Russia was the second largest producer of crude oil in 2011, with production averaging more than 10 million barrels per day. Vlad Voskoboinikov and Vasily Mozgovoi of Russian operator Tatneft discuss the company’s origins and prospects, and outline the tax incentives available for oil companies in Russia working on hard to recover oil reserves.
Year: 2012
Mohan De Alwis, Piyadasa Kudabalage | Sri Lanka Insurance Corporation
The insurance industry is being challenged by regulatory, political and economic factors. However, in contrast to the instability seen in the US and Europe, the insurance market in Asia has enjoyed growth. Mohan De Alwis and Piyadasa Kudabalage discuss Sri Lanka Insurance Corporation Ltd.’s position as the market leader in general insurance, its commitment to sustainability, and plans for global expansion.
Jeff Holland on banking | Brown Brothers Harriman | Video
Considerable regulatory and cost pressures have forced private banks to adopt new business models and distinguish clearly between their client segments. Brown Brothers Harriman has identified one emerging trend caused by this perfect storm: ‘multi-convergence’, where universal banks, private banks and asset managers are consolidating their businesses. Jeff Holland explains the changing landscape.
Seeing the light
In modern physics, one of the biggest conundrums is that most of the matter and energy that make up the universe is apparently undetectable. The amount that we can actually see equates to only four percent of the total. The rest of the cosmos is believed to be made up of so-called dark energy (74 percent) and dark matter (22 percent), whose presence we can deduce only through their gravity-like effects on other things, such as galaxies.
As so often in life, it seems that we only notice the small fraction of things that happen to be brightly lit, while the real action is going on somewhere else. A similar phenomenon occurs in economics. Economic models tend to focus on the relatively small part of the economy that is amenable to mathematical analysis – the rational, logical, utility-maximising part. But the economy is also driven by a number of factors which either create difficulties for our models, or elude them altogether.
Dark matter
The most obvious exception to rational behaviour, is of course irrational behaviour. The ancient Greeks may have defined man as a rational animal, but they were perhaps being generous. The financial markets continue to be driven in large part by emotions, such as fear or euphoria that are hard to quantify mathematically.
As I argue in my new book titled Truth and Beauty: Science and the Quest for Order, a number of other factors also contribute to the ‘dark’ content of the economy, and exert powerful forces that resist mathematical treatment. These include love, power, justice, money – and everything else.
Love: Much of our sense of wellbeing comes from social relationships, but this is not reflected in economic metrics of utility. Tasks such as looking after the young, old, and sick – which are still mostly performed by women – are often paid poorly or not at all, but are nonetheless vital to the health of society. They say that money makes the world (and the economy) go round, but love definitely plays a role as well.
Power: Neo-classical economics treats individuals and firms as more-or-less identical atoms. If people behave like rational economic man, that means they will all make the same rational decisions and have approximately the same advantages. As Norbert Häring and Niall Douglas observe in their book Economists and the Powerful, however, the economy is characterised by complex power relationships, such as, for example the power held by corporations, governments, rating agencies, financial institutions, and so on, which are downplayed or ignored by mainstream models.
Justice: As Czech economist Tomáš Sedláˇcek notes in his book Economics of Good and Evil, the invisible hand (usually attributed to Adam Smith, though the idea is much older) is assumed to provide a reasonably just distribution of wealth. As a result, “ethics has disappeared from mainstream economic thought.” Growing levels of inequality have become a global issue. Excessive concentration of wealth in the hands of a few violates our basic sense of fairness, with destabilising effects on society and the economy.
Money: One of the stranger features of mainstream economics is that money doesn’t seem to play much of a role. For example, most General Equilibrium Models – of the type used, for example, by the Bank of England – don’t include things like banks or hedge funds. This makes it hard for the models to understand, let alone predict, phenomena such as the subprime financial meltdown or the ongoing euro crisis.
Everything else: Finally, mainstream economic theory fails to pick up an even larger source of dark matter and dark energy, which is everything outside the monetary system, including the Earth. The environmental crisis is a byproduct of our economic system; but because it is hard to model things like resource depletion, environmental damage, or the beauty and diversity of nature, these barely even register in most economic models.
So how can economists come to grips with these various sources of dark matter or dark energy? Some progress has certainly been made, mostly in so-called ‘heterodox’ fields. Behavioural economists, for example, have helped to illucidate the effects that ‘bounded rationality’ has on markets. Feminist economists such as Lourdes Benería have explored the roles of power and gender in the economy. Hyman Minsky alerted us back in the 1970s to the inherent instability of the financial system. Ecological economists such as Herman Daly have long pointed out the absurdity of treating the economy as independent of the world system.
The human touch
One reason that these areas remain ‘heterodox’ is that they do not fit easily into the mathematical framework of mainstream economics. So perhaps to become more realistic and objective, economics must actually become less attached to abstract mathematical arguments. When economics was founded in the late nineteenth century, it was explicitly modelled after the ‘rational mechanics’ of Isaac Newton.
After losing much of his fortune in the South Sea bubble, though, Isaac Newton wrote in 1721 that: “I can calculate the motions of heavenly bodies, but not the madness of people.” Today we are learning that in many respects, the economy behaves less like a deterministic, Newtonian machine, than like a kind of super-organism. In other words, it’s alive. So to understand it we need to use the right kind of mathematics – i.e. areas such as complexity and network theory that are adapted for living systems. And we also need to know and respect the bounds and limitations of mathematical models, and bring areas that are less amenable to mathematical treatment back into view.
In physics, it might not make much difference to our everyday lives if we ignore the effects of dark matter (it is unlikely to hit us on the head). But with the economy is being driven by forces that we cannot predict, control, or often even detect until it is too late, hard hats are advisable.
Oil & Gas Awards 2012
Best Fully-Integrated Company, North America
Chevron
Best Fully-Integrated Company, Latin America
Petrobras
Best Fully-Integrated Company, Western Europe
Statoil
Best Fully-Integrated Company, Eastern Europe
Gazprom
Best Fully-Integrated Company, Middle East
Petrixo Group
Best Fully-Integrated Company, Asia
PTT
Best Fully-Integrated Company, Africa
PetroSA
Best Independent Company, North America
Breitling Oil and Gas
Best Independent Company, Latin America
HRT Oil & Gas
Best Independent Company, Western Europe
Puma Energy
Best Independent Company, Eastern Europe
Irkutsk Oil Company | Yuriy Rubin accepts the award for Irkutsk Oil Company
Best Independent Company, Middle East
Crescent Petroleum
Best Independent Company, Asia
Phoenix Petroleum Philippines
Best Independent Company, Africa
Afren
Best Exploration & Production Company, Latin America
Pacific Rubiales Energy
Best Exploration & Production Company, Western Europe
Perenco
Best Exploration & Production Company, Middle East
Petrogas
Best Exploration & Production Company, Asia
CNPC
Best Downstream Company, North America
Exxon Mobil
Best Downstream Company, Latin America
PDVSA
Best Downstream Company, Western Europe
Shell
Best Downstream Company, Eastern Europe
Tatneft | Watch the award presentation
Best Downstream Company, Middle East
ADNOC
Best Downstream Company, Asia
Sinopec
Best Downstream Company, Africa
Puma Energy
Best Upstream Service & Solutions Company, North America
Baker Hughes
Best Upstream Service & Solutions Company, Latin America
Schlumberger
Best Upstream Service & Solutions Company, Western Europe
Emerson
Best Upstream Service & Solutions Company, Middle East
Petrofac
Best Upstream Service & Solutions Company, Asia
Kreuz Holdings
Best Downstream Service & Solutions Company, North America
CITGO
Best Downstream Service & Solutions Company, Latin America
Nalco
Best Downstream Service & Solutions Company, Western Europe
Cameron
Best Downstream Service & Solutions Company, Middle East
Petrofac
Best Drilling Contractor, North America
Blake International
Best Drilling Contractor, Latin America
Saxon Energy Services
Best Drilling Contractor, Western Europe
Archer
Best Drilling Contractor, Eastern Europe
Eurasia Drilling Company
Best Drilling Contractor, Middle East
Arab Drilling and Workover Company (ADWOC) | Watch the award presentation
Best Drilling Contractor, Asia
PV Drilling (Petrovietnam Drilling and Well Services) | Watch the award presentation
Best Drilling Contractor, Africa
Sino-Tharwa
Best Investment Company, North America
Forbes & Manhattan
Best Investment Company, Latin America
Sete Brasil
Best Investment Company, Western Europe
Pareto Securities
Best Investment Company, Eastern Europe
Gazprombank
Best Investment Company, Middle East
Al Rushaid Group
Best Investment Company, Africa
Diamond Bank | Dr Alex Otti accepts the award for Diamond Bank
Best Refining Company, North America
United Refining Company
Best Refining Company, Latin America
Petroecuador
Best Refining Company, Western Europe
Total
Best Refining Company, Eastern Europe
Surgutneftegas
Best Refining Company, Middle East
Takreer
Best Refining Company, Asia
Byco Industries
Best Oil Sands Company, North America
Suncor
Best Oil Sands Company, Western Europe
Shell
Best Oil Sands Company, Asia
Sunshine Oilsands
Best Piping Service & Solutions Company, North America
Willbros Group
Best Piping Service & Solutions Company, Latin America
Ismocol
Best Piping Service & Solutions Company, Western Europe
Trouvay & Cauvin Group
Best Piping Service & Solutions Company, Eastern Europe
TMK Group
Best Piping Service & Solutions Company, Middle East
Kuwait Oil Company
Best Piping Service & Solutions Company, Asia
Canadoil Group
Best Piping Service & Solutions Company, Africa
WorleyParsons
Best Petrochemical Company, North America
Exxon Mobil
Best Petrochemical Company, Latin America
Braskem
Best Petrochemical Company, Western Europe
BASF
Best Petrochemical Company, Eastern Europe
Sibur
Best Petrochemical Company, Middle East
SABIC
Best Petrochemical Company, Asia
China Petroleum and Chemical Corporation
Best Petrochemical Company, Africa
SABIC
Best Innovation in Drilling Technology, North America
National Oilwell Varco
Best Innovation in Drilling Technology, Latin America
Estrella SP
Best Innovation in Drilling Technology, Western Europe
Archer
Best Innovation in Drilling Technology, Eastern Europe
OMV
Best Innovation in Drilling Technology, Middle East
Saudi Aramco
Best Innovation in Drilling Technology, Asia
China National Petroleum Corporation
Best Innovation in Drilling Technology, Africa
PetroSA
Best Sustainable Company, North America
Emerson
Best Sustainable Company, Latin America
Pacific Rubiales Energy
Best Sustainable Company, Western Europe
Statoil
Best Sustainable Company, Eastern Europe
Rosneft
Best Sustainable Company, Middle East
EQUATE Petrochemical Company
Best Sustainable Company, Asia
PTT
Best EPC Service & Solutions Company, North America
IHS
Best EPC Service & Solutions Company, Latin America
Inelectra International
Best EPC Service & Solutions Company, Western Europe
AMEC
Best EPC Service & Solutions Company, Eastern Europe
Aker Solutions
Best EPC Service & Solutions Company, Middle East
Al Hassan Group
Best EPC Service & Solutions Company, Africa
GE Oil & Gas
Best Logistics Service & Solutions Company, North America
TNT
Best Logistics Service & Solutions Company, Latin America
Integral de Sevicios Tecnicos
Best Logistics Service & Solutions Company, Western Europe
DHL
Best Logistics Service & Solutions Company, Middle East
Aramex
Best Logistics Service & Solutions Company, Asia
Agility
Best Consultants, North America
Eurasia Group
Best Consultants, Latin America
ArceRojas Consultores & Cía
Best Consultants, Western Europe
Ernst & Young
Best Consultants, Eastern Europe
PWC Russia
Best Consultants, Middle East
Deloitte
Best Consultants, Africa
McKinsey & Company
Best CEO, North America
Trevor Rees Jones, Chief Oil & Gas
Best CEO, Latin America
Maria das Graças Silva Foster, Petrobras
Best CEO, Western Europe
Helge Lund, Statoil
Best CEO, Middle East
Sara Akbar, CEO Kuwait Energy
Best CEO, Asia
Zhou Jiping, PetroChina
Best CEO, Africa
Nosizwe Nocawe Nokwe, PetroSA
Telecoms Awards 2012
Best Telecoms CEO, North America
Sandip Das, Maxis Berhad
Best Telecoms CEO, Latin America
Hector Slim Seade, Telmex
Best Telecoms CEO, Western Europe
Erkan Akdemir, Avea
Best Telecoms CEO, Eastern Europe
Milan Vasina, T-Mobile Czech Republic
Best Telecoms CEO, Middle East
Nasser Marafih, Qtel
Best Telecoms CEO, Asia
Ahmed Abou Doma, Orascom
Best Telecoms CEO, Africa
RS Dabengwa, MTN Group
Best Telecoms CEO, Australasia
David Thodey, Telstra
Best Telecoms CFO, North America
Sunit Patel, Level 3
Best Telecoms CFO, Latin America
Luis Pacheco de Melo, Portugal Telecom
Best Telecoms CFO, Western Europe
Alexey Kornya, MTS
Best Telecoms CFO, Eastern Europe
Jacques de Galzain, Orange Poland
Best Telecoms CFO, Middle East
Antoine Castarede, Oger Telecom
Best Telecoms CFO, Asia Susanna
Hui, PCCW
Best Telecoms CFO, Africa
Nazir Patel, MTN
Best Telecoms CFO, Australasia
Andrew Penn, Telstra
Best Wireless Telecoms Provider, North America
Sprint Nextel
Best Wireless Telecoms Provider, Latin America
Vivo
Best Wireless Telecoms Provider, Western Europe
Teliasonera
Best Wireless Telecoms Provider, Eastern Europe
T-Mobile Czech Republic
Best Wireless Telecoms Provider, Middle East
Saudi Telecom Company
Best Wireless Telecoms Provider, Asia
Maxis Berhad
Best Wireless Telecoms Provider, Africa
Zain
Best Wireless Telecoms Provider, Australasia
Virgin Mobile
Best Fixed Line Provider, North America
CenturyLink
Best Fixed Line Provider, Latin America
Telmex
Best Fixed Line Provider, Western Europe
BT
Best Fixed Line Provider, Eastern Europe
Netia
Best Fixed Line Provider, Middle East
Omantel
Best Fixed Line Provider, Asia
China Telecom
Best Fixed Line Provider, Africa
Uganda Telecom
Best Fixed Line Provider, Australasia
Primus
Best Fully Integrated Telecoms Provider, North America
AT&T
Best Fully Integrated Telecoms Provider, Latin America
Telecom Argentina
Best Fully Integrated Telecoms Provider, Western Europe
Tele2
Best Fully Integrated Telecoms Provider, Eastern Europe
Netia
Best Fully Integrated Telecoms Provider, Middle East
STC
Best Fully Integrated Telecoms Provider, Asia
KT Corporation
Best Fully Integrated Telecoms Provider, Africa
Camtel
Best Fully Integrated Telecoms Provider, Australasia Telecom
Corporation of New Zealand
Best Innovation, North America
IBM
Best Innovation, Latin America
LTE
Best Innovation, Western Europe
Nokia Siemens
Best Innovation, Eastern Europe
Velcom
Best Innovation, Middle East
Qatar National Broadband Network | Watch the award presentation
Best Innovation, Asia
ZTE
Best Innovation, Africa
Cisco
Best Innovation, Australasia
Citrix
Best Financial Services Application, North America
TD Ameritrade
Best Financial Services Application, Latin America
Paggo
Best Financial Services Application, Western Europe
Saxo Bank
Best Financial Services Application, Eastern Europe
MTS
Best Financial Services Application, Middle East
Mubasher
Best Financial Services Application, Asia
Matsui Securities
Best Financial Services Application, Africa
YuCash
Best Financial Services Application, Australasia
Bell Direct
Best Teleconferencing Provider, North America
Citrix
Best Teleconferencing Provider, Latin America
Intercall
Best Teleconferencing Provider, Western Europe
BT
Best Teleconferencing Provider, Eastern Europe
Polycom
Best Teleconferencing Provider, Middle East
Cisco
Best Teleconferencing Provider, Asia
BCS Global
Best Teleconferencing Provider, Africa
MW Group
Best Teleconferencing Provider, Australasia
Being There
Best Business Process Outsourcing Company, North America
Sutherland Global Services
Best Business Process Outsourcing Company, Latin America
Global BPO
Best Business Process Outsourcing Company, Western Europe
TQ
Best Business Process Outsourcing Company, Eastern Europe
CapGemini
Best Business Process Outsourcing Company, Middle East
Cupola
Best Business Process Outsourcing Company, Asia
Wipro
Best Business Process Outsourcing Company, Africa
HAC Outsourcing
Best Business Process Outsourcing Company, Australasia
Fusion
Best Telecoms Consultancy Company, North America
RMH
Best Telecoms Consultancy Company, Latin America
Greenwich Consulting
Best Telecoms Consultancy Company, Western Europe
Intercai
Best Telecoms Consultancy Company, Eastern Europe
Sciamus
Best Telecoms Consultancy Company, Middle East
Analysys Mason
Best Telecoms Consultancy Company, Asia
Jtec
Best Telecoms Consultancy Company, Africa
Charles River
Best Telecoms Consultancy Company, Australasia
Venture
Best Broadband Provider, North America
Knology
Best Broadband Provider, Latin America
Manquehue
Best Broadband Provider, Western Europe
CompleTel
Best Broadband Provider, Eastern Europe
Crnogorski Telekom
Best Broadband Provider, Middle East
Etisalcom
Best Broadband Provider, Asia
China Broadband
Best Broadband Provider, Africa
Neotel
Best Broadband Provider, Australasia
Singtel Optus
Best Mobile Broadband Provider, North America
Verizon Wireless
Best Mobile Broadband Provider, Latin America
Oi
Best Mobile Broadband Provider, Western Europe
3
Best Mobile Broadband Provider, Eastern Europe
Vodafone Hungary
Best Mobile Broadband Provider, Middle East
Omantel
Best Mobile Broadband Provider, Asia
Airtel
Best Mobile Broadband Provider, Africa
MTN
Best Mobile Broadband Provider, Australasia
Vodafone Australia
Best Cloud Service Provider, North America
Citrix
Best Cloud Service Provider, Latin America
Level 3 Communications
Best Cloud Service Provider, Western Europe
Host1Plus
Best Cloud Service Provider, Eastern Europe
Fujitsu
Best Cloud Service Provider, Middle East
ClouDEX
Best Cloud Service Provider, Asia
ESDS
Best Cloud Service Provider, Africa
Business Connexion
Best Cloud Service Provider, Australasia
Citrix
Best Mobile Security Provider, North America
Gold Line
Best Mobile Security Provider, Latin America
Cellcrypt
Best Mobile Security Provider, Western Europe
F-Secure
Best Mobile Security Provider, Eastern Europe
Elcomsoft
Best Mobile Security Provider, Middle East
Cellcrypt
Best Mobile Security Provider, Asia
Reutech Communications
Best Mobile Security Provider, Australasia
Pure Hacking
Best New Technology, North America
Bell Labs
Best New Technology, Latin America
Telefonica
Best New Technology, Western Europe
AudioCodes
Best New Technology, Eastern Europe
Velcom
Best New Technology, Middle East
Axiata
Best New Technology, Asia
Micromax
Best New Technology, Africa
Business Connexion
Best New Technology, Australasia
St George Banking Group
Best Green Telecoms Company, North America
Bell Labs
Best Green Telecoms Company, Latin America
America Movil
Best Green Telecoms Company, Western Europe
Nokia Siemens
Best Green Telecoms Company, Eastern Europe
ZTE
Best Green Telecoms Company, Middle East
Etisalat
Best Green Telecoms Company, Asia
Cinergy
Best Green Telecoms Company, Africa
Uganda Telecom
Best Green Telecoms Company, Australasia
Telstra
Treasury Management Awards 2012
Best Treasury Provider, North America
Bank of America Merrill Lynch
Best Treasury Provider, Latin America
Bank of America Merrill Lynch
Best Treasury Provider, Northern Europe
SEB
Best Treasury Provider, Southern Europe
TFI Markets
Best Treasury Provider, Western Europe
Deutsche Bank
Best Treasury Provider, Eastern Europe
UniCredit
Best Treasury Provider, Asia
HSBC
Best Treasury Provider, Africa
Standard Bank
Best Treasury Provider, Middle East
HSBC
Jean Paul Quiroz on insurance | Seguros Banreservas | Video
How do insurance companies maintain excellent performance in regions frequently assailed by natural disasters? Seguros Banreservas has maintained an A rating from Fitch Ratings for the last five years thanks to its excellent reinsurance programmes and good governance. Jean Paul Quiroz discusses the challenges of operating in a volatile environment, the importance of technology for growth, and the benefits of being a member of the Banreservas family.
Omran Abukraa | Arab Drilling and Workover Company
Libya’s oil production has been approaching pre-revolution levels much faster than expected – but has the recovery stalled amid new unrest? Omran Abukraa discusses the security threat to Libya’s plans to grow oil output 40 percent in three years, ADWOC’s investments in new technology, and the company’s plans for expansion into Iraq and Syria
Eric Bissonnier on hedge funds | EIM | Video
The US JOBS Act and the Dodd Frank regulations have had a significant impact on the hedge fund sector. Eric Bisonnier explains how EIM keeps on top of these far-reaching changes to offer bespoke solutions to institutional investors, and discusses the innovations behind the award-winning ECHO fund.
Pham Tien Dung on oil and gas | PV Drilling | Video
Oil and gas production in Vietnam enjoyed compound annual growth of 3.7 percent in 2000-09, and is expected to grow 2.8 percent a year over the next two decades. Pham Tien Dung discusses PV Drilling’s origins as a domestic competitor in a multinational-dominated jurisdiction, the importance of using the latest, most efficient technology, and how giving something back to the nation is imperative for the company.
Antonio Giacomini Jr | Andrioli e Giacomini Advogados
With the FIFA World Cup in 2014 and the Summer Olympics in 2016, Brazil is making huge investments in infrastructure. At the same time, the government is reforming many of its tax laws to attract more international investment partners. Antonio Giacomini explains the strategy behind these reforms, and the ways that Andrioli e Giacomini Advogados assists its international clients through Brazil’s complex system of tax and business legislation.
José Tudela on Peru insurance | Rimac Seguros | Video
Peru has changed enormously since 1990: opening up to foreign investment, controlling inflation, and maintaining a stable economic policy over the following 20 years. With the economy booming, the insurance market is predicted to grow 12 percent in 2012. José Tudela describes how Rimac Seguros is helping to drive this growth and overcome Peru’s lack of insurance culture, by developing a stronger market for personal insurance and expand beyond Lima into the provinces.
Moataz Al Rafie on Qatar banking | Ahli Bank Qatar | Video
Qatar is one of the fastest growing economies in the world, and is pursuing reforms to improve the entrepreneurial environment and diversify its economy beyond oil and gas. Supporting this business growth are commercial banks like Ahli Bank; CEO Moataz Al Rafie explains how the company is leveraging the latest technology to provide top services to its clients.
Jeff Mack on playing consolidator | Guardian Holdings
The Guardian Holdings insurance group has been “Protecting the Caribbean” for more than 160 years. Today it is founded on three strategic pillars of life, health and pension; property and casualty; and asset management. Jeff Mack returns to World Finance to celebrate the company’s recent double-digit revenue growth and ratings upgrade; and discuss the possibility of regional consolidation in the insurance sector.