The paper "International Investment - Expansion into the US Oil and Gas Industry" is a perfect example of a micro and macroeconomic case study. Internationalization has become a trend in the oil and gas industry. This report shows that the United States presents the best foreign market for expansion compared to Japan, China and India because the U. S. is the world’ s current largest consumer of oil and this implies a huge market opportunity in its oil and gas industry. The report also indicates that the joint ventures will be the best mode of entry into the U. S.
oil and gas industry. However, to succeed in this market, the company will have to address the political and legal factors that are likely to create obstacles to the company. Additionally, since consumers increasingly prefer socially-minded companies, the firm will have to ensure that business is conducted in accordance with the ethics and moral standards of the U. S. oil and gas industry. Introduction Internationalization has become a trend in the oil and gas industry. Although there are several foreign markets that the UK gas and oil company can expand to, such as China, India and Japan, the United States presents the UK firm with the best business growth opportunity, thus needs to be considered for business expansion.
The United States is the best destination because it is the world’ s largest consumer of oil with its consumption standing at 19.53 million bpd. This is far higher than Japan, China and India, whose oil consumption stands at 4.12 million bpd, 11.12 million bpd and 3.73 million bpd respectively (Deloitte US 2016). This report analyzes the most appropriate mode of entry into the U. S.
gas and oil industry, the political and legal factors that will affect the operations of the company in the U. S, as well as the ethical considerations in the U. S. oil and gas industry. Political and Legal Factors Political and legal factors are some of the major obstacles that foreign gas and oil companies seeking to invest in the U. S. market face.
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