Oil Industry's Trade Regime Research Paper Example | Topics and Well Written Essays - 500 words

Oil Industry's Trade Regime - Research Paper Example Various countries also have tax compliance policies that must be adhered to by foreign firms including trading certificates and licensing of the operation (Tarbell, 3). In most developing countries, the procedures for obtaining oil trading licenses and tax compliance certificate are very length, and a lot of time is taken in making negotiations with the government and initiating the oil business. Various countries also have tariff regulation to protect emerging firms in their industry and minimize competition. It is a fact that there are thousands of oil and service companies throughout the world, but it worth noting, that barriers to entering the oil industry are enough to scare all but the serious businesses. Restrictions and various trade regimes can vary depending on the region of the market in which the firm is situated. For instance, some kinds of pumping trucks required at well sites cost more than $1 million for everyone. In other regions of the oil business need highly specialized workforce to operate the machines and to take critical drilling decisions (Inkpen et al., 78). Most notable is health, safety and environmental regulations in the oil industry especially in developing countries. There is a continuous concern recently for safety in oil and gas operations, the effect that new projects have on surface environments, the probability of oil spills and the impact s of pollutants like CO2 and hydrocarbon combustion on change and air quality and global climate has prompt many governments to impose harsh regulations to foreign oil investors in their country. There are a lot of bureaucratic regulations and approvals required for the commencing business especially in developing countries. Trade regimes in oil and gas industry can also be manifested in internal policy perspective; many countries including oil producing countries always struggle with questions of how best to develop their resources and achieve long-term sustainable