This page has been archived and commenting is disabled.

In Historic First China Begins Oil Extraction In Afghanistan

Tyler Durden's picture




 

In a surprising (if not quite shocking) move, late on Friday Canada blocked Petroliam Nasional Bhd.’s C$5.2 billion takeover of Progress Energy Resources Corp. saying the bid by the Malaysian state-owned company "wasn’t in Canada’s national interests." As BusinessWeek explains, "in what investors say is a test case for the $15.1 billion bid by CNOOC Ltd. of China for Calgary-based Nexen Inc., the Canadian government said it “was not satisfied that the proposed investment is likely to be of net benefit to Canada,” according to an Oct. 19 statement from Industry Minister Christian Paradis." While it is unclear precisely what would be of "net benefit to Canada" what is certain is that the Progress Energy move will crush investor spirits who in recent months have expected a flurry of foreign bids coming for local energy names, only to be left at the altar courtesy of government intervention.

And while the outlook for foreign driven M&A in Canada has just been Ice-9'ed to a degree not seen since the BHP Billiton government-denied acquisition of Potash Corp (watch the arbs scurry out of Nexen at first trading opportunity), China is wasting no time, and is rapidly reorineting itself away from increasingly energy-protectionist governments and to "greenfield" national interest expansion opportunities. Such as Afghanistan. As Reuters reports, in a historic development, and in a key staking of regional energy claims, a Chinese oil firm, China National Petroleum Corp, has just started oil production in the country which still has thousands of US troops on the ground. Expect this issue also to suddenly be of paramount importance in next week's final presidential debate.

From Reuters:

Afghanistan signed a 25-year contract with National Petroleum Corp (CNPC) last December covering drilling and a planned refinery in the northern provinces of Faryab and Sar-e-Pul. It is the first major oil production in the country.

 

"The company will extract 1,950 barrels per day, which will crucially help Afghanistan towards self-sustainability and economic independence," mining minister Wahidullah Shahrani told Reuters on Sunday as huge machines started drilling next to mud houses in remote Sar-e-Pul.

 

The venture with CNPC, which has invested hundreds of millions of dollars, was expected to produce billions of dollars over the next two decades - CNPC will pay a 15 percent royalty on oil, 20 percent corporate tax and give 50-70 percent of its profit from the project to the government.

 

From January 1, CNPC will extract 1.5 million barrels of oil annually, Shahrani said. Up to 87 million barrels of crude are estimated to be in Amu Darya.

 

Its inauguration on Sunday should lend confidence to nervous Chinese investors who have halted work on the $3 billion Aynak copper mine project in eastern Logar province, where insurgents trying to wreck the project have stepped up attacks. Afghan officials have been trying to convince the investors to restart.

Luckily, US troops are still in Afghanistan to make sure China can extract Afghanistan resources at terms beneficial to China and Afghanistan... If not the US.

As the end-2014 deadline looms for most foreign troops to leave, billions of dollars in aid is expected to dry up, leading Afghanistan to look for ways to become financially independent.

 

The Amu Darya basin should be able to supply Afghanistan with all its domestic oil needs eventually, said Weis Sherdel, director of the three Amu Darya oil blocks for the mining ministry.

Up next for the country which is soon set to surpass the US as the largest importer of crude: more regional expansion and capture of the global markets:

CNPC's Amu Darya crude will be sent to Turkmenistan where it will be refined and then sold to Afghan clients or abroad, Sherdel said. CNPC should complete work on an Afghan refinery in 2-3 years, officials said.

And since China will indirectly be seen as a provider of jobs, guess where the local population's allegiances will increasingly lie:

Shahrani said the development of the Amu Darya basin had provided Afghans with 2,100 jobs in the Sar-e-Pul province of 500,000 where unemployment is more than twice the national average, at 18 percent.

They need some BLS seasonal adjustments, and an election or two: unemployment would plunge to 0.0% overnight.

Chinese and Indian bidders have been frontrunners for deals to develop Afghan mineral deposits valued at up to $3 trillion, worrying Western firms that have hesitated to invest because of security concerns.

 

The country is now bracing for the end-October bid closure for oil deposits in the Afghan Tajik basin, also in the north and which, at an estimated 1.9 billion barrels, is the biggest ever oil project in Afghanistan.

 

Interest shown by Exxon Mobil in July lent credence to hopes the government may be making progress in efforts to lessen its reliance on aid, though Shahrani told Reuters last month the U.S. group had not come to look at it.

Correct: in fact Exxon is increasingly looking to divest various regional interests, with just two short days ago news hitting that Exxon was "in talks to sell its stake in a contract to develop a multibillion-dollar oil project in southern Iraq." The winner, as the insolvent west increasingly seeks to abdicate regional resource control, will once again be China.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sun, 10/21/2012 - 13:58 | 2907960 robertocarlos
robertocarlos's picture

Canadian energy decisions are made in the best interests of the USA.

Sun, 10/21/2012 - 14:52 | 2908068 James_Cole
James_Cole's picture

 

This Tyler has no idea what he's talking about re: Canadian M&A Nexen / China deal (unless this article is entirely sarcastic), the whole thing is so egregious that a government that otherwise is OK with some 'tweaks' to Canadian constitution may not be able to stomach it. 

Sure, China (fascist) will go to Afghanistan (failed state) where they don't have to worry about pesky things like rule of law. Poor investors, so terrified of big bad Canadian gov poo-pooing their M&A deals.

As if, what a bunch of nonsense. The last thing Canada needs is more foreign take-overs of natural resources and certainly this blocked deal is not going to "ice-9" other m&as, foreign countries are climbing over each other to snap up the resources. 

 

Sun, 10/21/2012 - 15:33 | 2908117 lizzy36
lizzy36's picture

Really? The last thing Canada needs?

Government of Canada believes we are going to need $700B to develop these resources over the next decade (so the real number is closer to 2x that amount) Where is that $1 trillion going to come from? 

Petronas is paying NPV of a fully developed resource (think 2022 valuation) to Progress Shareholders. Fifty percent of those shareholders have already redeployed that capital in the sector, helping other junior/intermediate names. Further the Canadian government is getting the "net benefit" of all the capital gains from the Progress Shareholder in 2012 not 2022. Additionally, Petronas was going to spend BILLIONS developing an LNG plant near Prince Rupert. 

So lets see, jobs, taxes, and a LNG plant all accure to Canada. But i guess we don't want that. I guess we are going to now go the central planning route where government knows best. 

Deals were already on "ice" until "net benefit" was defined in CNOOC/NXY. Those same deals are now being ICED. Canada has spent the last year telling ASIA that "we are open for business". With one midnight decision we just closed until further notice. To believe differently means you weren't in the office in Calgary yesterday.

Sun, 10/21/2012 - 16:16 | 2908164 James_Cole
James_Cole's picture

 

Sure Lizzy the sky is falling right? There will NEVER EVER BE ANOTHER CENT OF FOREIGN INVESTMENT AFTER BHP.. oh wait! If I was a shareholder I'd be mad, but whatever, everyone going in knows the stakes. Shareholders always whine when their easy buy doesn't go the way they wanted. Well boo hoo. 

As far as Petronas, they can claim anything they want but there's no way to actually audit them. And not only is the deal still a possibility there are also known other players involved who could step in and may have a more transparent alternative. 

The Nexen deal is completely different and a whole other story and it seems absurd to compare the two. 

Harper said Canadians need to give up some sovereignty in exchange for prosperity but the question is how much sovereignty for how many $ and what kinds of opaque foreign governments will be running large swaths of the Canadian economy? 

This same deal would NEVER be approved in Malaysia. 

Oh also, I said FOREIGN TAKE-OVERS - particularly by soverign nations -not FOREIGN INVESTMENT. Of course Canada needs foreign investment. 

 

Sun, 10/21/2012 - 16:36 | 2908230 lizzy36
lizzy36's picture

So your "net benefit" test included a) the same deal being approved in Malaysia and b) we can't audit Petronas. 

Btw, our trade with Malaysia is less than $1 Billion a year. Malaysian GDP is under $350B a year, not exactly like we are looking to do many deals there.

So conversely we should approve NXY/CNOOC bc a) the same deal would be approved in China (clearly johnny on the spot here as a USD$300m deal by BNS to take over a chinese banking unit was expected to close in December 2011. so by my count running into it's 11th month of NOT being approved  and b) we can audit CNOOC? (canada can send in its own auditors).

Many players? There were 3 bidders. All three foreign although Exxon was less foreign than the others.

Until BIDDERS know how to quantify "net benefit" there will be NO bidding. 

Btw, the big difference betweem NXY and PRQ is that NXY only has 30% of its operations in Canada. But NEITHER NXY nor PRQ (at 43,000 boe/d equivalent) are viewed as strategic Canadian assets.

China is the defination of an opaque foreign government. They just happen to be our 2nd largest trading partner and the worlds 3rd largest economy. The quid pro quo for approving the NXY/CNOOC is conversely that much larger. Holding up Petronas may just be colleteral damage in getting what we want from the Chinese.

But at the end of the day, Canada looks like a complete banana republic, by having the Feds hold up a deal (on a company that barely qualifies as an intermediate producer) that 5 weeks ago didn't even register as a possible "Investement Canada/ Net Benefit" issue.

Before a acquiror spends millions just to begin a take-over-bid, they need to know the rules. By changing the rules after the deal was done, we really shot ourselves in the foot!

Sun, 10/21/2012 - 17:02 | 2908270 James_Cole
James_Cole's picture

I'm not going engage your strawman argument. 

"Until BIDDERS know how to quantify "net benefit" there will be NO bidding."

Really? Reality disputes this assertion. Should it be more defined? Sure.

"Holding up Petronas may just be colleteral damage in getting what we want from the Chinese."

The Chinese don't give a shit about Petronas, it's a good issue for the Canadian press to pump out words over though. 

"But at the end of the day, Canada looks like a complete banana republic, by having the Feds hold up a deal (on a company that barely qualifies as an intermediate producer) that 5 weeks ago didn't even register as a possible "Investement Canada/ Net Benefit" issue."

Yes, China is now terrified of dealing with Canada as a newly discovered banana republic. Investors are THAT stupid, if you read NP I guess this statement is true. 

"Before a acquiror spends millions just to begin a take-over-bid, they need to know the rules. By changing the rules after the deal was done, we really shot ourselves in the foot!"

How did they "change the rules"? People simply assumed the deal would go through on an undefined criteria and it didn't. Shareholders are upset their Christmas present didn't arrive and are trying to put pressure on the Canadian gov to wrap this thing up. Because if Harper doesn't throw down the stamp all foreign investment will dry up forever because it's terrifying for extraction companies to deal with banana republics. 

And as we all know Canada is famously adverse to business interests as compared to the beacon of transparency & reliable regulation known as China, Canada's 2nd largest trading parnter. 

Sun, 10/21/2012 - 17:18 | 2908293 lizzy36
lizzy36's picture

So, to be clear, you actually did engage in "strawman" arguments.

Of course, in engaging you made it clear that you understand neither finance, or politics.

Nice try. Now go back to getting your information from the Toronto Sun. Seems to be doing you a world of good.

Sun, 10/21/2012 - 17:28 | 2908316 James_Cole
James_Cole's picture

"So, to be clear, you actually did engage in "strawman" arguments."

I guess you don't know what a strawman argument is. 

"Nice try. Now go back to getting your information from the Toronto Sun. Seems to be doing you a world of good."

Lizzy resorting to the standard "When you have no basis for an argument, abuse the plaintiff."

Sun, 10/21/2012 - 18:03 | 2908388 CPL
CPL's picture

http://www.google.com/finance?q=TSE%3APRQ&sq=Progress%20Energy%20Resourc...

 

You can both enjoy the show come monday when public pensions once again get BreX'ed.

Sun, 10/21/2012 - 19:20 | 2908497 markmotive
markmotive's picture

We just made our overlords very happy. And rich(er). At our expense.

The oil game and geopolitics is all just a bunch of smoke and mirrors. Watch this documentary:

http://www.planbeconomics.com/2012/10/08/documentary-oil-smoke-and-mirro...

Sun, 10/21/2012 - 19:53 | 2908541 LMAOLORI
Mon, 10/22/2012 - 09:03 | 2909194 FrankDrakman
FrankDrakman's picture

This is a good decision. CNOOC is not like other companies; it is an arm of the Chinese Communist government. Same thing with the Malaysian deal.

I don't mind private companies investing in Canadian resources, but I sure as hell don't want foreign governments doing it. And I sure as hell don't want to give foreign governments investment rights in Canada that those same governments deny to both private and government owned Canadian firms who'd like to invest in China.

When China decides to let Canadian firms buy into their, say, rare earth metal mines, or even operate without some local Chinese partner, as they must have today, then I'd be willing to reconsider. But to accept some "heads China wins, tails Canada loses" proposal is asinine. What's our BATNA? Walk away; they need our oil more than we need their money. Other companies who do have reciprocal rights with Canada will come along, and if the price of oil rises, the deals will only get better.

Sun, 10/21/2012 - 14:52 | 2908070 SWRichmond
SWRichmond's picture

Luckily, US troops are still in Afghanistan to make sure China can extract Afghanistan resources at terms beneficial to China and Afghanistan... If not the US.

This is the only part of this that matters.  Do you get it now?  Our people will die to keep the Chinese from selling T's.  Got it?

Sun, 10/21/2012 - 15:14 | 2908102 robertocarlos
robertocarlos's picture

It says "luckily", was that sarcasm? Canada lost almost 200 in Afghanistan for nothing. Or maybe so some girls could go to school. Your soldiers will die for banksters. 

Sun, 10/21/2012 - 20:02 | 2908552 cranky-old-geezer
cranky-old-geezer's picture

 

 

They always have.

Sun, 10/21/2012 - 15:07 | 2908096 Urban Redneck
Urban Redneck's picture

The deal wasn't actually killed, the authority having jurisdiction requested more info, pushing the "new" decision date to after the US election.  Any "final" announcements between now and Nov. 6 are subject to immediate revocation based on the outcome of said election.

Sun, 10/21/2012 - 16:22 | 2908203 GoldmanSux
GoldmanSux's picture

Good point. And possibly related to approval of the Keystone pipeline, and Exxon's obvious interest in the assets of this region.

Sun, 10/21/2012 - 16:07 | 2908148 JOYFUL
JOYFUL's picture

Canadian energy decisions are made in the best interests of the USA.

Somewhat akin to saying 'hockey is a game played with sticks'...while not factually incorrect, such a statement misses the key element of the sport = that it is played on ice - and therefore, not golf.

Canadian political decisions[period]are made according to what is viewed as being in the best interests of the sionist cabal which owns Canadian and Merikan politicians...and so it has been for almost half a century. The ''best interests" of America are sadly missing from such decision-making. 

When Canadian politicians are seen clearly by the rest of the world as openly pandering to israeli foreign policy, the people who allegedley elected these puppets are left in the dark by their controlled media disinformants...a veritable 'kosher kurtain' now hangs over the western world, through which all news is filtered to keep the sheep asleep. 

Canada has refused to approve the takeover of an energy company by a Malaysian State corporation because Malaysia is a Muslim country where a strong undercurrent of opposition to usury banking systems has curtailed the ability of the usual suspects to invade and despoil in the usual manner. “Allah has permitted trade and forbidden Riba*” is an oft quoted passage there that best sums up the distinction between kosher kapitalism and actual 'free enterprise.'

These challenges are dealt with in a predictable manner: where feasible, Zato puppet forces are sent in to demolish the non-subservient state ...or purchased proxy forces sent to do the same...Malaysia is currently outside of the circuit through which this manner of punishment is operational ...other tools are being developed by the banking cartel to eliminate competition to their monopoly of money. like the financial terrorism against Iran.

*Riba - usury finance.

 

Sun, 10/21/2012 - 21:12 | 2908655 SWIFT 760
SWIFT 760's picture

Joyful, well informed and accurate. The Zionist kikenvermin have paid in cash to buy politicians or more effectively threatened their lives and families. 

Malaysia is looking very attractive...free hold land title, English speaking, pro foreign investment, great food and culture. 

Additionally, Malaysia has been practicing use of gold and silver in certain sectors of economy. Malaysia is way ahead of the curve.

USrael sucks, rotten to the core. 

 

Sun, 10/21/2012 - 21:26 | 2908693 SWIFT 760
SWIFT 760's picture

http://www.dailypaul.com/227155/sgt-report-use-of-gold-and-silver-coins-go-viral-in-malaysia

 

Let this be the end of zionist central bank global fiat debt slavery. Fuck the kikes. 

Sun, 10/21/2012 - 18:08 | 2908400 DosZap
DosZap's picture

Such as Afghanistan. As Reuters reports, in a historic development, and in a key staking of regional energy claims, a Chinese oil firm, China National Petroleum Corp, has just started oil production in the country which still has thousands of US troops on the ground.

Move along, nothing to see here.............................

Except same old story, we leave dead Americans, and our enemies reap the benefits.What a way to LIVE!!!!!!!!!!.

I cannot think of ONE place the US has reaped long term bennies, for getting involved in wars, that only send us dead Americans as interest.

We are a stupid bunch of Asses.

Sun, 10/21/2012 - 21:53 | 2908735 A Nanny Moose
A Nanny Moose's picture

National interests my ass. National interests is the same interest as the bureacrats running the show.

When in order to produce, you need permission from those who produce nothing...you may know your society is doomed.

Mon, 10/22/2012 - 05:45 | 2908998 Never One Roach
Never One Roach's picture

The Aliens must buy more wooden boxes in Vancouver to prop up the Bursting RE Housing Bubble. We will also allow them to buy condo boxes.........No oil or gold sales allowed to the Foreigners.

Sun, 10/21/2012 - 14:07 | 2907962 Vegetius
Vegetius's picture

"Them that have the gold makes the rules"  -

Scrooge

 

However they will need more than a piece of paper if they want that agreement honoured. Boots on the ground yeah baby! They will need them in Africa as well, I wait with baited breath for that clusterfuck operation by the People’s Liberation Army of the People's Republic of China. (Lets all remember the last fight they had with Vietnam, better get google maps guys)

Sun, 10/21/2012 - 14:20 | 2908002 Bobbyrib
Bobbyrib's picture

Seriously, they have been baited into a clusterfuck.

Sun, 10/21/2012 - 16:14 | 2908193 THX 1178
THX 1178's picture

Scrooge McDuck?

Sun, 10/21/2012 - 20:11 | 2908565 LMAOLORI
LMAOLORI's picture

 

 

The peace prize president already has boots on the ground in Africa and drones too

 

Ground troops are in Africa without congressional approval

http://www.dailypaul.com/229967/troops-are-in-africa-without-congressional-approval

and he might send a lot more

The Obama administration is contemplating broad military, political and humanitarian intervention to stop a slide toward chaos and Islamic extremism in Mali, the top State Department diplomat for Africa said Thursday.

http://www.post-gazette.com/stories/news/world/us-weighs-somalia-model-for-restoring-order-in-mali-657259/?

 

Sun, 10/21/2012 - 13:59 | 2907964 nmewn
nmewn's picture

No Blood for...wait a minute.

Sun, 10/21/2012 - 16:18 | 2908198 pauhana
pauhana's picture

No Chinese blood for . . .

Sun, 10/21/2012 - 17:10 | 2908279 nmewn
nmewn's picture

It appears so. So "the pipeline" will still be built, it'll just end somewhere else.

Oh, thats just splendid ;-)

Sun, 10/21/2012 - 18:07 | 2908397 Mactheknife
Mactheknife's picture

Our banking cartel owned and operated government doesn't give a rat's ass who gets the oil...just as long as they sell it in dollars.  The real problem of course is that China won't be selling this oil, just shipping it home. Maybe it was "Give us that oil and we won't dump your Treasuries." Just sayin...

Sun, 10/21/2012 - 20:24 | 2908588 nmewn
nmewn's picture

That may not be such a bad thing...its around 8-10% outstanding last I looked (so they say).

I've long held the opinion that...if I had a few trillion in debt I wanted to hide...would I say I hid it in a closed society or an open one, maybe with a side agreement of non-disclosure due to trade...say, Apple? They need to keep a billion people from going bat-shit crazy on them instead of several millions here.

Just sayin, I don't trust what either say about accounting at this point.

Mon, 10/22/2012 - 17:52 | 2910927 Tom of the Missouri
Tom of the Missouri's picture

I think you mean "There Will Be Blood".   Didn't you see the picture at the end of the article?   It was an incredibly great movie, at least from the perspective of a capitalist like me.  I am sure the hollowood writer and director did not mean it that way, but that is the way I took it.  If I had pitched it I would have said it was "John Galt the oil man lashes back instead of disappearing."  I could relate to his pain and his anger.  It is a sad sign of the times that today's capitalist can all be found in China.  And yes, it is likely there will be blood again.

Sun, 10/21/2012 - 14:00 | 2907970 Matt
Matt's picture

1950 barrels per day. 365 days in a year. 1.5 million barrels per year. 1950 * 365 = 711,750. hmmm somethings missing or not right.

Are the Chinese taking resources we fought for, or was this agreed to in advance, in leiu of recieving dollars of equal value for dollars lent? 

 

Sun, 10/21/2012 - 15:17 | 2908105 CrashisOptimistic
CrashisOptimistic's picture

Well done, sir.  I was jumping on that number failure, too.

These are hype projections. THEY WILL NOT GET THAT MUCH OIL FLOW OUT, and we don't really know if it's truly oil or faux oil (aka NGLs).

There is SO much bullshit being spouted about what oil is going to come out of the ground that it is all mind boggling.

That celebrated 1.5 billion (which is likely 30% recoverable, at most) btw, is about 1/30th of 1 year of world consumption.

As usual, this announcement is silliness.

Sun, 10/21/2012 - 14:05 | 2907977 DoChenRollingBearing
DoChenRollingBearing's picture

I disagree with premise that China is the only winner if they start producing oil in Afghanistan.  We all win.

I think ExxonMobil has always had it right.  It is the production (flow) that matters, not who "owns" the production.  China has this "Risk Player" (as in the game of Risk) that resource ownership (especially oil) mentality that ownership is key, it is not.  The key is to explore and produce more oil, and let it find its own markets!  Simple capitalism!

 

Sun, 10/21/2012 - 14:30 | 2908030 dick cheneys ghost
dick cheneys ghost's picture

Is this oil priced in dollars or yuan?

Sun, 10/21/2012 - 15:05 | 2908091 DoChenRollingBearing
DoChenRollingBearing's picture

It does not matter, of course.  Once the oil that is shipped (by sea anyway), it is all fungible, a better deal comes along for Shell or Chevron, that oil changes ports (at least per contracts).

Even if the oil in Afghanistan goes by pipeline to China, that is oil that is NOT NEEDED by China from another seller, leaving that seller free to sell their oil to anyone else.

Production (flow) is what really matters.

Sun, 10/21/2012 - 15:57 | 2908163 Matt
Matt's picture

I think you are talking about two different things, and are both right. You are talking about oil as a global, fungible commodity, while the other side of the coin is US Dollar Hegemony. The more oil that trades for anything other than US Dollars, the faster America loses reserve currency status.

So, from the perspective of supply and demand, you are correct, it does not matter. However, the more oil is traded in Yuan, the faster the USD destabilizes.

Sun, 10/21/2012 - 16:14 | 2908192 DoChenRollingBearing
DoChenRollingBearing's picture

Correct Matt re both of your points.

Sun, 10/21/2012 - 18:02 | 2908383 rwe2late
rwe2late's picture

DoChenRollingBearing

leaving that seller free to sell their oil to anyone else

Don't any of these "sellers" need to own the oil they are selling?

Sun, 10/21/2012 - 18:09 | 2908404 Mactheknife
Mactheknife's picture

>Production (flow) is what really matters.

FOR NOW...

Sun, 10/21/2012 - 20:29 | 2908596 cranky-old-geezer
cranky-old-geezer's picture

 

 

I doubt there is any oil China produces anywhere that China doesn't need.

Is the US compromising the petrodollar to keep a trillion of treasuries from being dumped?

Or placating China in Afghanistan hoping for a pass from China vis a vis Iran?  (which won't happen)

 

Sun, 10/21/2012 - 14:07 | 2907989 Coke and Hookers
Coke and Hookers's picture

This is true progress through globalization. First America moves her factories to China and spends all her wealth paying for Chinese goods instead of creating them herself. Now America occupies countries for China so it can get the resources to to make goods to sell to America instead of only occupying countries for Wall street bankers as she has in the past. I can see nothing here but harmony, global bliss and progress.

Sun, 10/21/2012 - 14:51 | 2908067 Matt
Matt's picture

Reagan's Plan to defeat the Soviets by surrendering to the Chinese?

Sun, 10/21/2012 - 15:00 | 2908084 PaperWillBurn
PaperWillBurn's picture

*borrowed wealth

Sun, 10/21/2012 - 14:11 | 2907994 blindman
blindman's picture

Renaissance 2.0 - Financial Empire - Full Length - Damon Vrabel
http://www.youtube.com/watch?annotation_id=annotation_60580&feature=iv&s...

Sun, 10/21/2012 - 14:23 | 2908009 Kayman
Kayman's picture

Perhaps the U.S. can hand over Afghanistan to the Chinese.  A little bit like how the French, exhausted and impoverished, handed the Vietnam grenade over to Uncle Sam.

Sun, 10/21/2012 - 15:07 | 2908095 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Yes, it would serve them right.  Their turn in Afghanistan anyway.

Sun, 10/21/2012 - 16:11 | 2908187 Schmuck Raker
Schmuck Raker's picture

The US is not withdrawing from Afghanistan.

We are advancing in the opposite direction.

Sun, 10/21/2012 - 16:20 | 2908200 roadhazard
roadhazard's picture

We already guard Chinese mines in Afghanistan, oil rigs are next I guess.  High tech rent a cops.

Sun, 10/21/2012 - 18:14 | 2908407 DosZap
DosZap's picture

A little bit like how the French, exhausted and impoverished, handed the Vietnam grenade over to Uncle Sam.

They handed us nothing the .goobs chose to get into that debacle,and if the same ,goobs had let our men of the leash, they would have won.

HO, was just a few weeks/mos away from throwing in the towel.

Sun, 10/21/2012 - 19:12 | 2908483 RiverRoad
RiverRoad's picture

Kayman:

Right you are.  Why not have a little Pax Chinese?  Let them go broke making the world safe for capitalism!

Sun, 10/21/2012 - 14:23 | 2908012 g3h
g3h's picture

"CNPC will pay a 15 percent royalty on oil, 20 percent corporate tax and give 50-70 percent of its profit from the project to the government":

Which Western company will do that?  Makes no sense.

Sun, 10/21/2012 - 15:11 | 2908100 Urban Redneck
Urban Redneck's picture

They all will.  MSM don't know shit about oil accounting.

Sun, 10/21/2012 - 14:28 | 2908026 Atomizer
Atomizer's picture

Doesn’t opium poppy trade yield more revenue? No need for capital investment, mother nature just grows the illegal {highly profitable, job creating enterprise}.  All taxpayer alphabet soup agencies regulate who can move more product.  By bidding on the highest private investor donations, oil cartels or drug dealers can gain entry to any global port.

 

/sarc

Sun, 10/21/2012 - 14:36 | 2908041 news printer
Sun, 10/21/2012 - 14:39 | 2908046 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Yippee. Gazprom is in Iraq. Why shouldn't China be in Afghanistan. If they share in economic interests, it is less likely that a proxy war is started.

Global Imperialism!

Sun, 10/21/2012 - 14:40 | 2908047 literarybeer
literarybeer's picture

is this bullish for oil? 

Sun, 10/21/2012 - 14:52 | 2908069 Matt
Matt's picture

It is bullish for oil priced in USD.

Sun, 10/21/2012 - 14:42 | 2908051 q99x2
q99x2's picture

If 18% unemployment is twice the national average in Afgahnistan then that is 9% and 8% for the US. Something doesn't seem right.

Should be pretty easy for China to also offer Iran great deals on oil as well. As long as China has nukes...Fuck you Bernanke.

Sun, 10/21/2012 - 14:53 | 2908074 Matt
Matt's picture

As long as China pegs it's currency to the USD, I don't see how it makes a difference?

Sun, 10/21/2012 - 14:43 | 2908052 Joebloinvestor
Joebloinvestor's picture

What happened to all the "precious metals and rare earths" supposedly "discovered" ?

Afganistan, soon to be the center for oil, precious metals, rare earth minerals and a bottomless pit for American support.

Sun, 10/21/2012 - 14:48 | 2908054 earleflorida
earleflorida's picture

whilst we keep control of the poppy fields in the south?

http://www.dawn.com/2012/04/23/afghans-defy-warnings-as-poppy-season-ope...

and, all the while... pakisatn's isi dictates to the west, 'who-it-is-that-shalt-sit-at-their-brethens-table'! 

go reagan fans... bravo ronny-- 'the man that brought the empire to its knees without firing a shot? but, the score[?] has finally marked its time in history? has it not?,... czar putin!?

go figure... as india opens for a bear-hug? 

Sun, 10/21/2012 - 14:56 | 2908062 Yen Cross
Yen Cross's picture

Great! Now the Afghanis,(Taliban/Al Qaeda) can afford to upgrade from AK-s to M16-A2s.   These idiot politicians won't stop until every cockroach in that country is armed with the latest and greatest.

Sun, 10/21/2012 - 15:00 | 2908083 Matt
Matt's picture

So they can shoot with even less range? They'd be better off with .300 Winchester magnum hunting rifles. Maybe some night vision and GPS, that would be the way to go I think. 

Sun, 10/21/2012 - 15:36 | 2908124 buzzsaw99
buzzsaw99's picture

nobody gives a phuck about the debates. this blog is becoming too political for my taste.

Sun, 10/21/2012 - 15:46 | 2908138 ziggy59
ziggy59's picture

Operation: CLAOFUS

China Liberates Afghan Oil From US

Sun, 10/21/2012 - 15:49 | 2908143 Quinvarius
Quinvarius's picture

Unless Obama is going to pull security for China, sounds like we can LEAVE NOW.

Sun, 10/21/2012 - 15:50 | 2908147 jackinrichmond
jackinrichmond's picture

afghan oil fields for libyan oil fields..  

Sun, 10/21/2012 - 15:53 | 2908153 Atomizer
Atomizer's picture

 

 

The EPA must be drooling over the new fines they can imposes on over 10,000 ppm overspill while drilling underground oil. If drilling for electric batteries, no fines would be issued.

 

1920 photo in USA

http://photovalet.com/379275

 

Battery waste

http://www.epa.gov/osw/hazard/wastetypes/universal/batteries.htm

 

Oil vs. Batteries Calamity 

At the Positive Plate: Lead peroxide and sulphuric acid produce lead sulphate, water, and oxygen

PbO2 + H2SO4 = PbSO4 + H2O + O

At the Negative Plate: Lead and sulphuric acid produce lead sulphate and Hydrogen

Pb + H2SO4 = PbSO4 +H2

The oxygen of equation (a) and the hydrogen of equation (b) combine to form water, as may be shown by adding these two equations, giving one equation for the entire discharge action

PbO2 + Pb +2H2SO4 = 2PbSO4 + 2H2O 

Kind of makes you wonder after looking over the new green energy taxation farce.

Sun, 10/21/2012 - 21:28 | 2908695 Tom Green Swedish
Tom Green Swedish's picture

Batteries will not be a replacement for oil.

Sun, 10/21/2012 - 16:04 | 2908176 jackinrichmond
jackinrichmond's picture

at this time in history, trading real assets for fiat doesn't make much sense.   in a world that has all currencies depreciating to oblivion, you are basically trading tangible assets for currency created out of thin air.

 

 

Sun, 10/21/2012 - 16:13 | 2908188 PontifexMaximus
PontifexMaximus's picture

was GS arranging the nexen deal?

Sun, 10/21/2012 - 16:21 | 2908201 pauhana
pauhana's picture

Our president, winner of the Nobel Peace Prize, is simply making the world safe for democracy . . .  no wait!

Sun, 10/21/2012 - 18:23 | 2908420 DosZap
DosZap's picture

Our president, winner of the Nobel Peace Prize, is simply making the world safe for democracy . . . no wait!

 

Don't you mean Islamic Sharia Law?.Thus far, all the BAD guys we have taken out, have been taken over by something 1000x's worse. What a deal such a plan!.

Sun, 10/21/2012 - 19:17 | 2908494 pauhana
pauhana's picture

Wow!  Even with the "no wait" you didn't get the sarcasism.   I give up.  Next time I'll include the (sarc/on).  

Sun, 10/21/2012 - 16:23 | 2908206 Atomizer
Atomizer's picture

Here’s the same pesky Hydrogen [gasoline]formulation they use to paint Carbon Tax enforcement through clean energy initiative.

 

CH4 + 2 O2 ? CO2 + 2 H2O 2 CH4 + 3 O2 ? 2 CO + 4 H2O N2 + O2 ? 2 NO N2 + 2 O2 ? 2 NO2

 

When special interest groups get painted into a corner, they cry out telling everyone has reached the peak oil era. This love fest has to do with WH members trying to develop alternative means of USD universal presence in selling oil of dollars. Some very high profiled K Street fucks will be uncovered shortly. Mark my words! Bernanke & Timmah will plea da fifth.

Sun, 10/21/2012 - 16:48 | 2908251 Fix It Again Timmy
Fix It Again Timmy's picture

Eradicate stupidity - carpet-bomb DC with bunker-busters....

Sun, 10/21/2012 - 17:31 | 2908321 ThisIsBob
ThisIsBob's picture

The British, Russians and the Americans have had their asses handed to them over there.  Now its China's turn?

Sun, 10/21/2012 - 18:25 | 2908425 cosmictrainwreck
cosmictrainwreck's picture

yes, yes, yes and unclear. Can't see why China will risk any blood whatsoever with the stoopid USA covering their asse(t)s for them... 

Sun, 10/21/2012 - 18:48 | 2908466 RiverRoad
RiverRoad's picture

If only......

Sun, 10/21/2012 - 18:35 | 2908443 Slartibartfast
Slartibartfast's picture

A few things to note:

Canada's Harper Party, while ostensibly 'conservative', is playing games. They will likely approve the CNOOC deal because it adds leverage to their push for a pipeline through the Rockies to the Coast, even though the whole project is now in serious doubt now that BC has decided to play hardball with Alberta. "You want your oil to cross our territory and use our coast? Great, how much do we get?" A totally reasonable response that is driving Alberta and the Harper Hoard nuts...like BC was just going to let you for free.

Secondly, Industry Minister Paradis has been investigated for conflict of interest no less than three times, fortunately by a conflict of interest commissioner woman they appointed who would be more effective running a quilting circle, although she may be too old even for that.

Harper does whatever the US says, and will sell to China whenever he's told it's ok. Since the US rules the roost in Mordor, I mean the Tar Sands (they look much the same), they win either way. Alberta is too spineless to even raise the royalty rates.

Sun, 10/21/2012 - 19:02 | 2908478 RiverRoad
RiverRoad's picture

And perhaps our recent technology security issues with China have given the Canadians pause here.

Sun, 10/21/2012 - 18:47 | 2908462 RiverRoad
RiverRoad's picture

What a hoot.  The Chinese let our military extend themselves all over the world to keep THEIR business interests safe!

Sun, 10/21/2012 - 19:16 | 2908486 lolmao500
lolmao500's picture

From last year...

http://nation.time.com/2011/12/30/u-s-blood-for-chinese-oil/

US BLOOD FOR CHINESE OIL.

 

Sun, 10/21/2012 - 20:18 | 2908576 toomanyfakecons...
toomanyfakeconservatives's picture

Didn't this whole mess start with the Unocal pipeline that was readied in advance of 9/11? In any event, you can spin it all you want, we lost, the Taliban won.

Sun, 10/21/2012 - 20:52 | 2908625 helping_friendl...
helping_friendly_book's picture

I suppose the US Gov't is now competing with the Chinese for the opium trade in Afghanistan.

The Tabiban won't fuck w/ the Chinese as long as they get their cut.

The only reason we are in Afghanistan is so the CIA can run drugs therough Dover AF base.

Sun, 10/21/2012 - 21:14 | 2908663 Tim Brasco
Tim Brasco's picture

Volatility Is Entering The Lower Level Stocks, Here Is a Stock That Was Just Approved For Training International Pilots At There Flight School. They Are Going From No Revs To $980,000 In revs within the next 30 days. With a current float of less than 5 million shares this is going to really be a mover.  Right now sitting at the 52 week low around a penny the new valuation will place them undervalued by rougly 4,000% +.  Last time on just news of them applying the stock ran clise to 600%. Monday and Tuesday trading day there should be upwards of those gains and potentially even more.  Here is a great Ceo interview and research report that came out just today! The community is buzzing over this stock! Opportunity is all over the market, you just need to know where to look! This group provides full transparenc and is up 2,033% for the year. Watch Tomorrow  http://www.stocklegends.com/quasar-qasp/

Sun, 10/21/2012 - 21:22 | 2908664 Tom Green Swedish
Tom Green Swedish's picture

Very confusing policy this government of the USA has.  Rack up a ton of debt on military expenditures, which the Chinese buy the debt up and in turn take the resources which supposedly were being fought over?  What the hell is going on here.  Wouldn't it have made more sense to not go to war thus not rack up huge defense expenditures which the Chinese has funded. Or am I missing something here?  We are in the hole with foreign debt the exact amount the iraq / afghanistan war has cost us. Why are they doing this?  We have gained nothing from these wars, in fact I think they made things worse. You're shitting me.  I'm not paying for this crap.

 

The final bill will run at least $3.7 trillion and could reach as high as $4.4 trillion, according to the research project "Costs of War" by Brown University's Watson Institute for International Studies. (www.costsofwar.org)

Sun, 10/21/2012 - 22:08 | 2908758 Cathartes Aura
Cathartes Aura's picture

if you'd like to erase all the imaginary, albeit en-forced (mainly for internal revenues) nationstate boundaries, and instead just assign certain tasks to certain areas, then it begins to make more sense. . .

one world corporation, with areas of profit, areas of loss.

Sun, 10/21/2012 - 21:43 | 2908686 jimmyjames
jimmyjames's picture

While it is unclear precisely what would be of "net benefit to Canada

***************

Certainly CAD dollars coming back home-is not a net benefit for Canada-

The same reason the US blocked the Unocal sale and the Dubai port acquisition-

Of course Canadian politicians are too fucken stupid to understand the transfer-so i would suspect the weasel eyed Carney clued them in-

Mon, 10/22/2012 - 05:09 | 2908995 Manic by Proxy
Manic by Proxy's picture

I drink your milkshake

Mon, 10/22/2012 - 07:04 | 2909036 EmileLargo
EmileLargo's picture

Is this a 21st century version of "The Great Game"? The 19th century adversaries were Russia and Britain. By the time the Great Game had ended, Russia had a Bolshevik Revolution and Britain's Empire was on its last legs.

Mon, 10/22/2012 - 08:40 | 2909150 Martel
Martel's picture

Haha... Washington, D.C. just got cuckolded by the Chinese. The U.S. and other western countries do the job, the Chinese enjoy the fruits.

The whole idea of 'nation building' in Afghanistan was false from the very beginning. There was no chance of it working, but it gave lucrative opportunities for corrupt Afghan politicans and officials, and Western military subcontractors. Instead of accepting the fact that Afghanistan is a tribal structure, Western fools tried to make it into a democratic country.

The Chinese carry no white man's burden, hence they are more flexible to do quid pro quo, and it works. When the Western fools are gone, the Chinese are going to get their security through local clans and tribes, arming them if necessary. No constant stream of bodybags to Beijing, though the Chinese could easily take that if necessary.

Mon, 10/22/2012 - 17:07 | 2910808 dadichris
dadichris's picture

the US is there stricly for the opium anyway

Mon, 10/22/2012 - 15:25 | 2910379 sof_hannibal
sof_hannibal's picture

USA has been supporting Chinese minning interests in Afghanistan for some time now; quite strange...Oil ain't the only thing their pulling up out of the ground in Afghanistan either: China has a foot hold on several other minerals, etc. in rAF...protected by US security forces.

Do NOT follow this link or you will be banned from the site!