General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWhite House Kidstuff Big Oil Drives Huge Russian Energy Deals Right Thru Siberian-Scale Loophhole
White House Kidstuff At Work: Big Oil Drives Huge Russian Energy Deals Right Thru Siberian-Scale Loophole
June 1, 2014
Thats right, the children in the Obama west wing slapped tough sanctions on one of Russias major oligarchs, Igor Sechin, who is head of Rosneft, which is the nations largest oil company. The man was sternly warned not to come to the US or he would find his passport seized at the INS window. More importantly, he was admonished not to bring any of his money here, either, or that would be seized, too. But none of these fearsome sanction apply to Rosneft per sean energy giant which is currently producing at an annual rate of nearly 2 billion barrels per year oil equivalent and booking revenues in excess of $150 billion annually. So what happened is that Mohamed went to the mountainthat is, ExxonMobil, BP, Royale Dutch Shell, Total S.A. and many more journeyed to Moscow within the last week to sign giant energy deals in just exactly the areas that involve cutting edge technology. Namely, LNG plants to get landlocked Siberian gas into world commerce and shale oil technology to help unlock another latent energy resource.
The following story provides chapter and verse on these deals, but the larger point needs no elaboration. What in the world do these children think they are doing with their state department wet noodles? This whole phony sanctions maneuver is so ludicrous as to starkly remind us that the the real danger to Americas peace and prosperity is not Vladimir Putin, but the amateurs and the statist apparatchiks which run our own government. By Nick Cunningham of Oilprice.com Several of the largest oil companies in the world are doubling down in Russia despite moves by the West to isolate Russia and its economy. ExxonMobil and BP separately signed agreements with Rosneft Russias state-owned oil company to extend and deepen their relationships for energy exploration. The U.S. slapped sanctions on Rosnefts CEO Igor Sechin in late April, freezing his assets and preventing him from obtaining visas. However, the sanctions do not extend to Rosneft itself, allowing western companies to continue to do business with the Russian oil giant. ExxonMobil signed an agreement with Rosneft, extending its partnership to build a liquefied natural gas (LNG) terminal on Russias pacific coast. Known as the Far East LNG project, the export terminal will receive natural gas from Russias eastern fields as well as from Sakhalin-1, an island off Russias east coast. Rosneft announced the deal in a press release on its website on May 23.
The following day, Rosneft and BP signed an agreement to jointly explore oil in the Volga-Urals region. It will consist of a pilot project in the Domanik formations, and if successful could lead to the development of shale oil in Russia. Rosneft will maintain a 51 percent ownership of the joint venture and BP will own 49 percent.
The signing of the agreement occurred during a ceremony at the St. Petersburg International Economic Forum. The oil majors attended despite pressure from the White House to boycott the event. Many big name companies chose not to attend even though they have large economic interests in Russia, including PepsiCo, German companies E.ON and Siemens, and some of the biggest banks in the U.S. By defying the White House, the oil majors salvaged what would have otherwise been an embarrassing event for the Kremlin. The absence of the worlds largest companies would have demonstrated Russias increasing isolation. Instead, Russia used the event to detail plans to expand its massive energy sector. (Theyre) eager to continue work on projects in Russia, Russias Energy Minister Alexander Novak said of ExxonMobil and Royal Dutch Shell. BP CEO Bob Dudley emphasized his companys determination to stick with Russia. We are very pleased to be a part of Russian energy complex, he said at the forum. President (Putin) has urged us today to invest into shale oil
Theres so many natural resources in Russia, the openness and partnerships Russia has with companies from all over the world is a good thing for energy, Dudley added. Even though there are international sanctions on Rosnefts Igor Sechin, Dudley insisted that their business with Rosneft will continue. It does not affect our cooperation with the company itself, Dudley said, referring to sanctions on Rosnefts boss. He was even able to meet Sechin privately. French oil giant Total S.A. also signed an agreement with Lukoil Russias second largest oil company to explore for shale oil and gas. Totals chief executive Christophe de Margerie also went to lengths to reassure the Russian hosts. My message to Russia is simple business as usual, he said at the event. To be clear, the oil companies are not legally running afoul of international sanctions. But their collective shrug in the face of European and American pressure to boycott Russia along with the $400 billion natural gas deal Russia signed with China last week illustrates the difficulty with which the West will have at undermining Russias energy sector, if it chose to do so. Russia is too big of a prize for the likes of ExxonMobil, BP, and Shell. Or viewed another way, the moves to deepen business in Russia suggest that the worlds biggest oil companies are confident that the U.S. and Europe wont be so bold as to truly attack Russias energy machine.
http://oilprice.com/Energy/Energy-General/Exxon-BP-Defy-White-House-Extend-Partnership-with-Russia.html
Part 2 August 9, 2014
Putin Praises Exxon Alliance as Arctic Drilling Starts
The European Union imposed a third round ofsanctions last month, restricting the export of equipment used for offshore oil production to Russia after its relations with Europe and the U.S. deteriorated to the lowest point since the Cold War over the conflict in Ukraine. That hasnt stopped Exxon, the worlds largest energy company, because the contract to hire the rig was signed before the measures were announced. The U.S. also separately sanctioned Russian energy companies Rosneft and OAO Novatek.
President Vladimir Putin lauded Russias old and reliable partner Exxon Mobil Corp. as he gave the command for the U.S. energy company and ally OAO Rosneft to begin drilling a $700 million Arctic Ocean oil well.
Putin, Rosneft Chief Executive officer Igor Sechin and Exxons Russia head Glenn Waller, undeterred by the crisis in U.S.-Russian relations, together welcomed the start of the countrys northernmost well. Its the first step in a quest for new energy resources to help maintain oil production near a post-Soviet high of more than 10 million barrels a day.
Despite current political difficulties, pragmatism and common sense prevails, Putin said at the Black Sea resort of Sochi as he gave the command via video to commence drilling today. Nowadays, commercial success is defined by an efficient international cooperation. Businesses, including the largest domestic and foreign companies, understand this perfectly.
http://www.bloomberg.com/news/articles/2014-08-09/putin-praises-exxon-alliance-as-arctic-drilling-starts
Putin needed Croatia, Exxon Mobil needed Russia to see that Putin means business in have no disputes over transporting oil. Sanctions have meant nothing when corporate billionaire oil company's are making the rules. They have bought of US oil Co for decades, they are now just taking a bigger piece of the global pie! Trump is just hanging on to Putin's coat tails!