Showing posts with label oil. Show all posts
Showing posts with label oil. Show all posts

CHINA EXPANDING ITS ACCESS TO OIL SUPPLIES ALL OVER THE WORLD-US OIL COMPANIES EDGED OUT AS CHINA FLEXES ITS CASH!




The Chinese snapping up oil fields from Africa to South America to the Middle East. Soon it may be able to rival the Western giants.
By Steve Hargreaves

China is on an oil buying binge.

Over the past few months, the Chinese government -- or its big government-controlled oil firms -- have closed or floated a slew of deals in countries all over the world. These deals have expanded the nation's oil reach and may one day position the nation to match the skills of western oil firms.

The deals include a $10 billion loan the Chinese government extended to Russia's Rosneft in exchange for a guaranteed cut of that company's production. The Chinese have also gotten in tight with Brazil's Petrobras, arranging a similar deal with the firm that is developing a huge new offshore field - one of the biggest new discoveries in decades.

But it doesn't end with loans. Last week the Wall Street Journal reported that China National Petroleum Corporation is interested in buying all or a part of Argentina's YPF for $14.5 billion, although a deal is far from certain.

In Africa, CNOOC and Sinopec are buying a $1.3 billion stake in offshore Angolan development rights from American oil firm Marathon. Angola has recently overtaken Nigeria as Africa's biggest oil producer, and is one of Exxon Mobil's (XOM, Fortune 500) favorite countries to invest in.

And rumors are swirling that the China National Petroleum Corporation will take the majority stake in Iraq's Rumaila oilfield from BP (BP). Rumaila produces over 1 million barrels a day, and is Iraq's biggest oil field.

It's clear what the Chinese are doing.

"They are stilting on a huge pile of cash and they're using this as a buying opportunity," said Greg Priddy, a global energy analyst at the Eurasia group, a political risk consultancy.

China wants to buy oil for several reasons.

First, they can. Their huge trade surplus means the Chinese have racked up a giant stash of dollars.

But this pile of dollars can be dangerous. Many worry the dollar is set to fall due to rampant American spending.

But China is stuck. It can't sell them too fast for fear of accelerating the dollar's weakness.

So buying hard assets like oil is a great way for China to diversify its holdings, without destabilizing the greenback.

Second, they don't really trust the market.

The Chinese, along with many Asian countries, have less faith in the free market. This distrust was, in Chinese eyes, probably justified a few years back, after they tried to buy U.S. oil company Unocal in an open market deal that collapsed after a public outcry in the United States.

"The Chinese definitely want their own stuff that they can control and send anywhere in the world," said Priddy.

Finally, they see the big picture.

Chinese oil demand is expected to grow nearly 20% in the next six years, and the country already imports over half of the 8 million barrels a day it uses.

"They are doing what you'd expect any country to do: They are procuring resources for the best interest of the people," said Ruchir Kadakia, a global oil analyst with the consultancy Cambridge Energy Research Associates. "I think they watched the developed world dig itself into a deep enough hole to learn a few lessons."

All this buying raises the question: Will the Chinese firms soon be able to rival the Western oil companies?

In many ways they already do.

China National Petroleum Corporation's daily oil production is already roughly equivalent to Exxon's. And PetroChina at one point had a market capitalization twice Exxon's, although the vast majority of shares are owned by the government-run China National Petroleum Corporation so it's hard to arrive at a true market value.

Where the Chinese firms lag is in expertise.

Complex operations - like deep water drilling or liquefying natural gas, are still the domain of the Western oil firms.

But given time, and given their need to develop those deep-water leases off Angola, the Chinese are bound to gain the technical know-how that will put them on-par with the best western firms.

That is really putting the dollars where they will do the most good for them while not selling the greenbacks to destroy their value.

maybe we need a good Chinese economist to help our hapless lawmakers here?

WE ALL WISH OUR COMPANIES COULD BE LIKE EXXON-MOBIL-PROFITABLE AND HOLDING UP IN STOCK PRICE; THAT'S NOT GOOD FOR ACTIVISTS



As the Annual Meeting season rolls around, gadflies, activists and wackos of every type start to attend the meetings too. Over my lifetime I have seen it all at the meetings. It was not unusual for a certain gadfly to appear and always owning one share or a token 10 shares wanting all types of resolutions adopted.

That was really irksome. We wanted as stockholders to find out how our company was doing, how much money we could expect as profits next year and hear about its prospects, but had to put up with this token idiot stockholder who wanted a resolution to stop the company from chopping down a tree, for instance.

For goodness sake, moron, it's a forestry company. What do you want them to do, take pictures of the trees?

Today it is a bit better, but still activists want EXXON to get out of the oil business. Why the heck did they buy any stock then?

Why don't they just buy some stock that they like in a business that pleases them?

It is really frustrating that a relative of J.D. Rockefeller who founded the company now wants it to figure out what will be the next fuel. THEY ARE DOING THAT, CARY WOMAN. What do you think that the Chairman of Exxon does not want to have the company be in some sort of business after OIL ?

EXXON just reported record profits, so what's wrong with that? Is that not what you want the company you own any stock in to be doing?

Here is what happened at the Annual Meeting:

Activists grilled Exxon Mobil Corp.'s CEO Wednesday on environmental issues and his compensation package, but shareholders stood behind management that delivered the biggest profit ever for a U.S. company last year.

Shareholders voted down all 11 resolutions at the company's annual meeting, which was a toned-down affair compared with protest-filled gatherings of recent years.

Chairman and Chief Executive Rex W. Tillerson defended the company's record on climate change, which many scientists blame on burning oil and other fuels. He said oil and gas will continue to be the world's dominant fuels until at least 2030, meeting nearly two-thirds of world demand.

Exxon Mobil earned $45.2 billion last year, as oil prices climbed to record highs near $150 a barrel. Exxon's profit began to fall late in the year as oil prices plunged, and earnings in the first three months of 2009 fell 58 percent from a year earlier.

Despite the worldwide economic slowdown, oil prices have been creeping back up for several weeks -- an increase that Tillerson said couldn't be explained by any changes in supply and demand.

"There has really been no substantial change in demand; there's been little to no change in inventories ... so why the $10 (per barrel) run-up in the last month?" Tillerson asked reporters after the meeting. He said the price increase seemed a reaction to a weak dollar and speculation.

Crude, which opened the month below $52 per barrel on the New York Mercantile Exchange, rose above $63 on Wednesday.

Most of the shareholders who sponsored resolutions were more interested in environmental and executive pay issues.

Activists praised rival Chevron Corp. for its efforts to track and report on the carbon content of its products and challenged Exxon to do the same.

Patricia Daly of faith-based institutional investor the Sisters of St. Dominic in Caldwell, N.J., said Chevron showed good faith and was preparing for a future in which carbon emissions will be more tightly regulated. At Exxon Mobil, she said, "I'm not confident yet that we're ready."

Ann Rockefeller Roberts, a descendant of John D. Rockefeller, who built the company that became Exxon, proposed that the company study the likely effects of climate change through 2030. She said unless the company increased its focus on renewable energy, it would eventually suffer financially.

Tillerson said the company was investing in research by its own scientists and others into the cause and effects of climate change, which he called "a serious risk-management issue."

Other shareholder resolutions called for splitting the duties of chairman and CEO, and several focused on executive compensation. Some speakers raged at Tillerson's 2008 compensation package, which was worth $23.9 million, according to an analysis by The Associated Press.

Mari Mather of Massachusetts-based NorthStar Asset Management Inc., said if Tillerson retires at age 65 he could leave with a package worth $670 million including stock options. To that, Tillerson chuckled, and there was scattered applause from shareholders meeting inside a massive symphony hall.

Only two shareholder resolutions -- letting shareholders cast a nonbinding vote on executive pay every year, and making it easier for shareholders to call a special meeting -- got more than 40 percent support.

In his state-of-the-company address to open the meeting, Tillerson said Exxon Mobil was investing carefully in new oil and gas projects -- it plans to boost capital spending this year to $29 billion from about $26 billion last year.

Tillerson said demand for oil and gas will grow through 2030 as the world's population grows and developing countries become more affluent, with more drivers. Exxon will need those markets to offset slow growth in the U.S. and Europe.

Tillerson said after the meeting that gasoline used for vehicles in the U.S. may have peaked last year.

"We do think motor gasoline demand has by and large peaked in the United States and will likely continue a rather slow and steady decline in the years ahead" as cars become more efficient and more Americans buy hybrids, he said.

Falling gasoline demand will lead to fewer refineries -- "there are some marginal refiners in the U.S. that probably will not survive," Tillerson said. He said Exxon doesn't see any need for new U.S. refineries and will continue to rework it existing facilities.

Let the companies run their business, do they not have enough government intervention and meddling already?

HONDA INSIGHT, THE CAR OF THE FUTURE FOR ALL OF US, OR IS IT A JOKE? BRING ON THE HUMMERS AND EXCURSIONS, THERE IS STILL PLENTY OF OIL TO GO AROUND!




HYBRIDS, alternative energy cars, electric cars, air powered cars, micro-cars, gas saving cars-are all the rage. But I ask why? Why buy a puny no-power car?

Oil has been put on the earth to be used by humans until it is all gone. Then we humans will invent or come up with ways to next use the sand, rocks, trees, owls, polar bears, seals, flatulence or whatever is still here then, to power our cars; our large, very large cars.

WE WANT LARGE CARS and large trucks; the larger the better.

Large vehicles are safer, they are intimidating to other drivers, and they can run over puny cars like the Insight the Yaris, Prius, the Tweety Bird, the Lady Bug, and various minis, that just are blocking the roadway which was built for BIG vehicles.

We even hate the names of the hybrids. We like BIG names like EXCURSION, EXPEDITION, RAM, TUNDRA, F-350, HUMMER-they have a nice BIG sound.

WE ARE AMERICANS, WE LIKE BIG THINGS: BIG IDEAS, BIG PLANS, BIG TRUCKS, BIG CARS, BIG HOUSES BIG BUILDINGS,,,,ALL TYPES OF BIG AND BIGGER THINGS.

Why do we have to try and fit into teeny tiny cars, especially since the average American is now the size of a small Mack truck?

Is the President going to change his limousine to a Prius, or one of those 3 wheel French cars?

Let's agree, whatever car the president drives or is driven in, shall be the car we all seek to have too!

Also, have we forgotten about the atomic powered cars that were considered possible future cars in the 1950's, they would be really efficient. I believe that there would be only a once in a lifetime fill-up of uranium, or protons or neutrons or something like that, or once every 100,000 miles.

Much has been written about the Insight, Honda’s new low-priced hybrid. We’ve been told how much carbon dioxide it produces, how its dashboard encourages frugal driving by glowing green when you’re easy on the throttle and how it is the dawn of all things. The beginning of days.

So far, though, you have not been told what it’s like as a car; as a tool for moving you, your friends and your things from place to place.

So here goes. It’s terrible. Biblically terrible. Possibly the worst new car money can buy. It’s the first car I’ve ever considered crashing into a tree, on purpose, so I didn’t have to drive it any more.

The biggest problem, and it’s taken me a while to work this out, because all the other problems are so vast and so cancerous, is the gearbox. For reasons known only to itself, Honda has fitted the Insight with something called constantly variable transmission (CVT).

It doesn’t work. Put your foot down in a normal car and the revs climb in tandem with the speed. In a CVT car, the revs spool up quickly and then the speed rises to match them. It feels like the clutch is slipping. It feels horrid.

And the sound is worse. The Honda’s petrol engine is a much-shaved, built-for-economy, low-friction 1.3 that, at full chat, makes a noise worse than someone else’s crying baby on an airliner. It’s worse than the sound of your parachute failing to open. Really, to get an idea of how awful it is, you’d have to sit a dog on a ham slicer.

So you’re sitting there with the engine screaming its head off, and your ears bleeding, and you’re doing only 23mph because that’s about the top speed, and you’re thinking things can’t get any worse, and then they do because you run over a small piece of grit.

Because the Honda has two motors, one that runs on petrol and one that runs on batteries, it is more expensive to make than a car that has one. But since the whole point of this car is that it could be sold for less than Toyota’s Smugmobile, the engineers have plainly peeled the suspension components to the bone. The result is a ride that beggars belief.

There’s more. Normally, Hondas feel as though they have been screwed together by eye surgeons. This one, however, feels as if it’s been made from steel so thin, you could read through it. And the seats, finished in pleblon, are designed specifically, it seems, to ruin your skeleton. This is hairy-shirted eco-ism at its very worst.

However, as a result of all this, prices start at £15,490 — that’s £3,000 or so less than the cost of the Prius. But at least with the Toyota there is no indication that you’re driving a car with two motors. In the Insight you are constantly reminded, not only by the idiotic dashboard, which shows leaves growing on a tree when you ease off the throttle (pass the sick bucket), but by the noise and the ride and the seats. And also by the hybrid system Honda has fitted.

In a Prius the electric motor can, though almost never does, power the car on its own. In the Honda the electric motor is designed to “assist” the petrol engine, providing more get-up-and-go when the need arises. The net result is this: in a Prius the transformation from electricity to petrol is subtle. In the Honda there are all sorts of jerks and clunks.

And for what? For sure, you could get 60 or more mpg if you were careful. And that’s not bad for a spacious five-door hatchback. But for the same money

you could have a Golf diesel, which

will be even more economical. And hasn’t been built out of rice paper to keep costs down.

Of course, I am well aware that there are a great many people in the world who believe that the burning of fossil fuels will one day kill all the Dutch and that something must be done.

They will see the poor ride, the woeful performance, the awful noise and the spine-bending seats as a price worth paying. But what about the eco-cost of building the car in the first place?

Honda has produced a graph that seems to suggest that making the Insight is only marginally more energy-hungry than making a normal car. And that the slight difference is more than negated by the resultant fuel savings.

Hmmm. I would not accuse Honda of telling porkies. That would be foolish. But I cannot see how making a car with two motors costs the same in terms of resources as making a car with one.

The nickel for the battery has to come from somewhere. Canada, usually. It has to be shipped to Japan, not on a sailing boat, I presume. And then it must be converted, not in a tree house, into a battery, and then that battery must be transported, not on an ox cart, to the Insight production plant in Suzuka. And then the finished car has to be shipped, not by Thor Heyerdahl, to Britain, where it can be transported, not by wind, to the home of a man with a beard who thinks he’s doing the world a favour.

Why doesn’t he just buy a Range Rover, which is made from local components, just down the road? No, really — weird-beards buy locally produced meat and vegetables for eco-reasons. So why not apply the same logic to cars?

At this point you will probably dismiss what I’m saying as the rantings of a petrolhead, and think that I have my head in the sand.

That’s not true. While I have yet to be convinced that man’s 3% contribution to the planet’s greenhouse gases affects the climate, I do recognise that oil is a finite resource and that as it becomes more scarce, the political ramifications could well be dire. I therefore absolutely accept the urgent need for alternative fuels.

But let me be clear that hybrid cars are designed solely to milk the guilt genes of the smug and the foolish. And that pure electric cars, such as the G-Wiz and the Tesla, don’t work at all because they are just too inconvenient.

Since about 1917 the car industry has not had a technological revolution — unlike, say, the world of communications or film. There has never been a 3G moment at Peugeot nor a need to embrace DVD at Nissan. There has been no VHS/Betamax battle between Fiat and Renault.

Car makers, then, have had nearly a century to develop and hone the principles of suck, squeeze, bang, blow. And they have become very good at it.

But now comes the need to throw away the heart of the beast, the internal combustion engine, and start again. And, critically, the first of the new cars with their new power systems must be better than the last of the old ones. Or no one will buy them. That’s a tall order. That’s like dragging Didier Drogba onto a cricket pitch and expecting him to be better than Ian Botham.

And here’s the kicker. That’s exactly what Honda has done with its other eco-car, the Clarity. Instead of using a petrol engine to charge up the electric motor’s batteries, as happens on the Insight, the Clarity uses hydrogen: the most abundant gas in the universe.

The only waste product is water. The car feels like a car. And, best of all, the power it produces is so enormous, it can be used by day to get you to 120mph and by night to run all the electrical appliances in your house. This is not science fiction. There is a fleet of Claritys running around California right now.

There are problems to be overcome. Making hydrogen is a fuel-hungry process, and there is no infrastructure. But Alexander Fleming didn’t look at his mould and think, “Oh dear, no one will put that in their mouth”, and give up.

I would have hoped, therefore, that Honda had diverted every penny it had into making hydrogen work rather than stopping off on the way to make a half-arsed halfway house for fools and madmen.

The only hope I have is that there are enough fools and madmen out there who will buy an Insight to look sanctimonious outside the school gates. And that the cash this generates can be used to develop something a bit more constructive.


 
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