National Oilwell Varco - Research Paper Example

 National Oilwell Varco Introduction A worldwide supplier of equipment and components for drilling and production operations for oil and gas and oilfield services, a National Oilwell Varco is also a provider of integration services to the upstream oil and gas industry. It operations in more that ninety hundred locations all over the world and is divided into such operational segments as rig technology, petroleum services and supplies, distribution and transmission (Company profile, n.d.). Since the company performs its activities on the different geographical zones, it brings it a considerable advantage over its main competitors and certain comfort against risk from the certain countries’ changes in regulations. Despite that fact the U.S. and other developed countries’ large markets may adopt special risk policies that will slow or stop deepwater exploration which may affect the activities of the National Oilwell Varco. Such regulatory risk may mandate National Oilwell Varco make changes to the segments in which NOV is operating. 1. Environmental Protection Agency: an agency created to unite the federal research, monitoring, standard-setting and enforcement activities that would provide environmental protection. As a result of the exploration and production of oil and gas in the recent tears, there appeared new norms and rules that companies should apply for drilling permits. Thus, the Environmental Protection Agency is working to curb pollution and emissions created by the oil industry. That requires National Oilwell Varco to deal with the enhanced involvement by the organization’s administration (National Oilwell Varco, 2014). National Oilwell Varco focuses on safety from the hazardous working conditions, it should ensure the compliance with the regulation on each of its oil platform. Refineries should require the regulations on nitrous oxide emissions, byproducts and products the company manufactures and sells (Hackett, Regoli, De Deo, Polley, 2014). Despite the oil and gas businesses questioned the need for tighter controls because of the regulation to be the most expensive in US history and have little impact on the environment and consumers, however, EPA stated that a combination of the proposed air pollution rules would assist in meeting the proposed standards of cutting smog-forming emissions from oil and gas industry and transportation (Snow, 2014). 2. American Petroleum Institute: a national trade association that represent U.S. oil and natural gas industry. Since service and supply companies are the inevitable components of the oil and natural gas industry, the API manages all these companies. These are the manufacturers of equipment, drilling contractors, which is National Oilwell Varco as well.  (Porter, 2011). 3. The Railroad Commission of Texas established to prevent discrimination in railroad charges and ensure establishment of reasonable tariffs. It manages the commercial recycling and surface disposal facilities (Railroad commission of Texas, n.d.). Because the Resource Conservation and Recovery Act does not protect oil and gas waste from federal regulation, U.S. states are free to regulate the storage and transporting of oil and gas under their companies’ own risky waste programs. For Texas, the headquarter of National Oilwell Varco, the commercial waste haulers should have a permit to transport oil and gas waste. Such permit is not required for recycling transportation of oil and gas waste. Oil and gas waste haulers are required to keep records of daily hauling activities for 3 years (Nicholson, 2014). 4. U.S. Department of Commerce: it promotes job creation, economic growth and sustainable development for the citizens of U.S. It establishes partnership with businesses, universities and with communities. The Department manages all the necessary licenses for the companies to be able to perform their activities. Thus, a foreign National Oilwell Varco subsidiary, Robbins & Myers Belgium SA, pled guilty for exporting drilling equipment to Syria illegally. The company agreed to pay one million in criminal and civil penalties (Lipkin, 2014). 5. Interstate Oil and Gas Compact Commission is aimed to ensure the nation's oil and natural gas resources to be conserved and maximized and protected. It assists the environmentally-sound ways to enhance the supply of energy by accomplishing clear requirements of Congress (About the Interstate Oil and Gas Compact Commission, n.d.). 6. The National Petroleum Council established to advise, inform and make recommendations to the Secretary of Energy on the relating oil and gas industries. The reports of the Council touch the energy outlook, the environmental issues, natural gas and strategic petroleum reserve questions. NOV represents the outcomes of its activities and as a company of construction, drilling and oilfield services, it obtains support from the National Petroleum Council (An Oil and Natural Gas Advisory Committee, n.d.). 7. The Texas Independent Producers & Royalty Owners Association: it serves independent producers and royalty owners and preserves the ability for independents to identify and produce oil and natural gas. It develops a well-informed image of Texas exploration and production and enhances participation (The Texas Independent Producers & Royalty Owners Association, n.d.). 8. The World Bank's Oil and Gas: Its division assists in preparation and appraisal of projects, coordinates oil and gas policy and connects petroleum industry. World Bank Group encourages transparent management of oil and gas industry revenues and provides benefits for the local people. It makes oil and gas companies such as National Oilwell Varco to respect local community needs and environmental concerns (Extractive Industries Overview, n.d.). 9. OPEC (Organization of the Petroleum Exporting Countries): An organization of oil-exporting developing nations that manages the petroleum policies of such countries as Qatar, Iran, Iraq, Algeria and others. It ensures the stabilization of oil markets that in turn ensures the effective, economic and regular supply of petroleum to the consumers and a stable benefit to oil producers. It also regulates fair return on capital. It influences the NOV’s actual building of the drilling rigs and ships that have to go offshore and do the drilling (Muckerman, 2013). 10. The Petroleum marketers association of America: It represents the wholesaler and retailers of gasoline, diesel, heating oil and renewable fuels. The member of association is the Texas Food and Fuel Association serves as the industry voice before the legislature and regulatory agencies and manages such companies as National Oilwell Varco, which is one of the main oilfield service companies. Works cited About the Interstate Oil and Gas Compact Commission, (n.d.). Retrieved from http://iogcc.publishpath.com/about-us An Oil and Natural Gas Advisory Committee, (n.d.). Retrieved from http://www.npc.org/ Company profile, (n.d.). National Oilwell Varco Inc, The Reuters, Retrieved from http://www.reuters.com/finance/stocks/companyProfile?symbol=NOV.N Extractive Industries Overview, (n.d.). The World Bank, Retrieved from http://www.worldbank.org/en/topic/extractiveindustries/overview#2 Hackett, d., Regoli, N., De Deo, D. & Polley, B., (2014). EPA hydraulic fracturing study may be prelude to new federal rules, Unconventional oil and gas report, Retrieved from http://www.ogj.com/articles/uogr/print/volume-2/issue-4/epa-hydraulic-fracturing-study-may-be-prelude-to-new-federal-rules.html Lipkin, M., (2014). National Oilwell Unit To Pay $1.6M For Illegal Syrian Exports, The Law 360, Retrieved from http://www.law360.com/articles/583877/national-oilwell-unit-to-pay-1-6m-for-illegal-syrian-exports OPEC mission, (n.d.). Retrieved from http://www.opec.org/opec_web/en/about_us/23.htm National Oilwell Varco, (2014). Unlocking free cash flow, Retrieved from http://tippie.uiowa.edu/krause/fall2014/nov_f14.pdf Nicholson, B., (2014). Regulatory complexity governs rail, truck oil field transportation, Oil and gas journal, Retrieved from http://www.ogj.com/articles/print/volume-112/issue-1/transportation/regulatory-complexity-governs-rail-truck-oil.html Railroad commission of Texas, (n.d). Retrieved from http://www.rrc.state.tx.us/oil-gas/applications-and-permits/environmental-permit-types-information/commercial-surface-waste-facilities/commercial-recyclingdisposal-permits-list/ Snow, N., (2014). EPA proposes tighter ground-level ozone pollution controls, Oil and gas journal, Retrieved from http://www.ogj.com/articles/2014/11/epa-proposes-tighter-ground-level-ozone-pollution-controls.html The Texas Independent Producers & Royalty Owners Association, (n.d.). Retrieved from http://www.tipro.org/ Read More