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To: architect* who wrote (165770)	3/19/2012 7:38:56 PM
From: Brian Sullivan	Respond to of 206108

I'm sure that Brazil has lots of oil that can be profitably developed, but why would an American company want to be subjected to the inquisition by the Rio politicians/judges: Brazilian prosecutors' planned criminal charges against Chevron Corp. CVX +0.38%executives for an offshore oil leak threatens to stifle foreign companies' drilling plans in this petroleum-rich nation. Brazil will file criminal charges Wednesday against executives from Chevron and drilling-rig operator Transocean Ltd., RIG -0.99%accusing them of environmental crimes related to an offshore oil spill in November, prosecutor Eduardo Santos de Oliveira said in an interview Monday. Chevron has struggled to defuse the backlash stemming from the accident, which occurred on the sea floor in the Frade field some 230 miles northeast of Rio de Janeiro. Last week, the U.S. oil giant reported that a second subsea leak was releasing a small amount of oil into the ocean. The company has sealed off its production from the field. On Friday, a Brazilian judge barred a group of executives and employees of Chevron and Transocean from leaving the country. Mr. Oliveira said "there exists information and evidence that criminal conduct occurred" by employees at the companies related to the November drilling accident, which caused an estimated 2,400 to 3,000 barrels of oil to seep from the seabed.

To: architect* who wrote (165770)	3/21/2012 6:48:50 AM
From: elmatador	Read Replies (1) \| Respond to of 206108

Argentina’s shale gas reserves 774 trillion cft, 3rd largest NG in the world, after the United States and China. Last December, Argentina’s major oil and gas company YPF discovered some 4.5 trillion cubic feet of unconventional gas in the southwest province of Neuquén. The find has the potential to totally transform the country’s (and the region’s) energy future. It pushes Argentina’s shale gas reserves to 774 trillion cubic feet — making it the third largest provider of natural gas in the world, after the United States and China. latintelligence.com Argentina’s Natural Gas Discoveries Last December, Argentina’s major oil and gas company YPF discovered some 4.5 trillion cubic feet of unconventional gas in the southwest province of Neuquén. The find has the potential to totally transform the country’s (and the region’s) energy future. It pushes Argentina’s shale gas reserves to 774 trillion cubic feet — making it the third largest provider of natural gas in the world, after the United States and China. If exploited it would easily cover domestic demand for gas for the foreseeable future and end the recurring and unpopular gas crises that force factories to shut down at times during the winter months. Argentina would become energy self-sufficient for the first time in nearly a decade. But there are challenges to get the gas out of the ground. First, Argentina’s shortage of water may stand in the way of accessing natural gas reserves. The process of drilling to extract shale gas uses up to 6 million gallons of water per day for every well drilled, and experts say it will take 38 billion gallons of water to capture natural gas trapped underneath the Vaca Muerta, or “Dead Cow” basin. Another challenge is the government’s oil and gas pricing regime, which has been a major disincentive to investment in recent years. Heavy regulations hold prices down to $2.00-$2.50 per cubic foot of regulated gas — nowhere near the breakeven price needed to make development worthwhile. Argentina has set up a two-tier system under its “Gas Plus” program — allowing gas produced by new investment to be sold at much higher prices – in some cases more than double the rate in the domestic market. This has brought in more than a billion dollars from the likes of Exxon, AES and Apache. But these differential prices show how transitory Argentine rules can be. To attract the huge amounts of capital needed to truly develop these gas finds in the coming years, the Argentine government will have to convince investors that the rules won’t change with the political winds. If this happens, it will transform regional gas markets. Bolivia will be the biggest loser. As the region’s current top energy provider, its economy today depends on fueling neighboring Argentina and Brazil. By developing its own gas reserves, Argentina takes away not just a vital customer but also potential foreign direct investment – leaving Bolivia’s economic development model in jeopardy. Another — much more indirect — loser is Mexico. The fact that investors are more interested in Argentina — known for playing fast and loose with property rights and contracts — than in Mexico, which is ranked Latin America’s most business friendly economy, shows how hamstrung Mexico’s energy sector remains. Without further changes to the system to open up outside funding for exploration and production projects, Mexico risks becoming a spectator on the energy sidelines, with huge ramifications for its overall economy as a result. Published in conjunction with Latin America’s Moment* at the Council on Foreign Relations.* Posted on October 21st, 2011 in Argentina, Bolivia, Brazil, Mexico

To: architect* who wrote (165770)	3/21/2012 6:52:17 AM
From: elmatador	Respond to of 206108

Argentina Aims To 'Regain Control Of YPF' By Winter -Report Published March 18, 2012 BUENOS AIRES – Argentina's government aims to "regain control" of the country's biggest oil and gas company, YPF SA (YPF, YPFD.BA), by winter, the newspaper Pagina 12 reported Sunday. YPF, which is majority-owned by Spain's Repsol YPF SA (REPYY, REP.MC), was a state-run company until 1999, when it was privatized. "Before the cold weather arrives, the government aims to regain control over YPF. But it still hasn't decided how to do it," according to the paper, which has close ties to the government. Spokesmen for the government and YPF couldn't be reached for comment. Argentina's winter formally begins in June, though cold weather typically appears in May. The newspaper article said the government is mulling a number of options for forcing YPF to increase production, including an outright nationalization, a less intense "intervention" in the company, and the possibility of helping other investors acquire more shares in the company. Argentine President Cristina Kirchner has been pushing YPF to increase investments in exploration and production at a time when declining oil and gas output has made Argentina increasingly dependent on expensive fuel imports. Kirchner has harshly rebuked the company for its alleged role in forcing the government to double its fuel import bill to $9.4 billion last year. Speculation that the government might nationalize YPF has been rampant since Pagina 12 reported earlier this year that the Kirchner administration might take over the company. The refusal of government officials to confirm or deny the report has further fueled the speculation. "Cristina has received distinct proposals and has to decide among them," the paper reported Sunday. "Without being dogmatic, she would prefer that YPF commit itself to carrying out the investments that it hasn't yet done. If it doesn't, there are likely others who are interested in taking over responsibility." The article indicated a hostile takeover of YPF could end up being much cheaper if Congress declared the company to be in the public interest. Such a move could lead investors to ditch the stock en-masse, pushing its market value down. "As one can see, there are various alternatives," the paper said. Whatever happens, two Argentine provinces have already moved to revoke concessions held by YPF, and other provinces seem likely to do the same in the days and weeks ahead. Copyright © 2012 Dow Jones Newswires Read more: foxbusiness.com