How oil volatility is affecting the global political scene, and where the oil market is heading The world is rapidly moving towards an oil environment defined by volatility. The Vega Factor: Oil Volatility and the Next Global Crisis takes an in-depth look at the most important topics in the industry, including strategic risk, why traditional pricing mechanisms will no longer govern the market, and how the current government approaches have only worsened an already bad situation.
- Details the industry's players, including companies, traders, and governments
- Describes the priorities that will need to be revised, and the policies needed to achieve stability
- Explains how today's oil market is fundamentally different from the pre-crisis market
Oil prices affect everyone. The Vega Factor explains the new international oil environment of increasing consolidation and decreasing competition, and reveals how consumers and investors can navigate price volatility and new government policies.
Preface ix
Chapter 1 The Meaning of Oil Vega 1
Chapter 2 How Oil Volatility Relates to Strategic Risk 15
Chapter 3 Determining Oil Prices 37
Chapter 4 Dollars, Credit, Financial Crises, . . . and the Oil Connection 57
Chapter 5 Oil Companies and the Upstream/ Downstream Tradeoff 101
Chapter 6 How Government Action Increases Volatility 141
Chapter 7 Is There a Response? 179
Appendix A World Proved Oil Reserves (Billion Barrels) 197
Appendix B Exxon CARM per Gallon (January 3, 2000 to December 31, 2007) 209
Appendix C Exxon ARM per Gallon (January 3, 2000 to December 31, 2007) 221
Appendix D Shell CARM lS#
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