Strategic Alignment of Business and Information Technology

Question: Describe about the Strategic Alignment of Business and Information Technology? Answer: OPECs current trend as an international oil producer cartel For each and every country in the world the most significant resource is petroleum as it is one of the rarest natural resources and it is not possible to produce raw petroleum into the factories but refineries can be done. In relation to maintaining the economic structure of the world economy, petroleum plays the most significant role. With an intension to control the world trade system in relation to petroleum, an organization has been formed by twelve nations, the name of that organization is Organization of Petroleum Exporting Countries, it is well known as OPEC. In relation to importation and exportation of petroleum and crude oil OPEC has a significant role to play in the world economic system. OPEC mainly concentrates upon the control over the price of crude oil in the international market. But in the international market there are some giant countries like UK, United States, Soviet Union and some others, these nations are financially and technologically very sound and holds a great position in the world economic structure. Venezuela, Kuwait, Ian, Iraq, UAE are some of the names of member countries of OPEC (Africa Oil Trade, 2010 and 2011, 2012). Within the purview of this context various aspects in relation to price fluctuation of crude oil in the international market, a comparison of trends of the conducts of OPEC in the earlier period and in present time, impact of OPEC upon the importation and exportation of crude oil and the factors relating to the recent condition of international market in relation to crude oil are going to be discussed as follows; By way nationalization of oil producing organizations and corporations impact of privatization in the market of crude oil can be diminished that will not only refer more revenue to the government sectors but also promotes a balance in the international crude oil market. This procedure must not be confused with the restrictions upon the exportation of crude oil. It has represented one of the most important turning points in relation to the development of policies relating to oil trade in the international market. Privatized business conducts are eliminated by the nationalization, as resources of oil in the oil producing nations are controlled by the private international corporations. It permits oil producing nations to obtain control over private properties, though it may violate some of the existing legal contracts. If these nations become the only proprietors of this confiscated resources by violating the law of contract, they will be in a superior position to manipulate the price of the crude oil in the international market, and they will decide the way by which the actual current value of their known stock of petroleum under the ground can be maximized. A number of major implications may be observed as the consequence of nationalization of crude oil. On the other hand, nationalized oil corporations are in some occasion torn among the expectations of the nation that they ought to carry the national flag and their personal goals in relation to success in trade, it could signify a level of emancipation relating to the confines of the national agenda (Aggarwal and Goyal, 2009). In the year 1949, Iran and Venezuela were the two initiative nations who took the initiation in the direction of establishment of OPEC, for that purpose they approached to Kuwait, Saudi Arab and Iran. They signify that they are going to swap upon the standpoint and also examine all the relevant factors for the purpose of faster communication among the petroleum producing nations. During the year 1959, the specified value for crude of Venezuela has been abridged by the IOCs (International Oil Companies) from the rate of 5 to 25 for every barrel of crude oil. For the crudes of Middle Eastern region the rate was 18/barrel (Ahmad, 2012). For the first time in Cairo, Egypt, the Arab Petroleum Congress has been accumulated. An organization namely Oil Consultation Commission has been established there by the Arab Petroleum Congress where the price modification plans of the International Oil Companies should have been present in relation to oil producing nations. In the year 1959, at the Arab Oil Congress in Cairo, Egypt, Wanda Jablonski has introduced Abdullah Tariki to Juan Pablo Perez Alfonzo. Bothe of them was wound up by the laceration in the specified price promoted by the international oil companies. As the result of this meeting the Agreement of Gentleman and Maadi Pact has been formed (Chapman and Hodges, 2011). During the year 1960, a noticeable rivalry has been accounted by Wanda Jablonski, the journalist, on the way to the West and the mounting divergence against the landlordism of malingerer in the middle portion Eastern province. In the famous book of him it is permitted THE PRIZE: THE EPIC QUEST FOR OIL, MONEY AND POWER. Within the contains of this famous book Daniel Yergin has described the process by way of which the natural oil is prohibited up to 75% of the entire oil industry of the US (Haerens, 2010). During the of 1960 from 10th to 14th September, the Baghdad conference was promulgated by the inventiveness of Juan Pablo HYPERLINK "https://en.wikipedia.org/wiki/Juan_Pablo_P%C3%A9rez_Alfonso"PrezHYPERLINK "https://en.wikipedia.org/wiki/Juan_Pablo_P%C3%A9rez_Alfonso" Alfonso, the Hydrocarbons minister and the Abdullah al-HYPERLINK "https://en.wikipedia.org/wiki/Abdullah_al-Tariki"Tariki Minesand the Saudi Arabian Energy and Mines ministerof Venezuela. The governing authorities of Kuwait, Venezuela, Iran, Saudi Arabia and Iraq, held a meeting inBaghdadwith an intention to communicate the traditions to intensify the cost of the undeveloped oil produced by the concerning countries and retort to self-sufficient procedures by theInternational Oil Corporations, they at that phase of moment prohibited all actions related to oil in the interior of the hosting States. Cooperatively along with the Arabic and non-Arabic producers of oil, Saudi Arabia has formed the Organization of Petroleum Ex port Countries (OPEC) for the rationale of protecting the unrivaled obtainable cost from the most imperative oil corporation. From this era member countries of OPEC constantly strived with an intention to have control over the market of international crude oil and they sought after to set up command upon the dealings of industrial nations relating to importation and exportation of crude oil (International Crude Oil and Refined Products Trade, Year 2011, 2012). As per the investigation made by the consulting firm ofPFC Energy, only 7 per cent of the predictable oil and gas coffers of the entire world are in the nations that permit free rein privatized multinational companies (Miller, 2010, International Crude Oil Trade, Year 2010, 2012). New Work Times has published that the petroleum borer strike in the US has been enlarged production of oil with 70 % more than the total production of oil during the year 2008 and has condensed the importation of petroleum from the member countries of OPEC at 55% against the United States (Non-OECD Europe Oil Trade, 2010 and 2011, 2012). After commencing the year of 2011, it has been engrossed by the United States of America regarding the promptly amplified domicile production of sweet, light, firm oil by the means of plunging similar type of or equivalent category (Veggeland, 2012). USA makes importation of rudimentary oilchiefly from the suppliers of Nigeria and few other suppliers from African provinces.From the beginning of the year of 2011 to the end of the year of 2013, half of the total importation of petroleum reduction smash light rudimentary. Near about 96 % of the one and a half million barrels each date, that is approximately 290,000m3/d of its total enlargement, appears from sweet rudimentary from hard development source. As domicile production of oil extends to intensify, the United State is in frontage of imminent confronts of mesmerizing the sweet taut oil (International Crude Oil Trade, Year 2012, 2013). Around 1.7 million barrels on each date that is approximately 270,000m3/d has been bring by the United States throughout the year of 2011 (International Crude Oil Trade, Year 2011, 2013). Importation of crude oil has been reduced during the year of 2013, from the quantity of 1.7 millions to one million barrels on each date, which is approximately160,000m3/d (Silvia and Taylor, 2013). At the beginning of the year of 2014, the average of crude oil importation of the United States was around merely .6 million barrels each day that is approximately 95,000m3/d. At the middle portion of the year 2014, the non-OPEC production of oil was visualize at 1.7 million barrels each date, which is about 270,000m3/d out of that the Canada and US producing at around 1.6 million barrels on each day that is just about 250,000m3/d. Throughout the middle part of the year 2014, prices in relation to petroleum unpredictably fall down by approximately one-third as United State, production of oil was more than earlier and the demand of crude oil in China and Europe has been abridged. Just earlier to the United States swiftly upturned out of the importation in marketplace of crude oil for that reason of flourishing countrywide production, the smear cost ofNorth Sea Brentrudimentary oil shattered as on 17th day of June in 2014 at extra than US$115 for every barrel of oil (International Crude Oil Trade, Year 2013, 2014). The largest maker ofsweet oilamong the OPEC countries is Nigeria. During the year of 2014(july), as the United States bunged to take in sweet rudimentary petroleum, extra rudimentary petroleum has turn out to be reachable to dispensation plant in South Korea, China, India and Japan. In comparison with 2013, in the year 2014 they collectively purchased at about 42 per cent additional crude oil of Nigeria. In the month of June, 2014, the national oil and gas company of Saudi Arabia namely Saudi Aramco has been emerged and this is the largest oil manufacturing corporation of the earth in relation to production. It abridged the cost of its rudimentary petroleum to processing plant within Asian continent to compete with imported oil from Africa and other suppliers from Nigeria. In declaration on the 27th day of November in 2014 at the OPEC conference held in Vienna, it was affirmed that among all of the non OPEC suppliers of oil the OECD-Americas has been considered as the most important one. In the year of 2015, it made a good enlarged contribution at around 1.4 million barrels each day that is about 220,000m3/d, with a great average of 57.3 million barrels each calendar day that is just about 9,110,000m3/d. Within the period of beginning of 2011 and the middle of 2014, US$110 was the standard price of petroleum. From the period of June, 2014, nonetheless, the rate of petroleum has been slip from US$110 to $US80. OPEC diverged that this plunge in the rate of oil was not completely "recognized by the oil marketplace fundamentals." concurrently petroleum rudiments market, "adequate supply, rational demand, a influential US dollar and suspicions relating to global fiscal expansion" contributed to the descend of cost, "uncertain faction within the international oil market hasalso been a considerable aspect." On the 27th day of November in the year 2014, Ali al-Naimi, the, Oil Minister of Saudi Arabia, sterile the submission from the shoddier members of OPEC, such as Venezuela, Algeria and Iran, for production slash. Regular crude, Brent oil inclined to US$71.25, a four time short. Al-Naimi stated that the marketplace would not be present to correct itself. "Olden policy of distrustful price." has been personalized by OPEC. In accordance with a numeral of analysts, OPEC may permit cost of Brent oil drop to US$60 to lethargic descending US shale oil production.Despite of a worried fiscal structure in correlated nations, al-Naimi has repetitive his announcement upon Saudi performance. At the ending part of the year 2014, with production of 30.56 million barrels each day that is approximately 4,859,000m3/d, OPEC went into its sixth consecutive month of on top of their combined target of oil production . On 11th day of December in 2014, the cost of OPEC orientated urns of Crudes has been went down to US$60.50and by 13th day of December, the cost of Brentoil hasfallen to US$61.85 (Zhang, Ji and Fan, 2014). The 12th day of January in 2015, cost of OPEC orientated urns of Crudes has been abridged to US$43.55. On the very next month of the same calendar year, OPEC had arrives in its ninth uninterrupted month of on top of their combined target of production (Zhang and Asche, 2015). After this discussion it can be said that though OPEC plays the most important role in the international oil market but the developed countries are enough capable to counter their claims and to manipulate the price of crude oil. References Africa Oil Trade, 2010 and 2011. (2012).World Oil Trade, 34(1), pp.167-183. Aggarwal, H. and Goyal, D. (2009). Strategic alignment of business and Information Technology in Indian Petroleum sector organisations.IJICBM, 2(2), p.144. Ahmad, M. (2012). Modelling and forecasting Oman crude oil prices using Box-Jenkins techniques.International Journal of Trade and Global Markets, 5(1), p.24. Chapman, G. and Hodges, G. (2011).Oil. Mankato, Minn.: Smart Apple Media. Haerens, M. (2010).Oil. Farmington Hills, Mich.: Greenhaven Press/Gale, Cengage Learning. International Crude Oil and Refined Products Trade, Year 2011. (2012).World Oil Trade, 34(1), pp.23-32. International Crude Oil Trade, Year 2010. (2012).World Oil Trade, 34(1), pp.33-42. International Crude Oil Trade, Year 2011. (2013).World Oil Trade, 35(1), pp.33-42. International Crude Oil Trade, Year 2012. (2013).World Oil Trade, 35(1), pp.43-52. International Crude Oil Trade, Year 2013. (2014).World Oil Trade, 36(1), pp.43-53. Miller, D. (2010).Oil. Detroit: Greenhaven Press. Non-OECD Europe Oil Trade, 2010 and 2011. (2012).World Oil Trade, 34(1), pp.93-99. Silvia, L. and Taylor, C. (2013). Petroleum Mergers and Competition in the Northeast United States.International Journal of the Economics of Business, 20(1), pp.97-124. Veggeland, N. (2012). Regulating Petroleum Industry and Revenues: What Does Norway Get Out of the Petroleum Industry?.IJBM, 7(3). Zhang, D. and Asche, F. (2014). The oil price shocks and Nordic stock markets.International Journal of Trade and Global Markets, 7(4), p.300. Zhang, H., Ji, Q. and Fan, Y. (2014). Competition, transmission and pattern evolution: A network analysis of global oil trade.Energy Policy, 73, pp.312-322.