Business Environment

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Weatherford International Ltd (WFT) a New York Stock Exchange (NYSE) listed company is one of the world’s leading oil and gas field service and equipment providers, its products and services span the oil/gas well’s life cycle, encompassing exploration, drilling, extraction and production of all forms of oil and gas. WFT employs more than 50,000 people and operates in more than 100 countries worldwide geographically segmented into four global regions that cover all major oil and gas-producing areas, North America: Latin America: Europe/West Africa/ Former Soviet Union: Middle East/North Africa/Asia, with four individual headquarters located, Houston, Moscow, Dubai, and Singapore. In addition, the region operations span many international boundaries and communities that dictate certain trading conditions, customs, legal and government regulation, and environmental policies are met. Legal Environment “All business activities, from the establishment of the organisation through to the sale of the product to the customer, are influenced by the law.” Worthington and Britton (2009). Business law mainly consists of employment law, health and safety law, contract law, consumer law, and accounting law. Legal proceedings can be issued through public law and/or private law. Public law is between the state and an offender and encompasses constitutional law, administrative law, and criminal law. For example, the United States Department of Justice (U.S. DOJ) in 2001 launched a criminal enquiry into alleged fraudulent financial reporting by the directors of Enron Energy; this led to the introduction of the Sarbanes Oxley Act 2002 to ensure all NYSE Companies accounts, including WFT are now audited and reported accurately to shareholders... ... middle of paper ... ..., a major threat to oil companies is the recent growing awareness in society of the consequences of climate change, and the future use of hydrocarbons as an energy source. On top of this further government intervention and regulations are likely. All of this will influence demand on drilling activity and products required, which is directly related to worldwide oil and gas consumption. A green energy transition is taking place and is expected to span the next 10 - 20 years stimulating technology in renewable energy generation, Technology and Innovation Futures (2010), some from natural sources, wind, sun, water and tide, and geothermal heat sources to generate electricity, others from super batteries, fuel cells, carbon capture and re-use, and smart grid electric using digital technology, and the ever-increasing likelihood of widespread use of hydrogen as fuel.
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