« How To Crash the System | Main | China and Blogs »

March 07, 2007

Timmy Elsewhere

Hhhm. Looks like Tim Newman has a piece at TCS today. A good piece too.

March 7, 2007 in Weblogs | Permalink

TrackBack

TrackBack URL for this entry:
https://www.typepad.com/services/trackback/6a00d8341c2d3e53ef00d8351fd91469e2

Listed below are links to weblogs that reference Timmy Elsewhere:

Comments

I don't want to join TCS so can't comment there ....

of course an awful lot hinges on exactly what the share is. Crude economics would I imagine say something like in a competitive market the share should be such that the oil co should expect to cover its cost of capital plus a risk premium.

But how big is that risk premium - I'd really like to know what rate of return agreed is. of course if I knew is, I wouldn't necessarily know whether the implied risk premium is fair, but it would help because it is possible for everything Tim to be says to be true, yet the Iraqis could be ripped off by some failure of competition for the contracts. Without having some idea of that, the "it's an outrage" types may be correct.

Also, Tim talks about run down Iraq oil facilities, but I have read they have lots of skilled oil workers. i wonder whether anything is written into the contracts about employing Iraqis.

Tim adds: All good points. I'd suggest raising them directly with (the other ) Tim. On the last one, there's such a shortage of skilled workers across the gobal oil industry that I think we can allow simple supply and demand to cover that one.

Posted by: luis_enrique | Mar 7, 2007 10:39:38 PM

Also, Tim talks about run down Iraq oil facilities, but I have read they have lots of skilled oil workers. i wonder whether anything is written into the contracts about employing Iraqis.

In most cases in a PSA, there is a requirement for foreign companies to maximise their local content, which means they are forced to employ locals wherever possible. In any event, the oil companies would snap up any skilled local for employment - it is certainly not in their economic interests to bring expensive expats into Iraq if there is a mass of skilled locals. If past experience is anything to go by, Iraqis skilled in oil and gas operations could stand to do extremely well out of these agreements, as they will become staff employees of western oil companies.

Posted by: Tim Newman | Mar 8, 2007 6:13:46 AM