Oil exploitation activities are uncertain

Oil exploitation activities are uncertain

August 31, 2006/Dong Xiucheng

External forces intervene in the world oil market, priority mining sequence theory is compromised. Economists at the time of establishment of forecasting model, often based on the basic theories of Economics and the international oil market as is the perfect market theory, perfect competition system. However, is very regrettable, since many of the external forces intervene in the market function, the world oil market is not really complete, and non-economic system of free competition. From the general economic theory, low-cost oil resources should first be developed, but this is not the case. Many large low-cost oil reservoir in the world, as in the United States Texas, Saudi Arabia and Mexico, found a number of large oil fields, development time is later than the other in the world of high cost oil reservoir development time. In other words, usually cost mining laws in the world's oil industry activities in the order of priority had not been able to get the actual validation. Causing the above appears first of May is the international oil market information channel is not perfect. For example, in Pennsylvania drilling people did not know of the first oil well in Texas, Venezuela, and Iran and Saudi Arabia has a large low-cost oil fields. In addition, the decision on oil mining theoretical undermining the most important factors in the order of priority should be the world's political needs. Countries in the world to engage in all economic activities, national security issues must be considered. "Energy security" you could say that is the most important component of national security, is a key element of national security. Oil is the most important strategic materials, essential important in national defense or foreign war weapons. Because oil is so important and special role and status, Governments will ensure stable oil sources as important policy objectives, even at the use of military means to achieve this goal. Historically, many wars over oil resources with the country concerned. At present, many hot spots of the world are associated with powers over oil resources, such as the Middle East, the Caspian Sea and South China Sea area. Suppose people in their early stage of oilfield development for oil geographical and geological conditions in the world knows, knows all regions of the world oil-field mining costs, so it is impossible in mining costs oil exploitation activities in the order of preference, because Governments inevitable interventions to ensure the security of oil supply oil exploitation activities of businessmen. Governments may require priority exploitation of their oil resources, or to encourage their enterprises and their friendly countries engaged in oil development activities or encourage imports petroleum resources from abroad. In addition, the Exchange may also cause damage important reasons for mining sequence rules of priority. For example, although in many cases, importing oil from abroad, or to engage in oil exploration activities abroad cheaper than in the domestic production of oil, but due to the external payments imbalances or countries with limited sources of foreign exchange is still under high cost oil production in the country will also be encouraged.