Archive for November 5th, 2007

The invisible hand has…uh…spoken?

Nov 05, 2007 in Energy, Foreign Policy

More bad news from happy-motoring nation; state-controlled PetroChina* closed at double the value of it’s closest rival; ExxonMobil.

The New York Times, typically AWOL when it comes to common sense energy journalism, pointed out a frequently overlooked fact in a Times Magazine article this past weekend; that 77 percent of the world’s oil reserves are held by national oil companies with no private equity, and there are 13 state-owned oil companies with more reserves than ExxonMobil, the largest multinational oil company.  (Until today that is.)

We are faced with a dire predicament.  Nations that we’ve typically relied upon for our energy needs are using more of their own oil and producing less.  In the near future, selling oil to favored customers will be an extremely potent instrument of geopolitics that will most likely turn even more ugly and violent than it already is.

-mg

*that’s gotta fry the brains of the “free market” zombies…a company that is both state operated and publicly traded.