The document discusses several topics related to the oil and gas industry including: - Big Oil refers to the world's largest publicly traded oil and gas companies, also known as supermajors, which include BP, Chevron, Eni, ExxonMobil, Royal Dutch Shell, Total, and ConocoPhillips. - OPEC is an intergovernmental organization made up of 13 oil producing countries that aims to coordinate oil policies and ensure stability in the oil market. Major OPEC members include Saudi Arabia, Iran, Iraq, Kuwait, and Venezuela. - INTERTANKO is an association representing independent tanker owners worldwide with over 190 members. It works on operational,

1. Kapil Lamba(31923)

2.  Big Oil is a name used to describe the world's six or seven
largest publicly traded oil and gas companies, also known
as super majors.
 The super majors are considered to be BP, Chevron, Eni,
ExxonMobil, Royal Dutch Shell, Total, and ConocoPhillips.
 Before the oil crisis of 1973 the members of the Seven Sisters
controlled around 85% of the world's oil reserves.
 Between 2004 and 2007 the profits of the six supermajors
totaled US$494.8 billion.

5.  Crude oil investing has several advantages over traditional
equities for certain trader classes. Depending on your
investment objectives, oil trading can be used for:
1.Diversification
2.Safe Haven
3.Inflation Hedging
4.Speculation
 Trading oil requires a bit more consideration than other types
of assets because there are many product choices you can
use to get into the market, from pure-play oil derivatives to
oil and gas company equities.

6. Method of
Investing
Complexity
Rating
(1=easy,
5=hard)
Storage
Costs
Security
Costs
Expiration
Date
Management
Cost
Leverage Regulated
Buy Oil
Barrels
5 Yes Yes No No No No
CFDs 3 No No No No Yes Yes
Futures 5 No No Yes No Yes Yes
Options 5 No No Yes No Yes Yes
ETFs 2 Yes Yes No Yes No Yes
Shares 2 No No No No Yes Yes

7.  Oil is found in only a handful of countries, the most
significant of which are the 12 OPEC countries (Organization
of Petroleum Exporting Countries), and together these 12
countries account for over 75% of all proven oil reserves in
the world.
 As a trader, we therefore need to constantly monitor levels of
production, exportation levels, and any disruption that may
occur in major oil exporting countries. Any increase or
decrease in production will impact prices.
 When calculating oil prices a huge consideration is the fact
that oil is a finite resource which will one day run out. As
supplies dwindle or become harder to extract, prices will
increase.

8.  When we talk of trading oil, the oils we generally mean are
WTI, which is short for West Texas Intermediate oil (also
known as Crude Oil) and Brent Crude Oil, often referred to as
Brent.
 WTI is produced in the USA and Brent is produced in the
North Sea. Both are high-quality oils, and this means that
once they have been extracted from the ground they can be
refined to make it usable for lots of different purposes.
 Uses include refining into petrol to power a car, as fuel in the
generation of electricity and heating, and also to create
plastics, petrochemicals and many other products. This,
therefore, means that both WTI and Brent are constantly in
very high demand around the world, and are consequently
highly correlated.

10.  Globally the largest consumers of oil are developed industrial
countries such as the United States and European countries.
However, over the last two decades, there has been a huge
growth in consumption in the Far East, with China in
particular now a major user.
 The largest oil consumer nations include US, Japan, China,
Germany, and the UK so when trading oil we always need to
keep an eye on the major consuming nations to monitor
whether their usage is increasing or decreasing.
 An increase in demand will tend to mean an increase in
prices, and similarly, a decrease in demand will tend to mean
a decrease in prices (provided that supply levels remain
consistent).

11.  The fact that oil has so many uses means that it is one of the
most traded and volatile markets in the world.
 For traders this presents huge opportunities, but when
trading oil we need to pay particular attention to a wide range
of supply and demand issues which can potentially have a
huge impact on prices, often in a very short timeframe.
 A famous example of this is when oil rose to a record high of
$145 in June 2008, only to then fall to around $30 by
December of the same year. The record high prices were
caused by a combination of factors, most notably supply
disruptions in Nigeria due to political factors, combined with
the belief that increased demand from developing nations
such as China and India would outstrip supply.

12. History
 The Organization of the Petroleum Exporting Countries is
an intergovernmental organization of 13 nations, founded on
14 September 1960 in Baghdad by the first five members
(Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela), and
headquartered since 1965 in Vienna, Austria.
 As of January 2020, OPEC has 13 member countries: five in
the Middle East (Western Asia), seven in Africa, and one
in South America. According to the U.S. Energy Information
Administration (EIA), OPEC's combined rate of oil production
(including gas condensate) represented 44 percent of the
world's total in 2016, and OPEC accounted for 81.5 percent of
the world's "proven" oil reserves.

15. Importance
 "OPEC’s principal aims are the coordination and unification
of the petroleum policies of Member Countries and the
determination of the best means for safeguarding their
interest, individually and collectively.
 the Statute and Declaratory Statement meant that OPEC
should focus its activities on ensuring order and stability in
the international oil market, with reasonable prices, secure
supply and fair returns to investors, and that oil producers
themselves should have the right to determine the destiny of
their indigenous crude oil reserves.
 The Organization shall devise ways and means of ensuring
the stabilization of prices in international oil markets, with a
view of eliminating harmful and unnecessary fluctuations.

16.  Due regard shall be given at all times to the interest of the
producing nations and to the necessity of securing a steady
income to the producing countries, an efficient, economic and
regular supply of petroleum to consuming nations and a fair
return on their capital.
Early OPEC Activities
 These documents were adopted in the 1960s, when the world
oil industry, outside the former centrally planned economies,
was dominated by the "The Seven Sisters" multinational oil
companies. In such an environment, oil prices were at
extremely low levels, with minimal returns for those countries
within whose borders the crude reserves lay.
 There is one other important early document of relevance to
OPEC’s role – the "Solemn Declaration"

17.  The proposal for a new international economic order led to
the establishment of the OPEC Fund for International
Development, which is a multilateral development finance
institution seeking to promote co- operation between OPEC
members and other developing countries. Over the years, the
OPEC Fund has distributed loans and grants to 104 countries
located in Africa, Asia, Latin America, the Caribbean and
Europe.
 Including grants and contributions to other institutions, the
Fund’s total approved commitments, as of the end of
September 1999, stood at $5.4 billion (U.S.), with
disbursements reaching $3.7 billion.
A New Summit
 The second summit will concern itself with the present
condition of the oil industry (which is very different from that
of 1975), the outlook for the new century and the challenges
that are likely to present themselves.

18. Pricing and Production Agreements
 How inherently fragile the oil price structure is, how market
psychology can grossly exaggerate initial impulses, and how
disorder can prevail until collective action reverses the trend
and returns the market to an orderly state.
 Pricing and production agreements, cooperation with non-
OPEC producers, a dialogue with consumers, the provision of
adequate future production capacity, the role of natural gas
as a "sister export" to crude oil, the impact of the technology
and communications revolutions, the not-too-distant
depletion of crude oil reserves for some member countries,
intensified diversification.
The Need for Cooperation
 This all demonstrates the importance of broad- based
cooperation in the international oil market, reinforced by the
agreements reached at the meetingsof the OPEC conference.

19.  OPEC has been greatly heartened by the new spirit of
cooperation in the market and this gives something for all of
us to build upon for the future.
 Ensuring orderly market must be sustainable.
 What the market requires is "pro-action." Damaging
situations should not be allowed to arise in the first place. If
one does arise, then there should be a means available at all
times of nipping it in the bud.
Climate Change
 Calculations show losses in annual oil export revenue of tens
of billions of U.S. dollars for OPEC’s member countries,
compared with reference-case levels, if OECD countries
impose carbon taxes of sufficient levels to achieve their
emissions targets set out be the Kyoto Protocol of December
1997.

20. 2020 Saudi-Russian price war
 In early March 2020, OPEC officials presented an ultimatum to
Russia to cut production by 1.5% of world supply. Russia,
which foresaw continuing cuts as American shale
oil production increased, rejected the demand, ending the
three-year partnership between OPEC and major non-OPEC
providers. Another factor was weakening global
demand resulting from the 2019–20 corona virus
pandemic. This also resulted in 'OPEC plus' failing to extend
the agreement cutting 2.1 million barrels per day that was set
to expire at the end of March. Saudi Arabia, which has
absorbed a disproportionate amount of the cuts to convince
Russia to stay in the agreement, notified its buyers on 7
March that they would raise output and discount their oil in
April. This prompted a Brent crude price crash of more than
30% before a slight recovery and widespread turmoil in
financial markets.

21. History
 The International Association of Independent Tanker Owners
(INTERTANKO) is a membership association for owners of
independent tankers throughout the world.
 The Association was formed in its present guise in Oslo in
1970 to speak out for those independent tanker owners, i.e.
non-oil companies and non-state controlled tanker owners,
for the safe shipping of oil and chemicals and to act as a
forum for marine policy creation.
 As of January 2020, the organisation had 192 full members,
whose combined fleet comprises some 4,088 tankers
totalling almost 357 million dwt. INTERTANKO's Associate
Membership, i.e. companies with an interest in shipping of oil
and chemicals but who do not own or operate tankers, stands
at some 245 companies also 5 regional panel 14 working
committees.

22. Role
 The organisation champions an industry dedicated to support
global energy networks by delivering safe, efficient and
environmentally sound transport services.
 INTERTANKO actively works on a wide range of operational,
technical, legal and commercial issues affecting tanker
owners and operators around the world.
 It draws on regular and direct contact with its Members and
other industry stakeholders to develop and disseminate
information and best practice, essential to the tanker
industry.
 Membership benefits include representation at all key
industry forums by a large, respected industry body, easy
access to guidance and advice, as well as networking
opportunities with fellow Members and industry peers
through the extensive network of Associate Members and
other industry.

23.  As INTERTANKO is a Member-run, direct entry organisation,
its strength lies in developing policies that are immediately
relevant and beneficial to Members.
 INTERTANKO works closely with its industry counterparts
including the Oil Companies International Marine Forum
(OCIMF), Chemical Distribution Institute (CDI), Society of
International Gas Tanker and Terminal Operators (SIGTTO),
International Association of Class Societies (IACS),
International Group of P&I Clubs, the Port State Control MoUs,
US Coast Guard, European Commission and many others.
 A recognised Non-Governmental Organisation (NGO), it has,
among others, observer status at the International Maritime
Organisation (IMO), the United Nations Conference on Trade
and Development (UNCTAD) and the International Oil
Pollution Compensation Funds (IOPC), contributing actively to
their work. Through this engagement, Members have the
possibility to influence strategically important developments
at the highest level.

24. Forum
 for Members to meet and share information and best practice
with each other and the wider industry
Advisor
 for Members providing guidance on issues affecting their
operations and interests
Champion
 that speaks on behalf of and acts for independent tanker
owners
Sustainability of the industry
 There is deep concern that the current tanker market rates
are consistently below operating costs. This could threaten
the sustainability, even the very survivability, of the oil
transportation industry.
 This situation, where tanker owners are not even covering
their operating costs, cannot be sustained in the longer
term. Standards must be maintained at the highest levels in
order to operate in today’s demanding markets, but in
continuing to do that, some operators may hit a financial
wall.

25. Greenhouse gases (GHG)
 Energy Efficiency Design Index (EEDI) requirements should
apply equally to all new ships on the same applicable
effective date. Compliance with EEDI should focus on
improved hull design, propulsion efficiency and energy
optimisation.
Piracy
 Best Management Practices (BMP4)
 It is crucial that ship operators follow the three main
elements of BMP4 for ships going through the Gulf of Aden
and Indian Ocean: register with the Maritime Security Centre –
Horn of Africa (MSCHOA); report to the UK Maritime Trade
Organisation (UKMTO); and employ the appropriate self-
protection measures.
Armed guards
 It is the responsibility of the international navies to ensure
the right of free passage on the high seas including the use
of vessel protection detachments (VPDs) on merchant ships.

26. Key Function
 Be the representative forum of choice for all quality tanker
owners and managers.
 Enhance public and political awareness of the importance and
positive performance of the tanker industry.
 Promote balanced terms of trade and a competitive,
transparent and sustainable tanker industry.
 Lead the development, acceptance and implementation of
uniform, worldwide international tanker standards.
 Lead in establishing and maintaining partnerships,
cooperation and open and constructive dialogue with the
relevant maritime authorities, organisations, associations and
special interest groups.

27.  Lead the continuous improvement of the Tanker Industry’s
performance in striving to achieve the goals of:
◦ Zero fatalities
◦ Zero pollution
◦ Zero detentions
 Deliver the highest quality services to meet the expectations
of their stakeholders.
 Promote the availability and utilisation of personnel with the
highest quality marine skills and competencies.

28. History
 The Oil Companies International Marine Forum (OCIMF) is a
voluntary association of oil companies having an interest in
the shipment and terminal ling of crude oil and oil products.
 OCIMF's mission is to be the foremost authority on the safe
and environmentally responsible operation of oil
tankers and terminals, promoting continuous improvement in
standards of design and operation.
 OCIMF was formed at a meeting in London on 8 April 1970. It
was initially the oil industry's response to increasing public
awareness of marine pollution, particularly by oil, after
the Torrey Canyon incident.

29.  Governments had reacted to this incident by debating the
development of international conventions and national
legislation and the oil industry sought to play its part by
making its professional expertise available and its views
known to governmental and inter-governmental bodies.
 OCIMF was incorporated in Bermuda in 1977 and a branch
office was established in London primarily to maintain contact
with the IMO. The current membership of OCIMF comprises
109 companies worldwide.
 Most recently the organisation has contributed to the EU
discussion on tanker safety and the draft EU Directive on
Environmental Liability, and has provided support to
the European Union (EU) and the International Maritime
Organization (IMO) debate on the accelerated phasing out of
single-hull tankers and on the carriage of heavy grades of oil.

30. Role
 Today, OCIMF is widely recognised as the voice of the oil
industry providing expertise in the safe and environmentally
responsible transport and handling of hydrocarbons in ships
and terminals and setting standards for continuous
improvement. Membership is extensive and includes every oil
major in the world along with the majority of National Oil
Companies.
 OCIMF has much to be proud of; Not only has it contributed
to a substantial quantity of regulation at the IMO aimed at
improving the safety of tankers and protecting the
environment, but it has introduced important new guidance
on pressing current issues such as piracy and Arctic shipping.

31.  OCIMF is in the unique position of being able to leverage the
expertise of its membership to press ahead with much
needed guidance on important industry issues.
 This provides the means to improve practices in the
membership and in the wider industry, and serves as a
valuable reference for developing regulation.
 In addition to its extensive publications library, OCIMF has a
rich portfolio of tools including its Ship Inspection Report
(SIRE) programme and Tanker Management and Self
Assessment tool (TMSA), both of which have gained
worldwide recognition and acceptance.

32. Publications
 develop best practices on critical areas of safety, health,
security and environment.
Advocacy
 promote best practices and regulatory compliance through
engagement with governments and industry.
Programmes
 develop inspection and self-assessment programmes for
promoting best practices and regulatory compliance.
Members Collaboration
 provide a forum for members to learn, share expertise and
develop best practices.