engleski

Global Energy Market at the Beginning of the 21st Century

The modern world can hardly be imagined without energy. Industry, communications, mobility of modern life and various other activities would be impossible without a continuous and sufficient energy supply. Amongst primary energy sources, oil and gas have a predominant position. This liquid and gaseous hydrocarbon mixture, exploitation of which commenced some hundred years ago, has dramatically changed human lives and the global society. At the beginning of the 21st century, primary energy consumption in the world is mainly based on oil, however, natural gas is gaining overall importance and its share in total energy consumption is predicted grow in forthcoming years. As part of their strategy and business policy large oil companies have a global approach, well-organized businesses and corporate governance systems that enable them to be pace setters. In the era of advanced technologies, intelligent technology and Internet, they just had to adjust and speed up the decision-making process and ways of their implementation. The strategic context of the world of energy at the beginning of 21st century, particularly after 11 September 2001, is underlined by “ circulus vitiosus” : market, politics, terrorism and oil. Therefore it could be said that energy sources today have a significant impact on complex market relations, hidden geopolitical monopolies and possible instability caused by political or market disturbances. Market disturbances represent one of the problems of the inner stability of energy world. Current and future energy needs, necessity of decreasing the use of some fossil fuels and greater participation of renewable energy resources are some of key issues that need to be addressed. Therefore it is essential to continue research and development of energy technologies and their implementation. The final goal is to ensure an acceptable and competitive energy unit. With the growth of population it will be necessary to ensure additional energy sources, however, at the same time environmental pollution and other negative impacts on the environment should be stopped. Environmental issues become one of the most pressing problems of modern society. Small countries like Croatia can only follow this process and tend to integrate their national markets into larger regional and global markets by acceptance of set rules. For smaller oil companies it is difficult to choose the right strategy. They have to adjust to an ever-changing global market, but at the same time, they have to remain competitive to be able to survive in the turbulent environment. Almost in every decade there is an event that caused disturbance in the global energy market. It is frequently followed by industry consolidation in which weaker players become targets of acquisitions or take-over. However, despite everything, globalization, the liberalization of the energy market and privatization of the energy sector are imperatives for any small country and its integration into international economic associations.

energy market ; oil and gas production ; geopolitics

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