Caspian oil organization to offset the OPEC

[Robb]

Kazakhstan's Nazarbayev: Mulls Caspian oil organization to offset the OPEC

Kazakhstan's President Nursultan Nazarbayev said last week to the Interfax news agency and Izvestia Daily that the five Caspian Sea nations should unite to create an OPEC-like oil organization to compete with the OPEC consortium and to support oil prices, reported news agencies Monday.

"International experts say that the Arab countries and OPEC are nervous not only about the scale of Caspian oil resources, but also the fact that Caspian states are not part of the cartel," Nazarbayev told the Interfax news agency and the Izvestia daily in an interview published Monday, reported AFP and Reuters.

"Caspian oil flows may destroy (OPEC's) might, affect its ability to set high prices and use oil as an instrument of political blackmail," Nazarbayev said in the interviews, according to Reuters and AFP.

(snip)

Kazakhstan with its giant Kashagan field, the biggest new oil find in the last 30 years (possibly 50 billion barrels or more) has attracted more than $20 billion in foreign investment and is trying to attract more Russian investment.

(more)

[htuttle]

1. They are unlikely to 'flood the market with cheap oil'

Since they don't have any cheap oil -- only expensive stuff.

The oil in the Caspian region tends to be rather costly to produce. For example, while it costs Saudi Arabia something like $1.50/barrel to bring oil to market, it costs the Russians about $12-$15/barrel to do the same thing (note: Old-fashioned dollar amounts from a few years ago -- not sure what the amount would be in today's dollars).

[Robb]

2. I don't think those are accurate anymore

...those are "bring-to-market" comparisons, and what with Afghanistan and Pakistan now building pipes like they're going out of style, Caspian oil and gas is going to become very, very competitive.

It's a new game in Central Asia these days.

[htuttle]

3. Well, that's different than what I read

The picture you paint is what they saw before they started actually drilling last year. It turned out that most of the oil in the Caspian was in numerous smaller reservoirs instead of several bigger ones like in the Arabian peninsula. Much of it was high in sulfur content, too.

I think the Afghanistan pipeline is history. IIRC, the Iranians managed to collaborate with the Russians to get one finished that made the Unocal-proposed one obsolete. I'm pretty sure I read that Unocal started selling off their shares in some of their concerns in the region as well. I don't have any links handy for this -- just a brain dump of what I've read since 2002.

[Robb]

4. Check into

Alexanders Gas and Oil. It's a trade journal, but really a great source for current (weekly) news.

[Petrodollar Warfare]

5. Sounds like political spin IMO

<<<Kazakhstan with its giant Kashagan field, the biggest new oil find in the last 30 years (possibly 50 billion barrels or more) has attracted more than $20 billion in foreign investment and is trying to attract more Russian investment.>>>>

I read a technical analysis of this 'giant field' (actually many small resouviors) held only 8-20 Billion barrels (down from the 100 to 200 billion that was claimed 4+ yrs gago), and the oil has up to 20% sulfur content. Seems this is just political spin in an effort to convince OPEC they are "weaker" players in the oil market. I don't think OPEC is overly considered about these "political numbers."..

[tom_paine]

6. Sounds like the Busheviks are lining up their Puppet States

(probably with the help of the Russian Empire, whch Putin has seized using the identical playbook to the Busheviks' seizure of Amerika)

Gotta keep the supply of oil flowing, you know, and this puppet "mini-OPEC" will do that for the Empires.

[goforit]

7. What is Bushco gonna do now?

Here we go........Oil Warmongers will respond.


May the innocent be protected!!!!