Exogenous Factors Influencing the Development of Marginal Oil Fields in Emerging Economies
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Oruwari Humphrey Otombosoba, Institute of Innovation, Technology and Engineering Management, University of Port Harcourt, Port Harcourt, Nigeria.
Marginal oil fields are those ones with uncertain economics, high risk factor and doubtful profitability. They include fields with small reserves in harsh, remote areas that are located far from facilities. Marginal oil field development could be considered hot topic across the globe where energy security is a major issue because huge or giant oil field discovery are on the decline. Also abandoning oil and gas fields because of their marginality is a wasting of asset and compromised sustainable development. The influence of exogenous or macro factors on marginal field development in the production of oil and gas have become key priority of industry stakeholders. In order to analyse the management and economic techniques for marginal oil fields, the micro and macro factors influencing the oil and gas industry was investigated. The micro environment consists of an organisation owns influences, objectives and resources. The macro environment relates to a set of broad influences such as, political, economic, legal, technological, social, and environmental/ecological factors. This study assesses how macro or exogenous factors have impacted the development of marginal oil field in different emerging economies. Nigeria, China, India, Indonesia, Malaysia and Venezuela are chosen as case study to highlight the diversities and strategies for exogenous factors in the emerging economies. The experience of the case study countries showed that the successful development of marginal oil field depends on the country’s developmental stage and institutional frame work. Based on the review of the case-study the findings summarized that successful development of marginal oil fields should be anchored on the principle of sustainability. The political, social, economic, legal and technological issues affecting marginal oil fields should be in line with global best practices.
Marginal Oil Fields, Sustainable Resource Management, Global Best Practices, Exogenous Factors
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