Relevant Terms and BMUN guide
Hello Everyone,
Firstly this year's BMUN guide is now on the iOS app store, feel free to download it at this link!
Heres another set of terms that are extremely relevant to our topic. As the conference draws closer
keep these terms in mind and remember their implications when brainstorming solutions.
Shale Boom - Shale gas has been produced for years from shales with natural fractures; the shale gas boom in recent years has been due to modern technology in hydraulic fracturing (fracking) to create extensive artificial fractures around well bore
Paris Climate Accords - each country determines, plans and regularly reports its own contribution it should make in order to mitigate global warming. There is no mechanism to force a country to set a specific target by a specific date, but each target should go beyond previously set targets. This plan starts in the year 202
Saudi Aramco -Saudi Aramco, officially the Saudi Arabian Oil Company, most popularly known just as Aramco, is a Saudi Arabian national petroleum and natural gas company based in Dhahran.Saudi Aramco has both the world's second-largest proven crude oil reserves.
Break-Even Price -Break even pricing is the practice of setting a pricepoint at which a business will earn zero profits on a sale. The intention is to use low prices as a tool to gain market share and drive competitors from the marketplace
Vision 2030 -Saudi Vision 2030 is a plan to reduce Saudi Arabia's dependence on oil, diversify its economy, and develop public service sectors such as health, education, infrastructure, recreation and tourism. Vision 2030 was seen as a groundbreaking development as Saudi Arabia is a core member of OPEC
Elastic/Inelastic Demand - Inelasticity and elasticity of demand refer to the degree to which supply and demand respond to a change in another factor, such as price, income level or substitute availability. If the change in demand for a given product corresponds closely to a change in one of these factors, the demand is considered to be elastic. If the change in demand for a given product does not correspond closely to a change in one of these factors, the demand is considered to be inelastic (Elasticity = % change in quantity / % change in price)
Oil Futures - oil futures are futures contracts in which buyers and sellers of oil coordinate and agree to deliver specific amounts of physical oil on a given date in the future
Spot Prices - the current market price at which an asset is bought or sold for immediate payment and delivery. It is differentiated from the forward price or the futures price, which are prices at which an asset can be bought or sold for delivery in the future.
OPEC Reference Basket -a weighted average of prices for petroleum blends produced by OPEC members, often called the OPEC Basket
OPEC Reference Basket -a weighted average of prices for petroleum blends produced by OPEC members, often called the OPEC Basket
Russia - Primarily one of the worlds largest non-OPEC oil producers. however recently OPEC and non-OPEC countries such as Russia have been working together to balance the oil market
Market Volatility - Volatility is a statistical measure of the dispersion of returns for a given market index. Volatility can either be measured by using the standard deviation or variance between returns from that same market index. Commonly, the higher the volatility, the riskier the market.
Seven Sisters - The Seven Sisters were the seven multinational oil companies of the "Consortium for Iran" oligopoly or cartel, which dominated the global petroleum industry from the mid-1940s to the mid-1970s including
- Anglo-Iranian Oil Company (now BP)
- Gulf Oil (later part of Chevron)
- Royal Dutch Shell
- Standard Oil Company of California (SoCal, now Chevron)
- Standard Oil Company of New Jersey (Esso, later Exxon, now part of ExxonMobil)
- Standard Oil Company of New York (Socony, later Mobil, also now part of ExxonMobil)
- Texaco (later merged into Chevron)
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