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The role of transnational corporations in world energy production and distribution

Page history last edited by Rachel Brown 13 years, 11 months ago

 

Talisman (the oil company [TNC]) case study in Peru video: http://www.youtube.com/watch?v=jLuJtsmTjn0 

 

In Peru, TNCs such as Talisman drill for oil as the locals do not have the knowledge or technology to do so themselves. Previously, 75% of the nation had to agree to allow TNCs to drill the oil, however the government changed it to just 50% meaning it is much easier for them to come in and drill the oil.

 

However, there are problems for Peru with this happening. For example, oil spills may lead to the following:

  • killing fish- therefore there may be no/little food for the locals
  • trees/vegetation don't grow on land where there has been an oil spill, which has led to deforestation elsewhere
  • little drinking water

Oil spills lead to long term damage of ecosystems and the environment. 

 

Also the locals do not benefit from any extra work available, as they are unskilled and untrained. 

 

Communities rely on the promises that these corporations make when they move into Peru, such as water pumps, electricity and healthcare schemes, but these promises are not always upheld, as the companies take advantage of the locals lack of power and their money has bought the governments loyalty. Also, the TNC's take advantage of the local's lack of knowledge and education.

 

 

For example, in 2009 Talisman gave one local community a water pump, however it broke after just 3 months and they do not have the skills, or the technology (parts) needed to fix it. The healthcare centre promised to the locals is still not finished either.

 


In Norway, they have a high energy consumption of 6.2 tonnes per person. It is a wealthy country and has the largest electricity consumption in the world. 99% of its energy comes from HEP, 39% of its energy comes from fossil fuels and 61% from renewable sources.

 

Norway's reliance on hydropower does leave the country vulnerable to climatic fluctuations, which requires imports to meet seasonal shortages, but also opens the possibility of exports during wetter conditions.

 

http://www.norad.no/en/Thematic+areas/Energy/Clean+Energy

 


British Petroleum (BP)

 

BP is a TNC that own 22,000 petrol stations, 17 huge refineries and work in 29 countries. In 2008 alone, it took $361billion, making a profit of $26 billion.

 

Controversy and incidents:

  • In 1991, BP was cited as the 'most polluting company' in the US, based on EPA toxic release data.

 

  • Between January 1997 and March 1998, BP was responsible for 104 oil spills.

 

  • In 2005, one of BP's biggest refineries in Texas exploded causing 15 deaths. It was found that maintenance and safety at the plant had been cut as a cost saving measure

 

  • BP has been criticised for its involvement with the Baku-Tbilisi-Ceyhan pipeline, due to human rights, environmental and safety concerns. For example, many people were forced to move so their land could be used, and in 2006, BP was also accused of benefiting from a 'regime of terror' carried out by Colombian government.

 

  • In October 2007, 2000 gallons of methanol (which is poisonous to plants and animals) was spilled onto a frozen tundra pond, after it had been used to clear ice from the insides of pipelines.

 

  • In November 2008, BP stopped its plans to build wind farms in the UK, instead choosing to work in the US, which was more attractive to BP economically.

 

  • In Spring 2009, BP planned to build a wind farm in Wyoming County, Pennsylvania. Although the powerlines will destroy a hang gliding and paragliding site, BP refused to consider an alternative route.

 

  • On April 20, 2010, an offshore drilling rig in the Gulf of Mexico exploded, and sank two days later, taking with it eleven lives and causing a massive oil spill threatening the coast of Louisiana, Mississippi, Alabama and Florida. Estimated oil flow rates were at between 56,000 barrels to 84,000 barrels per day. 

 

It's not all bad though!

  •  BP Solar is a leading producer of solar panels

 

  • BP withdrew from the 'Global Climate Coalition,' an organisation that promoted skepticism of global warming, in 1997.

 

  • In 2007, BP announced they were planning to spend $8billion over ten years in research on alternative methods of fuel. 

 

 

 

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