CRUDE OIL: COMMUNITY ENGAGEMENT OF A MULTINATIONAL OIL COMPANY Greg breathes a sigh of relief,thankful that he wouldn’t have to ask for directions to his office (again). It has been an exhausting first week. Once inside his office, Greg smiles fondly at a framed photo of a younger, sweatier version of himself (losing badly while) playing football with Peruvian community leaders. His focus on maintaining positive relationships with local Peruvian communities while handling his former company’s mining operation in the Amazon basin had attracted the attention of national media. After The Peruvian President retweeted the picture of Greg and his team playing football with the Peruvians, Greg became somewhat of a celebrity for a few days. Greg likes to joke that he keeps the photo in his office to remind himself of one of his greatest victories (the community engagement project was a huge success) and one of his greatest failures (Greg’s team lost the football game 9-0). Greg Cook steps out of his boss’s office one brisk January morning, careful not to drop the mass of papers unceremoniously thrust into his hands as he closes the door. While navigating the corporate maze of cubicles in Petrol, Energy, and Gas Co. 's (PEG) Chicago office, Greg begins to sift through his papers. An overview of Angola Oil, (1) the Angolan government’s oil company (2), rests atop the stack. Peeking out from beneath it, Greg sees briefings detailing PEG’s recent partnership with AngolOil. He sits down to dig into the pile. The case has been clearly laid out starting with the discovery of an oil-rich reserve in Angola, but quickly followed up with data about the 1,500 soon-to-be-displaced Angolans (3) inhabiting the region, the loose governmental structure of the area, and a history of the complex relations between international oil companies and the Angolan government. Greg looks up from his reading and tries to find a landmark, anything to tell him that he is near his office. Spotting the potted plant that guards his office door, (1) This is a fictitious company with some similarities to the Angolan government-owned company Sonangol (2) Parastatals or state-owned legal entities that undertake commercial activities under the ownership of the state. (3)“Standoffs between indigenous peoples, often precipitated by environmental despoliation and lack of compensation and payments, have often deteriorated into tense and conflicted relations” 1. What is the impact of an oil company moving onto previously underdeveloped, densely inhabited land? Who are the stakeholders in a project such as this? 2. What factors must Greg keep in mind when designing PEG’s community engagement project? 3. What motives could PEG have to start community engagement projects?
CRUDE OIL: COMMUNITY ENGAGEMENT OF A MULTINATIONAL OIL COMPANY Greg breathes a sigh of relief,thankful that he wouldn’t have to ask for directions to his office (again). It has been an exhausting first week. Once inside his office, Greg smiles fondly at a framed photo of a younger, sweatier version of himself (losing badly while) playing football with Peruvian community leaders. His focus on maintaining positive relationships with local Peruvian communities while handling his former company’s mining operation in the Amazon basin had attracted the attention of national media. After The Peruvian President retweeted the picture of Greg and his team playing football with the Peruvians, Greg became somewhat of a celebrity for a few days. Greg likes to joke that he keeps the photo in his office to remind himself of one of his greatest victories (the community engagement project was a huge success) and one of his greatest failures (Greg’s team lost the football game 9-0). Greg Cook steps out of his boss’s office one brisk January morning, careful not to drop the mass of papers unceremoniously thrust into his hands as he closes the door. While navigating the corporate maze of cubicles in Petrol, Energy, and Gas Co. 's (PEG) Chicago office, Greg begins to sift through his papers. An overview of Angola Oil, (1) the Angolan government’s oil company (2), rests atop the stack. Peeking out from beneath it, Greg sees briefings detailing PEG’s recent partnership with AngolOil. He sits down to dig into the pile. The case has been clearly laid out starting with the discovery of an oil-rich reserve in Angola, but quickly followed up with data about the 1,500 soon-to-be-displaced Angolans (3) inhabiting the region, the loose governmental structure of the area, and a history of the complex relations between international oil companies and the Angolan government. Greg looks up from his reading and tries to find a landmark, anything to tell him that he is near his office. Spotting the potted plant that guards his office door, (1) This is a fictitious company with some similarities to the Angolan government-owned company Sonangol (2) Parastatals or state-owned legal entities that undertake commercial activities under the ownership of the state. (3)“Standoffs between indigenous peoples, often precipitated by environmental despoliation and lack of compensation and payments, have often deteriorated into tense and conflicted relations” 1. What is the impact of an oil company moving onto previously underdeveloped, densely inhabited land? Who are the stakeholders in a project such as this? 2. What factors must Greg keep in mind when designing PEG’s community engagement project? 3. What motives could PEG have to start community engagement projects?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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CRUDE OIL: COMMUNITY ENGAGEMENT OF A MULTINATIONAL OIL COMPANY
Greg breathes a sigh of relief,thankful that he wouldn’t have to ask for directions to his office (again). It has been an exhausting first week. Once inside his office, Greg smiles fondly at a framed photo of a younger, sweatier version of himself (losing badly while) playing football with Peruvian community leaders. His focus on maintaining positive relationships with local Peruvian communities while handling his former company’s mining operation in the Amazon basin had attracted the attention of national media. After The Peruvian President retweeted the picture of Greg and his team playing football with the Peruvians, Greg became somewhat of a celebrity for a few days. Greg likes to joke that he keeps the photo in his office to remind himself of one of his greatest victories (the community engagement project was a huge success) and one of his greatest failures (Greg’s team lost the football game 9-0). Greg Cook steps out of his boss’s office one brisk January morning, careful not to drop the mass of papers unceremoniously thrust into his hands as he closes the door. While navigating the corporate maze of cubicles in Petrol, Energy, and Gas Co. 's (PEG) Chicago office, Greg begins to sift through his papers. An overview of Angola Oil, (1) the Angolan government’s oil company (2), rests atop the stack. Peeking out from beneath it, Greg sees briefings detailing PEG’s recent partnership with AngolOil. He sits down to dig into the pile. The case has been clearly laid out starting with the discovery of an oil-rich reserve in Angola, but quickly followed up with data about the 1,500 soon-to-be-displaced Angolans (3) inhabiting the region, the loose governmental structure of the area, and a history of the complex relations between international oil companies and the Angolan government. Greg looks up from his reading and tries to find a landmark, anything to tell him that he is near his office. Spotting the potted plant that guards his office door, (1) This is a fictitious company with some similarities to the Angolan government-owned company Sonangol (2) Parastatals or state-owned legal entities that undertake commercial activities under the ownership of the state. (3)“Standoffs between indigenous peoples, often precipitated by environmental despoliation and lack of compensation and payments, have often deteriorated into tense and conflicted relations”
1. What is the impact of an oil company moving onto previously underdeveloped, densely inhabited land? Who are the stakeholders in a project such as this?
2. What factors must Greg keep in mind when designing PEG’s community engagement project?
3. What motives could PEG have to start community engagement projects?
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