1.5 Billion Barrels of Oil, and No Takers

[NickB79]

http://wallstcheatsheet.com/stocks/1-5-billion-barrels-of-oil-and-no-takers.html/

Western energy firms are noted for venturing into volatile regions and areas that scare off more faint-hearted capitalists. But one country is even giving these hardened energy companies pause — Afghanistan. On September 22, Afghanistan issued a bid for tenders to exploit its vast mineral and hydrocarbon wealth, but found no important takers. Why is that?

As the U.S. government’s Bureau of Economic and Business Affairs’ February 2013 Investment Climate Statement — Afghanistan report dryly noted: “Security threats limit investors’ opportunities to develop businesses in some provinces, and certain sectors (such as mining and hydrocarbons) still lack a regulatory environment that fully supports investment. Domestic and foreign investors also rank endemic corruption high on the list of impediments.” The report then optimistically adds, “Despite these challenges, Afghanistan’s investment climate presents opportunities in all sectors of the economy.”

A plentiful supply of AK's and RPG's tend to have that effect, I've noticed.

[MADem]

1. With fracking competition in the marketplace, oil isn't all that expensive, big picture.

It seems counterintuitive because the price of gas doesn't go down as often as it goes up, but we still pay way less than other nations.

Plenty of other places already have oil they're willing to sell, and no one will shoot at them to get it.

Investors would also rather do offshore drilling than do all the work of setting up oil fields in Afghanistan, and then have a New And Improved Afghan Government kick them out and appropriate their hard work and infrastructure. It's just not a friendly or safe place for investment.

With Iran sidling back towards the "community of nations," they've got a shitload of oil people will be happy to buy. Their problem(s) are that they lack refining capacity, AND their fields could probably use a bit of TLC as well. That said, if they continue their Kindler and Gentler attitude, they could stand to do very well indeed.