lanichol
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Government Oil Co. vs Public Oil Co.
Government Oil Co. vs Public Oil Co.
John,
Would you as a company take the risk? Would you rather have the U.S. with a vested interest in Iraq production and good relations, or China? After all these are big reserve numbers. Is this securing furture reserves?
Our companies can not compete with foreign national oil companies. Different agendas.
Larry
Iraq invites oil investment but the majors stay away
Iraq is expected to invite bids to develop dozens of its oil fields this week, but the world's oil majors are still shunning the country. It will unveil its first licensing round since the war ended over five years ago.
The Iraqi oil ministry wants the big oil companies to contribute major investment, personnel and expertise to boost production. But the majors are refusing because the ministry is not offering production-sharing agreements that allow them to add Iraqi oil to their reserves and make more profit the more oil they pump.
Instead, on offer are limited 'technical service agreements' which pay a fixed amount to companies and involve training Iraqis overseas, providing equipment, scoping and consultancy services.
So far no oil major has stationed staff in Iraq because of the security situation - and because the financial rewards are not big enough. The oil ministry is expected within days to award six two-year service contracts to develop six giant fields to Shell, BP, ExxonMobil and Total.
Iraqi government fuels 'war for oil' theories by putting reserves up for biggest ever sale
The biggest ever sale of oil assets will take place today, when the Iraqi government puts 40bn barrels of recoverable reserves up for offer in London.
Access is being given to eight fields, representing about 40% of the Middle Eastern nation's reserves, at a time when the country remains under occupation by US and British forces.
Two smaller agreements have already been signed with Shell and the China National Petroleum Corporation, but today's sale will ignite arguments over whether the overthrow of Saddam Hussein was a "war for oil" that is now to be consummated by western multinationals seizing control of strategic Iraqi reserves.
There is no precedent for proven oil reserves of this magnitude being offered up for sale, said Muttitt. "The nearest thing would be the post-Soviet sale of the Kashagan field [in the Caspian Sea], which had 7bn or 8bn barrels." [** Russia solved this by controlling Georgia**]
"Why choose Shell when you could have chosen ExxonMobil, Chevron, BG or Gazprom?" he asked. "Shell appears to be paying $4bn to get hold of assets that in 20 years could be worth $40bn. Iraq is giving away half its gas wealth and yet this work could have been done by Iraq itself."
The Baghdad government says it aims to increase crude oil production from 2.5m barrels a day to 4.5m by 2013, but faces internal opposition from regional governors and political opponents.
********
Great articles.
My guess is China National Petroleum Corporation will step-up to get a presents in the chance Iraq would have problems and they could secure the reserves for China. Public comporation must look to profits to the stock holders vs a foreign government controlled oil company that looks at securing production and reserves for their countries future. Basically Iraq may be choosing the direction of their country today. Future relactions/interaction with Democracy influence vs Communist.
Interesting! Looking at the negative side, the war was for oil. On the positive side the war gave a chance for a stable capitalistic government in that you are adding dollars for infastruture & economic growth for the country and raising the standard of living for the people. It is hard to hold your people down when building a strong economy and give them the chance of ownership in associated private business. China has a problem balancing a "control of their people", vs the thousands of people in China that now have money because of the "trickle down dollars" generated by the export of capital goods.
Government Oil Co. vs Public Oil Co.
Or it could be that since no one directly controls the prices and there are many people with differing ambitions all attemting to influence the price at the same time, you will get large fluctuations.
I still maintain the war in Iraq is the root cause of the oil spike.
John,
Would you as a company take the risk? Would you rather have the U.S. with a vested interest in Iraq production and good relations, or China? After all these are big reserve numbers. Is this securing furture reserves?
Our companies can not compete with foreign national oil companies. Different agendas.
Larry
Iraq invites oil investment but the majors stay away
Iraq is expected to invite bids to develop dozens of its oil fields this week, but the world's oil majors are still shunning the country. It will unveil its first licensing round since the war ended over five years ago.
The Iraqi oil ministry wants the big oil companies to contribute major investment, personnel and expertise to boost production. But the majors are refusing because the ministry is not offering production-sharing agreements that allow them to add Iraqi oil to their reserves and make more profit the more oil they pump.
Instead, on offer are limited 'technical service agreements' which pay a fixed amount to companies and involve training Iraqis overseas, providing equipment, scoping and consultancy services.
So far no oil major has stationed staff in Iraq because of the security situation - and because the financial rewards are not big enough. The oil ministry is expected within days to award six two-year service contracts to develop six giant fields to Shell, BP, ExxonMobil and Total.
Iraqi government fuels 'war for oil' theories by putting reserves up for biggest ever sale
The biggest ever sale of oil assets will take place today, when the Iraqi government puts 40bn barrels of recoverable reserves up for offer in London.
Access is being given to eight fields, representing about 40% of the Middle Eastern nation's reserves, at a time when the country remains under occupation by US and British forces.
Two smaller agreements have already been signed with Shell and the China National Petroleum Corporation, but today's sale will ignite arguments over whether the overthrow of Saddam Hussein was a "war for oil" that is now to be consummated by western multinationals seizing control of strategic Iraqi reserves.
There is no precedent for proven oil reserves of this magnitude being offered up for sale, said Muttitt. "The nearest thing would be the post-Soviet sale of the Kashagan field [in the Caspian Sea], which had 7bn or 8bn barrels." [** Russia solved this by controlling Georgia**]
"Why choose Shell when you could have chosen ExxonMobil, Chevron, BG or Gazprom?" he asked. "Shell appears to be paying $4bn to get hold of assets that in 20 years could be worth $40bn. Iraq is giving away half its gas wealth and yet this work could have been done by Iraq itself."
The Baghdad government says it aims to increase crude oil production from 2.5m barrels a day to 4.5m by 2013, but faces internal opposition from regional governors and political opponents.
********
Great articles.
My guess is China National Petroleum Corporation will step-up to get a presents in the chance Iraq would have problems and they could secure the reserves for China. Public comporation must look to profits to the stock holders vs a foreign government controlled oil company that looks at securing production and reserves for their countries future. Basically Iraq may be choosing the direction of their country today. Future relactions/interaction with Democracy influence vs Communist.
Interesting! Looking at the negative side, the war was for oil. On the positive side the war gave a chance for a stable capitalistic government in that you are adding dollars for infastruture & economic growth for the country and raising the standard of living for the people. It is hard to hold your people down when building a strong economy and give them the chance of ownership in associated private business. China has a problem balancing a "control of their people", vs the thousands of people in China that now have money because of the "trickle down dollars" generated by the export of capital goods.
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