Oil and Gas Management Essay Example | Topics and Well Written Essays - 2000 words

Oil and Gas Management - Essay Example However things are not as simple as they might look. According to various examples and researches it is believed that countries that enjoy abundance in resources are on average less likely to attain economic development in comparison with countries that do not (Heum, Kasande, Ekern, and Nyombi, 2011). Porter (1985) has explored the progressions of various combinations of actions or activities that are performed in order to come up with the final product for the customers. The process involved different actions and services carried out on the specific product from beginning till the end i.e. from extracting the product till the product is manufactured and later distributed to the final customers. However the analysis of Porter can be significantly applied to separate entity or firm (single firm) and can also be applied on number of firms or organizations keeping one thing under consideration i.e. their interconnections amongst each other in the supply chain context or in simple words the link among manufacturers, distributors, suppliers and customers in a specific area or globally (Tordo, Tracy, and Arfaa, 2011). Meanwhile the value chain supply system of the oil and gas industry with reference to social value creation has been highlighted below Oil and gas sector value chain comprises of various procedures initiating from development, processing, transporting and marketing of the product (oil) to the end user or consumers. The process of value chain in the oil and gas sector begins from allocating areas in order to later search or explore those areas for oil and gas. However soon after the basic search for oil or gas, evaluations are carried out on the grounds or fields; development and production are the other two things that are carried out later. The overall procedure is also known as Exploration and Production (E&P) or in other words it is also known as