SAN FRANCISCO (MarketWatch) -- When Halliburton Co. said it would move its corporate headquarters to Dubai, the nation's biggest oil field service company was acknowledging a major structural shift taking place in the global energy market.
Why Dubai? Because the city, a growing hub for Western business and investments sandwiched between Saudi Arabia and Oman, is surrounded by the world's biggest proven oil reserves.
And the need to spend more time tending to the needs of the region's biggest producers is a now a pressing part of the business for Halliburton and others in the industry. The region's vast reserves are also spurring an investment wave from big oil and gas users, such as Dow Chemical Co.
"The Middle East, in terms of reserves and production capacity, is becoming the center of gravity for the industry," said Peter Jackson, senior director of oil industry activity at the Cambridge Energy Research Associates (CERA).
"The focus of expansion in production capacity is moving eastward from the homeland of Houston," Jackson said. In Halliburton's case, the deployment of key staff to the Middle East amounts to a "shift in emphasis perhaps more than a shift in personnel."
The stakes are clear. Jackson, who authored CERA's study of global oil production through 2010, said the Middle East already accounts for 30 million barrels per day of crude oil and natural gas liquid production capacity -- a third of the world's capacity.
Global production capacity is seen rising to 110 million bpd by 2015, Jackson said, with the bulk of the gains coming from the Middle East and nearby regions in Africa and the Caspian Sea -- all located within time zones far closer to Dubai than Texas.
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And the need to spend more time tending to the needs of the region's biggest producers is a now a pressing part of the business for Halliburton and others in the industry. The region's vast reserves are also spurring an investment wave from big oil and gas users, such as Dow Chemical Co.
"The Middle East, in terms of reserves and production capacity, is becoming the center of gravity for the industry," said Peter Jackson, senior director of oil industry activity at the Cambridge Energy Research Associates (CERA).
"The focus of expansion in production capacity is moving eastward from the homeland of Houston," Jackson said. In Halliburton's case, the deployment of key staff to the Middle East amounts to a "shift in emphasis perhaps more than a shift in personnel."
The stakes are clear. Jackson, who authored CERA's study of global oil production through 2010, said the Middle East already accounts for 30 million barrels per day of crude oil and natural gas liquid production capacity -- a third of the world's capacity.
Global production capacity is seen rising to 110 million bpd by 2015, Jackson said, with the bulk of the gains coming from the Middle East and nearby regions in Africa and the Caspian Sea -- all located within time zones far closer to Dubai than Texas.
More on the story
So, let's recap:
Dick moves Halliburton to Dubai to have the compaany in a global position in the Middle East in the oil and gas productions whichwill be a major boom by 2010. Dick continues to convince Congress, lawmakers and public about how Iran and Syria are the axis to evilin order to attack those countries for war profit. And also to pressure Congress to keep the troops in Iraq and Afghanistan. Again, profit! Halliburton and Dick: the war profiteers of Iraq, Afghanistan, and the future Iran, Syria, amd possibly Africa. If anyone remembers Karzai, former consultant of Unical, he was in charge to build the pipelines in Afghanistan and later Halliburton got the no-bid government contracts for Afghanistan and Iraq. The Bush Administration wanted Hussein removed because Hussein was weak in power and invaded Iraq and now the Administration are scheming to have the Iranian President removed. This strategy and blueprint by the Dickster was way before the 2000 Presidential election. Sounds like a plan forthe Dickster. The Dickster should worry on who will replace the Dickster power overseas? As the Dickster is trying to gain corporate power in the Middle East, it leaves me to wonder who will be the new sheriff in town that is waiting in the wings to topple the Dickster? Remember, the Dickster is dealing with business overseas.
2 comments:
Wasn't a company in Dubai going to buy our ports?
Yup, and of course that was strategically done for a business deal with Dick/Gerbil/ and others.. I suspect if that had happened, the Dickster would have kept Halliburton HQ in Texas and kep his subsidary companoes overseaa..
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