Political Risk for Oil Companies
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Political risk affects all companies to a certain degree, but oil companies are frequently targeted by politicians, because they tend to produce a very profitable commodity. There are plenty of news stories where local governments seize oil production facilities or at least significantly tax those facilities. This increases the risk of working for foreign governments and could potentially hurt future earnings with plants are taken over by governments. …
SWOT Analysis Survey
SWOT Weakness: Political Risk for Oil Companies
Political risk affects all companies to a certain degree, but oil companies are frequently targeted by politicians, because they tend to produce a very profitable commodity. There are plenty of news stories where local governments seize oil production facilities or at least significantly tax those facilities. This increases the risk of working for foreign governments and could potentially hurt future earnings with plants are taken over by governments.
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