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| read an article on how the situation in Nigera (sabatoge) has Chevron, Royal Dutch Shell, Total pulling out of the country..............sabatoge is costing Chevron 1.5 million per day in lost revenues.
from article.......Shell and Total currently produce around 10% of Nigeria's oil and gas. If they leave, there will be a vacuum of talent and expertise. We saw the same thing happen in Mexico, Venezuela, and Ecuador. When the giant Western oil companies leave, all the experts go with them.
With those companies gone, Nigerian oil production will collapse before the paint dries on the new company logos.
According to Western oil companies' engineers, the Nigerian oil fields that produce 80% of the country's production require $15 billion in new wells, pipelines, and maintenance. So the Nigerian National Petroleum Company, which owns 55% of those fields, needs to come up with its share – $8.5 billion – to keep the field producing optimally. But the Nigerian government only gave the company $4.5 billion to spend on those projects.
This isn't a new story. Stealing national oil companies blind is a sport in Mexico, where government mismanagement destroyed Cantarell, one of the world's largest oil fields. By refusing to invest the money to keep it going, the government wrung the golden goose's neck.
Mexican oil production has fallen 25% since 2004. Its oil output will shrink another 5% in 2010, according to the country's finance minister. If 5% is the "official" estimate, things are truly terrible. Nigeria's headed down the same path if Shell and its allies pull out.
In 2008, the latest data available, Nigeria exported around 2.2 million barrels of oil per day, an important piece in the global oil market. (Nigerian imports made up 4% of all the oil we used in the U.S. in 2009.)
Less supply from these outer edge 3rd world countries will raise volitility and premiums..............
how to prepare............buy bulk tanks | |
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Oil prices - Next 2 yrs
