Exporter- an entity (company) that exports certain raw materials or goods from their country and sells them abroad to foreign states.
Importer Is an entity that purchases and imports foreign raw materials or goods into the territory of its country.
When they talk about a subject, they can talk about both the exporting company or the importing company, and the country that exports or imports.
Oil is the world's strategic energy resource. Exporters usually feel at ease. And importers are always in some dependence on suppliers, and of course on world oil prices. Each country seeks to acquire its own deposits or, according to at least, reliable suppliers, some use their geographic location and thereby reduce the tariff for raw materials for their transit through their territory. In general, each individual state seeks to make the most of the conditions that have developed in the current moment. It should be borne in mind that the situation on the world stage can change quite quickly. Take England or Norway as an example. Back in the late 1960s, these countries were importers, and ten years later they began to export oil to other countries. Around the Middle East from the West (primarily the United States), aggressive actions have been carried out and are being carried out with no less success over the past 60 years. Now, for example, Iraq, under American pressure, is in a very deplorable situation. Another opposite example is Saudi Arabia and the United Arab Emirates (United Arab Emirates), which managed to escape from the tough pressure of the Western conglomerate and establish stable oil exports.
The main exporters of oil in the world are 11 states. It is logical to distribute all exporting countries by regions of the world:
Region - Asia (Middle East): Saudi Arabia, United Arab Emirates (UAE), Iran, Iraq, Qatar.
Region - Europe: Norway, Russia, Great Britain.
Region - America: Canada, Mexico, Venezuela.
Region - Africa: Nigeria, Angola, Algeria.
The largest exporters of oil in the world
Region-Asia (Middle East)
Saudi Arabia
Saudi Arabia ranks first in the world in terms of oil production, with a daily level of more than 8 million barrels. Today Saudi Arabia is an importer of all types of food products. The growth of the country's economy over the past 20 years has been associated with an increase in profits from the export of oil products.
Oil is the country's main source of income. Saudi Arabia is the world's largest oil exporter. The level of oil exports is approximately 4 times the level of the world's No. 2 exporter, Norway. Arabia produces approximately 1.3 million tons of oil every day. Saudi Arabia also produces 100 million cubic meters of natural gas per day.
Oil export revenues account for about 90% of the budget revenues. Saudi Arabia is the main importer of oil to the United States and Japan.
An important source of income for the country is the pilgrimage (hajj) of Muslims from all over the world to Mecca and Medina. 2-3 million visitors each year bring treasury income in the amount of US $ 2 billion.
In total Saudi Arabia there are about 77 oil and gas fields. The largest fields are Gavar, the world's largest onshore oil field, estimated at 9.6 billion tons of oil, and Safania, the world's largest offshore field with proven reserves of around 2.6 billion tons. In addition, there are such large deposits in the country as Nazhd, Berri, Manifa, Zuluf and Shaybakh.
The country has large refining capacities - about 300 thousand tons of oil per day. Major refineries: Aramko-Ras Tanura (41 thousand t / s), Rabig (44.5 thousand t / s), Aramko-Mobil-Yanbu (45.5 thousand t / s), and Petromin / Shell- al-Jubeyl (40 thousand t / s).
The country's oil industry is nationalized, and the oil industry is run by the Supreme Petroleum Council. The largest oil company - Saudi Arabian Oil Co. (Saudi Aramco), petrochemical - Saudi Basic Industries Corp. (SABIC).
Today, the UAE government pays great attention to the development of alternatives to the oil industry: land development is underway (today the agriculture of the emirates is already able to meet the domestic demand for vegetables and fruits), the development of various industries, the transformation of ports into international shopping centers... Much attention is paid to water desalination technologies.
40% national budget goes to military spending.
Until the 1950s, when oil fields were discovered in the UAE, the main sectors of the economy were fishing and pearl mining, which was already in decline. But since 1962, when Abu Dhabi was the first emirate to export oil, the country and its economy have changed beyond recognition.
The late ruler of Abu Dhabi, Sheikh Zayed, who has been the President of the UAE since its founding, quickly realized the potential of the oil industry and ensured the development of all the emirates by investing the profits from oil exports in health care, education and national infrastructure development.
The development of the oil industry has also facilitated an influx of foreign labor, which now accounts for about three quarters of the country's population. The development of business and tourism contributed to the start of a construction boom in the emirates.
The proven oil reserves of the United Arab Emirates are about 10% of the world - about 13.5 billion tons. Daily oil production exceeds 2.3 million barrels, of which about 2.2 million are exported. The main importers of UAE oil are countries South-East Asia while Japan accounts for about 60% of the oil exported by the UAE.
Most of the country's reserves are concentrated in the emirate of Abu Dhabi. The main oil fields are: in Abu Dhabi - Asab, Beb, Bu Hasa; in Dubai - Fallah, Fateh, Southwest Fateh; to Rashid Sharjah - Mubarak. The oil refining capacity of the UAE is about 39.3 thousand tons per day. The main refineries of the country are Ruweiz and Um-al-Nar-2. The UAE's oil industry is controlled by the country's government. The state oil company Abu Dhabi National Oil Company (ADNOC) includes oil production, service and transportation companies.
Iran
Iran's proven oil reserves account for about 9% of the world's total, or 12 billion tons. The country currently produces about 3.7 million barrels per day of oil, with a daily consumption of about 1.1 million barrels. The main importers of Iranian oil are Japan, South Korea, Great Britain and China.
Iran has faced serious economic problems in the past 20 years. Much of the economy is in the shadows. Despite this, the standard of living is quite high compared to most other countries in the region.
The Iranian economy is highly dependent on the oil industry, but the country has many unrealized opportunities. There are many natural resources that have not yet been developed, and agriculture looks promising, since there are many barren lands that can be irrigated in the future. An increase in the country's exports is also possible in the event of a normalization of Iran's relations with neighboring countries.
The reluctance of the Islamist government to adapt to the international community, as well as the protracted conflict with the United States, led to a decrease in international investment into the country's economy and the reduction of foreign trade.
The main oil fields in Iran are Gajaran, Marun, AvazBanjistan, Aga Jari, Raj-i-Safid and Pars. About 1 million bpd is recovered from offshore oil fields, the largest of which are Dorud-1, Dorud-2, Salman, Abuzar and Forozan. In the future, the Iranian Oil Ministry plans large-scale development and development of existing offshore fields.
Iran occupies an exceptionally advantageous position from a geopolitical and strategic point of view for laying oil transportation routes, which makes it possible to significantly reduce the cost of delivering raw materials to world markets.
The country's oil refining capacity is about 200 thousand tons of oil per day. The main refineries are Abadan (65 thousand t / s), Isfahan (34 thousand t / s), Bandar Abbas (30 thousand t / s) and Tehran (29 thousand t / s).
Iran's oil and gas industries are under the full control of the state. State Oil Company - National Iranian Oil Company (NIOC - National Iranian Oil Company) conducts exploration and development of oil and gas fields, is engaged in the processing and transportation of raw materials and petroleum products. The solution to the issues of petrochemical production is entrusted to the National Petrochemical Company (NPC - National Petrochemical Company).
Iraq
Iraq ranks second in the world in terms of proven oil reserves, behind only Saudi Arabia. The volume of proven oil reserves in Iraq is about 15 billion tons, and the forecasted - 29.5 billion.
In 1972, the Iraqi Oil Company was nationalized, and by 1979, when Saddam Hussein became president, oil accounted for 95 percent of the country's foreign exchange earnings. But the war with Iran, which lasted from 1980 to 1988, as well as the Gulf War in 1991 after Iraq's occupation of Kuwait and the subsequent imposition of international sanctions, had a devastating effect on the country's economy and its population. In 1991, the UN announced that Iraq had become a pre-industrial state, and reports from the following years showed that the country's standard of living fell to the subsistence level.
Iraq currently has no production quota. Its oil exports are governed by UN sanctions that were imposed after the 1991 Gulf War. The UN Oil-for-Food Program is aimed at providing the country with food and medicine, as well as paying reparations. Now the volume of oil production in Iraq is 1.5-2 million bpd. However, if the UN sanctions are lifted, it can reach the production level of 3 million bpd within one year, and 3.5 million bpd in 3-5 years. The level of daily oil consumption in the country is about 600 thousand bpd. With its pipelines fully loaded, Iraq is capable of exporting 1.4-2.4 million bpd.
The main fields of the country are Majnun with proven reserves of about 2.7 billion tons of oil and West Qurna - 2 billion. The most promising reserves are also found in the fields of East Baghdad (1.5 billion tons) and Kirkuk (1.4 billion tons).
The main oil company in the country is the Iraqi National Oil Company, and autonomously operating companies are subordinate to it:
State Company for Oil Projects (SCOP), which is responsible for the development of upstream (oil exploration and production) and downstream (transportation, marketing and sales) projects;
Oil Exploration Company (OEC), responsible for exploration and geophysical work;
The State Organization for Oil Marketing (SOMO), which deals with oil trading, in particular, is responsible for relations with OPEC;
Iraq Oil Tankers Company (IOTC) - transport tanker company;
Northern (Northern Oil Company - NOC) and Southern (Southern Oil Company - SOC) oil companies.
Qatar
Qatar's economy is completely dependent on oil production. The oil reserve is estimated at 3.3 billion barrels, according to the runs it will last for 25 years. Today the country produces 140 million barrels a year. Oil production accounts for approximately 85% of the country's income. At the same time, natural gas deposits in Qatar are not yet sufficiently developed; the country has the North Dome Field - the third largest in the world.
Natural gas production is kept at 8.2 billion per year. With more than 15 percent of the planet's proven gas reserves, Qatar is hoping to turn the country into one of the true energy giants. modern world.
Attempts to develop industry have met with limited success. For foreign investors, Qatari legislation provides for tax exemptions for up to 12 years, foreign companies are allowed to own 100% of the property. Qatar currently has one of the highest per capita incomes in the world.
Kuwait
The development of oil fields began here in the 1930s. The development of the oil industry accelerated after World War II and the declaration of independence in 1961. Since then, oil has remained the dominant factor in the country's economy, generating about 90 percent of all export revenues. Kuwait's oil reserves are estimated at 10% of the world's oil reserves and at the current rate of oil production they will last for another 150 years.
Also, a separate item of the country's income is income from Kuwait's investments abroad. Foreign investment accounts for 10% of oil revenues.
Region - Europe
Norway
Norway's proven oil reserves are estimated at 1.4 billion tons and are the largest in Western Europe. The daily level of oil production reaches 3.4 million barrels. Of these, about 3 million bpd are exported.
Most of Norway's oil is produced offshore North Sea.
The country's largest deposits are Statfjord, Oseberg, Galfax and Ekofisk. The last major discoveries of geologists were the Norn field, discovered in 1991 in the Norwegian Sea, and Donatello in the Norwegian sector of the North Sea.
The leading company in the country is the state-owned company Statoil, founded in 1973. In November 1998 Statoil signed a cooperation agreement (NOBALES) with companies such as Saga Petroleum, Elf Aquitaine, Agip, Norsk Hidro and Mobil, providing for joint work in the Barents Sea. In addition, a private oil and gas group Saga Petroleum operates in the country, currently Saga is working in such fields as Snorr, Vigdis, Tordis and Varg. In early September, Saga signed an agreement with the National Iranian Oil Company to conduct exploration work in the northern part of the Persian Gulf. In addition, Saga is active in Libya (Mabruk field) and Namibia (Luderitz Basin).
Russia
Proved oil reserves in Russia amount to about 6.6 billion tons, or 5% of world reserves. It should be noted that now Russia, together with the CIS countries, is restoring oil production volumes to the extent that existed in the former Soviet Union. In 1987, oil production in the USSR reached 12.6 million b / d (about 540 million tons per year), which was almost 20% of world production, with a daily export volume of 3.7 million tonnes.
Today Russia is one of the largest oil producers in the world, in terms of production it ranks third after Saudi Arabia and the United States. Together with other CIS countries, Russia provides about 10% of the total volume of oil supplies to the world market.
The oil complex of Russia includes 11 large oil companies, which account for 90.8% of the total oil production in the country, and 113 small companies, whose production volume is 9.2%. Russian oil companies carry out a full range of oil works - from exploration, production and refining of oil to its transportation and marketing of oil products. The largest Russian oil companies are LUKOIL, TNK, Surgutneftegaz, Sibneft, Tatneft, Rosneft, Slavneft.
About 2,000 oil and oil and gas fields have been discovered in Russia, the largest of which are located on the shelf of Sakhalin, the Barents, Kara and Caspian Seas. Most of the proven oil reserves are concentrated in Western Siberia and on the territory of the Ural federal district... There is practically no oil production in Eastern Siberia and the Far East. The oldest and depleted regions of oil production in Russia are the Ural-Volga region, North Caucasus and Sakhalin Island. The deposits of Western Siberia and the Timan-Pechora region were discovered relatively recently and are at the very peak of their development.
Despite the decline in the level of oil production and refining over the past decade, Russia remains one of the leading exporters of oil and oil products. It accounts for about 7% of the world's total refining capacity. Unfortunately, this potential is not fully realized: Russia's share in the volume of refined oil has decreased from 9% of the world volume in 1990 to 5% at present. In terms of the scale of actual oil refining, Russia has moved from second place after the United States to fourth, giving way to Japan and China. And in terms of the level of consumption of petroleum products per capita, Russia is now in 14th place in the world, behind, in addition to developed countries, countries such as Nigeria. In addition, domestic refineries are badly worn out, their equipment is outdated. In terms of depreciation of fixed assets, oil refining is the leader in the domestic fuel and energy complex, average wear on which is 80%.
Limited transport capacities are a significant obstacle for Russia on the way to increasing the share of supplies to the world oil market. The main trunk pipelines in Russia are oriented towards old production areas, and the transport scheme linking new promising fields with consumers is insufficiently provided. However, as a result of the commissioning in 2001 of two new pipeline systems - the Caspian Pipeline Consortium (CPC) and the Baltic Pipeline System (BPS) - additional export routes will appear through the Baltic and Black Sea.
United Kingdom
The fuel and energy complex (FEC) of Great Britain is one of the leading sectors of the economy. Most of the country's oil and gas fields are located in the British North Sea. Since 70. of the last century, more than £ 205 billion were invested in their development. 270 fields are being developed on the British continental shelf, of which 150 are oil, 100 are gas, 20 are gas condensate. There are 31 oil fields and several gas fields under development on the UK mainland.
There is no variety of minerals in the UK, but some of them have played a huge role in the formation of industrial areas. Particularly important was the importance of coal deposits, scattered throughout the economic regions, except for the three southern and Northern Ireland.
In the 60s, new energy resources were found - oil and natural gas on the shelf of the North Sea. Large deposits are located off the coast of the south-east of England and the north-east of Scotland. The British sector contains about 1/3 of the proven oil reserves of the North Sea shelf (45 billion tons or 2% of the world). Production is carried out at fifty fields, of which the largest are Brent and Fortis. By the mid-90s, production reached 130 million tons, almost half of which is exported - mainly to the USA, Germany, and the Netherlands. The import of oil remains (50 million tons, which is due, among other things, to the predominance of light fractions in the North Sea oil and the need to receive the entire range of oil products at the refineries). According to experts, Great Britain will remain a major oil producer at the beginning of the next century.
The length of underwater pipelines used for the transportation of oil, gas and condensate is 11 thousand km.
Total energy production in the UK in 2007 amounted to 185.6 million tons. oil equivalent, which is 5.7% less than in 2006. At the same time, there is some slowdown in the decline in their production.
Region - America
Canada
Canada exports about 68% of its crude oil and partly as petroleum products, and almost all of this goes to the United States. Among individual countries, the northern neighbor is the largest supplier of oil and petroleum products to the United States.
In the fuel and energy balance of Canada, about 3/4 is accounted for by liquid and gaseous fuels. Oil production has fluctuated significantly over the past 20 years (89 million tons in 1995), and natural gas production is growing more steadily, reaching 158 billion cubic meters (third in the world). The eastern provinces of Canada import oil. Exports of oil and gas to the United States are significant.
Oil wealth really represents driving force Canadian economy. By the way, what are oil sands? It is a mineral consisting of clay, sand, water and bitumen. From oil sands, with the help of, in particular, special refineries, ordinary oil and oil products are produced. available oil reserves in Canada are 179 billion barrels. Thus, it ranks second in the world after Saudi Arabia in this indicator. " However, most of these reserves, 174 billion barrels are located in oil sands and can be developed using expensive and environmentally damaging technologies. Oil sand is extracted in open pit mines or directly the oil itself after it is liquefied underground by means of hot steam and then pumped out to the surface. Both methods require further special chemical processes before the resulting product can be sold as synthetic oil.
Canada has been climbing the list of global oil producers for many years and is now the world's ninth largest oil exporter. Since 2000, Canada has become the largest supplier of oil to the United States, and has been gaining significant attention from the Chinese market. He predicted that China's oil import needs would double by 2010, and coincided with the United States by 2030. Canada is currently positioned as the largest exporter of oil to China.
Mexico
Mexico is one of the largest oil producers in the world, with proven oil reserves estimated at 4 billion tons. In terms of production, which is now about 3.5 million b / d, Mexico has overtaken Venezuela, and rightfully occupies a leading position in Latin America. About half of the oil produced in the country is exported, primarily to the United States, and more than half of the oil is produced offshore in Campeche Bay.
An important achievement of the oil industry was the rapid development of the refining and petrochemical industries, which are today the main branches of the Mexican manufacturing industry. The main refineries are located on the coast of the Gulf of Mexico. Per last years along with the old centers - Reinosa, Ciudad Madero, Poza Rica, Minatitlan, new ones - Monterrey, Salina Cruz, Tula, Cadereita - were put into operation.
According to the 1993 law on foreign investment, exclusive rights to explore and develop oil fields in the country remain with the state, and above all with the state-owned company Pemex. Pemex has the Mexican Petroleum Institute, which conducts research and development.
Venezuela
Venezuela, the largest regional oil producer, is creating a favorable investment climate in its gas industry. Nevertheless, the role of fuel oil is still great. The capacities of petrochemical plants are increasing, the share of complex types of distillation - thermal and catalytic cracking and reforming - is growing in the consumption of refined products. The largest oil producer in the region, Venezuela, is actively trying to increase gas production and to act on the world stage as an exporter of not only oil, but also natural gas. The focus on the development of gas resources has become one of the priority goals of the administration of the country's new president, Hugo Chavez, who was elected in 1998.
Venezuela's proven natural gas reserves are more than 4 trillion cubic meters. m3, which puts Venezuela in 8th place in the world. At the same time, in a number of countries that are significantly inferior to Venezuela in this indicator, gas exports play a significant or even the main role in the economy (for example, Canada, the Netherlands, Indonesia, Malaysia, etc.). The peculiarity of the gas potential of Venezuela is that it is mainly associated gas from oil fields. Free gas reserves are only 9% of the total. Gas production, about 62 billion cubic meters per year, is also almost entirely formed by associated petroleum gas. More than 70% of the recovered gas is used for the needs of the oil industry, and only 30% goes to the domestic market.
The development of gas fields is mainly constrained by the lack of a clear legal regime for activities in the gas sector, as well as by the fact that the main fields are located in the east of the country, and the centers of potential consumption gas fuel- in the West. Thus, in order to implement an ambitious gas program, the government needs to solve two problems: create conditions conducive to the inflow of foreign and local capital for the development of gas fields, and implement projects to create a gas transportation infrastructure. The current leadership of the country has set itself the task of bringing the annual gas production level by 2010 to 150 billion cubic meters. All operations with free gas of gas fields, from exploration and production to sales, can now be carried out by private investors, both national and foreign. However, the participation of a state-owned company is optional.
Region - Africa
Africa is firmly entrenched in the cohort of the world's oil-producing regions, with 12 percent of the world's proven oil reserves and 11 percent of the world's production. The growth rate of proven fields and the scale of production suggests that Africa's role in oil issues will only grow in the next century. One of its main trump cards, among other things, is the proximity and convenience of transporting the extracted raw materials to the largest consumers - the USA and Brazil.
Nigeria
Nigeria possesses significant reserves of oil, natural gas, coal, columbite, uranium, tin, and iron ore.
The oil and gas industry continues to be the leader in the real sector of the economy. Exports of crude oil account for over 90% of all foreign exchange earnings in the country. In terms of the rate of development of this industry, the level of capital investment (10 billion US dollars), Nigeria is one of the first places in the world. Nigeria intends to increase its OPEC quota to 4 million barrels. per day by 2007, and by 2010 - up to 4.5 million barrels. in a day.
Foreign companies are engaged in the development of oil fields, however, the state receives more than half of all revenues. Nigeria's wealth rose or fell depending on the price of oil on the world market. Most of the deposits are located in the south of the country, where the Niger River flows through an area of lagoons, swamps and mangroves. Oil is refined at Port Harcourt, from where other commodities are also exported, including Palm oil, peanuts and cocoa. Many factories and food processing enterprises operate in such large cities of the country as Lagos and Ibadan. The government of Nigeria uses the revenues from the oil field to improve the education system, develop Agriculture and new industries. About half of Nigeria's population is engaged in farming using traditional farming methods. Recently developed mining, especially mining of coal and tin.
Angola
Angola is the second largest oil producer in Africa after Nigeria. The leading oil production operator is Chevron Angola. In 2005, oil production in Angola was about 1.25 million barrels per day. It is planned that in 2008 oil production in Angola will increase to 2 million barrels per day. In Angola, despite the aggravation of the civil war, there is a real oil rush. There, mining rights are being snapped up at prices that are higher than the most daring forecasts of the recent past.
Recently, the African oil market has become the object of intensifying competition between China and the United States. In order to strengthen its position in the African oil market, China intends to provide Angola with a $ 3 billion loan in 2006. These funds will be used to build a new oil refinery in Angola and to develop deep-water oil fields on the offshore shelf.
Angola has already discovered half a dozen very large deposits. Oil production in Angola is expected to reach 1 million barrels per day in 2000 and 2 million in 2005, i.e. the level of Nigeria. Oil exploration in the north of Angola is especially successful: 75% are successful. drilled wells of the American company "Exxon", 100 percent. - American "Chevron" and French "Total" and only slightly less from another French company "Elf-Akiten". Exxon and Chevron expect at least 500 million barrels of oil reserves to be discovered in the near future. The growth in oil production is so rapid that the state-owned company Sonangol is clearly not keeping up with these rates. It has just expanded its staff with 300 young professionals who were sent abroad to study new technologies at the beginning of the decade, but this replenishment is a drop in the ocean. The training of our own personnel has become the number one task. Indeed, according to the US administration, Angolan oil will soon amount to 10%. of all imports of "black gold" in the United States. This is what explains sharp increase US interest in Angola in recent years.
Algeria
Algeria's economy is booming, driven by rapid development oil and gas complex, which provides 90% of the country's export earnings. Hydrocarbon reserves in oil equivalent are 120 billion barrels, oil production - about 60 million tons and gas - 130 million tons per year.
After Algeria allowed foreign companies to return to oil exploration and production in 1986, the oil sector took a major leap forward. The state company "Sonatrak" does not have the necessary technology and personnel to leap forward. It was only with the help of foreign investors that Algeria was able to discover the largest deposit in Ghadames. It was there that the specialists of the American company "Andarko" discovered deposits of up to 3 billion barrels, which is one third of all national reserves. New technologies made it possible to increase production by 65%. The leader in oil production in Africa remains
Algeria is already the world's second largest producer of liquefied gas (8.5 million tons per year) and the world's third exporter of natural gas. A significant increase in gas exports is envisaged. The Sonatrak company announced its intention to invest $ 19 billion in the operation of existing and development of new oil and gas fields in the next 2 years, which causes the need for equipment. The government created a new the legislative framework- the Laws on Subsoil and Gas have been adopted, making oil and gas industries open to foreign investment. With their adoption, major projects begin to be implemented: 2 gas pipelines across the Mediterranean Sea and the Algeria-Nigeria gas pipeline.
Major oil importing countries
The country that purchases raw materials is called an importer. The largest importers of course are economically developed regions such as the USA, Europe and Japan. The share of the USA in the world turnover takes the leading role, since this country accounts for about 28% of all imported oil. I would like to note that America not only purchases, but also produces about a fifth of the consumed volume of raw materials. There are, of course, our own production facilities. We should certainly not forget about developing countries such as China and India. These are countries that are very actively gaining economic momentum.
USA
The United States is the largest consumer of oil in the world. The daily level of oil consumption in the country is about 23 million barrels (or almost a quarter of the global), while about half of the oil consumed in the country is from motor vehicles.
Over the past 20 years, the level of oil production in the United States has decreased: for example, in 1972 it was 528 million tons, in 1995 - 368 million tons, and in 2000 - only 350 million tons, which is a consequence of the increased competition between American producers and importers of cheaper foreign oil. Of the 23 million b / d consumed in the United States, only 8 million b / d is produced, and the rest is imported. At the same time, the United States still ranks second in the world in terms of oil production (after Saudi Arabia). The proven oil reserves of the United States are about 4 billion tons (3% of world reserves).
Most of the country's explored deposits are located on the shelf of the Gulf of Mexico, as well as off the Pacific coast (California) and the shores of the Arctic Ocean (Alaska). The main mining areas are Alaska, Texas, California, Louisiana and Oklahoma. Recently, the share of oil produced on the sea shelf has increased, primarily in the Gulf of Mexico. The largest oil corporations in the country are Exxon Mobil and Chevron Texaco. The main US oil importers are Saudi Arabia, Mexico, Canada, and Venezuela. The United States is highly dependent on OPEC policy, and that is why it is interested in an alternative source of oil, which Russia can become for them.
European countries
The main importers of oil in Europe are Germany, France, Italy.
Europe imports 70% (530 million tons) of oil consumption, 30% (230 million tons) is covered by its own production, mainly in the North Sea.
Imports to European countries account for 26% of the total oil imports in the world. By sources of income, oil imports to Europe are distributed as follows:
- Middle East - 38% (200 million tons / year)
- Russia, Kazakhstan, Azerbaijan - 28% (147 million tons / year)
- Africa - 24% (130 million tons / year)
- others - 10% (53 million tons / year).
Currently, 93% of all oil exports from Russia are directed to Europe. This estimate includes both the markets of the countries of North-West Europe, Mediterranean Sea and the CIS countries.
Japan
Since the country's natural resources are limited, Japan is highly dependent on foreign raw materials and imports a variety of goods from overseas. Japan's main import partners are China - 20.5%, USA - 12%, EU - 10.3% Saudi Arabia - 6.4%, UAE - 5.5%, Australia - 4.8%, South Korea - 4 , 7%, and also Indonesia - 4.2%. The main imports are machinery and equipment, natural fuels, food products (especially beef), chemicals, textiles and industrial raw materials. In general, Japan's main trading partners are China and the United States.
Japan, having survived two oil crises in the 70s and early 80s, was able to minimize the economy's vulnerability to oil price changes through the introduction of energy conservation systems by large corporations and government initiatives to develop alternative energy sources.
China
The Chinese economy continues to develop at a rapid pace, requiring more and more energy resources. In addition, the decision of the PRC government to create a strategic oil reserve also affects the growth of imports. By 2010, the oil reserve will have to cover the country's needs for 30 days.
The growth rate of imports in June was almost the highest this year, yielding only to April, when oil imports rose by 23%.
total cost China's oil imports in the first half grew by 5.2% to $ 35 billion. In June, imports cost $ 6.6 billion. At the same time, imports of petroleum products even fell by 1% to 18.1 million metric tons in the first half. In June, imports of petroleum products amounted to 3.26 million metric tons.
India
India currently has energy shortages in many areas. V countryside we consume traditional energy sources - wood, agricultural waste. This causes pollution of the atmosphere and soil. In this regard, such energy consumption must be replaced by cleaner energy sources as part of the development of India's energy strategy.
The Indians went their own way and fully trusted the Soviet specialists. In August 1996, the State Oil and Natural Gas Commission (ONGC) was established. Let us emphasize that before the start of cooperation with the Soviet Union, India consumed 5.5 million tons of imported oil, and there was no oil of its own. But in just 10 years (as of December 1, 1966) 13 oil and gas fields were discovered, industrial oil reserves in the amount of 143 million tons were prepared, oil production was more than 4 million per year. More than 750 of the best Soviet oil specialists worked in India. And in 1982, the State Indian Corporation already employed 25 thousand people, including 1.5 thousand specialists with higher education, many of them studied at Soviet universities.
Mainly data from the BP statistical survey (June 2017) were used. Although the survey places Mexico in North America, it is included here and added to South and Central America. Two major oil suppliers: Brazil and Venezuela.
Figure 1: Brazilian oil production, net imports and biofuels.
Oil production in Brazil (oil plus NGL - broad fraction of light hydrocarbons) has not yet reached its peak. Consumption data include biofuels, which are a very important source. It can be seen that net oil imports decreased and even turned into net exports (145 Kb / d in 2016) due to the use of biofuels (ethanol and biodiesel, about 560 Kb / d). 
Figure 2: Oil production and net exports, Venezuela.
Oil production in Venezuela peaked in the 70s. and 2006. The conventional oil fields in Maracaibo peaked in 1997, and heavy oil production in the Orinoco belt cannot compensate for the decline. Low oil prices worsened the situation. The impact on the economy is devastating, as can be seen from the media. They usually blame the socialist government of Maduro, but rarely mention oil geological problems. Since 2006, production in Venezuela has decreased by 930 Kb / d, which is more than the growth in Brazil (800 Kb / d). The sharp drop in 2003 was triggered by the PDVSA strike ( State Oil and Gas Company of Venezuela). Could it happen again? 
Figure 3: Monthly oil production in Brazil and Venezuela.
In the report on the oil market for August 2017, the IEA showed a decrease in exports from Venezuela 
Fig. 4: Exports of Venezuela.
Please note that data for Venezuela is unreliable and varies greatly from source to source. 
Figure 5: Oil production and consumption in Argentina.
Argentina's oil production peaked in 2001 and declined 33%, making Argentina a net oil importer in 2013. 
Figure 6: Colombian Oil Production and Net Exports.
Oil production in Colombia has stalled at about 1 Mb / d. So far, about half of the total production has been exported. 
Figure 7: Oil production in Ecuador and net exports.
Since 2004, oil production in Ecuador has barely exceeded 550 Kb / d. It can be called an undulating plateau.
Rice. 8: Rest of South and Central America.
All other South and Central American countries produce very little oil, around 400 Kb / d, but import 1.7 Mb / d.
All countries together: 
Rice. 9: Oil production in Central and South America against consumption (including biofuels)
Production has always exceeded consumption, but the surplus has narrowed.
Rice. 10: Oil consumption in Central and South America (including biofuels)
Consumption growth was driven by Brazil.
Comparison of net exports and net imports. 
Figure 11: Net exports / imports of South and Central America.
Net exports are positive and net imports are negative. The balance (black line) mainly depends on Venezuela's exports. It should be borne in mind that Venezuela's super heavy oil is virtually incomparable with other oil exports / imports, so the balance is nominal.
Latin America
Figure 2: Mexico oil production versus consumption.
Mexico has definitely peaked. The decline in production at the Kantarel field is well known.
You can add production and consumption for Mexico to rice. nine
Rice. 13: Oil production in Latin America versus consumption (including biofuels).
Output:
In the period 2004-2006. Latin America had a short peak. Now the situation is back to 1997. Consumption peaked in 2014, 8 years after the peak of production.
Last November, in connection with the continuing drop in oil prices, Venezuela, whose budget is 95% dependent on oil revenues, tried to persuade OPEC members, primarily Saudi Arabia, to reduce the production of "black gold" in order to keep the price per barrel oil at $ 100 per barrel instead of $ 50.
Rafael Ramírez, who at the time was the president of the state oil company PDVSA and also the official representative of Venezuela in OPEC, repeatedly tried to pressure the Minister of Energy of Saudi Arabia Ali al-Naimi, trying to convince him the need to reduce quotas for oil production.
But the Saudis were not ready to reduce the production of "black gold". Sadovskaya Arabia argued its refusal by the fact that Russia and Mexico are not ready to support the OPEC countries and reduce their oil production. The world's leading oil producer, Saudi Arabia, currently produces about 10 million barrels of oil per day.
The Venezuelans, on November 25 last year, met with officials from Saudi Arabia, Russia and Mexico to coordinate joint actions and develop a strategy to maintain high oil prices.
Ali al-Naimi demanded that the Russians agree to a fair cut in oil production. Russia categorically rejected this possibility.
“If we go to reduce oil production quotas, then our main competitors will become the beneficiaries of our decision. Such times are in the past, ”Ali al-Naimi said at the Middle East Economic Forum.
Venezuelan President Nicolas Maduro, disappointed by the failure of the talks led by Ramirez, sent him as ambassador to the UN. This move by the Venezuelan leader is explained by the fact that revenues from oil sales since 1999 have decreased by $ 1 billion, and gold and foreign exchange reserves have reached a minimum level of $ 21 billion.
Since neither Mexico nor Russia aspires to become new members of OPEC, most analysts believe that unless some geopolitical cataclysm occurs, which leads to a sharp drop in oil production, then prices for "black gold" in the short and medium term will remain low.
Who will win and who will lose?
Low energy prices in the medium term may backfire for the countries of Latin America. They will have to diversify their economies and increase tax revenues in order to compensate for the losses from falling commodity prices. According to IMF forecasts, economic growth in the region in 2015 will amount to 1.5%.
Latin American countries focused on the sale of raw materials will find themselves in a difficult situation due to a decrease in budget revenues and the impossibility of maintaining social programs for poor citizens at the same level. This development of events could lead to growth social tension... Bolivia, Colombia, Ecuador, Mexico, Trinidad and Tobago, Venezuela are already fully experiencing the fall in raw materials and energy prices.
Mexico is the third largest oil producer in the region. Revenues from the oil industry and oil exports account for 30% of the state budget. Mexican President Enrique Peña Nieto due to the fall in oil prices was forced to cut the country's budget by $ 8.4 billion, as well as to abandon the construction of high-grade railroad from Mexico City to Queretaro, the construction of which would have cost the state treasury nearly four billion dollars.
The Mexican government is seriously concerned about the decline in private investment in the development of new oil fields due to the fall in oil prices. According to various estimates, the cost of a barrel of oil must be at least $ 77 for Mexico's energy projects to be profitable. Prices for WTI oil, which is produced in Mexico, have fallen since June last year by 42% ($ 40 per barrel), the country's budget for 2015 was drawn up based on an oil price of $ 79.
Last year, when Mexico, for the first time in 75 years, allowed private and foreign investors to participate in oil and gas production, the government expected to attract $ 12 billion in foreign investment over the next four years. This would increase oil production by 500 thousand barrels per day.
Mexico's central bank has cut economic growth in the country for this year from 4% to 2.5%. The Mexican government has raised gasoline prices by 2% and announced an upcoming full revision of budget indicators for 2016 due to the unfavorable situation with world oil prices. Despite the adjustments being made and the softening of the requirements for holding auctions for the extraction of energy resources, the Mexicans do not harbor any special illusions about the improvement of the economic situation in the country. State oil company Pemex is forced to spend more and more money in order to somehow keep oil production at 2.4 million barrels per day. This figure is one million barrels less than 10 years ago.
This year, the Mexican government has cut Pemex's budget by $ 4 billion, making it even more difficult for the deepwater Gulf of Mexico oil production to be carried out. Pemex President Emilio Lozoya announced the postponement of the modernization of three refineries and the reduction of the company's staff, which now totals 150 thousand people.
Situation in Brazil
In 2007, the state oil company Petrobras announced to the world the discovery of a huge oil-bearing zone in the so-called pre-salt layer, which can contain from 50 to 70 billion barrels of oil. The head of state, Luiz Inácio Lula da Silva, said at the time that Brazil was very lucky and "won the lottery."
However, subsequently, due to the outbreak of the largest corruption scandal around the state oil company Petrobras and the fall in oil prices, many contracts with companies such as OAS and Sete Brasil had to be terminated. In September this year, the value of shares of the Brazilian state oil company fell by half. Petrobras' revalued assets were $ 30 billion.
In addition, the prime cost of oil production in the so-called pre-salt layer is $ 100 per barrel, which makes its production unprofitable at current prices for "black gold".
Until recently, Colombia was considered a net importer of oil. Over the past seven years, the country has almost doubled oil production and ranks fourth in the region in terms of its production, and fifth in terms of exports to the United States. In part due to the oil boom, Colombia's economy grew 4.8% last year.
Currently, the small town of Puerto Gaitan, in the vicinity of which 25% of the country's oil is produced, the number of jobs due to lack of investment has decreased by seven thousand. According to government estimates, the national industry of Colombia could lose 25 thousand jobs, which is 25% of the total workforce. The asset value and oil production of the state oil company Ecopetrol has decreased by three times. For this year, the company's budget was reduced by 25%, the net profit compared to 2014 fell by 42.7%.
Currently, 15% of government spending is financed from oil exports.
Oil revenues in 2013 amounted to $ 24.5 billion, this year - $ 9.5 billion.
Financial situation in Venezuela
It is unlikely that on the eve of parliamentary elections, Venezuelan President Nicolas Maduro will dare to raise gasoline prices, which remain the lowest in the world. Over the past ten years, gasoline prices in the country have been kept at the level of three to four cents per liter. Low gasoline prices are made possible by government subsidies of $ 19 billion a year. In addition, Venezuela supplies oil to 16 countries in Central America and the Caribbean at discounted prices under the Petrocaribe program. Thus, the share of Venezuelan oil in the Cuban budget is 10% of GDP.
Due to the fall in oil prices, the Venezuelan government is gradually reducing oil supplies to its allies in the region, and this trend will continue in the short term. Most likely, Venezuela will be forced to cancel government subsidies as India, Egypt, Angola, Iran, Nigeria and Indonesia have done before.
WORLD MARKET
Goodbye Monopoly!
The inflow of private investment gave a new impetus to the development of the oil and gas market in Latin America
Andrey MAYOROV
Latin America is one of the most oil-rich regions in the world. Sedimentary oil-bearing rocks occupy about half of the continent. The most promising areas for the prospecting and production of hydrocarbon raw materials include: the sea and ocean shelves of Mexico, Brazil and Venezuela; the so-called Predandian depression, which runs in South America along the entire eastern slope of the Andes; intermontane basins in Venezuela, Ecuador, Peru and Colombia; vast areas of the Brazilian depression; foredeep at the Gulf of Mexico in Mexico. As of January 1, 1999, the proven oil reserves in Latin America are estimated at 19 billion tons (about 140 billion barrels), which is 8.5% of the world.
Hydrocarbons are mined in 14 Latin American countries. The total volume of oil production in 1998 amounted to 468 million tons. The leading producers of "black gold" are Venezuela (155 million tons, or 33% of all oil production in the region) and Mexico (152 million tons, 32.5%). This is followed by Brazil, Argentina and Colombia, producing an average of 37-48 million tons per year, and Ecuador (19 million tons). Together, these six countries account for about 97% of Latin America's total oil production (see Tables 1 and 2).
| Tab. 1. Oil production in Latin America in 1989-1998, million tons | ||||||||||
| Country | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 |
| Venezuela | 86 | 106 | 117 | 115 | 116 | 123 | 128 | 147 | 158 | 155 |
| Mexico | 130 | 131 | 133 | 133 | 113 | 134 | 134 | 142 | 151 | 152 |
| Brazil | 30 | 31 | 31 | 31 | 31 | 33 | 35 | 39 | 42 | 48 |
| Argentina | 23 | 24 | 25 | 28 | 29 | 33 | 36 | 38 | 42 | 42 |
| Colombia | 20 | 22 | 21 | 23 | 22 | 23 | 29 | 31 | 33 | 37 |
| Ecuador | 14 | 14 | 15 | 16 | 17 | 19 | 19 | 19 | 19 | 19 |
| Other countries | 18 | 17 | 16 | 16 | 16 | 16 | 17 | 17 | 16 | 15 |
| Total | 321 | 345 | 358 | 362 | 344 | 381 | 398 | 433 | 461 | 468 |
| Tab. 2. Average daily oil production in the main oil-producing countries of Latin America in 1990-1999, million barrels per day. | ||||||||||
| Country | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 (March) |
| Venezuela | 2,14 | 2,38 | 2,37 | 2,45 | 2,59 | 2,75 | 3,05 | 3,32 | 3,17 | 2,96 |
| Mexico | 2,55 | 2,68 | 2,67 | 2,67 | 2,69 | 2,62 | 2,86 | 3,02 | 3,07 | 3,05 |
| Brazil | 0,63 | 0,63 | 0,63 | 0,64 | 0,67 | 0,70 | 0,80 | 0,83 | 0,97 | 1,11 |
| Argentina | 0,48 | 0,49 | 0,55 | 0,59 | 0,65 | 0,72 | 0,76 | 0,84 | 0,85 | 0,82 |
| Colombia | 0,44 | 0,42 | 0,43 | 0,46 | 0,45 | 0,59 | 0,62 | 0,66 | 0,76 | 0,83 |
| Ecuador | 0,29 | 0,30 | 0,32 | 0,34 | 0,37 | 0,39 | 0,40 | 0,38 | 0,38 | 0,38 |
| Source: Energy Information Administration, USA | ||||||||||
Oil production in Latin America has grown significantly over the past ten years. In the period from 1989 to the present, the largest increase in oil production was observed in Argentina, Colombia and Venezuela (80-85%), as well as in Brazil (61%). In the region as a whole, this indicator increased by 46%.
Currently, more than half of all oil production is carried out on the shelf, including: 58% in Mexico (Campeche Bay), 63% in Venezuela (Maracaibo Lagoon), 61% in Brazil (an area of the Atlantic shelf near the city of Campus), 75 % - in Trinidad and Tobago.
In the 90s, most Latin American countries abandoned the state monopoly on oil production and began to actively attract private, including foreign, companies to work in the oil and gas sector. The measures taken contributed to the inflow of foreign investments, which are so necessary for the exploration and development of new deposits. The most active were the leading oil companies of the USA, Canada, France, Great Britain, Germany, Spain and Japan.
Let us briefly describe the development of the oil industry in the leading oil-producing countries of the continent.
The oil industry is one of the main sectors of the economy Venezuela. In terms of proven oil reserves (72.5 billion barrels), this country ranks sixth in the world and first in Latin America (53%). The main production area is the Maracaibo oil and gas basin in the northwest of the country, with proven oil reserves of 45 billion barrels. More than 60 deposits have been discovered here, the largest of which are Bolivar, Lama, Lamar, Mene Grande, La Paz, Boscan. Significant reserves of oil, mainly heavy oil, are found in the east of the country in the Orinoco river basin.
There are about 14.7 thousand wells in the country, including more than 10 thousand - in the offshore fields of Maracaibo and on the continental shelf of the Caribbean Sea. The total production volume is 3.17 million barrels per day.
Venezuela is one of the largest oil exporters (2.8 million barrels per day) and is part of OPEC. About 60% of the oil exported by Venezuela is supplied to North America, 30% to Latin America, 7% to Europe. Revenues from the sale of this type of raw material account for more than 75% of the country's export earnings.
Oil production and refining in Venezuela is controlled by the state-owned company Petroleos de Venezuela (PdV). Since 1991, the country's oil sector has begun to pursue an "open door" policy for private, including foreign, capital. This contributed to the arrival of more than 60 of the world's largest oil companies in Venezuela. In particular, in 1996, agreements were signed between the specially created Venezuelan Petroleum Corporation (VNK) and a number of world oil giants that won the right to explore and develop new oil fields on a concession basis in the country through tenders. Among them were American Mobil, Conoco, Enron Oil & Gas, British Petroleum, Argentine Maxus and Perez Campanc, German Veba, French Elf Aquitaine, Japanese Nippon and Canadian Northen.
As a result, in the period from 1989 to 1998, oil production in the country increased by 80%. This was also facilitated by the restructuring of PdV, resulting in the formation of three new vertically integrated companies: PdV Manufacturing and Marketing, PdV Exploration and Production and PdV Services.
The total amount of foreign investment in the oil industry of Venezuela in the next 10 years should amount to $ 8 billion. It is expected that by 2006 about 35% of the country's oil industry will be in the hands of private (mainly foreign) capital.
By 2007, it is planned to double the volume of oil production. To achieve this goal, annual investments in the industry are envisaged in the amount of over $ 7 billion (in 1997, they amounted to $ 6.5 billion).
Mexico 1 possesses rich hydrocarbon reserves, as well as a developed oil industry and infrastructure. It ranks eighth in the world and second in Latin America in terms of proven oil reserves (48 billion barrels), and in terms of production it is one of the five leading world producers of this raw material. In 1998, the country received more than 3.1 million barrels of oil per day (17% more than in 1989)
The main oil-bearing region of the country is the Campeche offshore zone, where the average production reaches 2.2 million barrels per day, or 70% general production oil in the country. The southern zone is considered the second most important (0.6 million barrels per day, 20%).
Currently, there is an unresolved conflict between Mexico and the United States over the division of the sea shelf in the Gulf of Mexico. The issue escalated in 1996 when a consortium of four American companies (Shell, Mobil, Texaco and Exxon) announced their intention to begin exploration and drilling in the waters claimed by Mexico.
Mexico exports over 50% of the oil produced. However, the share of hydrocarbons in the total volume of Mexican exports is steadily declining: from 55% in the mid-1980s to 33% in the early 1990s. The main buyer of Mexican oil is the United States. In 1997, the latter imported 1.33 million barrels per day, which is almost half of Mexico's oil production. Foreign exchange earnings from oil exports occupy a significant place in the state budget. In 1997, they accounted for about 38% of its revenue ($ 11.5 billion). Therefore, the level of world oil prices has a significant impact on the country's financial position. In 1998, due to falling prices, Mexico, according to experts, received less than $ 3.9 billion from oil exports.
Brazil ranks third in Latin America in terms of proven oil reserves (according to various sources, 5-8 billion barrels). However, its extraction is complicated by the fact that only 15% of proven reserves are onshore, and many offshore fields are deep-water (33% are located at depths from 400 to 1000 m, 35% - over 1000 m). The richest oil-bearing region is Campus Bay, which accounts for over 65% of all oil reserves in the country.
Since the mid-90s, the volume of production has increased significantly. In 1998, it amounted to 0.97 million barrels per day (1.6 times more than in 1989). However, due to its own oil, it is possible to cover only 70-75% of the country's internal needs. In order to reduce dependence on imports, by 2002 it is planned to increase the production of raw materials by another 1.8 times.
For a long time, the state-owned company Petroleo Brasileiro (Petrobras), established in 1953, was the monopoly oil producer in Brazil. In 1995, in order to attract additional investments in oil production and refining, the Brazilian Congress passed an amendment to the Constitution that abolished the Petrobras monopoly. It became a mixed capital company with several dozen subsidiaries. Its branches (Braspetro and Petrofertil) produce oil in Angola, Argentina and Ecuador, conduct exploration on the terms of venture projects in Colombia, Ecuador and a number of other countries. In Brazil, Petrobras controls production at eight fields.
According to experts, the Brazilian oil industry needs investments of $ 38 billion. In order to receive them, Petrobras has already signed 12 contracts for the joint development of fields with foreign private investors. In addition, Brazil and Venezuela agreed to create a joint venture Petroamerica on the basis of their state-owned companies (Petrobras and PdV) in 1999, which can be seen as an attempt by Latin Americans to resist the expansion of Western monopolies.
Argentina in terms of proven oil reserves (2.7 billion barrels), it is significantly inferior to the three above-named countries. However, the volume of production at 150 fields is quite high (0.85 million barrels per day). Most of the oil is produced in two regions: Neuquen in the southwest (0.4 million barrels per day) and the Bay of São Jorge in the southeast of the country (0.3 million barrels per day).
On domestic market over 50 national and foreign oil companies operate. The largest of these is Yacimientos Petroliferos Fiscales (YPF), which was privatized in 1993. In terms of annual revenues (about $ 6 billion), YPF ranks first among the non-state companies in Argentina and second in Latin America. In collaboration with Maxus, it produces hydrocarbons in the United States, Venezuela, Bolivia, Ecuador, Peru and Indonesia. Exploration in Brazil with Petrobras. By purchasing an 18.7% stake in the Canadian oil exploration company Bitech Petroleum, YPF became the first Latin American oil company to enter the Russian market.
Bridas is also one of the leading oil companies in Argentina, which is engaged in the exploration, production and transportation of oil. Besides Argentina, she works in Chile, Brazil and Bolivia. Bridas also has two oil and gas joint ventures in Turkmenistan. In 1995, she started to prepare a large-scale seismic exploration and deep-water drilling project in the Turkmen sector of the Caspian Sea shelf.
Oil and gas complex Colombia- one of the priority and most dynamically developing sectors of the national economy. The expansion of the country's oil production capabilities was facilitated by the discovery in the mid-90s of a number of new large fields.
© AP Photo,
Countries in Latin America - from Brazil and Mexico to Colombia, Argentina and Uruguay - are exhibiting their lands, coastal waters and seas at international auctions. In total, they sell over 500 thousand square kilometers - which is equal to the area of Spain. US economic interests dominate the entire region. However, Russia is entering the struggle, which is trying to gain a foothold in this region, as well as China, which is making significant investments in these countries.
Cuba Debate (Cuba): New Oil Leader in Latin America
Economic issuesIt's no secret that the economic interests of the military industry, oil workers - adherents of new hydraulic fracturing technology and large GMO promoters speculating on food prices - were behind the appearance of Donald Trump in the White House.
Recent actions taken by Trump in Latin America, such as sending the National Guard to the US-Mexico border and unconditional support for the seizure of strategically important oil production areas on the continent, see the influence of these giant companies.
His decisions regarding Iran are also indicative, which immediately affected the quotations of shares of military companies and the price of oil. The latter is already hovering around $ 80 per barrel and may rise even higher, providing high profitability for companies involved in oil production using expensive hydraulic fracturing technology.
Just a few months ago, the US was producing 145,000 barrels of shale oil, and will soon set a historic record of 7.18 million barrels of shale oil a day. These are the data of the US Energy Information Administration. This has also been accompanied by an impressive increase in US natural gas production to over 68 billion 100 million cubic feet per day.
All this, together with a drop in production in Latin American countries, led to the fact that the price of Brent crude oil on the financial market increased. Under these conditions, American oil companies do not incur losses, while fixed purchase prices are imposed on the companies of the Southern Cone. And this despite the fact that at the end of the year the oil price will most likely exceed the $ 100 per barrel level.
In this situation, the United States was in third place in the world in oil production, losing only to Russia and Saudi Arabia and far ahead of Brazil (10th), Venezuela (11th) and Mexico (12th) (according to OPEC data for 2018 year).
Now large oil corporate companies ended up in a fairy tale that came true. Markets and Latin American oil production, until recently in the hands of state enterprises, begin to open up and bring unimaginable profits to international capitalism.
Countries in Latin America - from Brazil and Mexico to Colombia, Argentina and Uruguay - are exhibiting their lands, coastal waters and seas at international auctions. In total, they sell over 500 thousand square kilometers - which is equal to the area of Spain.
The situation in Latin American countries is rather deplorable. For example, in Mexico, oil production drops sharply. As of March this year, PEMEX, the Mexican state-owned oil and gas company, experienced a 7.6% annual decline in production and production was only 864 million barrels of crude oil per day, a decrease of 153,340 barrels per day. All this is happening in the context of the openness of the energy market, which started in 2013 and launched a stream of domestic and foreign private investments, which were tasked with exploration and subsequent operation of onshore and deep-water oil wells.
There are already over 100 private foreign contracts worth about $ 160 billion. In fact, this means the seizure of strategic territories by foreign companies such as Total, Exxon, Chevron, China Offshore, and the emergence of new companies headed by Mexican politicians, such as Sierra Energy. Exploration is already being carried out on 100 thousand square kilometers in Mexico (which is equal to the area of Greece), and oil production is possible in the future.
This is superimposed on the import of gasoline into Mexico, which puts the country in a dependent position. Last year, 6 out of 10 liters of gasoline were imported, while in the first quarter of 2018, 7.5 out of 10 liters were imported from abroad. This has affected the lives of ordinary Mexicans, provoking the highest inflation in recent decades.
The Mexican government has not built any refineries since 1982, and three of the six existing refineries in Mexico were temporarily closed in the first two months of this year due to operational problems. Added to this is a conspiracy between criminals and politicians to steal gasoline: since 2014, clandestine gasoline spills have more than tripled, mainly in the states of Guanajuato, Puebla and Tamaulipas.
Context
Venezuela: oil plus socialism
Carnegie Moscow Center 03/02/2017Latin America is occupied by the United States
Rebelion 10.12.2017Venezuela: permanent chaos and anarchy
El Pais 08.08.2017150 years with the oil market: from Venezuela to shale
Česká Pozice 11/29/2015 The situation in Venezuela in the field of oil production is similar. In August last year, production was 2.1 million barrels of oil per day, and according to an OPEC report presented last week, in March 2018, on average, only 1.5 million barrels per day were produced, which means a decrease of 28%. Added to this is the creation of difficulties by large corporations forcing PDVSA (Venezuela's state oil and gas company) to meet its supply obligations.And all this against the background of the fact that the import of Venezuelan oil in the United States reaches the most low level since 1982 within the framework of the strategy of domination-intervention in production and in the oil markets.
For example, in 2017, Total stopped buying Venezuelan crude oil, Motiva, Philips 66, Sitgo, Valero and Chevron reduced imports from Venezuela by 70%, 56%, 17%, 13 % and 6%, respectively. This undeniable cut is the preamble to the oil embargo against Venezuela, which Trump is set to announce soon to bring about a change in the course of the Venezuelan nationalist government.
At the same time, 40% of the oil produced by Venezuela is exported to China and India, which are completely dependent not only on Venezuela, but also on Iran. This situation will be difficult for Trump to change. Under US dominance, the American oil company Conocophilips is disrupting Venezuelan oil supplies to Asian markets by controlling PDVSA's assets in Curacao, the world's largest oil producing region. This jeopardizes the transportation of crude oil, as cargo ships may be in danger of being seized at any time.
Other mining and oil companies are likely to join Konokofilips' strategy in an attempt to undermine the Venezuelan oil giant.
The collapse of the Venezuelan government does not suit China, which has made significant investments in the country, as well as Russia, which took advantage of the situation to gain a foothold in the oil fields. Therefore, Venezuela remains a zone of international tension, and oil prices continue to rise, which contributes to the profitability of the corporations that supported Trump in his election campaign.
The once influential Brazilian company, Petrobas, has been sidelined by the ever-growing investment of foreign corporate oil companies. In June of this year, 16 major oil companies, such as Royal Dutch, signed up to participate in large-scale development of Brazilian pre-salt deposits on the ocean floor, which are estimated to contain billions of barrels of oil. The American companies Chevron and ExxonMobil, as well as the Norwegian Statoil and the French Total, are also interested in these fields.
The Trump-fueled rise in oil prices plays into the hands of oil companies, as profitability is ensured at a price of at least $ 45 a barrel. Therefore, British Petroleum and ExxonMobil have already participated in the tasty Brazilian auctions.
Brazilian Petrobas, like Pemex and PDVSA, are losing production compared to last year. In its 2018 quarterly report, Petrobas reports that total oil and natural gas production in the first quarter of 2018 was 2,680,000 barrels of oil per day, down 4% from the first quarter of 2017.
Added to the above is a 9% drop in sales and a 7% decline in refining production. If in 2010 "Petrobas" controlled 93% of oil production in Brazil, then in February of this year it controls only 75%. Bye ex-president Lula is in prison, the oil field that bears his name brings the country the largest amount of oil and gas - more than 850 thousand barrels of oil a day.
Argentine oil production is also falling - by 3.8% in 2016 and by 6.3% in 2017. In the period from 2017 to 2018, oil production continued to decline - from 3.18 million cubic meters in 2017 to 3.15 million cubic meters at the moment.
On the background a sharp decline production from the main Argentine oil company, production of Pan American Energy is growing by 3.49%, and Petrokimica Comodoro - by 28.89%. In addition, Argentina is transferring vast exploration areas to international corporations. It is expected that in July this year Argentina will give over 225 thousand square kilometers for corporate oil exploration (which is equal to twice the territory of Cuba).
Fracturing oil production is carried out in the Argentine province of Neuquen. The result is massive environmental pollution and the destruction of the traditional Mapuche society. In addition, the water consumption is over 11 million liters. The large field "Vaca Muerta" with an area of 30 thousand square kilometers is the main oil and gas reserves in Argentina. But its development conflicts with the interests of the local population.
In the course of the activities of international oil giants, the question is raised about the right of the autochthonous population to a healthy environment, territory and use of natural resources. In the face of this picture of alienation and devastation, the best choice for us remains the one that was formulated by Eduardo Galeano in his book "Opened Veins of Latin America": "So we have no choice but to fold our hands?"
InoSMI materials contain assessments exclusively of foreign mass media and do not reflect the position of the InoSMI editorial board.
