Time to Look for Unconventional Gas in the Middle East

The most worrying problem of all in the Middle East and North Africa (MENA) region is also the most ironic. In a region with an estimated 1,496.2 trillion cubic feet (Tcf) of natural gas, according to the latest BP Statistical Review of World Energy, there appears to be scarce supplies of gas to the countries in the region mainly because of the rapidly growing population which is placing ever increasing demands on gas for electricity generation and water desalination.

The numbers mentioned above says half the truth, as the majority of reserves are hard to extract and requires advanced technologies, which means that the cost of extraction will be high.

In addition to the important conventional reserves, results from recent gas exploration and appraisal activities indicate that the region holds substantial resources of unconventional gas, especially tight gas and shale gas.

Regardless of the existing highly productive conventional gas fields and reserves in this region, shale gas and tight gas-related exploration and appraisal activities in several countries in the region have increased and are expected to pick up pace going forward, with the goal of identifying the potentials first, rather than proceeding to the development.

Algeria is taking the lead in this domain, and Algerian Energy Minister Youcef Yousfi revealed that he believes that his country's reserves of shale gas are equal to that of the United States. Algeria's state energy company, Sonatrach, has signed a cooperation agreement with Italian company Eni SpA, for the development of unconventional gas in Algeria, with a particular focus on shale gas.

"We have launched four studies to evaluate the potentials of shale gas and liquids, in partner with Eni, Talisman, Shell and Anadarko, and we are in discussion with other companies for similar projects. All these studies will go through a pilot project either in partnership or with our proper efforts," said Abdelhamid Zerguine, chief executive office of Sonatrach.

Sonatrach has also drilled first shale gas well using its own resources, Abdelhamid Zerguine said.

"Using our own efforts, we have finished the drilling of the first shale gas in the central part of the Sahara. The initial interpretation of the data of these wells showed that the potential of gas are similar to those basins [known] around the world. The well has completed, and we will be conducting a simulation test by end 2012. A second drilling is currently underway," he added.

In the neighboring country, Libya, technically recoverable shale gas is estimated at about 290 trillion cubic feet according to data from the U.S. Energy Information Administration.

"Gas has never been a priority for us, but it is now. We may have some of the most important shale gas deposits in the world," National Oil Co. Chairman Nuri Berruien said during a North Africa Gas Summit held in Vienna last year.

"Right now we are evaluating the reserves and talking to our partners," Berruien said. "The potential is definitely there."

In Egypt, because of the absence data of unconventional gas resources in the country, it has formed a committee composed of representatives from all government entities that can contribute to exploration of shale gas.

The committee is tasked with gathering all possible relevant data, including assessing what the country has in terms of shale gas, looking at reports and research conducted in other countries on a regional level, and looking at what producing countries have done to reach the stage of production.

It also collaborates with companies like Halliburton Co. and Schlumberger Ltd. to gather data related to the shale gas exploration. Local media reported that discussions over investments in unconventional resources are set to take place in early 2014. Authorities are also working on the terms and conditions of operations at shale gas fields, as the current conditions don't encourage investors to explore unconventional resources.

In Saudi Arabia, U.S. oilfield services company Baker Hughes estimates Saudi Arabian shale gas reserves at 645 Tcf, the fifth largest such reserve in the world. The country's conventional gas reserves are estimated to be around 279 Tcf.

Saudi Aramco has begun pilot projects using high-end technology to extract unconventional gas, including tight gas and shale gas. The first unconventional gas wells are planned for this year.

"Saudi Arabia's unconventional gas reserves resource base is large. The numbers are in the hundreds of Tcf, which are recoverable," Khalid Al-Falih, president and chief executive officer of Saudi Aramco said, cautioning: "Until we do the exploration and pilots, we will not be able to bank on them, so to speak."

Oman is also investigating exploration for shale gas, as the Sultanate looks to ease the gas squeeze holding back its industrial and petrochemical sectors.

"At the moment we are not drilling. It is just a study," said Khalifa Mubarak Al Hinai, advisor at the Ministry of Oil and Gas, according to the Times of Oman.

BP said that it is considering going ahead with a $20 billion (AED 73.45 billion) project to produce tight gas reservoirs deep under the Khazzan and Makarem fields in the north-central region. Negotiations are continuing.

The United Arab Emirates (UAE), instead, opted for the development of sour gas fields. It is currently developing the Shah Gas field in joint venture with Occidental Petroleum Corporation (Oxy). The $10 billion project is being developed by Alhosn Gas, a joint venture between Abu Dhabi National Oil Company and Oxy which holds a 40 -percent participating interest in a 30-year contract.

The field's high H2S content - 23 percent in the well fluid – means that in addition to key HSE design and implementation considerations, it will pose certain unique challenges due to the sheer scope of work to be done. The SGD project will also have a total of four trains – the largest in the world - for the massive Sulphur Recovery Units (SRU) that would process the 1 billion cubic feet per day of sour gas. The SRUs will have a capacity of 2500 T/D.

Kuwait is also tapping the development of the Jurassic field, and has signed a technical cooperation contract with Royal Dutch Shell plc.

While OPEC members are assessing their unconventional resources, with a particular focus on unconventional gas rather than unconventional oil, because of the abundance of conventional oil, Jordan - which suffers from the absence of hydrocarbon reserves - aims to extract 40,000 barrels of oil per day from its huge shale oil reserves by 2016 to meet the increasing local demand, said Bassam Gagish, chief executive of The Jordan Oil Shale Energy Company.

While countries in the region are evaluating their shale gas reserves, they don't expect to start the development of these wells any time soon, due to the absence of clear environmental legislation related to the exploration of these resources.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Time to Look for Unconventional Gas in the Middle East

The most worrying problem of all in the Middle East and North Africa (MENA) region is also the most ironic. In a region with an estimated 1,496.2 trillion cubic feet (Tcf) of natural gas, according to the latest BP Statistical Review of World Energy, there appears to be scarce supplies of gas to the countries in the region mainly because of the rapidly growing population which is placing ever increasing demands on gas for electricity generation and water desalination.

The numbers mentioned above says half the truth, as the majority of reserves are hard to extract and requires advanced technologies, which means that the cost of extraction will be high.

In addition to the important conventional reserves, results from recent gas exploration and appraisal activities indicate that the region holds substantial resources of unconventional gas, especially tight gas and shale gas.

Regardless of the existing highly productive conventional gas fields and reserves in this region, shale gas and tight gas-related exploration and appraisal activities in several countries in the region have increased and are expected to pick up pace going forward, with the goal of identifying the potentials first, rather than proceeding to the development.

Algeria is taking the lead in this domain, and Algerian Energy Minister Youcef Yousfi revealed that he believes that his country's reserves of shale gas are equal to that of the United States. Algeria's state energy company, Sonatrach, has signed a cooperation agreement with Italian company Eni SpA, for the development of unconventional gas in Algeria, with a particular focus on shale gas.

"We have launched four studies to evaluate the potentials of shale gas and liquids, in partner with Eni, Talisman, Shell and Anadarko, and we are in discussion with other companies for similar projects. All these studies will go through a pilot project either in partnership or with our proper efforts," said Abdelhamid Zerguine, chief executive office of Sonatrach.

Sonatrach has also drilled first shale gas well using its own resources, Abdelhamid Zerguine said.

"Using our own efforts, we have finished the drilling of the first shale gas in the central part of the Sahara. The initial interpretation of the data of these wells showed that the potential of gas are similar to those basins [known] around the world. The well has completed, and we will be conducting a simulation test by end 2012. A second drilling is currently underway," he added.

In the neighboring country, Libya, technically recoverable shale gas is estimated at about 290 trillion cubic feet according to data from the U.S. Energy Information Administration.

"Gas has never been a priority for us, but it is now. We may have some of the most important shale gas deposits in the world," National Oil Co. Chairman Nuri Berruien said during a North Africa Gas Summit held in Vienna last year.

"Right now we are evaluating the reserves and talking to our partners," Berruien said. "The potential is definitely there."

In Egypt, because of the absence data of unconventional gas resources in the country, it has formed a committee composed of representatives from all government entities that can contribute to exploration of shale gas.

The committee is tasked with gathering all possible relevant data, including assessing what the country has in terms of shale gas, looking at reports and research conducted in other countries on a regional level, and looking at what producing countries have done to reach the stage of production.

It also collaborates with companies like Halliburton Co. and Schlumberger Ltd. to gather data related to the shale gas exploration. Local media reported that discussions over investments in unconventional resources are set to take place in early 2014. Authorities are also working on the terms and conditions of operations at shale gas fields, as the current conditions don't encourage investors to explore unconventional resources.

In Saudi Arabia, U.S. oilfield services company Baker Hughes estimates Saudi Arabian shale gas reserves at 645 Tcf, the fifth largest such reserve in the world. The country's conventional gas reserves are estimated to be around 279 Tcf.

Saudi Aramco has begun pilot projects using high-end technology to extract unconventional gas, including tight gas and shale gas. The first unconventional gas wells are planned for this year.

"Saudi Arabia's unconventional gas reserves resource base is large. The numbers are in the hundreds of Tcf, which are recoverable," Khalid Al-Falih, president and chief executive officer of Saudi Aramco said, cautioning: "Until we do the exploration and pilots, we will not be able to bank on them, so to speak."

Oman is also investigating exploration for shale gas, as the Sultanate looks to ease the gas squeeze holding back its industrial and petrochemical sectors.

"At the moment we are not drilling. It is just a study," said Khalifa Mubarak Al Hinai, advisor at the Ministry of Oil and Gas, according to the Times of Oman.

BP said that it is considering going ahead with a $20 billion (AED 73.45 billion) project to produce tight gas reservoirs deep under the Khazzan and Makarem fields in the north-central region. Negotiations are continuing.

The United Arab Emirates (UAE), instead, opted for the development of sour gas fields. It is currently developing the Shah Gas field in joint venture with Occidental Petroleum Corporation (Oxy). The $10 billion project is being developed by Alhosn Gas, a joint venture between Abu Dhabi National Oil Company and Oxy which holds a 40 -percent participating interest in a 30-year contract.

The field's high H2S content - 23 percent in the well fluid – means that in addition to key HSE design and implementation considerations, it will pose certain unique challenges due to the sheer scope of work to be done. The SGD project will also have a total of four trains – the largest in the world - for the massive Sulphur Recovery Units (SRU) that would process the 1 billion cubic feet per day of sour gas. The SRUs will have a capacity of 2500 T/D.

Kuwait is also tapping the development of the Jurassic field, and has signed a technical cooperation contract with Royal Dutch Shell plc.

While OPEC members are assessing their unconventional resources, with a particular focus on unconventional gas rather than unconventional oil, because of the abundance of conventional oil, Jordan - which suffers from the absence of hydrocarbon reserves - aims to extract 40,000 barrels of oil per day from its huge shale oil reserves by 2016 to meet the increasing local demand, said Bassam Gagish, chief executive of The Jordan Oil Shale Energy Company.

While countries in the region are evaluating their shale gas reserves, they don't expect to start the development of these wells any time soon, due to the absence of clear environmental legislation related to the exploration of these resources.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Time to Look for Unconventional Gas in the Middle East

The most worrying problem of all in the Middle East and North Africa (MENA) region is also the most ironic. In a region with an estimated 1,496.2 trillion cubic feet (Tcf) of natural gas, according to the latest BP Statistical Review of World Energy, there appears to be scarce supplies of gas to the countries in the region mainly because of the rapidly growing population which is placing ever increasing demands on gas for electricity generation and water desalination.

The numbers mentioned above says half the truth, as the majority of reserves are hard to extract and requires advanced technologies, which means that the cost of extraction will be high.

In addition to the important conventional reserves, results from recent gas exploration and appraisal activities indicate that the region holds substantial resources of unconventional gas, especially tight gas and shale gas.

Regardless of the existing highly productive conventional gas fields and reserves in this region, shale gas and tight gas-related exploration and appraisal activities in several countries in the region have increased and are expected to pick up pace going forward, with the goal of identifying the potentials first, rather than proceeding to the development.

Algeria is taking the lead in this domain, and Algerian Energy Minister Youcef Yousfi revealed that he believes that his country's reserves of shale gas are equal to that of the United States. Algeria's state energy company, Sonatrach, has signed a cooperation agreement with Italian company Eni SpA, for the development of unconventional gas in Algeria, with a particular focus on shale gas.

"We have launched four studies to evaluate the potentials of shale gas and liquids, in partner with Eni, Talisman, Shell and Anadarko, and we are in discussion with other companies for similar projects. All these studies will go through a pilot project either in partnership or with our proper efforts," said Abdelhamid Zerguine, chief executive office of Sonatrach.

Sonatrach has also drilled first shale gas well using its own resources, Abdelhamid Zerguine said.

"Using our own efforts, we have finished the drilling of the first shale gas in the central part of the Sahara. The initial interpretation of the data of these wells showed that the potential of gas are similar to those basins [known] around the world. The well has completed, and we will be conducting a simulation test by end 2012. A second drilling is currently underway," he added.

In the neighboring country, Libya, technically recoverable shale gas is estimated at about 290 trillion cubic feet according to data from the U.S. Energy Information Administration.

"Gas has never been a priority for us, but it is now. We may have some of the most important shale gas deposits in the world," National Oil Co. Chairman Nuri Berruien said during a North Africa Gas Summit held in Vienna last year.

"Right now we are evaluating the reserves and talking to our partners," Berruien said. "The potential is definitely there."

In Egypt, because of the absence data of unconventional gas resources in the country, it has formed a committee composed of representatives from all government entities that can contribute to exploration of shale gas.

The committee is tasked with gathering all possible relevant data, including assessing what the country has in terms of shale gas, looking at reports and research conducted in other countries on a regional level, and looking at what producing countries have done to reach the stage of production.

It also collaborates with companies like Halliburton Co. and Schlumberger Ltd. to gather data related to the shale gas exploration. Local media reported that discussions over investments in unconventional resources are set to take place in early 2014. Authorities are also working on the terms and conditions of operations at shale gas fields, as the current conditions don't encourage investors to explore unconventional resources.

In Saudi Arabia, U.S. oilfield services company Baker Hughes estimates Saudi Arabian shale gas reserves at 645 Tcf, the fifth largest such reserve in the world. The country's conventional gas reserves are estimated to be around 279 Tcf.

Saudi Aramco has begun pilot projects using high-end technology to extract unconventional gas, including tight gas and shale gas. The first unconventional gas wells are planned for this year.

"Saudi Arabia's unconventional gas reserves resource base is large. The numbers are in the hundreds of Tcf, which are recoverable," Khalid Al-Falih, president and chief executive officer of Saudi Aramco said, cautioning: "Until we do the exploration and pilots, we will not be able to bank on them, so to speak."

Oman is also investigating exploration for shale gas, as the Sultanate looks to ease the gas squeeze holding back its industrial and petrochemical sectors.

"At the moment we are not drilling. It is just a study," said Khalifa Mubarak Al Hinai, advisor at the Ministry of Oil and Gas, according to the Times of Oman.

BP said that it is considering going ahead with a $20 billion (AED 73.45 billion) project to produce tight gas reservoirs deep under the Khazzan and Makarem fields in the north-central region. Negotiations are continuing.

The United Arab Emirates (UAE), instead, opted for the development of sour gas fields. It is currently developing the Shah Gas field in joint venture with Occidental Petroleum Corporation (Oxy). The $10 billion project is being developed by Alhosn Gas, a joint venture between Abu Dhabi National Oil Company and Oxy which holds a 40 -percent participating interest in a 30-year contract.

The field's high H2S content - 23 percent in the well fluid – means that in addition to key HSE design and implementation considerations, it will pose certain unique challenges due to the sheer scope of work to be done. The SGD project will also have a total of four trains – the largest in the world - for the massive Sulphur Recovery Units (SRU) that would process the 1 billion cubic feet per day of sour gas. The SRUs will have a capacity of 2500 T/D.

Kuwait is also tapping the development of the Jurassic field, and has signed a technical cooperation contract with Royal Dutch Shell plc.

While OPEC members are assessing their unconventional resources, with a particular focus on unconventional gas rather than unconventional oil, because of the abundance of conventional oil, Jordan - which suffers from the absence of hydrocarbon reserves - aims to extract 40,000 barrels of oil per day from its huge shale oil reserves by 2016 to meet the increasing local demand, said Bassam Gagish, chief executive of The Jordan Oil Shale Energy Company.

While countries in the region are evaluating their shale gas reserves, they don't expect to start the development of these wells any time soon, due to the absence of clear environmental legislation related to the exploration of these resources.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

HB Rentals Secures Middle East Work

Accommodations specialist, HB Rentals Dubai, a Superior Energy Services company, has secured contracts to supply 12 A60-DNV-approved eight-man linkable sleeper units onboard two Lloyd's-classes liftboats in Abu Dhabi and Saudi Arabia and four linkable A60-DNV 2.7-1-approved modules for a barge installing cables offshore Saudi Arabia, announced HB Rentals Senior Vice President of Global Operations Glenn Aguilar.

The temporary buildings were stacked two levels high for each package, and HB Rentals provided the stairways and walkways. All modules and equipment were supplied from HB Rentals' Dubai's United Arab Emirates (UAE) base in Sharjah, and HB technicians were used for installment.

"It is great for HB Rentals to extend global operations and showcase the significant work that is done overseas," said Norman Porter, Director – Eastern Hemisphere. "Our building packages are durable and reliable and ready to endure any environment so that our clients can take care of the business they set out to accomplish. No matter the continent or location, HB Rentals' standard of work will always be upheld."

HB Rentals is the world's largest supplier of temporary onshore and offshore accommodation modules, operating from two major global hubs in Broussard, La., and Aberdeen, Scotland.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Offshore Drilling Expenditiure to Top $17B by 2016 in Middle East, Africa

An increase in offshore discoveries is prompting a surge in exploration activity across the Middle East and Africa and driving up the amount spent on drilling, stated the latest report form business intelligence firm GBI Research.

The company's latest oil and gas report forecasts offshore drilling expenditure across the region to climb steadily from $13.56 billion in 2012 to $17.03 billion in 2016. Cumulatively, the total expected spend for this five year period is $77.3 billion, which represents an increase of approximately 22 percent over 2007-2011 total of $63.5 billion.

Drilling outlay is expected to grow across all major nations in the region, with those in West Africa leading in terms of exploration activity. Escalating activity in countries relatively new to the offshore drilling industry, such as Sierra Leone and Liberia, may prove to be future competition for the more established nations of West Africa.

Ghana is expected to emerge as one of the most prominent countries in West Africa for the exploration of oil and gas, with 16 offshore discoveries made between 2008 and 2012 – second only to Angola, where 22 discoveries were made during the same period.

In terms of drilling expenditure, Angola is expected to remain the biggest spender in the region by some margin, over the next few years at least. GBI Research expects drilling expenditure in the Southern African country to continue climbing in the near future, hitting $6.67 billion in 2016. Nigeria and Egypt are forecast to place second and third, with totals of $2.26 billion and $1.52 billion, respectively.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Ferguson Group Extends Middle East Presence

The Ferguson Group, specialists in the rental of equipment to the offshore energy industry, has announced the launch of its new Ferguson Middle East Abu Dhabi division.

Ferguson Middle East LLC, based in Abu Dhabi, will support the Ferguson Group's increasing presence in the Middle East that saw the opening of its Dubai office in August 2012.

The new Abu Dhabi division will allow Ferguson Middle East to offer its range of offshore containers, refrigeration containers and its accommodation and, workspace modules to a wider market and range of companies operating within Middle East.

Mike Melville, commercial director for the Ferguson Group said: "The launch of our new office in Dubai last year was an extremely positive move for the company. Having this new office in Abu Dhabi is a great start to 2013 for Ferguson Middle East.

"I am excited about the future plans for our Middle East offices, as the company is able to expand and better support the offshore energy sector in the region."

The new company will be based in the Al Hilal Building in Abu Dhabi. The new division will offer the company's full range of products that include offshore containers, tanks, baskets, refrigeration/chiller containers, accommodation solutions and workspace modules.

Steven Ferguson, Chairman and CEO of the Ferguson Group, said: "We are delighted to launch this second company in UAE, servicing our clients in the Middle East. Our presence in these two key locations demonstrates our commitment to the region, acknowledging how important this market is to the Ferguson Group and recognizing the growing client demand in the region.

"Internationalization is a key aspect of our business and allows us to provide our high quality products across the globe, teamed with short lead times and first class, on the ground support."

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Ferguson Group Extends Middle East Presence

The Ferguson Group, specialists in the rental of equipment to the offshore energy industry, has announced the launch of its new Ferguson Middle East Abu Dhabi division.

Ferguson Middle East LLC, based in Abu Dhabi, will support the Ferguson Group's increasing presence in the Middle East that saw the opening of its Dubai office in August 2012.

The new Abu Dhabi division will allow Ferguson Middle East to offer its range of offshore containers, refrigeration containers and its accommodation and, workspace modules to a wider market and range of companies operating within Middle East.

Mike Melville, commercial director for the Ferguson Group said: "The launch of our new office in Dubai last year was an extremely positive move for the company. Having this new office in Abu Dhabi is a great start to 2013 for Ferguson Middle East.

"I am excited about the future plans for our Middle East offices, as the company is able to expand and better support the offshore energy sector in the region."

The new company will be based in the Al Hilal Building in Abu Dhabi. The new division will offer the company's full range of products that include offshore containers, tanks, baskets, refrigeration/chiller containers, accommodation solutions and workspace modules.

Steven Ferguson, Chairman and CEO of the Ferguson Group, said: "We are delighted to launch this second company in UAE, servicing our clients in the Middle East. Our presence in these two key locations demonstrates our commitment to the region, acknowledging how important this market is to the Ferguson Group and recognizing the growing client demand in the region.

"Internationalization is a key aspect of our business and allows us to provide our high quality products across the globe, teamed with short lead times and first class, on the ground support."

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

UTEC Consolidates Middle East Position

Independent offshore survey company UTEC has consolidated its presence in the Middle East and has completed another significant contract for a major international pipelay contractor.

This is the second year in succession that UTEC has provided support to the contractor in the region.

The UAE (Dubai) project involved UTEC supporting the state-of-the-art DP pipelay vessel in extremely shallow water providing enhanced USBL methodologies as well as the provision of survey support services on two additional DP vessels which provided diver support and remedial services to the pipelay vessel.

UTEC is one of the world’s largest independent offshore survey companies and provides a wide range of survey services including offshore positioning and construction support, geophysical and AUV surveys, dimensional control surveys, laser scanning and modeling, and geotechnical sampling. UTEC has offices located around the world including: Houston, Aberdeen, Rio de Janeiro, Calgary, Perth, Singapore, St. John’s, Naples and Dubai.

Global Sales and Marketing Director Trevor Hughes commented: "Based on our prior year’s performance the contractor as well as the end client has recognized UTEC’s extensive experience in supporting pipelay activity in harsh acoustic environments, by developing procedures and redundancy alleviating risk from the project."

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

U.S. Must Remain Active to Ensure Middle East Energy Supplies

The United States must continue its activist role, diplomatically and potentially militarily, in the Middle East, to ensure a free flow of oil and natural gas from the region, former U.S. Ambassador to Iraq James Jeffrey said Sunday on Platts Energy Week, an all-energy news and talk show program.

"The region keeps erupting into one kind or another of violence or instability," Jeffrey said on the program. "So we have to be present."

Currently a visiting fellow at the Washington Institute for Near East Policy, Jeffrey was U.S. ambassador to Iraq from 2010 until June 2012 and was U.S. ambassador to Turkey for two years before that.

Jeffrey acknowledged that the current U.S. presence in the Middle East is "adequate."

"We have a strong presence in the Gulf," Jeffrey said. "We have good relations with most of the countries in the region. But even with the pivot to Asia, this is something we have to be very careful about," he said, referring to the Obama administration's 2012 East Asia strategy.

"Oil is fungible," Jeffrey said. "There is one international oil market. Prices go up because of shortages in one area, they are going to go up in every other area, even in the United States, even if we import from safer areas or produce it ourselves.

"Even more importantly, at the very core of America's security relationship since World War II has been guaranteeing supplies of oil and gas to our friends and allies. Even if we are independent in energy, most of our friends in East Asia and certainly in Europe, and elsewhere in the world are not. If we want a stable world, if we want a world that isn't overrun by terrorists and enemies for freedom, we need to be present and we need in ensure that this gas and oil keeps flowing."

Discussing Iraq, Jeffrey said while that country has boosted its crude production to 3.4 million barrels per day (b/d) in December and is on target for 3.7 million b/d this year, earlier stated Iraqis hopes for reaching about 12 million b/d production over the next 20 years are not realistic.

"In fact, the Iraqis themselves are now negotiating to ratchet that down to the 8-9 million b/d, which would be right behind Saudi Arabia, still the second-most important oil exporter in the world," he said.

"The problem," Jeffrey said, "is that Iraq itself is not completely stable and it is anchored between two greatly unstable countries: Syria, which is under total civil war at this point, and Iran, which is under international sanctions and facing possible military action of the nuclear question. And Iraq itself has problems between the Kurds in the north and the central government. Oil companies from all over the world are flocking into northern Iraq because there are extraordinary reserves of oil and gas up there."

Chevron last week signed its third oil deal with the Iraqi Kurdish Regional Government, while ExxonMobil, Total, Gazprom Neft and other international oil companies have reached similar agreements. Iraq's central government considers all of them illegal.

"The U.S. has been very active trying to work out arrangements where everybody cooperates and oil and eventually gas from the north is exported in cooperation with Baghdad," Jeffrey said. "The latest deal has fallen through. People are back arguing and more needs to be done to ensure that a solution satisfactory to everybody can be achieved. Because this involves military as well as energy politics."

But despite much public rhetoric by both the central government and the Kurds, the two sides have cooperated on the shipment of oil when it benefits them, Jeffery said.

"Everybody is playing a veiled as well as open game here. I can’t give specific advice," he said. "This is a sensitive issue. A great deal is at stake, not only in energy, but in the political stability of Iraq, where we lost so many people, and therefore, I know the U.S. government is very energetically engaged in trying to find a solution. "

An advisor on Iran at State Department and White House during George W. Bush Administration, Jeffrey was adamant that U.S. and European Union sanctions over its nuclear program have been "extremely effective" against Iran.

"They've cut Iran's exports by more than 50%," he said. "But because oil markets are extremely flexible, including Iraq with its surge in exports, we've been able to balance that out globally and thus the sanctions have been able to tighten the screws on Iran without impacting world energy markets.

"Iran will be under much more pressure to go to the table, but this requires several things," Jeffrey said. "First of all, an offer that they would find acceptable in terms of ending their enrichment to at least 20%. Secondly, they would have to be persuaded that if they do not go down this route, military action will follow, and they may not be persuaded of that yet."

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Mayhem in the Middle East

Let George Takei Help You Come Out This Holiday Season Fiscal Cliffs and Fiscal Realities Robert Scheer on the Connecticut School Shooting and Gun Control
A Simple, Excellent and Surprising Film
By Richard Schickel A World Without Words
By Lauren B. Davis Hollywood’s Raid on Convention
By Richard Schickel Understanding Economics in Plain English
By Thomas Hedges, Center for Study of Responsive Law
The Questions Education Reformers Aren’t Asking
Dig led by Mike Rose

Gore Vidal: His Life and Legacy
Dig led by Truthdig Staff

advertisement

-->
The AssociatesBy Richard Rayner
$16.29

advertisement

-->
Kalakuta Republic: A Book of PoetryBy Chris Abani

advertisement

-->
Organic Cotton T-Shirt$24

  Truthdig Radio Email    Print    Share

Tweet Posted on Dec 20, 2012 AP/Narciso Contreras

Truthdig Radio airs Thursdays at 4 p.m. Pacific time on 90.7 KPFK in Los Angeles. Check your town’s listings or ask your public radio station to carry Truthdig Radio.

Last week on Truthdig Radio in association with KPFK: Juan Cole shares his informed comment on Syrian chemical weapons, Israeli apartheid and Egyptian unrest. Also, Robert Scheer on Bradley Manning.

Listen to the show:

 

Your browser does not support the audio element.

(Trouble listening? Download the podcast here.)

Advertisement

Subscribe to Truthdig PodcastsSubscribe directly:


If you don't have iTunes,
copy this address:


Visit the Podcast Archives

TAGS: bradley manning egypt gaza israel juan cole palestine palestinians robert scheer syria truthdig radio wikileaks



Related Entries Global Governance at Heart of Failed Foreign Policies Egypt’s New Pharaoh ‘Left, Right & Center:’ School Shooting, Susan Rice Withdraws, and More

Email to a friend

Get truth delivered to
your inbox every week.

Previous item: Let George Takei Help You Come Out This Holiday Season

New and Improved Comments

If you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy.

Please enable JavaScript to view the comments powered by Disqus.Get Truthdig in your inbox

Newsletter

Become a Fan

Follow Us

Subscribe

     
       #donation_div {display:none;}.popup {background:#FFF; border:1px solid #333; padding:1px;}.popup-header {height:65px; padding: 30px 40px 10px 50px;}.popup-header h2 {margin:0; padding:0; font-size:18px; float:left;}.popup-header .close-link {float:right; font-size:11px;}.popup-body {padding: 20px 70px 20px 50px;}a {color: #990000;}Close

Give the gift of independent journalism.

Support Truthdig by making a donation of at least $25 in someone's name, and we'll send him or her a signed letter of appreciation from our publisher.

With your support, we've been able to pay writers such as Chris Hedges, Col. Ann Wright, Mr. Fish and Nomi Prins.

We've sent reporters around the world, from Afghanistan to Cairo to Cuba.

Thanks to you, our mission to find and publish a range of insightful opinion and analysis from a progressive point of view continues.

Support Truthdig

HOME|Digs|Reports|Arts & Culture|Uncovered|Ear to the Ground|A/V Booth|Cartoons
Tags|Bazaar|Podcast|About Us|Contact Us|User Agreement|Privacy Policy|FAQ: Comments and Moderation | Google+ Google+
A Progressive Journal of News and Opinion. Editor, Robert Scheer. Publisher, Zuade Kaufman.
© 2012 Truthdig, LLC. All rights reserved. Web site development by Hop Studios 

View the Original article

Denver woman accused of threatening middle school students with gun

Font ResizeCops and CourtsBy John Ingold
The Denver Postdenverpost.comPosted: 12/18/2012 09:16:45 PM MSTDecember 19, 2012 4:17 AM GMTUpdated: 12/18/2012 09:16:45 PM MST

A Denver mother who believed her daughter was being bullied at school drove into the school's parking lot and threatened four girls with a gun, according to an arrest document.

Monica Avila, 34, was charged Tuesday with four counts of felony menacing and one count of possession of a weapon on school grounds, also a felony. According to the probable cause statement accompanying her arrest paperwork, Avila drove into the parking lot at Lake Middle School on Thursday afternoon and confronted four girls, ages 13 and 14.

The statement says Avila began arguing with the girls about bullying. She then, while still sitting in her car, pulled out a black semi-automatic handgun and said, "Look what I have," the document states.

Avila then drove out of the parking lot and parked across the street, as the girls told adults about what happened and called 911, according to the probable cause statement.

When officers arrived, they found Avila sitting in her car. They later found a handgun in the car.

Avila is being held in the Denver County Jail on a $50,000 bond. She is scheduled to appear in court again on Thursday to be formally advised of the charges against her, according to the Denver District Attorney's Office.

John Ingold: 303-954-1068, jingold

View the Original article