Yesterday it was announced that a massive crude oil deposit was discovered in Argentina.
The article in the Times reported:
"By 2007, all the companies produced 60 million barrels, and this reserve ... represents almost double what they produce," said Chubut Gov. Mario Das Neves in a statement posted on the provincial government Web site.
Buenos Aires-based Pan American reportedly spent $700 million in exploration investments last year. That company is controlled by BP -- the same company that owns the well in Alaska -- I think it's probably time to take a look at the major oil companies. There's a lot of talk about government ownership and stake in oil rights, but I wonder if there aren't a small handful of companies that are simply humoring governments...
What kinds of returns do you expect on a $700 million investment? How small does that make appear the price of an entire election. It makes me feel a little better about my current investment in poetry. Perspective.
Another kicker, according to ABC news, US oil giant AMCO explored the same place to no avail... I'd love to hear the conversations there this morning! Does someone get to say I Told You So? Does someone get fired?
The oil is a relief in Argentina, where growth abounds and energy has been lagging.
I'm picturing a cartoon (I do that sometimes...) -- a cartoon where the world, down on his luck, finds ten bucks in his back pocket. In the next frame he spends it on cigarettes.