From Richmond, Calif., to the Gulf Coast, to the Niger Delta to the Ecuadoran Amazon—how many more disasters until a public seizure of the oil industry is finally at least broached?
Faced with declining production and economic chaos, Venezuela is again opening its oil-fields to private companies—reversing much of the progress in asserting state control of the hydrocarbons industry that was made under Hugo Chávez. Just after a series of new contracts with private firms was announced, President Nicolás Maduro flew to Beijing for a meeting with Xi Jinping. The two leaders announced further deals to open Venezuela's Orinoco Belt to Chinese companies. This comes a decade after Exxon withdrew from the Orinoco Belt, unable to come to terms with the Chávez government. (Photo via OilPrice.com)
President Trump announced that the US and Mexico have reached an agreement on a new trade deal called the United States-Mexico Trade Agreement, which will ultimately terminate the North American Free Trade Agreement (NAFTA). Trump called Mexican President Enrique Peña Nieto from the White House to announce the new deal. Among a number of changes to NAFTA, both parties agreed to a provision that would require a significant portion of vehicles to be made in high-wage factories, a measure aimed to discourage factory jobs from leaving the US. Trump said he is in communication with Canada about a new trade deal, but is unsure if it will be part of the US-Mexico Trade Agreement. The Trump administration expects the new pact to be signed by the end of November. (Map: CIA)
Bashar Assad arrived in Russia to publicly thank Vladimir Putin for his military support in the ongoing re-conquest of Syria—prominently including the deployment of new missile systems. Undoubtedly discussed behind closed doors was the new "energy cooperation framework agreement" between Moscow and Damascus, under which Russia is to have exclusive rights to exploit oil and gas in Syria. (Photo of Vityaz missile launcher via Wikipedia)
After all the talk we've heard in recent years about how depressed oil prices are now permanent, in the wake of Trump's announced withdrawal from the Iran nuclear deal Bank of America is predicting that the price of Brent crude could go as high as the once-dreaded $100 per barrel in 2019. The report also cited collapsing production in Venezuela due to the crisis there. Brent prices have risen above $77 per barrel since Trump's announcement. Prices have jumped more than 8% over the past month and 15% since the beginning of the year. According to the analysis, investors fear that renewed sanctions on Iran could lead to supply disruptions. Although the report failed to mention it, the Israeli air-strikes on Iranian targets in Syria have doubtless contributed to the jitters. (Photo: Shana)
Seemingly irregular oil contracts have emerged as a factor in the ongoing political scandal that last week brought down Peru's president Pedro Pablo Kuczynski. Following accusations from left-opposition congressmembers, state agency PeruPetro admitted that hours before leaving office, Kuczynski had issued a Supreme Decree initiating the process of approving five offshore oil concessions with a private company—but without the involvement of PeruPetro in vetting the contracts, as required by law. Calling the deals "lobista," Dammert is demanding that new President Martín Vizcarra declare the contracts void. (Photo: Gestión)
