The Oil and Gas Industry in Eurasia: Case of GHC Eastern

The global financial crisis and the oil spill in the Gulf of Mexico of 2010 may have had a huge impact on oil prices. However it has not dampened the growth in energy demand in the oil and gas industry. According to forecasts, by 2025 the amount of oil and gas production will be 29.5 million tons1 and it is estimated that there will be an increase in additional investments of $350 billion2 annually from 2010 to 2030.

With reference to expanding energy demand and consumption, the Caspian Sea is an important source. It is estimated to be one of the biggest sources of hydrocarbons and will be the recipient of 70 percent in oil exploration and early extraction until 20133. With this potential, oil and gas companies are increasing their presence leading to a growth for investments and advanced technologies.

Some of the major oil and gas companies conducting exploration and production are Royal Dutch Shell, BP Plc, ExxonMobil, Chevron Corporation and Total SA, to name a few. While these major companies have their own divisions providing state-of-the-art technology to capitalize on these vast potential, smaller players are collaborating with investment companies that have an in-depth knowledge in the technological and development of hydrocarbon. Some select investment companies are now providing services in exploration, production and management utilizing the latest technology.

For example, GHC Eastern, an oil and gas investment company owned by George Haligua, provides exploration of untapped hydrocarbon reserves and subsea fields, and utilizes advanced technology to enhance performance and cost effectiveness. With a strong portfolio and access to assets in the region, GHC Eastern has built a strong platform that oil and gas companies can utilize to gain leverage in the industry. With operations in Kazakhstan, Uzbekistan and Russia, GHC Eastern has signed contracts for natural gas processing and production, petroleum production, exploration of untapped hydrocarbon reserves and pipeline management.

Companies like GHC Eastern have entered into million dollars contracts with governments in potential areas such as the Arctic region. Although there is continued investment and exploration in these areas, there are new rules and regulation that companies need to comply with. Environmental and safety norms are getting more stringent as the focus on preserving natural reserves increases.

However, advanced technology has made it possible for companies to ‘responsibly’ conduct oil exploration and production. Intelligent engineering systems now provide oil and gas companies with considerable advantage in identifying potential areas. Utilization of ‘green extraction technologies’ adopted by companies such as GHC Eastern, allow for oil and gas companies in Eurasia to conduct oil exploration and production while complying with environmental and safety regulations. With this being the focus, oil and gas companies in Eurasia and worldwide continue to increase oil exploration and production. While companies are only responding to expanding energy consumption, a control on this excessive demand may be one of the ways in creating the least environmental impact possible. However, this is a separate issue that can be dealt with in another discussion.

GHC Eastern Holdings is a private investment firm which made its entry into the Russian Federation in 2006. Founded by George Haligua, this company aims at acquisitions, divestiture and restructuring of oil and gas related investments.