Oil and Gas Management Essay Example | Topics and Well Written Essays - 2000 words - 1

Oil and Gas Management - Essay Example This is achieved mainly through: Local content participation can be measured based on a given project, an associate of the project or based on the country as a whole. Local content can be defined as the value added to a host nation via the activities generated by gas and oil production (Wise and Shtylla 2007). Many analysts are of the view that the effort and time spent developing local content participation strategies can be of commercial and social benefits which can generate enormous economic growth as well as have a huge share in sustainable development (Petro 2010). Oil and gas companies are different and hence it is almost impossible to achieve a successful local content participation program. To achieve a successful local content participation program, a number of key factors are to be involved. They include: A host of nations have made considerable progress in the implementation and advancement of local content participation but the issue still remains of concern. As a result, more efforts and time are necessary to realise an improvement in the local content participation practices. It is estimated that 20 years from now, 90% of hydrocarbon production will be a product of developing nations (Baker 2007). This list of developing nations that extract gas and oil have introduced the local content participation requirements into the regulatory frameworks that govern the developments of natural resources. Due to the increasing importance for the local content participation, Statoil (2008) argues that most companies view local content concept as a strategic issue with direct impacts on vital business operations, for instance, procurement and business development. In response, many developing countries are coming up with innovative tools and strategies that are directed towards meeting the requirements set by local content policies as well as contribute to