Monday, April 28th, 2008...6:34 pm
Exploration For New Oil Resources
The Financial Times carried a fascinating report a couple of days ago of the reduction in major oil company investment in exploration for new oil supplies and, instead, putting their burgeoning profits into stock buy backs.
“One could argue that companies spending this amount of money buying back stocks are slowly liquidating themselves,” said Robin West, chairman of PFC Energy, the consultancy.
“The majors have been reducing exploration dollars since 1988-1989, said Priscilla McLeroy, a director at Arthur D Little, the consultancy. She attributes it to them being so big that not even ‘elephant-sized’ fields are worth investing in; rather they need ‘mammoth-sized’ fields to get sufficient returns.”
It seems it is probably a good decision for Venezuela, and other South American nations, to nationalize their petroleum resources.
I must say I’m feeling a bit smug of the fact that I drive only once a month, or so, just to keep the battery in my truck charged.
Kicking Calvin in Playa Baracoa.
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