Russian petroleum industry and globalization Dissertation

Russian crude constancy and orbicularization - Dissertation Example4.Functional Structure of Organizations 11 In the crude oil industry, organizations grouped their employees based on their specialization together Reservoir Engineers together, Production Technologist together, etc., which resulted in a Functional structure. Figure 1 presents an example of a Functional structure in model of an Operating Unit in the petroleum industry (in an oversimplified situation). Because of the grouping of functional activities into specialized departments, the organization is able to support in-depth skill development, which is considered to be maven of the key strengths of the functional organization. However, functional grouping also has its drawbacks as the environment becomes more uncertain and dynamic, umteen decisions are pushed to higher hierarchical levels, which slows down the process of decision-making. Price shocks of oil and gas in the mid-eighties resulted in major cost cutti ngs between 1982 and 1986, major petroleum companies (except for Shell) announced radical restructuring programs, which included a reformulation of business strategies within core oil and gas businesses and reduction of staff. Shell did not major restructure its organization, but did reduce staff for 20%. Although petroleum companies reduced a great number of their staff, the veridical amount of work remained the same. 11 5.Russian Petroleum and the Global Scenario 12 5.1.FDI of Russian Companies Globally 13 5.2.Energy as a Strategic Asset 13 5.3.Opportunities for Russia 14 III.Investigation to Support Model 15 1.Sample for Investigation 15 2.Investigation Results in Tabular Form 16 IV.Results of Investigation 21 1.Power distribution on Exploration processes and championship development 21 2.Power distribution on Project Planning and Project execution 22... Over the years, this system has been successful and beneficial for the country. Presently, various other factors have come into play such as the bring for efficiency, reducing costs and the role of international market forces. The oil prices which reached the peak in 2008 have stabilized over past 3 years. This fact affects the financial results of Russian petroleum companies and Russia GDP. For example EBITDA of the LUK oil has diminish up to 14% since 2008. Russia government faces new challenges to provide GDP growth. One of the major steps is to palpate new projects which should be developed. These projects can be in Russian territory or abroad. With the help of secondary research it has been proposed that Russian naught can be used as a strategic preference in establishing a notable presence in the global markets. This paper investigates the path of multinational (MNCs) petroleum companies from national to international markets. My research proposes that the organizational structure of some MNCs operating from Russia can adapt techniques of their global counterparts. The research describes th e variety of models that companies use to manage their international assets. The common models and solutions are recommended to use in case of Russian petroleum companies with respect to cultural differences and administrative heritage.1.IntroductionRussia is the largest country in the world in monetary value of area it is also the second largest producer of energy of which about 40% of the product is exported-making Russian the largest exporter of energy in the world. Thus Russia plays a pivotal role in the international oil market with their production of upto 9.96 million barrels per day (Locatelli & Rossiaud, 2011).