Energy 360 - Free Essay with the Article Analysis

According to the Energy 360 article, the SPE employees are people who should have a great sense of purpose. This is because they serve a great sense of purpose. The article states that the sense of purposes is what justifies what a person is doing. One of the examples given in the article is that both the pyramid builders and the oil drillers were stone cutters. However, it is their purpose that differentiates them from each other. Over time, there has been a great increase in the number of people in the world today. This also dictates that there is an increase in the number of people in need of energy. This has so happened that the employees in the energy sector have to work extra hard to try and increase the number of energy households receive on a day to day basis. Another factor to consider is the need for cheaper energy solutions. This means that SPE employees should play the role of reducing the production cost of oil so as to increase its supply to many parts of the world that have no access to cheap energy, especially in third world countries.

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Reference

Helge, H. 2014. Journal of Petroleum Technology: Removing Aging Assets. Reprint Series, SPE, Richardson Texas 53: 15-21.

Economic evaluation can help a lot in serving the purpose of supplying energy to third world countries. First of all, one factor that should be considered is the cost of spreading the energy to those parts of the world. As a matter of fact,m these countries ought to be provided with a solution that is so cost effective in a manner that they can afford. Also, the suppliers should put into consideration the ability of such countries to pay for such services. Most countries classified as third world countries have great natural resources. These can be used to fund such projects. The next question after that should be the economic value of cheap electricity in those countries. One factor that is important to note is that one of the derailleurs to industrialization in third world countries is the lack of affordable electricity. Therefore, if they obtain cheap or rather affordable electricity then it will be possible for the countries to be more industrialized and get out of poverty.

A good supply market for the product would be the author's company itself. As a matter of fact, increasing the supply of energy and its affiliate products, the company will get to grow by increasing its supply to other parts of the worlds. Also, the company will also have access to the energy it may require to increase its operations at a much lower cost. On the other hand, the demand market composes of countries in the African continent. Most of the countries are still developing. This implies that they have most of their industries only very small. However, such industries are bent on growing towards the future. This implies that these companies will get to need electricity to a greater extent towards the future.

The drilling companies will need to invest more in operational assets. These assets mainly compose of drillers. In so doing, the companies will be able to reach out to more parts of the world and perform their purpose of increasing energy to third world countries. The availability of operational assets such as drillers will also help them reduce the cost of hiring such equipment. Investing in drillers is one of the most effective operational expenditures that the company will engage in. This is because the company will, first of all, increase its size by increasing its assets. On the other hand, the company will also have made an improvement in the lives of the individuals since that is the purpose they want to meet. Another operational cost comes up in the field of research. This involves practices such as taking up seismic waves to test for the availability of oil. This action is a convenient operational activity that takes up a lot of resources. This is because it requires an energy company to employ highly qualified professionals. Most of these professionals usually require a very high pay from the companies.

Inflation is a real effect on the energy production industry. The change in the value of money in different parts of the world will dictate the prices of consuming energy in the future. Due to political instability in most African countries, their currencies tend to be moving downwards against most major world currencies. When the US dollar strengthens against a currency in Africa say a Congo Franc, then it means that the entities in that country will have to spend much more to have access to energy products. On the other hand, a country in the developing world may desire oil exploration services in their country. However, through the changing value of money, the countries may be forced to spend much more to receive such services. This may serve as a great challenge to such countries. Therefore, oil exploration companies should seek out ways to ensure that their prices remain constant. This is possible through a process where a grant is offered and the country could pay the grant directly to the exploration company.