good timing for the era of electric cars

Sources: Financial Times, EIA, CNIH, OPEC

Tools: Excel, Rawgraphs, Affinity Designer

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From our newsletter:

Oil production growth since 2000:

• 🇲🇽 Mexico: -47%

• 🇻🇪 Venezuela: -77%

• NEW MEXICO: +812%

With a tiny fraction of the population of Venezuela and Mexico, the US state of New Mexico has experienced a boom in its oil & gas sector in recent years, surpassing the LatAm oil giants' production.

According to a Financial Times story by Myles McCormick, the boom accelerated after Russia invaded Ukraine, which drove Russia out of the list of US suppliers, and demand for domestic oil to record levels.

Aside from the obvious economic perks this brings to the state and the US, New Mexico's workforce is thriving. There's been a great decline in unemployment and a great increase in wages.

People working in the industry can earn over $27/hour, forcing companies in other sectors to compete. According to McCormick, Burger King is now offering $28/hour in NM, compared to $19/hour in New York City (so 47% higher than one of the most expensive cities to live in).

McCormick's analysis also points out that the increased production has taken the state's budget from $6B four years ago to around $9.5B this year, leading to increased spending in education, housing, healthcare, and infrastructure.

That is a pretty crazy spike! Once upon a time I used to build oil and gas conferences. New Mexico wasn't even in the top ten US states we were looking at for shale oil/tight oil development. I got out of that space around 2010, which looks like when things started picking up for New Mexico. Pretty amazing what the last decade has done!

One thing to note, though, is that New Mexico's proved reserves, while second largest of all states (Texas by far and away in first spot), there are only 4.9 billion barrels of proved reserves. At the rate they're pumping, they may tap all known reserves within a decade. This is compared to Venezuela, which is the country with the largest pool of proved reserves at 300 billion barrels - even more than Saudi Arabia. So they have room for continued production for many decades. (Mexico, for comparison, is closer to New Mexico in proved reserves at 5.8 billion barrels)

Guessing this is because of the part of the Permian Basin that crosses into New Mexico? I know that it does and that the Permian Basin is part of the backbone of the shale economy here in Texas.

I would point out that both Venezuelan and Mexican oil are state-owned/operated production firms...also in both countries the governments use them to fund government spending and there is little to no capex in keeping up/expanding oil production...basically the state is really bad at running companies efficiently, and often uses them as a piggy-bank, which has been generally true forever. Governments suck at running companies/making them grow long-term. Capital allocation is terrible within these companies generally speaking.

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They're second only to Texas now!

Damm old mexico cant keep up

Its not so simple. After all, some of the largest oil producing companies are SOEs (Equinor and Aramco being examples). The issue with venezuela's oil production decline may be down to lack of investment and mismanagement but that isn't really the case for Mexico.

That has more to do with demand for domestic oil production increasing in the US, which means less demand for Mexican oil.You can see the result of that for New Mexican oil and Mexican oil production. One goes up whereas the other goes down because people are buying less from Mexico.

>Its not so simple. After all, some of the largest oil producing companies are SOEs (Equinor and Aramco being examples).

Both of these are publicly traded/have private shareholders...sure the state does own the bulk of the equity, but they are partially private and have to publicly report financial results. The other primary difference is that their profits are not solely used to fund the government/they are not operated in that ways as a source of tax revenue...both of these 2 companies have a line between the BOD and the government, which is not the case with PEMEX or Venezuela's oil company (which report directly to the government).

>The issue with venezuela's oil production decline may be down to lack of investment and mismanagement but that isn't really the case for Mexico.

Yes it is the case for Pemex...Pemex profits accounted for about 25% of Mexico's government revenues. Literally the first article that came up below...it's pretty well known that a lack of investment is the main reason for Pemex's long-term declining production.

https://money.cnn.com/2012/08/17/news/economy/mexico-oil/index.html

>That has more to do with demand for domestic oil production increasing in the US, which means less demand for Mexican oil.

Pemex can sell oil to anybody...oil is a globally traded commodity...they don't need just the US to buy it.

>You can see the result of that for New Mexican oil and Mexican oil production. One goes up whereas the other goes down because people are buying less from Mexico.

This is primarily due to the declining production of Pemex oil...

And this is why we are such a rich state. <checks stats> oh... wait...

In all seriousness this has caused a surplus with the state funds but things get all jacked up with how they can get spent or not. It is our local political fun apparently.

"Also... a greener economy is right on the horizon! Let's get big into oil!"

That is exactly right. There is differences on how the permitting and such is done to access things on this side of the Texas/NM boarder, but they are pulling from the same "pool" if you will.

Fun fact: New Mexico is older than the country of Mexico. They were both named after a valley of Mexico down were present day Mexico City is.

the fuck happened in venezuela in 2003

Looks like Venezuela needs some Freedom©

I wonder with the continued implementation of climate change policies and regulations, as well as the shift towards EVs, if those 300 million barrels will be worth as much in 50 years though

> basically the state is really bad at running companies efficiently, and often uses them as a piggy-bank, which has been generally true forever

This is somewhat more true for Venezuela than Mexico, but in the context of the global economy the large oil reserve has put a target on the country's back, so to speak. Specifically after Venezuela nationalized their oil extraction industry and opted not to take out any more IMF loans in the early 2000s, their ability to stabilize currency was highly dependent on the oil market which since then has been often unpredictable. Combine this fact with the generally exploitative nature of the first world's relationship with Latin America ("corruption") and the middle eastern OPEC members having an outsized influence on oil production throughout the same period until today and it is not hard to see how Venezuelans came to suffer as a result.

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Wow, never would’ve expected New Mexico to become such a large oil producer

Thats the old freedom, the new one is Freedom+

The name is older, not the state itslef

Hugo Chavez decided to nationalize the entire Venezuelan oil industry, so the affected oil companies got all of their own employees out of country while they still could.

Do you seriously think we'll phase out oil and gas any time soon lmao. Maybe production will slow down by the next century, but it won't be for a long long long time.

There's some who believe that their current situation is the result of US interventions already

Edit: not saying they're right . Jeez relax!

Now New Mexico is gonna be Mexico and Mexico is gonna be Old Mexico. It’s the law.

Id don’t know about the quality of nm crude, but Venezuelan crude is typically pretty expense to refine.

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Because it couldn't be the nationalization of their economy and series of terrible dictators at fault.

Shouldn't it be "New Mexico Now Produces More Oil Than Both Mexico & Venezuela". As written, the comparison could be read as Mexico and Venezuela combined rather than independently. Or maybe I'm just wrong.

Fracked oil isn't counted as proved reserves usually.

Hydrocarbons especially.

Freedom pro max

Communism does it again!

Crude will still be needed for plastics and polymers, and without as much gasoline demand it will be a little less of a commodity, which typically means more expensive. Especially once some oil refining facilities start to age out and close without being replaced.

We're just gonna keep "producing" more and more oil until the world burns up and/or drowns, or the oil runs out, whichever comes first.

Freedom plus pro max from Capital One… what’s in your wallet?

Hey what do you know, there's a NEW Mexico!

Why are they pumping it now? The US’s take on oil production has been to let others burn their reserves first while keeping ours for a rainy day

Welp, Mexico won't have oil to brag about now...we are fucked.

With Aramco, they generally just have to dig a hole in the ground with a shovel and oil comes gushing out. But it is true that the House of Saud has been pretty good at taking care of the goose that lays the golden eggs. Let’s if that stays the case after MBS overturns the old system.

Equinor is more the exception that proves the rule when it comes to national oil companies. They’re even competitive in producing resources outside of Norway!

With both Pemex and PSVSA, you see production collapsing due to a combination of cronyism, corruption, lack of investment, generally too many people with their hands in the pot and lack of foreign competition to keep things honest. PDVSA is even worse off because of nationalizations and all the other problems with the Venezuelan economy.

Yet, New Mexico is one of the poorest states in the US.

It’s not call New Mexico for nothing. It’s a clear upgrade lol

This is a true fact, however you forgot one variable which is affecting less (or maybe none) in New Mexico: Corruption.

Venezuela became a gangster state, the amount of money stolen is unimaginable. Think about the production of oil around 2008-2012 or so… the barrel price hit the 100s and producing at a still high capacity. None if this money was properly invested in the country.

Also Venezuela got into more debt with China in a loan-for-oil style of debt. There might be a big chunk of the daily production of oil just destined to pay that back.

Just to give you another last hint of the massive corruption: since Chavez, the government decided to give subsidised oil to Cuba for “humanitarian” reasons. But there were reports that Cuba was re-selling that oil in conjunction with some Venezuelan politicians as well. Free money!

So yeah, the money that should have been invested properly for a normal market, has been destined to corruption.

Proven reserves is a very unreliable indicator for actual supply in the ground.

The United States has been self-sufficient in crude oil and petroleum products since 2020. New Mexico contributed to this.

https://www.eia.gov/dnav/pet/pet_sum_sndw_dcus_nus_w.htm (see net imports near bottom)

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New Mexico was New Mexico before Mexico was Mexico. True story.

They were nationalized in 1968. What Chavez did was get rid of engineers and put his friends and family in charge.

There’s also a lot of oil in the San Juan basin near the 4 corners

You say Saudi Aramco is publically traded but it’s only got a measly 1.5% traded and only from 2019. Its basically fully government owned and lines government coffers nicely every year. The whole point of the IPO was becuase the government wanted cash. To be fair they are using it for a sovereign wealth fund to diversify their revenue. Furthermore, the IPO didn’t attract much interest from western capital markets for problems commonly associated with SOEs, like corporate transparency and political risk.

It sounds more like Saudi Gov is just more competent at management than the Venezuela Gov.

Fun fact, new Mexico is older than mexico

Same thing happened in North Dakota 15-20 years ago. It's a great deal for the workers who show up, but a better deal for anyone who can sell them trucks or rent them apartments. It's a raw deal for anyone growing up there because you either have to work in the oil patch, find a way to cater to the travellers, or go broke.

You should do a graph of the most powerful Latino passports

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Are we rooting for oil now?

Venezuela's entire economy was oil. The oil was being extracted by foreign companies who got a large portion of the profits in exchange for extracting the oil. In 2003 the new government decided it wanted all the profit, fired all 19000 employees in the oil companies and replaced them with Venezuelans (ones loyal to the new government). It turns out extracting oil is actually very difficult and the lack of expertise killed the industry.

That's the abridged version, there's more to the story but the moral is, don't mess with success, diversify your portfolio, never fire all the smart people.

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Personal ICEs will be phased out as batteries get cheaper/potent and auto manufacturers will focus on EVs as their main product. This is great as Americans won't be beholden to gas prices anymore and won't face spikes like we saw last year.

Although (unfortunately) there will still be plenty of use for oil and gas.

Brought to you by Carl’s Jr

What would you guess would happen if you forced soldiers in your military to run your oil infrastructure after driving out all your foreign engineers?

Well, that.

More like there was a massive general strike and oil production stopped due to the strike. In the aftermath Chavez fired 40% of the work force of PDVSA.

Isn't that why the Mexican war was waged?

Great, now they can buy from there.

Venezuela in 03 "my A1C was here, but it needed to be here"

Y’all still got Televisa to brag about!

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But that's not real communism /s

Don't worry. Most countries don't do shit about EVs, in Latin America an electric car is as rare as a 50 yo virgin.

It was the same in the US ten years ago, who knows where it’ll be in the next 50

So new mexico is actually old mexico?

Can’t imagine why Venezuela is not producing as much oil. Surely couldn’t be just a simple political reason caused by moronic politics.

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Old Mexico is the canyon, New Mexico is new Mexico, and Mexico is new new mexico

Hate seeing Western propaganda here.

Putting his brother, Doofus Chavez, in charge demonstrated that the People's Will triumphs over the supposed need of experience and middle school education.

I’m no expert in economics, but this chart doesn’t look great for Venezuela. Has anyone checked in on them recently?

Yeah, but within 20-30 years our dependence on oil will be far less than it is today. There will also be greater competition from 3rd world countries being able to develop their own infrastructure.

The state nationalised the oil companies and then didn't actually invest into things like RnD. Started appointing people for political reasons instead of competent engineers.

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Ehhh it was named New Mexico when it was literally still part of “old” Mexico (new Spain). It’s not like the American state of New Mexico is older that the country of Mexico. It wasn’t even part of the US yet when it was named.

What's that big dip in Venezuela's output in, 03 or so?

It's getting better though. This has given us free college tuition, the first state in the US to do that.

Russian sanctions

Why didn’t they just tax them more and make them pay higher share of the oil. Rather than get greedy and want 100%. Orrrr slowly build your expertise over decades times. And then diversify like saudis

Not being the primary source of oil production? Believe it or not - straight to jail.

And a great day for the environment again...

I wonder if NM have a view that their oil is a depreciating asset, so they’d rather get it sold as quickly as possible to extract as much value from it?

Democracy and free world people want to ,,own,, Venecuela but

It’s typically intermediate. Most of NM’s oil and natural gas is in the Permian Basin.

Its not like were having a climate emergency rn

>slowly build your expertise over decades times

Very few countries have the foresight or the political systems in place to do so. When you're an authoritarian populist like Chavez your tomorrow is not guaranteed and you need to take actions that have immediate effect. Tbh, that's true of most leaders.

New Mexico Is the new Mexico

Somehow not real socialism

More like if you aren't pumping and selling it someone else are going to do it later.

I mean, not being allowed to trade doesn't help their economy either.

Emissions controls are also bound to become stricter, which increases prices.

But one of the most beautiful.

As others have noted, proved reserves (in the US) should not be used this way. They are a financial definition used to support loans for drilling. You can increase proven reserves by drilling more test wells. USGS estimate of oil reserves for those who are curious: https://www.usgs.gov/news/national-news-release/usgs-announces-largest-continuous-oil-assessment-texas-and-new-mexico

You’re right dude

Imagine if everyone in the country benefitted from oil production instead of just a handful of oil executives and shareholders. That would be TERRIBLE

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Wtf happened I 2016 to venezuala?

There's no good answer, they thought the job was easier than it was and they'd be freeing up a few hundred billion dollars a year that they believed rightly belonged to their country. I'm sure in hindsight they'd do things differently.

The Saudis as you say did things the smart way, they started out with a 50/50 profit split with American companies and over time used their profits to take more control and increase taxes and eventually own the entire industry and diversify profits. That process did take 50 years though and Venezuela's government wanted fast results because they weren't an authoritarian regime like the Saudis and needed to win the next election.

Although Maduro fucked the economy so badly that he ended up turning Venezuela into a sham democracy and seizing authoritarian power because there was no chance of him winning a fair election. The road to hell is paved with good intentions.

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Chávez wins the elections in 2002. After this, signatures start being collected in 2003 to request a referendum to have him step down.

Government finds out which employees of PDVSA (the State’s oil company) signed in favor of the referendum, violating the right of a private vote defended by the constitution, and has them fired.

Obviously, the country still required the company to produce, so they replaced expertise and experience with political loyalty, which is also the reason production has declined ever since.

Source: My dad was one of them.

Bonus fact #1: the list of signatures against Chávez is called the “Tascón List”, and was used to ensure the fired employees weren’t in the payroll of any oil companies, including foreign ones with permits to exploit, by threats of steep fines and remotion of such permits.

Bonus fact #2: same thing happened with Maisanta, the so-called “Socialist Company of Agricultural Production and Development” in 2004 (Source).

Bonus fact #3: Same thing happened again in 2016, when calling for a referendum to have Nicolás Maduro step down (Source in Spanish).

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So the drop in production is also western propaganda?

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Who will profit from Venezuela's reserves in the next decades this i am very curious.

Negative net imports doesn't mean self-sufficient. If we're continuously importing just as much, or more, than we're exporting, we're not relying on our own supply, and don't have the infrastructure in place to use our domestic product. Self-sufficiency would mean we can stop importing oil and separate ourselves from OPEC's pricing monopoly. We cannot.

In a free economy, the benefits flow to many people. In a state controlled economy like Venezuela 🇻🇪 the benefits stay with the dictators and their friends.

The Kingdom of Mexico is older than the province of New Mexico, the country Mexico is older than the state of New Mexico.

New Mexico reserves are probably understated because of how unconventional PUDs work.

That is the subscription for Freedom

Dang, whats going on in Mexico?

Is this something you know for certain or are you just parroting what you heard on Fox News / MSNBC?

There have been instances where nationalizing resources has directly benefited the population. Here are a few examples:

1. Norway's nationalization of oil reserves: Norway nationalized its oil reserves in the 1970s and created the state-owned company Statoil (now Equinor). The revenues from the oil industry were used to fund social programs and invest in infrastructure, education, and healthcare. This has made Norway one of the most prosperous and equal societies in the world.

2.Bolivia's nationalization of gas: In 2006, Bolivia's President Evo Morales nationalized the country's natural gas industry. This move allowed the government to increase its share of the revenue generated from the industry and invest it in social programs such as healthcare, education, and poverty reduction. As a result, poverty rates in Bolivia have decreased, and the country has made significant progress in reducing inequality.

3.Malaysia's nationalization of tin mining: In the 1970s, the Malaysian government nationalized the tin mining industry, which was previously dominated by foreign companies. This move allowed the government to regulate the industry and ensure that the profits were reinvested in the country's economic development. As a result, Malaysia was able to diversify its economy and achieve significant economic growth, which benefited the population.

So it's relation to the nahuatl language is a lie...

Really? Wouldn't self-sufficiency just mean you can cut yourselves off from the entire global market?

If you keep trading on the global market, you're susceptible to price changes (caused by OPEC) regardless of how much you produce or so I would've though.

(I'm not an expert on this so please correct me if I'm wrong)

Idk, OR would make more sense to me

They are allowed to trade.

World: Let's move away from carbon as an energy source USA: I'm winning now!

(Yes I realize there is nuance here, just making a joke)

>You say Saudi Aramco is publically traded but it’s only got a measly 1.5% traded and only from 2019.

They still have to operate as a publicly traded company with an unbiased BOD, and have to do all the financial reporting/auditing that comes with being publicly traded.

>Its basically fully government owned and lines government coffers nicely every year.

But it's not the government making capital allocation decisions, it's the BOD and management...this is the key difference

>The whole point of the IPO was becuase the government wanted cash. To be fair they are using it for a sovereign wealth fund to diversify their revenue. Furthermore, the IPO didn’t attract much interest from western capital markets for problems commonly associated with SOEs, like corporate transparency and political risk.

Again though...the company does not take direction from the government (at least directly).

>It sounds more like Saudi Gov is just more competent at management than the Venezuela Gov.

The thing is the Venezuelan government directly controls and mandates what their oil company does as far as dividends, capital investment, etc....this is not the case with Saudi Aramco. Even with Saudi Aramco though, these companies (with large state ownership) do tend to have worse capital investment ROI and poor capital allocation over time.

I’ve done business in Venezuela. Chavez’s family wound up with billions of dollars. Also I don’t watch TV news. Sod off.

I believe Norway is only 2/3rd owner of Equinor last I checked after a merger with someone else years ago. Rest is public owned (my guess) as it traded on public markets.

They're autosustainable, why would they need to trade with capitalistic pigs?

Unless...

Over 7 million Venezuelans have achieved Freedom, by leaving Venezuela. https://www.unhcr.org/en-us/venezuela-emergency.html

Venezuela has very little strategic significance. The country is not "on the way" to anywhere. No vital sea lanes etc. Just a bunch of sour oil.

The Middle East is different. The Middle East sits at the crossroads to 3 continents, and is a vital chokepoint for the entire Eastern Hemisphere. Which is why great powers have been fighting over the area for thousands of years.

Also, the United States didn't steal a drop of Iraq's oil, unless the soldiers were sneaking it out in their canteens.

Exactly Zero US companies won any contracts when Iraq auctioned off their oil fields. https://content.time.com/time/world/article/0,8599,1948787,00.html

Absolutely. Doofus Chavez has personally guaranteed that production is higher.

The economic sanctions against Venezuela were super sneaky!

The first economic sanctions occurred in Aug 2017 - https://www.wlrn.org/news/2017-08-25/u-s-imposes-first-economic-sanctions-against-venezuela

But these were no ordinary sanctions! These sanctions travelled back in time to 2011 to cause Venezuela to starve way back then! https://www.cnn.com/2011/12/13/world/americas/venezuela-food-shortages/index.html

Even though oil prices were at some of the highest in recorded history, Venezuela was still starving, which is impossible! https://www.macrotrends.net/1369/crude-oil-price-history-chart

Then The CIA hacked Venezuela's currency printer, increased their money supply by 1,000,000%, causing the world's highest hyperinflation. http://fingfx.thomsonreuters.com/gfx/rngs/VENEZUELA-ECONOMY/010040800HY/index.html

How can real socialism^TM ever hope to succeed against CIA currency hackers and imperialist time machines?

>Imagine if everyone in the country benefitted from oil production instead of just a handful of oil executives and shareholders. That would be TERRIBLE

PDVSA, Venezuela's national oil company, only has one shareholder. The government of Venezuela owns PDVSA, all of it.

https://en.wikipedia.org/wiki/PDVSA

I am sorry you had to find out this way.

I'm sorry you don't understand that the government is a national entity that can dedicate funds toward national benefit. The concept probably isn't lost on you for thinks like infrastructure and defense?

By 2012, Venezuela had nationalized the oil, gas, electricity, telecommunications, food, agriculture, manufacturing, mining, and finance sectors of the economy. https://www.reuters.com/article/us-venezuela-election-nationalizations/factbox-venezuelas-nationalizations-under-chavez-idUSBRE89701X20121008

Norway's Equinor is 33% owned by Hedge funds, like Black Rock. https://www.equinor.com/investors/our-shareholders

And Bolivia was able to Build a skyscraper for the President to live in with all that money from nationalizing the gas. https://en.wikipedia.org/wiki/Casa_Grande_del_Pueblo#/media/File:Plaza_Murillo_.jpg

The largest tin producer in Malaysia is Malaysia Smelting Company, which has never been nationalized, and is owned by private investors. https://en.wikipedia.org/wiki/Straits_Trading_Company

I do understand that. That's why I told you that Venezuela's government was the sole shareholder of PDVSA, Venezuela's national oil company.

Not only did Venezuela nationalize all the oil, they nationalized the food, agriculture, electricity, telecommunications, mining, manufacturing, and finance sectors of the economy. https://www.reuters.com/article/us-venezuela-election-nationalizations/factbox-venezuelas-nationalizations-under-chavez-idUSBRE89701X20121008

But you probably knew that.

Don't you mean "OR Venezuela"?

What about new Venezuela?

Yeah I’m gonna call bullshit on Burger King offering $28 an hour in NM, unless you’re just talking about the head manager.

Yes, self-sufficiency would mean we can cut ourselves off from the global market. We can't. Just because we pump enough crude doesn't mean we're able to refine that crude and distribute its products internally. That's why we import about as much as we export. The infrastructure that is in place isn't structured to allow us to use what we're pumping, and too much infrastructure that is in place is structured around imports. There's no financial incentive for companies to tear apart what exists and rebuild it for self-sufficiency.

My point was that they have managed to operate successfully well before their IPO and associated reporting requirements. They seem to be following best practices and hiring professionals for operations. Then again, aren't these professionals essentially government employees?
Regarding the BOD, do note there are two government ministers sitting on the BOD. The BOD must retain a close relationship with the government, as the government is its only shareholder that matters. The government also has a big impact on the company's profits as its responsible for OPEC negotiations.

honestly they should use it up sooner rather than later

there still seem to be some oil economies out there that are basing their futures off oil reserves lasting when they should be basing it off whether the demand for oil goes away due to politics, ESG, activism, the youth generating in particular, other alternatives becoming more viable, etc.

Did the N. Dakota gains from then stick around or not?

I'm thinking of so called "resource cursed" economies (Africa) where the resource they're rich in becomes a curse for future development.

Ever consider how bad Cuba and Venezuela etc were BEFORE the people revolted? Russia was a cesspool before the Communists, a well fed cesspool with them, and a hell hole now. The right in Venezuela is demonstrably stupid. Actually stupid. Look up how they planned to revolt a few years ago. Outside the border on a bridge! Great idea! Oh wait. Troops closed the border !

"This government is good because the last one was bad too"

No. Just people act like the Cubans etc are looking for freedom. They aren't. They just want to go back and oppress people from their position. Venezuela's right wing was so bad the people revolted. Have you seen how bad South and Central American right wing governments are? But they stay in power. ? Venezuela's " freedom fighters" were oppressive AND incompetent.

Cool, more shallow, uneducated internet leftist factoids.

Lol. You are a fan of right wing monarchy and brutal racist governments. Opposing them doesn't make me a leftist. Opposing putting murderers back in power doesn't make me a leftist. If a government can't stop rape gangs and feed it's people with the mist fertile land on earth, you shouldn't be fellating them in public. Kneel away. Just don't ask me to cheer you on.

Wtf are you talking about

Edit: and you say all of this while rushing to the defense of failed left-wing monarchies without a hint of irony. Sad. I've noticed your sick factoids could really use a touch of self-reflection.

I think the point was to make a joke comparison with both "mexicos" so venezuela was added in parenthesis to keep the joke "pure"

So different infrastructure is compatible with different types of oil, and US infrastructure is compatible with a different type of oil than US production? Is that correct?

If it is then why on Earth was it set up like that?

Think of it like this... If a pipeline runs to an east coast port to fill up ships to export to Europe, and another pipeline is set up in Los Angeles to distribute product from the Persian Gulf to gas stations, it's easier to keep doing that than to send a super tanker that doesn't fit through the Panama Canal from that east coast port, around South America, to get it to the port of LA. That's just a hypothetical example, but most of our petro infrastructure was developed before we discovered fracking and started producing enough to cover our needs, and it's expensive to redo everything.

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Ah ok, I understand, thanks

I didn't defend anyone . Can you read. ? I know you conservatives are against education and all. But the fact is one needs to know the history of a county. Blaming a desert country for a lack of water is stupid. Attacking leaders of an historically shitty country is fine, but one does need to ask what the alternative is.

Bad comment.

look at me, I am Mexico now.

>Norway's Equinor is 33% owned by Hedge funds, like Black Rock.

Why would this be relevant? Does 67% not give you overall control? Also how are Black Rock and other Hedge funds returns benefiting many people and not just the hedge fund?

Yes, anything over 51% gives the government of Norway control. But they still must pay dividends to the Hedge funds that own the other 33%.

And no, those dividends paid to hedge funds do not benefit the people of Norway at all, and that was my point.

Do you think it strange that private investors and hedge funds can invest in Norway's "socialist" oil company?

Right but the problem is that guy is responding to someone saying state business is bad because it doesn't benefit many people unlike private while you are describing how the privatised part of Norway's state oil doesn't benefit the people of Norway unlike the state. That would mean before 2001 and the partial privatisation that it all benefited the people.

We already did! Here 😀

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That's columbia.

>My point was that they have managed to operate successfully well before their IPO and associated reporting requirements.

They were profitable, but were they as profitable as they could have been? Did they generate as high of an ROIC as they could have? Also the fundamental difference in Saudi Aramco and Venezuela's oil company is that Saudi Aramco is run as a business with little to no direction from the Saudi family (though they do enjoy all of the dividend benefits)...in Venezuela the government directly makes business decisions for the oil company and that has led to poor capital allocation decisions...this is also somewhat true for PEMEX as well.

>They seem to be following best practices and hiring professionals for operations. Then again, aren't these professionals essentially government employees?

Again, the company does not get directly dictated what to do by the government, as does tend to happen in Venezuela and somewhat with PEMEX as well.

>Regarding the BOD, do note there are two government ministers sitting on the BOD.

Out of how many BOD members though? with Venezuela you have pretty much 100% government control and with PEMEX still more government control than 2 BOD members.

A lot of native american reservations in New Mexico. I wonder if it's being drilled on their land?

It literally wasn’t communism. If nationalizing your food, energy, oil, and housing markets is communism, then Norway is a commie piece of shit.

Its very dirty and need triple the refining...obviously very expensive