a brief respite...

dmschanoes dmschanoes at earthlink.net
Sat Sep 6 15:20:40 MDT 2003


....from the Yankees losing again to the Red Sox.

>From the WSJ 090503:

Bigger Kazakh Oil Output is Goal

"An international consortium of energy companies plans to increase to $10
billion its initial investment in a giant petroleum project in Kazakhstan in
order to produce more oil from the deposit, the largest known oil field
outside of the Middle East.

The group [my note: Shell, ExxonMobil,ConocoPhillips, Total, ENI,
Inpex(Japan] now plans to produce 450,000 barrels a day from the Kashagan
field during the project's first phase alone.  That output target is more
than four times the volume projected in an earlier plan.....

Oil output in the US and the North Sea is in decline. But large fields are
coming  online in the Caspian Sea and West Africa, and production is rising
sharply in Russia, now the world's number 2 exporter after Saudi Arabia..."
______________________
--my note:  wow, so far so good, sounds impressive, big field, reducing
reliance on OPEC, more investment, more oil, so much for overproduction.
But wait there's more.
__________________________

The more ambitious scheme [to raise output in the first phase] stems from
the discovery of greater than expected potential in the Caspian Sea find, a
technically tricky field. [Here it comes]  But it will delay the first flow
of oil by at least a year, to the end of 2006 at the earliest, prompting the
Kazakh government to demand compensation for lost revenue before it endorses
the plan....
_______________________________

hmmh, sounds like overproduction is still the motor force-- increase
investment, increase future output, We Say, delay by a year actual ouput, WE
DO.
____________________________-

The consortium companies have been buoyed by recent appraisals that show
Kashagan's oil reservoirs are of good quality.  The field may also be able
to yield at least 50% more than the original conservative estimate of 9
billion barrels, according to company officials.....

....first phase plan translates into development costs of roughly $3 a
barrel....."

dms





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