• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 hours Could Venezuela become a net oil importer?
  • 10 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 21 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 3 hours Oil prices going Up? NO!
  • 17 hours Gazprom Exports to EU Hit Record
  • 19 hours EU Leaders Set To Prolong Russia Sanctions Again
  • 17 hours Could oil demand collapse rapidly? Yup, sure could.
  • 11 hours Oil prices going down
  • 21 hours Why is permian oil "locked in" when refineries abound?
  • 17 hours Oil Buyers Club
  • 21 hours EVs Could Help Coal Demand
  • 9 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 1 day China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 1 day Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 4 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 15 hours Saudi Arabia turns to solar
Alt Text

Is Nigeria Moving From Oil Into Gold?

Nigeria is looking to diversify…

Alt Text

Market Insiders Baffled By Low Platinum Prices

Platinum prices are at their…

Dave Forest

Dave Forest

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

More Info

Trending Discussions

This Home Of Mega-Oil Finds Is Reforming

News this week that major energy reforms are coming. In one of the most intriguing exploration centers on the planet: Kazakhstan.

Kazakh president Nursultan Nazarbayev said he is disbanding the country's reigning energy authority--the Ministry of Oil and Gas.

In it's place, Nazarbayev will create a new and broader regulating body. One that combines the functions of the oil and gas ministry with other departments like industry and technology, environment and water resources.

The president made the sweeping move after declaring that Kazakhstan's energy sector is in "complete chaos".

Nazarbayev didn't elaborate on exactly what those difficulties might be. But analysts have noted that Kazakhstan's energy sector has been plagued by permitting delays--and regulatory uncertainty. The kind that has almost completely undermined some of the country's recent mega-projects.

One of the highest-profile hits has been the Kashagan oil project in the offshore Caspian Sea. Which is one of the largest oil finds over the last few decades, at an appraised recoverable resource of 11 billion barrels of crude.

But Kashagan today sits idle. A start-up of the field in September 2013 having been scuttled by leaking pipelines at the massive facility. And an attempted restart in October aborted after more leaks were discovered.

That's led to a complete shutdown of this massive field. With a re-start now targeted for 2016.

The reasons behind these problems could have a lot to do with Kazakhstan's patchy regulatory framework. With ownership of Kashagan having been shuffled several times between the government and project's developers--which include Italian multinational Eni, Shell, ExxonMobil, Total and China National Petroleum Corp.

Uncertainty over ownership (and operatorship) undoubtedly impacted Kashagan during construction. Which may be why the engineering work is turning out to be less than world-class.

We'll see if the new reforms really can streamline the environment for energy projects here. If so, there could be a lot of supply--and a lot of developers--who will benefit.

Here's to ending the chaos,

Dave Forest




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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