Wednesday, June 6, 2012

Blog 4: Iraq


This article talks about the latest agreement signed between Shell, an international group and the Iraqi government. The latter is based on a $17 billion over 25 years. Shell will operate three deposits in the province of Basra. This province is interesting for the group as it is currently without services infrastructure and thousands of barrels of gas and petrol escape from there every day.
The purpose of the coming of Shell in this country is to sit her world supremacy as operator of gas and oil. Iraq is a country currently experiencing problems of a large electricity cuts because they do not have the physical means and infrastructure to develop an electrical network throughout the country. That is why they prefer to entrust this task has a large worldwide group. The power Shell is to be a financially strong group with a large experience in the extraction of mineral resources in processing, transporting energy and distribution of energy throughout the world. The power of Iraq is to be one of the leading suppliers of oil and gas in the world. Thanks to their land filled with this gold ore, they may conclude agreements like barter.
Both companies have great power over each other, because a deal is concluded that both parties get a fair deal. Iraq and resources use their power to attract investors. They do not do that with a view to share resources but in order to use the expertise of Shell. They want to take part of the knowledge of a company in the service of their country. In this case here to overcome the problem of power cuts throughout the country. Iraq is an influential country in the international arena because when tension with Europe appears, they can provide the old continent in mineral resources. This poses big problems then in France and Europe. Whereas now with the possibility of the Shell to establish direct extraction plants in Iraq with the consent of the Iraqis, the Shell will continue to supply Europe in case of deadlock. The power of Shell in this is that the Iraqi government does not about why Shell comes here. For example, the production of electricity is not a complicated thing for Shell, only the establishment of infrastructure in Iraq they will take some time.
In fact these two entities are really powerful because they both have knowledge on certain technologies or way of doing something. They are also really rich and powerful because of their size, their money and what they are doing or what they have done in the past.

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