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American oil companies out. Italian oil company in. January 28, 2010

Posted by hslu in 5584.
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PDVSA, the national oil company of Venezuela, just signed a contract with Eni, an Italian oil company partly owned by Italian government.

The contact, signed in the presence of Chávez, allows Eni to work with PDVSA to develop a heavy oil block in the Orinoco Belt heavy oil field.

Sorry, ExxonMobil, ChevronTexaco and ConocoPhillips. The America companies are not allowed.

The estimated heavy oil resource in the Orinoco Belt is 1.3 trillion barrels; the largest heavy oil filed in the world. With new and current technology, Venezuela has more recoverable oil than what Saudi Arabia has.

Heavy oil is less valuable than Saudi light. No doubt about it. But, after most of the light oil is gone, whom do you (America) ask for more gas? Ghostbusters?

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Battle Field Venezuela January 20, 2010

Posted by hslu in China, Energy, Politics.
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Battle Field Venezuela

Time                               January 2010 and beyond

Prize                               Orinoco Belt Heavy Oil Field

Location of Orinoco Belt Heavy Oil Fields

Players                           USA                            ExxonMobil, ConocoPhillips

China                           China National Offshore Oil Corp., China Petroleum & Chemical Corp.

China National Oil Company

First Quarter

Time:              1990’s

Scores: USA 1,      China 0

Play by Play:               In the 1990’s, ExxonMobil, ChevronTexaco and ConocoPhillips were invited back to Venezuela to jointly develop Orinoco Belt heavy oil field with Venezuela’s national oil company, PDVSA. American oil companies were kicked out of the country in 1976.

Color:                          American companies wanted to get in because Venezuela holds the largest heavy oil resources in the world estimated at 1.2 trillion barrels (with a T.)

Second Quarter

Time:              May 2007

Scores: USA 0,      China 0

Play by Play:               Venezuela under Chávez nationalized its oil industry again and got ride of American oil companies such as ExxonMobil the second time.

Color:                               Exxon didn’t have operation in Orinoco belt prior to its take over of Mobil Oil Corp. in 2000. American oil companies lost billions of their investment and million barrel of oil production from Venezuela. Litigation is in progress in courts. I had worked on Orinoco Belt as well.

Third Quarter

Time:              December 2009

Scores: USA 0,      China 1

Play by Play:               China National Offshore Oil Corp., China Petroleum & Chemical Corp. and China National Oil company signed joint venture deals with PDVSA to develop Orinoco Belt heavy oil and construct refineries to refine oil from the field.

Color:                          Up to 560,000 b/d of oil could head to China in 2010. Billions of dollars will be invested by Chinese national oil companies to secure long-term oil exports to China.

Fourth Quarter

Time:              2010 and beyond

Scores: USA -1?.    China 2?

Play by Play:               Venezuela is America’s third largest oil importer behind Canada and Mexico at 955,000 b/d. Mexico’s production has been in constant decline along with its oil export to the U. S. Where does America get its oil from?

Color:                          Will Venezuela increase its oil export to China while choking back oil export to the U.S.? Chávez hates the U.S.

Please tune in later for the final scores.

Mid-Term Election October 19, 2009

Posted by hslu in China, Economics, Politics.
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Mid-term Election

The mid-term election is only 12-months away. The economic is in the toilet. The unemployment rate is approaching double digits. Many states are already seeing their unemployment rate above 10%. The stimulus package has filled the pockets of Wall Street executives but failed to create 4 million jobs promised by the current president in February of this year in front of a national crowd. Car sales are back to the sorry state before the clunker for cash program.The federal deficit has reached record level. And the national debt is creeping up at more than $4 billion a day.

And what is the current administration doing now?

  • They are re-engineering the social fabric of the United States by trying to
  • Move the US drastically to the left,
  • Change the US into a socialized country,
  • Pass a over-reaching health insurance bill as the first step to take over the control of the health insurance system,
  • Raise our taxes through the health insurance insurance bill and cap-and-trade bill,
  • Increase the size of the Government and
  • Pile up as much national debt as possible with the dominant position in both houses of the Congress.

The only thing he is not doing is to create jobs. He’ll let them suffer a little longer because the mid-term election is still a year away and his re-election is a long 3 years away.

He is betting that by the time November 2010 comes along, the economic will improve, jobs will be plentiful and people will forget what he did in 2009.

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