Anyone else noticing a pattern here? You have to hand it to the Halliburton Cheney Administration, they haven't been dominant in world oil through stupidity. Turning a heavy focus to the tarsands as a *means* to deal with the price of oil internationally after the colossal failure in taking Iraq's oil became apparent has almost single handedly strengthened American oil dominance, and weakened the effectiveness of a common resistance tactic-- oil disruption. Alright it's a given that in a world of rapidly peaking oil production, especially conventional, today's reserves (already shrinking and their rate of consumption can be strained quite easily. Nonetheless, the higher the price of oil goes, the more monetary gains are made in tar sands production, which (along side dwindling conventional oil returns) increases American energy control financially.
Now, every long term dangerous trend for the US-- such as this news detailing the last of the major global players getting their walking papers from Caracas-- has a short term windfall, prompting more investment into Fort McMurray in particular and the Albertan Tar Sands in general. Despite the social breakdown already way beyond endemic to the entire region, with escalating oil prices it is economical to fly in workers for weekly shifts from all around the planet, employ former Venezuelan elite as oil workers, and take advantage of new trade corridors to bring in workers with no rights to movement or legal appeals.
In other words, the Empire is blaming the resistance to their dominance everywhere for the increase in attention to the tar sands who are only starting to see major criticism (on so many levels). The tar sands are like a giant diaper on the US growth and consumption machine, keeping all that number two dropped in Iraq, Venezuela, Iran, Somalia and Nigeria from hitting the fan. So what will happen when this plan makes it's own mess that needs to be cleaned up, such as sacrificing a territory the size of Florida?
--M
Caracas ouster is latest blow for world Big Oil
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=158403...
Published: Sunday, 1 July, 2007, 02:32 AM Doha Time
NEW YORK: The ouster of ExxonMobil and ConocoPhillips from Venezuela this week highlights problems energy majors confront in finding and developing new oil projects globally amid instability and increasing resource nationalism.
Facing militants’ guns in Nigeria and the tightening Kremlin control of Russia’s vast supplies, international oil companies are having greater difficulty maintaining output while state-owned firms take greater control of some of the world’s most sought-after acreage.
The trend may force oil majors to focus on easier plays, including Canada’s tar sands, prospects in the offshore Gulf of Mexico, and countries eagerly seeking foreign investment like Colombia, experts said.
Top companies replaced only 91% of oil and gas production in 2006, 10% below the 10-year average, according to Bear Stearns, while production costs rose 18% from 2005 in part due to higher government taxation.
“In an environment of high oil prices, national governments feel emboldened to see that the money goes to them and not some joint venture,” said Sarah Emerson, director of Energy Security Analysis.
After rejecting new partnership terms offered under Venezuela’s nationalization of multi-billion-dollar heavy oil projects in the Orinoco region, ConocoPhillips announced a $4.5bn impairment for the second quarter.
The US major, along with ExxonMobil, Royal Dutch Shell and Murphy Oil, saw production costs rise by 25% last year alone, according to the Bear Stearns report.
Many companies operating in Nigeria have seen output disrupted by militant attacks, which have cut up to a quarter of the Opec nation’s output at times this year.
The sting of the Venezuela takeover comes as smaller producers such as Bolivia and Ecuador clamp down on deals with foreign partners. In Russia, majors such as BP and Shell have been forced to cede control of projects by Moscow’s nationalisation drive.
While international energy companies frequently operate in some of the most world’s most violent and unstable areas where oil is found, analysts say the re-emergence of resource nationalism may push some to more welcoming shores.
“Overall it is indicative of the more difficult environment for the western oil companies. They have found the door closed or closing but that doesn’t mean that every country is moving in that direction,” said Lysle Brinker of John S. Herold.
Countries eager for investment such as Colombia, where output is in decline, may draw more cash as larger oil producers limit opportunities, analysts said.
In addition, nontraditional energy sources such as renewable fuels and the Canadian oil sands - similar to Venezuela’s Orinoco region - are likely to lure more attention from energy companies.
“There are vast resources in North America. It will refocus attention on Canada and the Gulf of Mexico,” said Jim Byrne of BMO Capital Markets.
Despite the shake-up, many energy companies have posted record profits in recent years due to a tripling in oil prices since 2002. – Reuters
