• 45 mins Oil Prices Inch Higher After Surprise Crude Draw
  • 2 hours Kuwait Greenlights Game-Changing Gas Fields Project After Years of Delay
  • 2 hours Minnesota Begins Public Hearings On Enbridge Line 3 Project
  • 3 hours China Looks To Create National Natural Gas Pipeline Firm
  • 3 hours Total Not In A Rush To Sell Canadian Oil Sands Assets
  • 4 hours DOE Seeks To Boost Usage Of Carbon Capture Tech
  • 5 hours Taxpayers Likely To Pick Up The Growing Tab For DAPL Protests
  • 7 hours WTI At 7-Month High On Supply Optimism, Kurdistan Referendum
  • 14 hours Permian Still Holds 60-70 Billion Barrels Of Recoverable Oil
  • 19 hours Petrobras Creditors Agree To $6.22 Billion Debt Swap
  • 23 hours Cracks Emerge In OPEC-Russia Oil Output Cut Pact
  • 1 day Iran Calls On OPEC To Sway Libya, Nigeria To Join Cut
  • 1 day Chevron To Invest $4B In Permian Production
  • 1 day U.S.-Backed Forces Retake Syrian Conoco Gas Plant From ISIS
  • 1 day Iraq Says Shell May Not Quit Majnoon Oilfield
  • 4 days Nigerian Oil Output Below 1.8 Million BPD Quota
  • 4 days Colorado Landfills Contain Radioactive Substances From Oil Sector
  • 4 days Phillips 66 Partners To Buy Phillips 66 Assets In $2.4B Deal
  • 4 days Japan Court Slams Tepco With Fukushima Damages Bill
  • 4 days Oil Spills From Pipeline After Syria Army Retakes Oil Field From ISIS
  • 4 days Total Joins Chevron In Gulf Of Mexico Development
  • 4 days Goldman Chief Urges Riyadh To Get Vision 2030 Going
  • 4 days OPEC Talks End Without Recommendation On Output Cut Extension
  • 5 days Jamaican Refinery Expansion Stalls Due To Venezuela’s Financial Woes
  • 5 days India In Talks to Acquire 20 Percent Of UAE Oilfield
  • 5 days The Real Cause Of Peak Gasoline Demand
  • 5 days Hundreds Of Vertical Oil Wells Damaged By Horizontal Fracking
  • 5 days Oil Exempt In Fresh Sanctions On North Korea
  • 5 days Sudan, South Sudan Sign Deal To Boost Oil Output
  • 5 days Peruvian Villagers Shut Down 50 Oil Wells In Protest
  • 5 days Bay Area Sues Big Oil For Billions
  • 6 days Lukoil Looks To Sell Italian Refinery As Crimea Sanctions Intensify
  • 6 days Kurdistan’s Biggest Source Of Oil Funds
  • 6 days Oil Prices On Track For Largest Q3 Gain Since 2004
  • 6 days Reliance Plans To Boost Capacity Of World’s Biggest Oil Refinery
  • 6 days Saudi Aramco May Unveil Financials In Early 2018
  • 6 days Has The EIA Been Overestimating Oil Production?
  • 6 days Taiwan Cuts Off Fossil Fuels To North Korea
  • 6 days Clash In Oil-Rich South Sudan Region Kills At Least 25
  • 6 days Lebanon Passes Oil Taxation Law Ahead Of First Licensing Auction
Alt Text

Is Big Oil Going Green?

Big Oil, ranking among the…

Alt Text

Oil Prices Plateau After OPEC Meeting

With oil markets tightening over…

Alt Text

Eagle Ford Sees Surge In Production

While the Permian Basin dominates…

Governments Racing to Secure Natural Resources

The race to secure natural resources is intensifying. Particularly amongst governments and nationally-sponsored corporations. And particularly in Asia.

We’ve been seeing signs the last few years that Asian nations are stepping up their drive for oil, copper, iron and natural gas. I talked last week about India jumping into the fray in a big way for coal.

A few more indicators this week worth mentioning. Korea is upping the ante.
Korea National Oil Corp (KNOC) leaked this week that it will sell between $500 million and $1 billion worth of bonds to fund its $2.6 billion hostile takeover of Africa/North Sea-focused Dana Petroleum.

The same day, the world's second biggest smelter, LS-Nikko announced a joint venture with Korea's top steelmaker, Posco. Under the deal, the two majors will work together on the acquisition and development of copper and iron ore projects.

These are deals of mega-proportions. So much so, the Korean government said it fears currency appreciation because of state-associated firms issuing billions in new won-denominated debt.

Not to be outdone, Japan also announced some ambitious natural resource plans this week. Tokyo Electric Power Company (Tepco) said it is aiming to take more ownership in liquefied natural gas projects around the globe.

Tepco currently sources 11% of its LNG supplies from projects in which it owns equity. Mainly Australia's Darwin LNG facility. The company said it wants to grow this to 33% equity supply by 2020.

This is a big jump in supply. Meaning Tepco is going to have to be fairly aggressive in pursuing buy-in on new projects.

With all these plans on the books, deep-pocketed Asian governments are going to be increasingly butting heads with regular corporations as well as each other when it comes to buying resource projects. A lot of cash is being brought to bear on the sector in a great game of "chicken", with significant implications for project valuations.

The Asian slant means projects within shipping distance of the East are going to be in demand. Pick your investment spots wisely.

By. Dave Forest of Notela Resources




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News