• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 1 hour Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 2 hours America's pandemic dead deserve accountability after Birx disclosure
  • 48 mins Putin blocks Ukraine access to Black Sea after Joe blinks
  • 40 mins Today Biden calls for Summit with Putin. Will Joe apologize to Putin for calling him a "Killer" ?
  • 1 day U.S. Presidential Elections Status - Electoral Votes
  • 16 hours Biden about to face first real test. Russia building up military on Ukraine border.
  • 5 days Joe Biden's Presidency
  • 15 hours Fukushima
  • 23 hours CO2 Mitigation on Earth and Magnesium Civilization on Mars – Just Add Water
  • 3 days New Chinese Coal Plants Equal All those in U.S.A
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

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


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




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