Tuesday, July 1, 2008

Oil Producing Countries Status

The take away is most of the countries producing oil can't easily increase production due to a wide variety of reasons.

Brazil
- Just found major field offshore, will take years to put into production.
China - Some finds offshore, production pretty much staying stable and being used by booming economy.
Iran - Embargo by US resulting in high production costs, lack of new technology for expanding production.
Iraq - Increasing production with some foreign investment starting. Still a dangerous place to do business.
Libya - May have already passed their production peak.
Kuwait - Not interested in increasing production since this will take away from future generations. Issue of cheap energy being used locally.
Mexico -Declining production due to lack of investment and inefficiency in state run and owned monopoly. Due to politics/nationalism involved, low chance of change.
Nigeria - Nasty rebellion in oil producing areas with lots of kidnapping, attacks, etc. Recently an offshore platform was attacked. 25% or so of production affected. Combined with corruption issues, historic grievances in delta, tribalism, etc.
Norway - North sea is declining in production.
Russia - Ended joint ventures resulting in declining production. Foreign oil companies are hesitant to invest due to uncertainty of keeping ownership. Requires investment and technology to stop decline.
Saudi Arabia - Unknown if it can increase production. Heavy investment required to do so. Seeks to develop local industries that can use cheap energy.
Sudan - Major client of China, human rights issues.
US - Some increase do to higher prices in production. Limited ability to do so.
UAE - Seeking to develop local industries to use local energy. Diversifying industries for when they no longer have oil. Limited ability to increase production.
Venezuela- Kicked out foreign owned oil companies. Declining production. Anti-American President.

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