Chevron And Exxon – To Explain Those Weak Refining Profits

This is something I’ve been banging on about over the years. Refining profits in the US and fracking. The combination of which aid in explaining the weak results from both Exxon and Chevron in the most recent figures.

To set the scene. The US did not allow crude oil exports – largely enough. It did allow exports of refined oil products. Fracking for oil started then grew to substantial size. There was thus lots of crude inside America.…

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Owen Jones Thinks Saudi Aramco Will Pump More Oil After Privatisation

Owen Jones’ latest mind burbling is that if only we nationalised the oil companies then climate change would be solved. Because wise government would be able to direct activities to the result that we don’t boil Flipper in the vapour of that last remaining ice floe. A contention to which the correct answer is you what you dribbling idiot?

Or, to be less flagrantly objectionable about it, anyone ever told Owen that it is state owned oil companies which pump the most oil?…

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Saudi Aramco’s The World’s Most Profitable Company – But What Is Profit?

Not quite a philosophic, or existential, question but an important one all the same – just what is profit at a nationally owned resource company? The importance of this being that sure, Saudi Aramco is the world’s most profitable company but how much of that actually belongs to the stockholders as the stockholders in Saudi Aramco?

More, will whatever that definition is before the IPO be the same one that pertains some years after it?…

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Amazingly, Dosing Your Pet On Pot, Even Cannabis Oil, Isn’t A Good Idea

That pot, cannabis, has interesting effects upon the body and mind is absolutely true. That it does harm is obvious enough too – anything that makes a McDonald’s cheeseburger taste good is a bad idea. That there’s no harm other than that may be true but still. The thing is, we smoke or eat it in order to gain that effect. And we know we’re going to as well. Taking it inadvertently isn’t so much fun.

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Of Course India Should Have Sold ONGC’s Oil And Gas Fields To Foreigners

There are those who insist that a national government must own the company which extracts natural resources from the territory of that country. This is not so – for the government already owns the natural resources themselves. There is thus no problem with a foreigner doing the digging or drilling. For the government can always, but always, make sure that near all the profits flow to the government. They do, after all, control the tax system.…

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An Excellent Distinction – Nigeria Is Oil Dependent, Not Oil Rich

Within economics there are two closely related ideas, the resource curse and Dutch Disease – Nigeria suffers from both of them. These two together explain why Nigeria is not in fact rich from the oil, rather it’s dependent upon oil and not rich.

Fortunately this has been noted locally:

Salami said, “They say Nigeria is oil-rich, Saudi Arabia is oil-rich, Nigeria is oil dependent. Nigeria does two million barrels of crude oil per day, then at least 365 days roughly 800 million barrels of crude oil annually.

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Venezuela’s Moving Oil Business To Russian Banking System To Beat US Sanctions

Venezuela is trying to beat the US sanctions on its oil exports by moving the payments system over to the Russian banking system. This has the merit – for Venezuela’s current government at least – that it’ll work in the first iteration. Whether it continues to work after that depends upon how aggressively the US decides to pursue the enforcement of the sanctions.

For it’s worth noting what the US claims as being within its own jurisdiction.…

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Now The US Sanctions On Venezuela Are Really Going To Bite

Up until now – pace Ken Livingstone – any sanctions upon Venezuela have been, at the economy level, entirely trivial. They’ve been about trying to make sure the leading kleptomaniacs at the top don’t get to enjoy their ill-gotten wealth, no more. This is now changing as the new American sanctions become clearer.

For it isn’t just that US citizens and organisations should not buy Venezuelan oil without putting the payment into escrow. It’s that anyone using the American payments and banking system should do so.…

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Proof Of Trump’s Russia Innocence – Oil Sanctions On Venezuela And Citgo

Donald Trump has announced sanctions on Venezuela’s oil business and that’s a useful little proof – indication wouldn’t be strong enough – of the manner in which he’s not in fact beholden to Russia. Because major losers here are in fact the Russians. Trump does something that imperils Russian economic interests? He’s not working for them then, is he?

The Trump administration has tightened the screws on Venezuela’s embattled president, Nicolás Maduro, announcing sanctions against the country’s state-owned oil company PDVSA in what the US national security adviser admitted was partly an attempt to counter strategic threats from Cuba and Iran.

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Fun Statistic – Texas Alone Produces More Oil Than 190 Countries

We’re all aware – or should be – how Texas has been producing the occasional little bit of more oil recently. But it might not be true that we’ve all grasped quite how large this change is. There are now only four countries that produce more oil than Texas alone. That means the one single state is producing more oil than 190 entire countries do individually. Which is pretty good really.

It’s also a good advertisement for the idea that if you set up markets properly – delineate property rights clearly, that sort of thing – then those markets will solve natural resource problems for us.…

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