Nigerian Conflict A Warning For Big Oil In Iraq
-- Yahoo News/AP
-- Yahoo News/AP
BAGHDAD - Recurrent violence in oil-rich parts of Nigeria may provide a sobering lesson for oil companies hoping to work in Iraq — a place that is much more dangerous despite the fact that attacks are at their lowest level in more than four years.
Representatives of 35 international oil companies will meet with Iraqi government officials in London on Monday to discuss the bidding process for eight enormous oil and gas fields. If the contracts are approved, they could lead to the biggest foreign stake in Iraq since the industry was nationalized more than 30 years ago.
About 4,000 miles from Baghdad, oil companies are doing damage control in Nigeria — arguably the most dangerous place in the world where firms like Royal Dutch Shell PLC and Exxon Mobil Corp. currently operate.
Three years of attacks in the country's Niger Delta have cut oil production from 2.5 million barrels per day to around 1.5 million — demoting Nigeria to Africa's second largest oil producer behind Angola.
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My Comment: Every country has political, economic, social, cultural and historical factors that will make it a success or failure in the oil industry. But the most important factor for success has always been the expertise and knowledge that the major oil companies can bring in developing and exploiting this resource. If the major oil companies are not there .... problems that include declining oil production, pollution, dysfunction on a managerial level, coupled with instability have always been the result.
Iran's oil infrastructure is failing, along with a decline in oil production (they must import gasoline and diesel for their vehicles). Mexico suffers from horrendous pollution .... environmental toxic hot zones around their major oil facilities. Venezuela's production facilities are breaking down, resulting in oil production that has been steadily falling down for he past few years. Russia has failed in exploiting new gas and oil fields in Siberia. They have bought the technology, but they do not have the professional staff to take advantage of this technology.
Brazil works in cooperation with major oil companies .... the result has been discoveries offshore. Canada's tar sands are being developed solely from the expertise and R&D from the majors .... this growth will continue for years. Angola has arranged royalty and development arrangements with the majors .... it is now the number one producer of oil in Africa.
The 20th and 21rst century will always be remembered for many things ..... oil and war will be one of them.