[R-G] Gulf Times/ Qatar: Tar Sands as 'Alternative' to Venezuela

[Macdonald Stainsby]

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

-- 
Macdonald Stainsby
Coordinator, http://oilsandstruth.org
--
moderated radical news & discussion list:
http://lists.econ.utah.edu/mailman/listinfo/rad-green

In the contradiction lies the hope.
    --Bertholt Brecht.