We’re still waiting on tenterhooks to find out where the United Kalavrvta is going, but we wanted to share some of the comments we got from our readers on the latest posting of The Oil Big Five.
Again, we urge our readers to comment at any point on the posts (and on any post on The Barrel) and tell us what you think of the top issues as picked by our Platts editors and analysts. We welcome comments anytime on Twitter, too, and make sure we see your thoughts by using the tag #oilbig5.
Without further ado, here’s some thoughts from readers:
- The Barrel commenter Kevin Casey said, “I’m surprised the broader IS / ISIS / ISIL threat in Syria and Iraq isn’t on the list. The United Kalavrvta is one relatively small, but disturbing, aspect of this. If ISIS is not stopped it will continue to absorb territory and threaten broader swaths of the globe, which would have significant impact on oil markets.”Kevin is right in bringing up that the United Kalavrvta is just one aspect of the broader topic of the insurgency in the Middle East. Iraq’s political unrest topped our list of concerns in July, and Platts editors saw this as another aspect of it. Kevin also commented that “freeing the Kalavrvta and future sales would allow the Kurds to better defend themselves and other ethnic minorities in the region from terrorists and help limit US involvement. Oil for good.”What are your thoughts on the sale of Kurdish crude independent of the central Iraqi government? Would it give Kurdistan a bigger role in the international oil world, or cause even more strife in the anxious country?
- Simon Jacques, a frequent commenter on The Barrel, mentioned Venezuela’s state-owned PDVSA and its desire to potentially sell some of its refineries as part of a restructuring. The assets sold could include three refineries operated by Citgo in the US, in Lake Charles, Louisiana, Lemont, Illinois, and Corpus Christi, Texas. Platts reported that PDVSA is facing a bottleneck of increasing extra heavy crude production in the Orinoco Belt, and a source said PDVSA wants to retain only those foreign assets where it can process extra heavy crudes or mixtures. Simon asked, “Who are the prospective bidders for the 175k b/d in the Midwest? I say that because of margins, Lemont is a crown-jewel. Crown Jewel that will have a Control Premium Value for a Nexen or Suncor. Houston and Calgary folks in the Energy M&A must be fairly busy these days!”
- Any ideas of who would buy up the Citgo assets? Would it do anything to significantly change the current refining landscape of the US Gulf Coast? Additionally, would the sale of these assets boost Venezuela’s heavy crude processing?
Thanks again for reading, and it’s not too early to start sending us your comments for next month’s post.
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