Really Big Oil

[W*GS]

National oil companies

Really Big Oil
Aug 10th 2006
From The Economist print edition

Sluggish behemoths control virtually all the world's oil; they should be privatised

When activists, journalists and others speak of “Big Oil”, you know exactly what they mean: companies such as Exxon Mobil, Chevron, BP and Royal Dutch Shell. These titans have been making lots of money for their shareholders; their bosses enjoy vast pay packets; and their actions affect us all. BP's decision to shut down Prudhoe Bay, America's biggest oilfield, to repair leaking pipes is a case in point, outraging many and pushing petrol prices even higher.

Yet Big Oil is pretty small next to the industry's true giants: the national oil companies (NOCs) owned or controlled by the governments of oil-rich countries, which manage over 90% of the world's oil, depending on how you count. Of the 20 biggest oil firms, in terms of reserves of oil and gas, 16 are NOCs. Saudi Aramco, the biggest, has more than ten times the reserves that Exxon does. Those with misgivings about oil—that its price is too high, that reserves are running out, that it damages the environment, that it is more a curse than an asset for countries that produce it—must look to NOCs for reassurance.

These companies are certainly sitting on a reassuring amount of oil. Saudi Aramco's proved reserves alone could keep the world supplied for several decades. But it is only exploiting ten of its 80 or so fields, so will be able to pump at the present rate for about 70 years even if it never discovers another drop of oil. In fact, Aramco and other NOCs are likely to find plenty more if they look, since their territory has not been very thoroughly explored. Only 2,000 wildcat wells have ever been dug in the countries around the Gulf, according to Leonardo Maugeri, an Italian oilman, compared with more than 1m wells in the United States.

But if the amount of oil at state oil companies' disposal is not much of a worry, the way they manage it certainly is. Few of the princes, politicians and strongmen who wield ultimate authority over these firms can resist the urge to meddle. At best, that leads to the sort of inefficiencies found at most state-owned firms: overstaffing, underinvestment and so on. At worst, the business of pumping and selling oil is entirely subsumed by politics, as in the case of Petróleos de Venezuela, one of the biggest NOCs. In either case, NOCs produce less oil, more expensively, than they should.

The people's oil, not the bureaucrats'

That is bad for consumers, of course, in so far as it pushes up the price of oil. But it is also bad for oil-producing countries, which could be squeezing more profit from each barrel if their NOCs were more efficient. Moreover, there are several NOCs not bound by OPEC quotas, such as Mexico's Pemex and Russia's Rosneft, which would love to boost production to take advantage of the current high price, but are struggling to do so.

The easiest way to improve state oil firms' performance would be to privatise them. The authorities, no longer torn between nurturing their NOCs and milking them for all they are worth, could concentrate on maximising their oil revenue through taxes and royalties. Failing that, governments could instil a little market discipline by subjecting their NOCs to competition, either by encouraging them to expand abroad or by allowing foreign firms some access to their home territory. At least, they should grant NOCs operational autonomy, and allow them to retain and invest some portion of their earnings. The less bureaucrats interfere, after all, the more money their oil companies will generate for them to spend.

Copyright © 2006 The Economist Newspaper and The Economist Group. All rights reserved.

[L.A. BRONCOS FAN]

http://www.bartcop.com/pipleline-knot.gif
http://www.bartcop.com/gouge-off-on.jpg
http://www.bartcop.com/gouge-plan.gif

[L.A. BRONCOS FAN]

http://www.bartcop.com/bushwinkle.jpg

[W*GS]

Obviously anything critical in the slightest of Hugo Chavez immediately earns a deflection from LABF...

And he says he's a Democrat. Pshaw - he's a far-left dictator-loving radical...

[Spider]

Obviously anything critical in the slightest of Hugo Chavez immediately earns a deflection from LABF...

And he says he's a Democrat. Pshaw - he's a far-left dictator-loving radical...
citgo ....... that reminds me ,, I have to gather up all of my fuel recpiets and start sorting them .......

[L.A. BRONCOS FAN]

Obviously anything critical in the slightest of Bush or the GOP immediately earns a deflection from me.

Fixed it for you.

BTW, I have you on ignore, so I have no clue what you might have posted on Chavez.

[W*GS]

BTW, I have you on ignore, so I have no clue what you might have posted on Chavez.

Too bad. The facts about how he has screwed up Venezuela provide proof against your oft-posted pro-Chavez propaganda.

But you won't see this post anyway. I've always viewed 'ignore' as a pathetic excuse to avoid challenges to one's ideology.

[Bronco_Beerslug]

Too bad. The facts about how he has screwed up Venezuela provide proof against your oft-posted pro-Chavez propaganda. I'm not sure how he's screwed up that country, the majority of people of Venezuela approve of what he's doing.

But you won't see this post anyway. I've always viewed 'ignore' as a pathetic excuse to avoid challenges to one's ideology. Generally, but between you two it's a good idea.
BTW, here's the latest pics of the world leaders in question...

-----------------------------------------



http://d.yimg.com/us.yimg.com/p/ap/20060814/capt.247898c4a9864cf98d4c785a33abb1db.aptopix_cuba _castro_ny110.jpg?x=306&y=345&sig=7C6be24BMuD25_DvNOSpbA--
In an image from theWebsite for Granma, Cuba's Communist Party Newspaper, Fidel Castro,right, meeting with Venezuela's President Hugo Chavez Sunday Aug. 13, 2006. The Associated Press cannot verify the authenticity or the date when these photographs were shot. (AP Photo/HO/GRANMA/Estudios Revolucion)

[W*GS]

I'm not sure how he's screwed up that country, the majority of people of Venezuela approve of what he's doing.

"While the opposition continues to squabble, the opinion polls suggest that Venezuelans are hungry for change. Despite Mr Chávez's personal popularity, his government is seen by almost three-quarters of respondents as incompetent and corrupt."

http://www.economist.com/world/la/displaystory.cfm?story_id=E1_STJQVVP

[Bronco_Beerslug]

"While the opposition continues to squabble, the opinion polls suggest that Venezuelans are hungry for change. Despite Mr Chávez's personal popularity, his government is seen by almost three-quarters of respondents as incompetent and corrupt."

http://www.economist.com/world/la/displaystory.cfm?story_id=E1_STJQVVP
I can't read your article.

--------------------------------------------
Chávez Leads, Rivals Below 10% in Venezuela
July 31, 2006
Many Venezuelan adults would give Hugo Chávez a new term as president, according to a poll by Datanálisis. 59 per cent of respondents would vote for the incumbent in this year’s ballot.

Zulia governor Manuel Rosales is a distant second with nine per cent, followed by Julio Andrés Borges of Justice First (PJ) with eight per cent, and former planning minister Teodoro Petkoff with two per cent.

CONT (http://tinyurl.com/nqbbs)
--------------------------------------------------
Venezuela set for poll campaign
By Greg Morsbach
BBC News, Caracas
Last Updated: Tuesday, 1 August 2006, 03:57 GMT 04:57 UK

Campaigning officially begins on Tuesday in Venezuela, ahead of a presidential election due to take place in December.

Incumbent President Hugo Chavez - who is on a two-week world tour - is set to run for a third term in office.

Opinion polls put support for Mr Chavez at between 50% and 60%, with most of his rivals hovering at around 5%.

This will be the first time in Venezuela's history that a president is seeking a third consecutive term.

President Chavez is so confident of victory in December's elections that he decided to spend two weeks on a world tour.

Venezuela's opposition is deeply divided and has so far failed to impress with a lack of new proposals.

CONT (http://tinyurl.com/hwywr)

[Mile High Shack]

so your good with communist dictators eh BB?

[Bronco_Beerslug]

so your good with communist dictators eh BB?
Who's communist?

[Mile High Shack]

Who's communist?

Chavez feels that Castro is a good role model for him and that he is like a father to him

and you don't think Chavez is communist?

lol

ok

[Bronco_Beerslug]

Chavez feels that Castro is a good role model for him and that he is like a father to him
and you don't think Chavez is communist?
lol
ok
Chavez is a democratically elected world leader, twice now and probably 3 times. You don't agree with democratic elections? Or is it you would rather see more attempts at nation building?

[Rohirrim]

Chavez is a democratically elected world leader, twice now and probably 3 times. You don't agree with democratic elections? Or is it you would rather see more attempts at nation building?

Keep posting crap like that and the terrorists will hit us again.

And it will be YOUR FAULT, you commie bastage.

[W*GS]

I can't read your article.

The point is that Chavez is personally popular - but his government is dysfunctional.

With Chavez at the helm, Venezuela will continue down the path toward a Nigeria-like future - a petrostate that's corrupt and doesn't serve the people.

[BroncoBuff]

Chavez is a democratically elected world leader, twice now and probably 3 times. You don't agree with democratic elections? Or is it you would rather see more attempts at nation building?
If we read ...... posts like this ..... we run the risk of getting hit again.

http://img213.imageshack.us/img213/8223/dickcheney09ja7.jpg (http://imageshack.us)

[Bronco_Beerslug]

The point is that Chavez is personally popular - but his government is dysfunctional.

With Chavez at the helm, Venezuela will continue down the path toward a Nigeria-like future - a petrostate that's corrupt and doesn't serve the people.
It may or may not be dysfunctional but it's what the Venezuela people want, apparently.

[Mile High Shack]

Keep posting crap like that and the terrorists will hit us again.

And it will be YOUR FAULT, you commie bastage.

I don't understand why it's wrong to criticize Chavez since he is communist, regardless if he is elected or not

who cares if he was "elected" or not, the point is, he is a communist who plans to pull his country in that direction.

I don't understand all the love from you hippies on the left for him

[Bronco_Beerslug]

I don't understand why it's wrong to criticize Chavez since he is communist, regardless if he is elected or not
who cares if he was "elected" or not, the point is, he is a communist who plans to pull his country in that direction.
I don't understand all the love from you hippies on the left for him

Who loves him? I guess that's one big difference between neocons and others. A lot of people understand nation building, invading countries and the whole war agenda in general is counter productive and obscenely expensive.

Neocons, on the other hand, believe if you're not calling for the head of someone who calls you a bully, you're a terrorist.

[shakenbake]

Did you know that Oil Compaines averge a profit of 10 cents per gallon of gas.

[W*GS]

It may or may not be dysfunctional but it's what the Venezuela people want, apparently.

Not "may not be dysfunctional" - almost 3/4ths of Venezuelans think their government is incompetent and corrupt. And I doubt they want it that way, but that's what they're stuck with, since it's unlikely Chavez will relinquish the power he's gathered for himself.

Venezuela is a democracy in name only - it's rather quickly become an autocratic regime with Chavez pulling all the levers.

[Bronco_Beerslug]

Not "may not be dysfunctional" - almost 3/4ths of Venezuelans think their government is incompetent and corrupt. And I doubt they want it that way, but that's what they're stuck with, since it's unlikely Chavez will relinquish the power he's gathered for himself.

Venezuela is a democracy in name only - it's rather quickly become an autocratic regime with Chavez pulling all the levers.
BS! If they don't want him they would vote him out. Their elections were deemed as credible as ours.

[W*GS]

BS! If they don't want him they would vote him out. Their elections were deemed as credible as ours.

Question is, what happens with the next election? Chavez has so concentrated power in his hands that I have grave doubts that the Venezuelan people will get rid of him via the ballot box...

[alkemical]

The point is that Chavez is personally popular - but his government is dysfunctional.

With Chavez at the helm, Venezuela will continue down the path toward a Nigeria-like future - a petrostate that's corrupt and doesn't serve the people.


Mirror mirror on the wall.......

[alkemical]

Chavez feels that Castro is a good role model for him and that he is like a father to him

and you don't think Chavez is communist?

lol

ok


Bush wants a NWO style gov't. (See spp.gov and google/yahoo for "nafta superhighway") - He wants to remove the soverign nature of this great country. Bush is trying to bring peace to the ME -

Bush = one of the four horseman.

[alkemical]

Not "may not be dysfunctional" - almost 3/4ths of Venezuelans think their government is incompetent and corrupt. And I doubt they want it that way, but that's what they're stuck with, since it's unlikely Chavez will relinquish the power he's gathered for himself.

Venezuela is a democracy in name only - it's rather quickly become an autocratic regime with Chavez pulling all the levers.


this verse, same as the first: Mirror mirror on the wall -

[Mile High Shack]

Bush wants a NWO style gov't. (See spp.gov and google/yahoo for "nafta superhighway") - He wants to remove the soverign nature of this great country. Bush is trying to bring peace to the ME -

Bush = one of the four horseman.


lol

if bush is one of the four horseman, then the apocolypse you people believe in isnt' as scary as one once thought

Bush would fall off his horse and chip his tooth

[alkemical]

lol

if bush is one of the four horseman, then the apocolypse you people believe in isnt' as scary as one once thought

Bush would fall off his horse and chip his tooth


lol

i was using sarcasm and of course lore to apply it to today... ;)

but i do find it funny that people who want armageddon to come - don't realize that the current prez is doing his best to help fulfill that....

However, a fool would be the best tool - one wouldn't realize one would be a pawn until too late....

[Blueflame]

lol

if bush is one of the four horseman, then the apocolypse you people believe in isnt' as scary as one once thought

Bush would fall off his horse and chip his tooth

From what I understand, Bush would never get on the horse in the first place... it's said that he's afraid of horses.

[Rohirrim]

From what I understand, Bush would never get on the horse in the first place... it's said that he's afraid of horses.

No horse. No cattle. Just what kind of a ranch is it? Maybe it's a sagebrush ranch. Git along little dogie. :wiggle:

[L.A. BRONCOS FAN]

If we read ...... posts like this ..... we run the risk of getting hit again.

http://img213.imageshack.us/img213/8223/dickcheney09ja7.jpg (http://imageshack.us)

:laugh:

Just as we do if we choose to support democratically elected leaders who haven't been approved by ExxonMobil anywhere in the world.

[L.A. BRONCOS FAN]

http://www.bartcop.com/good-pipeline-news.jpg

[Blueflame]

No horse. No cattle. Just what kind of a ranch is it? Maybe it's a sagebrush ranch. Git along little dogie. :wiggle:

Just another prop for the Photo-op president, I'm thinking....

[BroncoBuff]

Did you know that Oil Compaines averge a profit of 10 cents per gallon of gas.
How the he!! high do oil prices have to get before you Texans un-cap all those wells you capped off in the 80s?

[RunByDesign]

Did you know that Oil Compaines averge a profit of 10 cents per gallon of gas.

Goddam, I'd like to see the numbers on what a all-time quarterly profit, 3 of the last 4 quarters, equates to in gallons-of-gas-sold.

It's gotta be something like...1,000,000,000,000,000,000,000,000,000,000,0 00,000,000,000,000,000,000,000,000,000,000,000,000 ,000,000,000,000,000 gallons of gas, at that rate.

[L.A. BRONCOS FAN]

Goddam, I'd like to see the numbers on what a all-time quarterly profit, 3 of the last 4 quarters, equates to in gallons-of-gas-sold.

It's gotta be something like...1,000,000,000,000,000,000,000,000,000,000,0 00,000,000,000,000,000,000,000,000,000,000,000,000 ,000,000,000,000,000 gallons of gas, at that rate.

Just like Deadeye Dick promised.