Drillers vs E&P
An article I ran across with comments added by someone
who lived in SA for several years. May be of interest, but
is thought provoking.
<DUBAI, April 18 (Reuters) - The head of U.S. oil major Chevron held talks on Tuesday with top Saudi officials hoping to capitalize on the kingdom's call for investment in its vast energy industry.>
If the Sauds are truly going to control world oil production (and prices), they need outside help. Sleepy ARAMCO is incapable of doing it alone.
<The kingdom's newly-formed Supreme Council for Petroleum and Mineral Affairs.>
New name...but same old faces...:) Saudis are fond of pompous-sounding govenment agencies. I once ran the National Supreme Committee for Expatriate Chemical Distillation and Morale-Enhancing Byproducts for Foreign Workers...:)
<The television quoted O'Reilly as saying the ``meeting was useful and the committee provided useful information.ïï>
That`s Chevronspeak for; "They are dragging their feet, I hate these bastards...but the money is too good to quit now"...:)
<Saudi Arabia is trying to keep a tight lid on information about the talks, oil executives said.>
Saudi Arabia keeps a tight lid on ANY kind of information...oil or otherwise. This oil deal will be vigorously opposed by fundamentalists as a sell-out to the US. They will be offered two options: 1.Accept huge sums of money and be given control of the populace or, 2. Be shot...:)
<Saudi Arabia is expecting about $100 billion in oil and gas investments to ease unemployment in a country where hundreds of thousands of youths seek to find "jobs" every year.>
Desks and phones will be imported by the ton...for the new "jobs" created by vast new oil revenues.
<Western oil majors, who have been frustrated by the slow pace of the initial investment review process, are hoping the current meetings will inject some momentum into the talks.>
Maybe another visit from Uncle Saddam could speed things up perhaps?
<Saudi Crown Prince Abdullah, the driving force behind Saudi Arabia's economic reforms>
Abdullah is 70+ and despises anything Western. His name is being used by others here to promote reform. Just my opinion, but I cannot imagine Abdullah as a reformer.
<Saudi Arabia has made it clear that the heart of its energy business -- upstream oil -- would remain off limits to foreigners but is open to discussion on investment in gas exploration and production.>
Isn`t this a contradiction in terms? I believe upstream oil and E&P are the same...correct me if I`m wrong.
The following is a `Who`s Who` in the oil business. They are lining up at the honey pot now...:) When this is all settled and signed...there will be a very different oil market paradigm, indeed...:)
<The heads of Phillips Petroleum (NYSE:P - news) and Royal Dutch/Shell (quote from Yahoo! UK & Ireland: SHEL.L) held talks in Saudi Arabia this week.
Similar meetings are expected to be held between Saudi officials and ExxonMobil (NYSE:XOM - news), Texaco (NYSE:TX - news), Conoco (NYSE:COCa - news), BP Amoco (quote from Yahoo! UK & Ireland: BPA.L), Eni , Marathon (NYSE:MRO - news) and TotalFinaElf this month.>
It`s interesting that these OS stocks have soared; but not their earnings. This is blamed on the big majors reluctance to invest heavily into new production even with soaring prices.
Then notice;these same majors are lined up outside King Fahd`s palace door...:)
If I were you , I would be shorting these guys to death. Who wants to spend big money on a 13,000 deepwater rig, when you can just poke a hole in the Empty Quarter and produce much more? No, these folks won`t die off just yet, but their future is in the hands of the new Saud/Big Oil Cartel now...:)
Other oil producers, OPEC or not; are you listening??
Any comments??
jo |
