEC, the largest increase came from Libya where supply rose by 210,000 barrels per day but stability remains uncertain. Saudi Arabia and Nigeria also saw small increases while Iraq's supply fell.
3) Looking ahead, declining oil prices could significantly impact Russia's economy and undermine Putin's power since Russia relies heavily on oil exports, which account for 40% of its revenues. A sustained price drop below $100 could force Russia to focus more on propping
What the drop in oil prices means for the economy and office marketsJLL
Lower oil prices will negatively impact energy companies through reduced profit margins and capital spending cuts, leading to potential job losses. However, lower gas prices provide an economic stimulus for consumers and other industries through substantial savings. While energy-focused office markets may see weaker demand from energy companies scaling back, the broader economic benefits of low oil prices and diversifying economies will help offset negative impacts on office fundamentals. The long-term impact on office markets depends on the level of mergers and acquisitions in the energy sector and whether prices remain low, increasing vacant space through consolidation.
The document summarizes the key factors that caused the 2014 and 2015 oil price crashes. In 2014, high oil prices from 2010-2014 led to record investment in oil production but also a slowing of demand growth. This caused an imbalance of rising supply and slowing demand. Additionally, OPEC changed its strategy to maintain market share amid rising non-OPEC supply. In 2015, OPEC increased production further while long-lead projects also added supply, exacerbating the imbalance as inventories rose sharply. Lower prices have since spurred demand growth but supply is expected to face challenges to keep rising at the same pace due to investment cuts, meaning prices may need to rise to balance the market.
The Oil Price effect on the Global Economy blog postRobert Edgar
The steep 60% drop in oil prices over the past seven months has significantly impacted the global economy. Lower oil prices boost global GDP growth, with the current price drop estimated to increase global GDP by over 1%, accounting for more than a third of the 2013 growth rate. While lower prices benefit consumers and some economies, they hurt oil exporting countries that rely heavily on oil revenues. The effects are mixed, with developing nations' agriculture and consumers benefiting from cheaper fuel and food, but concerns also grow around deflation in some regions from falling oil prices and weaker global demand.
Devaluation of Crude Oil and its Impact on World EconomyRushita Thakkar
Lower oil prices are having significant financial and economic impacts around the world. Oil exporting countries like Russia, Saudi Arabia, Venezuela, and Iran are facing budget deficits and recessions as their oil revenues decline. Meanwhile, oil importing countries benefit from reduced costs, which can help support growth, though some oil producing areas within these countries are struggling. The declines are largely due to increased supply from the US and lower global demand.
Promoting Export-Led Economic Growth in Nigeria –The Export Processing Zone O...inventionjournals
The volatility in crude oil production in Nigeria, which in recent times, have been heightened by militant attacks on critical oil installations in the Niger Delta area and the continued price spiral in international oil market has once again brought to the front burner anxieties about the future of the oil sector in the Nigerian economy. The unfolding scenario has again exposed the Nigerian economy to downside risks of volatility in oil prices with attendant consequences and multiple effects on the economy and businesses as well.. Since the third quarter of 2015, fallen prices of crude oil and fluctuations in crude oil production in Nigeria have conspired to put the country’s economy in dire straits. The oil price has fallen by more than 50 percent since June 2014, when it was $115 a barrel. It is now consistently below $50 and has been as low as $37. These developments have put the nation’s fiscal operations in quandary. The government has rightly responded by putting in place various fiscal and monetary measures to stem the tide. The federal government has adopted some austere measures to cushion the effect of the persistent drop in revenue. However, the implementation of these short-term measures to shore up revenue could be impeded by political exigencies which often times overrides economic rationality. Thus, a more comprehensive and alternative approach that will promote non-oil export will be a better option. To this end, the authors recommend the revitalization and retooling of the Export Processing Zone (EPZ) Scheme in order to effectively diversify the economy away from oil to an export-led economy.
This document discusses how falling global oil prices since mid-2014 have undermined Nigeria's economy by gutting government revenues from oil exports. Lower prices have reduced Nigeria's oil production and export volumes as demand has weakened. The growth of US shale oil production has significantly reduced US imports of Nigerian oil and increased competition in global oil markets. These factors threaten Nigeria's economic growth and fiscal stability, potentially undermining the government's ability to address security challenges like the Boko Haram insurgency. Corruption in Nigeria's state-owned oil company also hinders the country from maximizing gains from its oil resources.
1) OPEC's oil production rose slightly in July from June, with Libya seeing the largest increase while production fell in Iraq and Angola. However, unrest in countries like Libya, Iraq, and Angola continues to affect supply.
2) Within OPEC, the largest increase came from Libya where supply rose by 210,000 barrels per day but stability remains uncertain. Saudi Arabia and Nigeria also saw small increases while Iraq's supply fell.
3) Looking ahead, declining oil prices could significantly impact Russia's economy and undermine Putin's power since Russia relies heavily on oil exports, which account for 40% of its revenues. A sustained price drop below $100 could force Russia to focus more on propping
What the drop in oil prices means for the economy and office marketsJLL
Lower oil prices will negatively impact energy companies through reduced profit margins and capital spending cuts, leading to potential job losses. However, lower gas prices provide an economic stimulus for consumers and other industries through substantial savings. While energy-focused office markets may see weaker demand from energy companies scaling back, the broader economic benefits of low oil prices and diversifying economies will help offset negative impacts on office fundamentals. The long-term impact on office markets depends on the level of mergers and acquisitions in the energy sector and whether prices remain low, increasing vacant space through consolidation.
The document summarizes the key factors that caused the 2014 and 2015 oil price crashes. In 2014, high oil prices from 2010-2014 led to record investment in oil production but also a slowing of demand growth. This caused an imbalance of rising supply and slowing demand. Additionally, OPEC changed its strategy to maintain market share amid rising non-OPEC supply. In 2015, OPEC increased production further while long-lead projects also added supply, exacerbating the imbalance as inventories rose sharply. Lower prices have since spurred demand growth but supply is expected to face challenges to keep rising at the same pace due to investment cuts, meaning prices may need to rise to balance the market.
The Oil Price effect on the Global Economy blog postRobert Edgar
The steep 60% drop in oil prices over the past seven months has significantly impacted the global economy. Lower oil prices boost global GDP growth, with the current price drop estimated to increase global GDP by over 1%, accounting for more than a third of the 2013 growth rate. While lower prices benefit consumers and some economies, they hurt oil exporting countries that rely heavily on oil revenues. The effects are mixed, with developing nations' agriculture and consumers benefiting from cheaper fuel and food, but concerns also grow around deflation in some regions from falling oil prices and weaker global demand.
This document provides a summary of oil price history and trends from 1986 to 2012 based on data from the U.S. Energy Information Administration. It notes that oil prices generally increased over this period, with the exception of a dip in 2008-2009. The document also discusses factors that influence oil prices such as seasonal demand changes, geopolitical events, and increasing demand from developing countries like China and India. Overall, the document analyzes historical oil price data and identifies key economic and geopolitical drivers that have impacted prices over time.
The document discusses the recent crash in crude oil prices and its effects. It provides:
1. A brief history of rising oil prices since 2004 due to increased demand and conflicts limiting supply. Prices spiked but new extraction methods then increased supply beyond demand.
2. An explanation of why prices are now falling, as production in the US and Canada expanded through fracking and other technologies, while demand in places like Europe and China slowed. OPEC chose not to cut production to support prices.
3. Forecasts from the World Bank and IMF that crude prices may remain low in the near future, ranging from $53 to $57 per barrel, though geopolitical events could cause volatility.
The document analyzes the historical global price of oil from 1970 to 2000, accounting for inflation and fluctuations in the US dollar's value. It introduces the concept of real global price of oil, which is the true price relative to OPEC countries that set the price. A graph shows that from 1986 to 1995, the real global price varied between $11-19 per barrel. The document also discusses events like the abandonment of the Bretton Woods agreement in 1971 that tied currency to gold, which led countries to exchange dollars for gold and impacted the oil market.
Oil prices falling and Their Impact on World and Indian EconomyRishabh Hurkat
The presentations is focused on Reason Behind the Fall in Global Crude Oil Prices.
It also inculcates various Charts and Data which are Up-to-date.
The Basic Reason is to understand the Effect on Global and Indian Economy.
Oil is the major
source of energy from most of the developed as well as developing countries around the world.
Therefore a change in the supply of oil will significantly affect operations in most parts of the
world. There are a number of factors that affect the demand and supply of oil in the world.
- See more at: http://www.customwritingservice.org/blog/factors-affecting-demand-and-supply-of-oil
Impact of crude oil prices on Pakistan economy 2015UmerMukhtarAhmed
When oil and shale boom hit the economy of oil exporting countries it also help the oil importing countries to save some money. This journal is written to show what happens with the Pakistan economy during toil boom.
Oil Prices and Nigerian Aggregate Economic Activitiesiosrjce
This paper examines the oil prices and Nigerian aggregate economic activities. The data series
employed were guttered from various sources such as the central bank of Nigeria statistical Bulletin, Economic
and Financial Review, and the publications of International monetary fund. The study employed the linear
Dynamic VAR. results from VAR showed that oil price shocks and output in Nigeria is negative. This shows that
oil prices shock leads to reduction in gross domestic products. It is recommended that government should
diversify its revenue base and develop other sectors of Nigerian economy to contribute significantly to the
growth not of Nigerian Economy
Oil prices are falling due to increased global supply outpacing demand, as well as increased production from countries like the US, Libya, and OPEC members refusing to cut production. Lower oil prices benefit economies that are net oil importers, like the US, India, and parts of Europe, but hurt exporters like Russia, Iran, and Venezuela. In India, falling prices reduce subsidy costs for the government, but also lower inflation and transportation costs, benefitting consumers.
An oil crisis occurs when there is a sudden rise in oil prices accompanied by decreased supply. This endangers economic stability globally since oil is the main energy source. OPEC controls around 44% of global oil production and 73% of proven reserves, giving it influence over prices. Higher oil prices negatively impact India's economy by increasing fuel subsidies, worsening the current account and fiscal deficits, and potentially increasing inflation. Geopolitical tensions between countries like Iran, Saudi Arabia and Venezuela contribute to higher oil prices.
The crisis in the Middle East was caused by the lack of socioeconomic development in the region. The surge in the price of oil and oil products was a result of speculation regarding supply concerns and the probable spread of protests.
Impact of Oil Prices on the Economic Growth of PakistanMuhammad Sharjeel
We gathered data from different resources and then finalize our presentation. The intention to upload this file is to help those guys who need some guidelines for preparing presentation. :)
The document summarizes the recent decline in global crude oil prices from 2014 to 2015. It discusses several key reasons for the price decline, including increased US production, weaker demand from emerging markets, and Saudi Arabia's decision to maintain production levels despite proposals from OPEC members to cut supply. The summary also notes that lower oil prices benefit importers like India through reduced energy costs and trade deficits, but hurt exporters like Russia, Saudi Arabia, and Iran through lower revenues.
- Oil futures have fallen to their lowest levels in 8 months, with Brent crude dipping below $100 per barrel for the first time since 2013, as global demand growth is slowing.
- Both OPEC and the IEA have lowered their forecasts for global oil demand growth in 2014 and 2015 due to weaker economic growth.
- Many OPEC countries require higher oil prices than current levels to balance their budgets, and sustained low prices threaten needed investments in the oil sector, especially in the Middle East.
1. Global supply of oil has surpassed demand, resulting in falling prices. Increased output from Libya, the US shale oil boom, and tepid Asian demand have all contributed to higher supply.
2. Factors putting downward pressure on prices include a slowdown in the Eurozone economy and infighting within OPEC as members try to maintain market share.
3. High oil prices can lead to recessions as people spend only on necessities, hurting businesses and government finances through reduced growth and tax collection. Housing prices and overall economic activity also tend to suffer.
- The Bord Gáis Energy Index fell 5% in November 2015 to its lowest ever point of 90, as the wholesale prices of Brent crude oil, UK gas, European coal, and Irish electricity all declined month-over-month.
- The document discusses how low oil prices are significantly impacting oil-exporting countries in the Gulf region, with Saudi Arabia still relying on oil for 85% of its budget despite efforts to diversify its economy.
- OPEC failed to agree on output limits at its December 2015 meeting, allowing oil production to remain high and adding to the global supply glut that is depressing prices.
The Saturday Economist Oil Market Update 2015John Ashcroft
The document analyzes factors influencing falling oil prices, including increased US shale oil production and OPEC's decision not to cut production. While lower prices benefit net oil importing countries, they hurt oil exporters. The 50% price drop is seen as disproportionate to actual supply/demand changes and may reflect speculative forces. Lower prices have mixed economic impacts, stimulating growth in importers but reducing revenues and potentially destabilizing exporters. The analysis suggests prices will rebound as speculative influences fade and fundamentals reassert themselves.
Markets for oil, gas, coal, electricity and renewable energy resources...Sidharth Gautam
This document provides a summary of markets for various energy resources including oil, natural gas, coal, electricity, and renewable energy. It discusses the key characteristics of each market, including major producers and consumers, pricing regimes, historical crises that impacted prices, and emerging trends. The markets are complex with interactions between supply, demand, infrastructure for transportation, pricing benchmarks, and government policies. Renewable energy is an increasing focus as technologies progress and costs decline, while fossil fuels still dominate current energy production and trade globally.
EY Price Point: global oil and gas market outlook – Q2EY
The document provides an outlook on the global oil and gas markets for Q2 2018. Some key points:
1) In Q1 2018, oil markets reached a sustainable equilibrium as demand grew steadily while production was predictable and pricing was in producers' control. Geopolitical risks could impact prices but no foreseeable developments were significant enough to move markets substantially.
2) The theme for Q2 is sustainability - whether geopolitical risks will drive higher prices or markets will remain stable. OPEC production cuts, shale growth, and trade wars could impact demand.
3) Most forecasts predict continued growth of 1 million barrels per day from North American shale as producers face pressure to return capital to investors, constraining
Sara Khaled Gaber is seeking a fresh graduate position. She has a degree in Architecture and Construction from Alexandria University and internship experience in real estate investment and foundation casting. She has skills in AutoCAD, Revit, 3D MAX, SketchUp, Photoshop, and Microsoft Office. Sara has experience in student activities, courses in construction software, and speaks Arabic and English.
The document discusses how to achieve consistent, accurate, and timely cash application. It emphasizes that proper cash application fosters good working capital management and positive cash flow, while improper cash application can lead to cash flow errors, customer account problems, workflow issues, and excessive costs. The document outlines common cash application challenges and provides recommendations for avoiding cash application problems, including developing clear policies and procedures, enforcing separation of duties, training employees, and using technologies to facilitate the process. It stresses the importance of oversight and staying vigilant to catch any danger signs.
This document provides a summary of oil price history and trends from 1986 to 2012 based on data from the U.S. Energy Information Administration. It notes that oil prices generally increased over this period, with the exception of a dip in 2008-2009. The document also discusses factors that influence oil prices such as seasonal demand changes, geopolitical events, and increasing demand from developing countries like China and India. Overall, the document analyzes historical oil price data and identifies key economic and geopolitical drivers that have impacted prices over time.
The document discusses the recent crash in crude oil prices and its effects. It provides:
1. A brief history of rising oil prices since 2004 due to increased demand and conflicts limiting supply. Prices spiked but new extraction methods then increased supply beyond demand.
2. An explanation of why prices are now falling, as production in the US and Canada expanded through fracking and other technologies, while demand in places like Europe and China slowed. OPEC chose not to cut production to support prices.
3. Forecasts from the World Bank and IMF that crude prices may remain low in the near future, ranging from $53 to $57 per barrel, though geopolitical events could cause volatility.
The document analyzes the historical global price of oil from 1970 to 2000, accounting for inflation and fluctuations in the US dollar's value. It introduces the concept of real global price of oil, which is the true price relative to OPEC countries that set the price. A graph shows that from 1986 to 1995, the real global price varied between $11-19 per barrel. The document also discusses events like the abandonment of the Bretton Woods agreement in 1971 that tied currency to gold, which led countries to exchange dollars for gold and impacted the oil market.
Oil prices falling and Their Impact on World and Indian EconomyRishabh Hurkat
The presentations is focused on Reason Behind the Fall in Global Crude Oil Prices.
It also inculcates various Charts and Data which are Up-to-date.
The Basic Reason is to understand the Effect on Global and Indian Economy.
Oil is the major
source of energy from most of the developed as well as developing countries around the world.
Therefore a change in the supply of oil will significantly affect operations in most parts of the
world. There are a number of factors that affect the demand and supply of oil in the world.
- See more at: http://www.customwritingservice.org/blog/factors-affecting-demand-and-supply-of-oil
Impact of crude oil prices on Pakistan economy 2015UmerMukhtarAhmed
When oil and shale boom hit the economy of oil exporting countries it also help the oil importing countries to save some money. This journal is written to show what happens with the Pakistan economy during toil boom.
Oil Prices and Nigerian Aggregate Economic Activitiesiosrjce
This paper examines the oil prices and Nigerian aggregate economic activities. The data series
employed were guttered from various sources such as the central bank of Nigeria statistical Bulletin, Economic
and Financial Review, and the publications of International monetary fund. The study employed the linear
Dynamic VAR. results from VAR showed that oil price shocks and output in Nigeria is negative. This shows that
oil prices shock leads to reduction in gross domestic products. It is recommended that government should
diversify its revenue base and develop other sectors of Nigerian economy to contribute significantly to the
growth not of Nigerian Economy
Oil prices are falling due to increased global supply outpacing demand, as well as increased production from countries like the US, Libya, and OPEC members refusing to cut production. Lower oil prices benefit economies that are net oil importers, like the US, India, and parts of Europe, but hurt exporters like Russia, Iran, and Venezuela. In India, falling prices reduce subsidy costs for the government, but also lower inflation and transportation costs, benefitting consumers.
An oil crisis occurs when there is a sudden rise in oil prices accompanied by decreased supply. This endangers economic stability globally since oil is the main energy source. OPEC controls around 44% of global oil production and 73% of proven reserves, giving it influence over prices. Higher oil prices negatively impact India's economy by increasing fuel subsidies, worsening the current account and fiscal deficits, and potentially increasing inflation. Geopolitical tensions between countries like Iran, Saudi Arabia and Venezuela contribute to higher oil prices.
The crisis in the Middle East was caused by the lack of socioeconomic development in the region. The surge in the price of oil and oil products was a result of speculation regarding supply concerns and the probable spread of protests.
Impact of Oil Prices on the Economic Growth of PakistanMuhammad Sharjeel
We gathered data from different resources and then finalize our presentation. The intention to upload this file is to help those guys who need some guidelines for preparing presentation. :)
The document summarizes the recent decline in global crude oil prices from 2014 to 2015. It discusses several key reasons for the price decline, including increased US production, weaker demand from emerging markets, and Saudi Arabia's decision to maintain production levels despite proposals from OPEC members to cut supply. The summary also notes that lower oil prices benefit importers like India through reduced energy costs and trade deficits, but hurt exporters like Russia, Saudi Arabia, and Iran through lower revenues.
- Oil futures have fallen to their lowest levels in 8 months, with Brent crude dipping below $100 per barrel for the first time since 2013, as global demand growth is slowing.
- Both OPEC and the IEA have lowered their forecasts for global oil demand growth in 2014 and 2015 due to weaker economic growth.
- Many OPEC countries require higher oil prices than current levels to balance their budgets, and sustained low prices threaten needed investments in the oil sector, especially in the Middle East.
1. Global supply of oil has surpassed demand, resulting in falling prices. Increased output from Libya, the US shale oil boom, and tepid Asian demand have all contributed to higher supply.
2. Factors putting downward pressure on prices include a slowdown in the Eurozone economy and infighting within OPEC as members try to maintain market share.
3. High oil prices can lead to recessions as people spend only on necessities, hurting businesses and government finances through reduced growth and tax collection. Housing prices and overall economic activity also tend to suffer.
- The Bord Gáis Energy Index fell 5% in November 2015 to its lowest ever point of 90, as the wholesale prices of Brent crude oil, UK gas, European coal, and Irish electricity all declined month-over-month.
- The document discusses how low oil prices are significantly impacting oil-exporting countries in the Gulf region, with Saudi Arabia still relying on oil for 85% of its budget despite efforts to diversify its economy.
- OPEC failed to agree on output limits at its December 2015 meeting, allowing oil production to remain high and adding to the global supply glut that is depressing prices.
The Saturday Economist Oil Market Update 2015John Ashcroft
The document analyzes factors influencing falling oil prices, including increased US shale oil production and OPEC's decision not to cut production. While lower prices benefit net oil importing countries, they hurt oil exporters. The 50% price drop is seen as disproportionate to actual supply/demand changes and may reflect speculative forces. Lower prices have mixed economic impacts, stimulating growth in importers but reducing revenues and potentially destabilizing exporters. The analysis suggests prices will rebound as speculative influences fade and fundamentals reassert themselves.
Markets for oil, gas, coal, electricity and renewable energy resources...Sidharth Gautam
This document provides a summary of markets for various energy resources including oil, natural gas, coal, electricity, and renewable energy. It discusses the key characteristics of each market, including major producers and consumers, pricing regimes, historical crises that impacted prices, and emerging trends. The markets are complex with interactions between supply, demand, infrastructure for transportation, pricing benchmarks, and government policies. Renewable energy is an increasing focus as technologies progress and costs decline, while fossil fuels still dominate current energy production and trade globally.
EY Price Point: global oil and gas market outlook – Q2EY
The document provides an outlook on the global oil and gas markets for Q2 2018. Some key points:
1) In Q1 2018, oil markets reached a sustainable equilibrium as demand grew steadily while production was predictable and pricing was in producers' control. Geopolitical risks could impact prices but no foreseeable developments were significant enough to move markets substantially.
2) The theme for Q2 is sustainability - whether geopolitical risks will drive higher prices or markets will remain stable. OPEC production cuts, shale growth, and trade wars could impact demand.
3) Most forecasts predict continued growth of 1 million barrels per day from North American shale as producers face pressure to return capital to investors, constraining
Sara Khaled Gaber is seeking a fresh graduate position. She has a degree in Architecture and Construction from Alexandria University and internship experience in real estate investment and foundation casting. She has skills in AutoCAD, Revit, 3D MAX, SketchUp, Photoshop, and Microsoft Office. Sara has experience in student activities, courses in construction software, and speaks Arabic and English.
The document discusses how to achieve consistent, accurate, and timely cash application. It emphasizes that proper cash application fosters good working capital management and positive cash flow, while improper cash application can lead to cash flow errors, customer account problems, workflow issues, and excessive costs. The document outlines common cash application challenges and provides recommendations for avoiding cash application problems, including developing clear policies and procedures, enforcing separation of duties, training employees, and using technologies to facilitate the process. It stresses the importance of oversight and staying vigilant to catch any danger signs.
BITCOIN ENTHUSIASTS LAMENT: ‘I SHOULD HAVE BOUGHT MORE’Steven Rhyner
There were expressions of {how|exactly how|just how} the {boat|watercraft} {had|had actually} been {missed|missed out on} {terribly|awfully|extremely|horribly} when {clearly|plainly} the {opportunity|chance|possibility} {was there|existed}.
BITCOIN PRICE CAN REACH $1,000 BEFORE NEW YEAR, HITS $990 IN CHINASteven Rhyner
The {price|cost|rate} of Bitcoin in China {went past|passed by|transcended} $990 this {afternoon|mid-day}, as Chinese {investors|financiers|capitalists} {continued to|remained to|continuouslied} {push|press} high {volumes|quantities} in {local|regional|neighborhood} exchanges.
BITCOIN ON THE RISE IN INDIA: STEADY IN GROWTH, IMPOSSIBLE TO SHUT DOWNSteven Rhyner
Over the {past|previous} {few|couple of} months, {local|regional|neighborhood} Indian Bitcoin exchanges {including|consisting of} Unocoin {have|have actually} {shown|revealed} {enormous|huge|massive|substantial} {growth|development}, {primarily|mainly|mostly|largely} {due to|because of|as a result of} the demonetization of banknotes {and|as well as|and also} the {financial|monetary|economic} {crisis|dilemma|situation} which {subsequently|consequently|ultimately} {hit|struck} the Indian {economy|economic climate|economic situation}..
Munshi Md. Atiqur Rahman seeks a career where he can learn, grow and achieve a significant position through performance and effort. He currently serves as Head of Accounts & Finance for Shajalal Overseas Ltd, where his responsibilities include managing accounts, taxes, financial reporting and liaising with auditors. Previously, he completed his chartered accountancy courses and worked as a senior audit assistant conducting audits, accounting and tax services for various organizations. He holds an MBS in Accounting, BBS in Commerce and professional certifications in accountancy and taxation.
Jesse Hyslop is seeking a position as an Industrial Maintenance Mechanic with 5 years of experience in the Navy maintaining industrial equipment such as diesel engines, welding equipment, auxiliary equipment, valves, lube oil systems, hydraulic systems, chill water systems, air conditioning units, refrigeration plants, and pneumatic systems. He has experience overseeing maintenance as a Galley Supervisor and qualifications in areas such as fire prevention, safety, hand and power tools, refrigeration, and computer programs. Hyslop is proficient in troubleshooting, teamwork, technical drawings, and working under stress and holds a SECRET security clearance.
The Heart Science 7th class powerpoint presentation10NEEL10
The document summarizes the key parts and functions of the human heart and circulatory system. It discusses how the heart is a non-stop muscular pump with four chambers that pushes oxygenated blood through arteries and returns deoxygenated blood through veins. The left side of the heart is larger and more powerful as it pumps blood through the entire body, while the right side pumps blood to the lungs to receive oxygen before returning to the left side. With each heartbeat, the heart vigorously contracts ("lub") to push blood out and relaxes ("dub") to refill in its continuous cycle to circulate blood throughout the entire body.
The top 10 ways you're limiting the potential of your email marketingBrian Riback
Recommendations from a veteran marketing technologist as to the ways you can improve deliverability, opens, clicks, and more, without breaking the bank. Learn simple ways to improve content, engagement, and 1:1 relevance, all of which can collectively help you achieve improved results from your email marketing efforts.
declining crude oil pricing:causes and global impactSatyam Mishra
The document discusses the recent decline in global crude oil prices, providing an overview of key causes and impacts. It notes that falling oil prices benefit oil importing countries but hurt exporters. Technological advances in extraction led to increased supply while demand weakened, contributing to the price drop. While lower prices aid consumers, they reduce revenues for exporters like Russia, Saudi Arabia, Venezuela and Iran.
This report discusses the recent decline in oil prices and the battle between OPEC and the United States for control of the oil market. Oil prices fell from over $110 per barrel in 2014 to under $50 per barrel in early 2015 due to increased production from the U.S. and other non-OPEC countries. While lower prices benefited consumers and some economies, they hurt oil-producing countries. The U.S. has significantly increased oil production in recent years through fracking and other methods. As a result, OPEC is losing its dominance over the oil market and control over prices. The oversupply of oil from both OPEC and non-OPEC producers means prices are expected to remain low
This document discusses trends in global commodity and financial markets in the first half of 2015. It notes that while commodity prices continued declining in early 2015, some saw slight rebounds in the second quarter. Oil prices rose from January lows as supply increased from Iran, Russia, and the US, while demand grew in Europe and China. However, excess supply remained high globally. The document predicts that competition for market share between OPEC and shale producers could further widen excess supply in the second half of 2015, putting downward pressure on prices. It also summarizes trends in other commodity markets like agriculture and metals.
- Global oil prices have declined dramatically since 2014, falling over 50% from $110 per barrel in mid-2014 to under $30 per barrel currently. This is due to a large supply glut as production from US shale oil, Iraq, and elsewhere increased sharply while demand growth has slowed.
- The decline has had significant economic consequences around the world, hurting oil-exporting countries like Russia, Venezuela, Iran and Saudi Arabia while benefiting oil-importing nations. The future of oil prices remains highly uncertain depending on future supply and demand dynamics.
This was the outlook for 2016 as presented in Feb 2015 and 6 months down the line all the prognosis have been damn accurate. When it took the Nigerian Government over 7 months into the year to officially declare economic recession, this presentation had accurately done a forecast on the dire straits the Nigerian economy was in as at February 2016. If you are looking at catching an accurate glimpse what may still lie ahead in the last 4 months of the year 2016, this presentation will be your reliable guide.
EY Price Point: global oil and gas market outlook (Q4, October 2020)EY
Oil and gas prices have recovered steadily from their lows and are relatively stable, but that stability is supported by the combination of purposeful withholding of production by oil-producing countries and economic stress on upstream independents. Oil prices closed the quarter roughly where they started it, while refining spreads were down slightly. LNG spreads were substantially higher at the end of Q3 than they were at the beginning of the quarter but are still roughly half of what is generally thought of as sustainable.
Going forward, the market will be looking closely at how the economy and demand respond to new developments with respect to a potential COVID-19 vaccine and the US election.
Between 2014-2015, crude oil prices fell more than 50% due to excess supply and uncertain demand. The US has increased shale oil production, reducing imports and maintaining high stock levels. China's economic slowdown has weakened oil demand. Saudi Arabia wants to maintain market share by keeping production high to weaken shale producers' profitability. Low prices are expected to continue into 2018 as supply remains high and demand growth slows. Energy companies must optimize operations to improve efficiency in this challenging market.
EY Price Point: global oil and gas market outlookEY
As the last quarter of the second pandemic year draws to a close, we continue to see heightened contrast
between the medical and economic points of view. While COVID-19 cases are close to their all-time highs, so
are equity prices, and a leading investment bank declared (on 2 December, 2021 after the Omicron outbreak in South Africa) that it was “optimistic about the possibility of a vibrant 2022.” When news of the variant hit in
late November, the markets were rocked by the prospect of yet another round of local mobility restrictions and
an interrupted return to normal international travel patterns, on top of the Biden Administration’s announced
release of 50 million barrels of crude from the US Strategic Petroleum Reserve. So far though, with OPEC
standing by its planned gradual return to normal production, oil prices have stabilized, albeit below where they
were in mid-November. Henry Hub prices, always at the mercy of the weather, responded predictably to a
warmer-than-normal early winter in the US, falling from US$6.60/MMBtu in early October to below
US$4.00/MMBtu by mid-December. In Europe and Asia, following a short reprieve at the start of the quarter,
piped natural gas prices have spiked again on concerns triggered by Russian troop buildups on the Ukraine
border and uncertainties surrounding the Nordstream 2 pipeline. Looking forward, OPEC and the U.S. Energy
Information Administration (EIA) in their last forecasts of the year both projected that 2022 oil demand would
be above what we saw in 2019. Although time will tell if those forecasts are realized and other events could
intervene, the response to new virus outbreaks is well-practiced and the trade-off between public health and
economic reality has tipped toward a cautiously optimistic view.
1) Real GDP growth in Kuwait slowed to an estimated 1.3% in 2014 due to flat hydrocarbon production and lower non-hydrocarbon investment.
2) Inflation increased to 2.9% in 2014 as population growth pushed up housing rents and demand for goods.
3) The current account surplus narrowed to an estimated 35.5% of GDP in 2014, reflecting lower oil export receipts and rising imports on domestic demand.
1) Real GDP growth in Kuwait slowed to an estimated 1.3% in 2014 due to flat hydrocarbon production and lower non-hydrocarbon investment.
2) Inflation increased to 2.9% in 2014 as population growth pushed up housing rents and demand for goods.
3) The current account surplus narrowed to an estimated 35.5% of GDP in 2014, reflecting lower oil export receipts and rising imports on domestic demand.
The history of oil industry is full of booms and busts; the latest downturn is the deepest since 1990s starts from Jun 2014. The price of oil has been cut roughly by more than 60 percent since the June 2014. Crude oil prices tried to recover few times last year but a barrel of oil has sunk to its lowest level since 2004.
One of the most burning issues that have dominated the public sphere in Nigeria and other oil exporting countries is the covid-19 pandemic and its attendant challenges. This pandemic is a shock on real economic fundamentals and frictionless of the market. It introduces a barrier between the market forces with strong complementary feedbacks in the real economy. The absence of precise vaccine or medication for the virus has necessitated the adoption of several precautionary measures with the aim of containing its wide spread. Critical among which are the travel restrictions, lockdown measures as well as social and physical distancing. These measures have detrimental effect on the demand and price of oil in the international market. In view of that, this study evaluates the social and economic impact of covid-19 in Nigeria taking into cognisance the effect on certain critical macroeconomic indicators. The study adopted an analytical approach to supplement the much ongoing documentations on the subject matter. Result shows that virtually all essential macroeconomic indicators are grossly affected with tax, remittances and employment exhibiting severe consequences. Also, uncertainty, panics and lockdown measures are key to motivating higher decrease in world demand. The supply disruptions and huge death toll generates a heightened uncertainty and panic for household and business. This uncertainty and panic leads to drop in consumption and investment thereby causing a decrease in corporate cash flows and triggered firm’s bankruptcy. Also, lay-off and exiting firms produce higher unemployment while labour income decreased significantly. Since it entails a large amount of government expenditure especially in the health sector which is required to contain the spread of the virus, there is needs for government to diversify its revenue sources and thus drop over dependency on the oil remittance. Furthermore, there is a need to support the financial system to avoid the health crisis becoming a financial crisis in the long-run.
1. The fall in crude oil prices over the past year has benefited net oil importing countries while hurting net oil exporting countries, resulting in a transfer of about $850 billion between the two.
2. A handful of large countries, including the US, China, and Japan, account for about 40% of the benefits to net oil importers, while Saudi Arabia, Russia, and the UAE account for about 40% of the costs to net oil exporters.
3. Singapore has seen the largest benefit relative to GDP at 8.5% of GDP, while several African and Middle Eastern countries like the Republic of Congo and Equatorial Guinea have seen the largest costs relative to GDP.
The document summarizes how falling oil prices impact different countries and regions. Russia and oil-dependent countries like Iran, Iraq and Nigeria lose significant revenue and face economic struggles due to lower prices. Saudi Arabia and Gulf states can withstand lower prices better due to large reserves. The US benefits as a growing producer with lower-cost fracking enabling production. Europe, China and India see reduced energy costs but also face other economic challenges.
This document provides an initiating coverage report on Exxon Mobil Corp by The William C. Dunkelberg Owl Fund. It recommends buying Exxon stock with a target price of $88.07, noting that Exxon is currently trading at a discount to its historical valuation relative to competitor Chevron. The report analyzes Exxon's business segments, the integrated oil and gas industry environment of low oil prices and excess supply, and catalysts like expansions that are expected to drive future earnings growth.
The document summarizes economic trends in Nigeria for March 2015. It notes that global growth is expected to be led by the US economy in 2015, but US consumer spending has slowed in early 2015, pointing to slower Q1 growth. Oil prices rose in February but most metals prices fell. In Nigeria, the Senate revised budget assumptions for 2015, lowering the oil benchmark price. The IMF commended Nigeria's economic diversification efforts but noted vulnerabilities remain. Nigeria's GDP growth declined to 5.94% in Q4 2014, led by the non-oil sector. Inflation rose in January while interest rates increased. The CBN devalued the naira and closed the official exchange rate window in February.
EY Price Point: Global Oil and Gas Market Outlook - Q3EY
The oil and gas sector is constantly changing. Increasingly uncertain energy policies, geopolitical complexities, cost management and climate change all present significant challenges. EY’s Global Oil & Gas Sector supports a global network of more than 10,000 oil and gas professionals with extensive experience in providing assurance, tax, transaction and advisory services across the upstream, midstream, downstream and oil field sub-sectors.
EY Price Point: global oil and gas market outlookEY
As we close the second quarter of 2020, in most of Europe and Asia, the first (and hopefully last) wave of the COVID-19 crisis appears to be abating. In the parts of the US where the virus hit early, the profile has largely matched Europe’s, while in other parts, the urge to reopen businesses has trumped the desire to contain the virus and uncertainty looms. In the developing world, the crisis has just begun, but without the economic headroom and resources necessary to contain it. As the crisis unfolded, the effect on oil and gas demand has been predictable but difficult to gauge precisely and therefore difficult to manage.
Oil prices have crept up steadily as production has been curtailed through coordinated action (OPEC+) and because of economic reality (unconventional oil in North America). That trend has been subject to momentary spasms when bad news hit the market. It would be understandable if traders were nervous, and it seems that they are. Although nowhere near where it was at the peak of the crisis, option implied volatility is still at historically high levels. Gas markets, without the benefit of coordination on the supply side, continue to deal with the market implications of storage at or near capacity. Interfuel competition in power generation has always provided something of a floor, but those lows have been, and will continue to be, tested.
The theme for this quarter is apprehension. In September, the US Federal Reserve announced a third 75 basis point increase in the federal funds rate. In the aftermath, the two-year treasury rate reached the highest level since before the 2008 financial crisis and the spread between two and ten-year rates went below negative 50basis points for the first time since the early eighties. Equity markets have begun to price in the likelihood of a recession and, if history is any indication, the impact on oil markets could be profound.
Similar to Effects of Decreased Oil Price- Final Report (20)
1. Effects ofthe Decline in the Price ofOil
The price of crude oil has collapsed over the last several months with some analysts holding the belief that
prices will drop to USD42/bbl. Since June 2014, the price of high grade (ICE Brent) crude oil has fallen
more than 40 percent, declining from around USD$115 a barrel, in January 2014, to just USD52/bbl as of
January 2015. A variety of factors have coalesced into a perfect storm, placing sustained downward pressure
on global prices. The global oil market is unpredictable and dependent on a variety of factors ranging from
government intervention to cartel manipulation. The main factors which have predicated the recent trend of
backwardation in crude oil market include:
• Expanding US Oil Production: increased US production transformed one of the world’s leading oil
consumers into one of its leading producers. U.S. production of crude oil surpassed both Russian and Saudi
Arabian levels this year with daily output exceeding 11m bbls. The introduction of innovative processes
such as hydraulic fracturing has unlocked oil and natural gas deposits trapped in shale rock, leading to a
“Shale revolution” of sorts. As a result North Dakota alone produces 1m bpd.
• Saudi Arabia: The Arab nation proudly holds the largest proven reserves of crude oil on the global
market. Traditionally as a member of OPEC, Saudi Arabia has taken the role of a swing producer. This has
meant that their willingness to cut production in the past has limited global supply thus maintaining an
artificially high price. At OPECs latest meeting in November, the decision to maintain OPEC supply saw
prices fall further due to expectations of a continued glut in global supply.
• Dampened Asian Demand: A global recession has left Asian demand weaker than expected. High growth
economies such as China and India have seen decreased consumption that is curbing oil demand
throughout the continent.
• Appreciating US Dollar: Oil is bought and sold in US dollars across the globe. When the dollar gets
stronger (as it has over recent months), it makes oil more expensive to buy in countries outside the US.
That, in turn, weakens worldwide demand and further puts downward pressure on oil prices.
2. • Steady Global Production: Lastly and perhaps most importantly is the fact that traditionally risky
producers such as Libya, Iraq, South Sudan and Nigeria have all maintained production despite the threat
of instability in those regions. This steady production has caused a glut in global supply at a period when
demand is relatively weak.
The decline in the oil price will have varying effects on different nations depending on the role crude oil
plays in their economy and the infrastructure they have on ground to meet their energy needs.
Africa
The continent predominantly serves the global crude oil market as a net exporting region through producing
nations such as Nigeria, Gabon, Ghana, Angola, Libya and Mozambique. The Republic of Congo, Equatorial
Guinea, and Angola are three West African nations that rely on oil to fund a high percentage of their
economy and state revenues will be affected negatively by the decrease in oil prices. The c. USD60 a barrel
fall in crude prices represents billions of dollars in lost revenue equivalent to roughly 20% of their GDP.
Effects of the oil price fall typically tend to affect exporting nations currencies. The Ghanaian cedi has
plunged, while Nigeria has been forced to devalue the Naira.
Nigeria
Nigeria's oil resources are the mainstay of the country's economy. The International Monetary Fund (IMF)
estimates that oil and natural gas export revenue accounted for 96% of total export revenue in 2012.
Nigeria’s 2013 budget was framed on a reference oil price of USD 79/ bbl. The current oil price of
USD52/bbl (6th
January 2015) indicates the nation will register a fiscal deficit. The EIA forecast a fall of
USD 28.15bn in government revenue as a result of the fall in price. Private investment, consumption and
government spending will likely decline in the coming year. This will have a dampening effect on the
country’s GDP growth.
3. Angola
Angola is the second-largest oil producer in Sub-Saharan Africa, behind Nigeria. The Angolan government
required USD94/ bbl to meet its government expenditure in 2013. The fall in price has resulted in a fiscal
deficit for the country. According to the EIA 2012 saw Angola export c.1.7m bpd of crude oil nearly half of
which went to China (46%). The United States (14%), the European Union (11%), and India (10%) were
also major destinations for Angolan oil. Dampened demand from all these regions has seen a c.USD 23bn
drop in government revenues. This will severely limit public spending on much needed infrastructure
investment. (See Appendix 1)
Gabon
Gabon is a mature oil producing country off the coast of West Africa that has been facing declining oil
production for over a decade. Despite recent attempts to diversify, crude oil exports underpin Gabon's
economy; c. 90% of crude output is exported, accounting for 65% of government revenue and 75% of export
revenue. The recent fall in price will see a c. USD 3bn fall in government revenues roughly 15% of GDP.
The sustained decline will limit the scope of fiscal policy and may have a damaging effect on the nation’s
debt situation as seen during the oil price deflation of the 80s. (See Appendix 1)
Ghana
Ghana's energy sector has expanded considerably after the discovery of the Jubilee oil field in 2007. The
field came online in 2010, and production in Ghana has since increased from 7k bpd in 2009 to 99k bpd in
2013. This recent discovery has seen the nation borrow heavily on the back of anticipated revenues to fund a
tripling of the civil service wage bill and generous fuel subsidies. Increasing worries over the government
budget saw the introduction of IMF restructuring policies this year. The Ghanaian government has already
estimated down its 2015 oil price to USD 93/bbl from a realized price of USD 107/bbl in 2014, the effect of
the price crash may not affect Ghana much. Unlike the countries analyzed above, Ghana does not heavily
depend on oil revenues to finance its budget.
4. This sample of net exporters shows a common trend of currency devaluations, decreased revenue, limitations
on public spending and negative effects on GDP levels. Individual effects on net exporters will depend on
specific government policies, their ability to manage their oil revenues, the extent of diversification of their
economy and the level of dependency on oil exports.
Middle East
This region highlights the potential of oil exporters to adequately traverse this period of lower prices having
learnt from the oil crises of 1970s. According to the FT, the Gulf economies collectively have run a current
account surplus of more than 20 per cent of GDP for six of the last ten years, and Saudi Arabia has saved
25% of oil export revenues in the past decade compared with 7% in the 1970s. The introduction of efficiently
managed Sovereign Wealth Funds has meant that states such as Saudi Arabia and the UAE will have the
ability to absorb an extended period of low prices. Fitch calculate that Saudi Arabia have net sovereign
asset holdings equal to 111% of GDP (USD 737 bn in August 2014), enabling it to maintain public spending
thus avoiding political unrest and a significant dampening of GDP growth. This is in stark contrast to nations
such as Iran, Iraq and Bahrain where civil and political unrest have translated to oil production disruptions,
inadequate management of oil revenues and will result in constrained GDP growth due to a high dependence
on crude oil revenues. The loss of the American market due to the Shale revolution will see Middle Eastern
exporters shift their focus to Asian markets, with Saudi Arabia recently (December 2014) increasing the
discount at which it sells its light crude in Asian markets. In general, as opposed to African exporters, Gulf
exporters have managed the years of high prices by investing in diversified projects such as infrastructure
(Qatar's SWF is a prime example) and rapidly adjusting to current market conditions as seen by Kuwait’s
move to base its budget on a price of USD55/bbl.
Europe
Historically, the knock-on effects of lower oil prices have generally been positive for Western economies.
Europe is an immediate potential beneficiary as on aggregate the region is a net importer of crude oil. The
lower price will result in a decreased import bill for the region in general. Energy imports into the European
5. Union cost $500 billion in 2013, of which 75% was oil. Assuming oil prices average at USD85/bbl, the
overall import bill could fall to under $400 billion a year. The main concern for the Eurozone is the fear of
further deflation which could serve to dampen economic growth in the region. The European Commission
President Jean-Claude Juncker presented a plan (November 2014) to leverage c. USD 375bn of primarily
private new investment in the European Union aimed at infrastructure development in a bid to promote
growth and avoid the period of deflation in major EU economies such as Germany, France and the UK.
The two major exceptions to the importing trend in the European region are Norway and Russia. Each
nation is a net exporter with different views on the reduced price. Norway has maintained its Sovereign
Wealth Fund currently at c. USD 880bn thus has the ability to weather a lengthy period of low prices.
However the case in Russia is different. Oil and gas revenues accounted for 52% of government revenues
and over 70% of total exports in 2012 and analysts predict the fall in price has seen a loss of c. USD 98bn in
government revenues. The current joint US and EU sanctions against the state do not bode well for GDP
growth rates in the near future.
Conclusion
The general trend seen is that net exporters (Africa and the Middle East) who have sufficiently diversified
their economies and managed the years of high oil prices efficiently will be affected by lower oil revenues
but not as severely as nations who have failed to implement such policies. Europe, predominantly made up of
net importers, will have different issues to contend with. The deflationary pressures that stall private
consumption and investment may dampen economic growth, but the EU and its large economies will
implement policies to avoid such a situation.
Analysts believe that a USD 10/bbl fall in the oil price would boost global demand for goods and services by
0.2% - 0.3%. The fall has already seen a price decrease of circa USD 60/bbl, indicating growth of c. 1.5% in
the global economy. This decrease in the oil price will serve to shift purchasing power from net exporters to
net importers. As the global economy acclimatizes to the new oil price, the major winner will be increased
consumption in net importing countries and the global economy.
6. Appendix 1
Angola
In order to balance the 2014 budget Angola would need an oil price of 90USD/bbl. The current pegged price is
98USD/bbl. The 2015 fiscal break even benchmark is 80USD/bbl which is still higher than the current Brent benchmark
price of USD52/bbl. The nation has not implemented policies to manage its previous revenues from strong oil prices
and does not have an adequately diversified economy.
Oil production in Angola is increasingly carried out in deep water, which requires high investments, with Brent oil as a
reference. As the oil price declines it will have a direct and negative impact on the commercial viability of investment in
new projects.This reduction in investments will significantly reduce the GDP of the nation.
However, the low price of oil on international markets is an opportunity for the Angolan government to diversify its
economy and reduce dependence on exports of hydrocarbons. Abraão Gourgel (Economy minister) has noted
agriculture, food, agro-industry,mining activity, as well as the oil production chain as potential sectors for economic
diversification. He also mentioned housing,water, transport and logistics, as sectors the government has already
identified in its diversification programme, which aims to reduce the impact of oil price fluctuations on the national
economy. This bodes well for infrastructure projects in said sectors,the government will aim to support promising
projects in these areas and mitigate any risks attached to such transactions in an attempt to stemthe GDP decline and
foster economic growth through other sectors.
Gabon
The country is sub-Saharan Africa's fifth largest oil producer and pumps around 250,000 barrels per day, accounting for
around 80% of exports, circa 60% of fiscal revenue and c. 50% of GDP for the government of Gabon. The decline in oil
price will see a reduction in the government’s ability to maintain public expenditure and a rise in the current budget
deficit. Recent years have seen dwindling levels of oil production and, the Government is centring its new strategy on
diversifying the economy by improving the investment climate, developing skills and improving infrastructure.
Gabon wants to lure investors into its mining and manufacturing sectors as it tries to reduce its dependence on oil
exports. Manufacturing, forestry, mining and industrial projects have been targeted as areas of potential growth and
increased foreign direct investment. In particular, road infrastructure projects have been prioritised as the nation looks
to expand links to neighbouring countries and become an investment hub.
General Consequences
Countries that import a large volume of oil relative to the size of the economy stand to gain the most relief. For
example, Pakistan, Chile, Turkey, the Czech Republic and South Africa all have net hydrocarbon imports that equal
more than 4% of GDP and will record positive effects on their fiscal policy as their oil import bill falls.
Emerging Markets will also benefit from an improved environment for global growth and investment. Lower oil prices
will boost growth in a range of Developed Markets, boding well for export demand. Greater liquidity stemming from
loose monetary policy in Developed Markets (especially the EU) will support capital flows into Emerging Markets.
7. Graphs
Oil as a % age of Fiscal Revenue and Total Exports
Sub- Saharan Africa (SSA) - Share of Net Oil Exporters' Budgets Derived From Oil
SSA Fiscal Break-Even Prices 2015
8. Sources
http://www.businessmonitor.com/news-and-views/significant-drop-in-oil-prices-would-damage-sub-saharan-
africa
http://www.reuters.com/article/2014/11/27/africa-currencies-idUSL6N0TG3CX20141127
http://www.macauhub.com.mo/en/2014/10/30/angola-needs-to-diversify-the-economy-to-reduce-impact-of-
falling-oil-prices/
http://blog-imfdirect.imf.org/2014/12/22/seven-questions-about-the-recent-oil-price-slump/
http://www.emergingmarketsmonitor.com/economic-analysis-oil-price-drop-positive-ems-balance-08-dec-
2014
http://www.economist.com/blogs/economist-explains/2014/12/economist-explains-4
African Development Bank
International Monetary Fund
OPEC Website- Monthly Reports
http://theenergycollective.com/jemillerep/2146151/are-declining-oil-prices-increasing-risks-opec-us-energy-
security-or-clean-fuels-
Energy Information Administration : http://www.eia.gov/
International Energy Agency: http://www.iea.org/
World Factbook: https://www.cia.gov/library/publications/the-world-factbook/
A falling Oil Price is good for the World Economy: http://www.ft.com/cms/s/0/86916314-8776-11e4-bc7c-
00144feabdc0.html#axzz3O2y0SCEQ
Winners and Losers of Oil Price Plunge: http://www.ft.com/intl/cms/s/2/3f5e4914-8490-11e4-ba4f-
00144feabdc0.html#axzz3O2y0SCEQ
Bloomberg Energy Prices: http://www.bloomberg.com/energy/
Written January 2015