Macro Monday 53 - Indonesia – Palm Oil Capital of the WorldMacro Monday 53
Indonesia – Palm Oil Capital of the World
This week we are looking at all the reasons why Indonesia is one of the fastest growing economies in world and projected sustain this growth well into the future. We will learn how it is incredibly diverse this group of islands are in produce, exports, people and even in palm tree variety.
Let’s look at a few reasons you need to keep your investor googles looking towards sunny South East Asia, and specifically Indonesia:
1.Indonesia, a sovereign archipelago in Southeast Asia, boasts over 270 million people, making it the 4th most populous country globally after India, China and the United States. People never talk about 4th place but this quite the claim on the world stage.
2.Indonesia hosts the most populous Island in the world called Java. Java, which is on one of the Greater Sunda Islands in Indonesia, it is home to approx. 156.4 million people (of the 270 million people in Indonesia). Remarkably, this makes Java the most populous island in the world, accounting for almost 60% of Indonesia’s total population. The capital city, Jakarta is on the west coast of the island.
3.Indonesia is the world’s leading producer and exporter of palm oil, producing 60% of global palm oil in 2022. Together with Malaysia, they account for more than 83% of the world’s palm oil production today. Unlike Malaysia, which exported the majority of the palm oil it produced, Indonesia is also one of the world’s largest consumers of palm oil, using it as edible oil, in cosmetics and in biofuels. This means Indonesia, is the largest producer, exporter and consumer of palm oil, making it, the Palm Oil Capital of the world. Palm oil (a vegetable oil) is becoming increasingly popular internationally in food and its highly likely if you ate something out of a wrapper recently, it likely had palm oil from one of these regions in it.
The main destination of Palm Oil exports from Indonesia are: India ($5.4B), China ($3.61B), Pakistan ($3.21B), United States ($1.89B), and Bangladesh ($1.48B).
4.In 2022, Indonesia held the distinction of being the world’s largest exporter in several other key categories also:
A.Palm Oil: Indonesia exported $28.7 billion worth of palm oil, as noted this makes it the top global exporter in this category.
B.Ferroalloys: With exports valued at $13.7 billion, Indonesia led the world in ferroalloy exports.
C.Lignite: Indonesia’s lignite exports reached $8.29 billion, securing its position as the largest exporter.
D.Stearic Acid: Exports of stearic acid from Indonesia amounted to $6.84 billion, ranking it first globally. This is derived from palm oil and palm oil derivatives.
E.Nickel Mattes: Indonesia exported nickel mattes worth $6.27 billion, making it the world’s leading exporter in this category
http://F.Gold: Indonesia plays a notable role on the global gold mining stage. It contributes about 4% of the world’s gold production. One of its standout operations is the Grasberg mine in Papua, which ranks among the largest gold mines worldwide. In 2022 Indonesia produced 85 metric tons of gold worth $2.4 Billion.
5. According to the World Banks forecast, they project an average annual growth rate of 5.1% for the coming 2024 to 2026 period. Additionally, Indonesia aims for a robust 5.2% economic growth rate in 2024, despite challenges such as declining commodity prices and economic conditions in China, which is a key trade partner.
6. The median age in Indonesia is approximately 30.2 years, with 42.4% of the population falling between 25 and 54 years old. Additionally, the 0-14 age group constitutes slightly over 25% of the country’s population, indicating a significant youth demographic that will eventually join the workforce as the current workers age.
7. The country’s diverse demographics include more than 300 distinct ethnic and linguistic groups, with the Javanese being the largest and most politically dominant, constituting over 40% of the population. If you want an interesting read, look into the Javanese people and culture, they are a very interesting and widespread culture.
8.The Palm Tree Varieties In Indonesia, palm trees have a long history and are an integral part of the landscape. Here are some key points related to palm trees in Indonesia:
A.Coconut Palms: Coconut palms (Cocos nucifera) are widespread across Indonesia. They provide essential resources such as coconut water, coconut milk, and coconut oil. The versatile coconut tree is used for food, shelter, and various products.
B.Areca Nut Palm: The areca nut palm (Areca catechu) is native to Indonesia and other parts of Southeast Asia. Its seeds (betel nuts) are chewed with betel leaves and other ingredients in cultural practices.
C.Oil Palm Plantations: Oil palm (Elaeis guineensis) is a significant commercial crop in Indonesia. The country is one of the largest producers of palm oil globally. Oil palm plantations cover vast areas, especially in Sumatra and Kalimantan.
D.Sago Palm: The sago palm (Metroxylon sagu) is native to Indonesia and Papua New Guinea. Its starchy pith is processed into sago flour, a staple food in some regions.
E.Borassus Palm: The Borassus palm (Borassus flabellifer), also known as the talipot palm, grows in parts of Indonesia. Its leaves are used for thatching roofs, and its sap is fermented into toddy.
These varieties of palm species contribute to Indonesia’s culture, economy, and daily life. The trees grow particularly well due to three vital factors: the tropical humid and wet climate, the rich volcanic soil(unique to the islands), and the equatorial location (abundant sunlight).
9. Indonesia held the G20 presidency in 2022. This was handed to India who will hold the position until 30 November 2023, after which it passes to Brazil.
10. A Brief History
The Dutch significantly colonized Indonesia during their imperial expansion. The Dutch East Indies, also known as the Netherlands East Indies, was a Dutch colony that mainly comprised the modern state of Indonesia. The Dutch East Indies contributed to Dutch global prominence in spice trade during the 19th century. Spices like cloves, nutmeg, and cinnamon were highly valued in Europe at the time and grown abundantly in Indonesia. During this colonization period major infrastructure projects helped modernize Indonesia. The Dutch ruled this territory from 1816 to 1941, until the Japanese occupation during World War II. Indonesia declared its independence on August 17, 1945, following the Indonesian War of Independence. Afterward, Indonesia and the Netherlands made peace in 1949.
The Charts
The FTSE Indonesia Index (In Rupiah)
The FTSE Indonesia Index represents the performance of large and mid-cap Indonesian companies that are constituents of the FTSE All-World Index.
▫️ Since 2010 this chart has been moving up and to the right.
▫️ Currently rising above the 200 day moving average and may be forming an ascending triangle.
▫️ At present I would not trade this but a trade is there to be taken with a stop below the diagonal trend line. ▫️ Ideally I would like a break out above the overhead resistance line before I make an entry so this chart is a watch and see.
▫️ There is a currency risk in the trade as this chart is in Indonesian Rupiah which has been in a downtrend for over a decade.
iShares MSCI Indonesia ETF (in USD)
▫️ Again, not an ideal chart however we have a definitive diagonal resistance line and POC to observe and break above, both of which would signal long term trend shifts.
▫️ There is currently a trade that can be played here, we have the DSS Bressert crossing and we appear to have made a higher low. A trade entry could use the most recent higher low as a stop. You could exit at the diagonal resistance line for a 20% trade or hold onto your handle bars in hope for a long term break of trend.
Crude Palm Oil Futures - $FCPO1
▫️ A compressing pennant pending decision. There is not a lot else to say here outside of the another likely DSS Bressert Cross.
Palm oil is a major contributor to the Indonesian economy. It contributes between 9 and 17 per cent of GDP. The sub-sector employs 8 million people, or 3.5 % of the country's workforce. Oil palm cultivation contributes significantly to household incomes, particularly in rural areas.
All these charts are available on my TradingView Page and you can go to them at any stage over the next few years press play and you'll get the chart updated with the easy visual guide to see how these Indonesian indexes and or palm oil has performed. I hope it’s helpful.
PUKA
Southeastasia
Macro Monday 51 ~ The Philippines - The Trading Hub of AsiaMacro Monday 51
The Philippines – The Trading Hub of Asia
The Philippine economy is currently the fastest-growing economy in South East Asia with solid promising growth projections for the next several years. The World Bank's Global Economic Prospects report on East Asia and the Pacific showed that the Philippines and Cambodia will be the second highest growing economies in East Asia and the Pacific, next to Palau which is projected to grow by 12.4%.
10 Reasons to consider the Philippines for significant investment returns:
1. The GDP growth rate in the Philippines was 7.6% in 2022 and 5.6% in 2023. The International Monetary Fund (IMF) raised its GDP growth forecast for the Philippines to 6.2% for 2024, as reported in their latest World Economic Outlook. This forecast is within the government’s revised 6-7% growth target. This puts the Philippines up there with India, the Ivory Coast and Ireland in terms of their GDP growth rate, all of which are some of the fastest growing economies in the world.
2. The population of the Philippines is 119 million with 28% (33 million people) of the population between the ages of 10-24, giving the country a sustained future labour market edge. The current labour market holds its own with 55% of the population between the ages of 20 – 64 (64 million people). Similar to India, the labour force is young, capable and likely to be sustained.
3. The Philippines are semiconductor specialists. The largest export of the Philippines is semiconductors. Semiconductors make up a significant portion of the Philippines’ exports, accounting for approximately 31.9% of the total electronic products exports. Electronic product exports in turn represent nearly 63% of the country’s total exports.
4. Additional to the above electronic products, the Philippines are also major exporters of manufacturing machinery and equipment, making them similar to South Korea in this respect (covered a few weeks ago). Broadly Manufactured Goods contributed the largest to the country’s total exports in January 2024 amounting to $4.83 bln or a share of 81.4 %. The Philippines are major machine and tool manufacturers (think Caterpillar Inc), however electronic products and semi-conductors are their forte making up the majority of their exports.
5. The second largest export of the Philippines is coconut oil, which has shown a significant annual increase in export value. It is one of the top commodity groups after electronic products in terms of export earnings.
6. The Philippines have a broad customer base in terms of exports. Their largest trading partner was the U.S. with an export value amounting to $902.3 million or a share of 15.2% to the country’s total exports in January 2024. The remaining top five major export trading partners for this month with their export values and percent shares to the total exports were;
a. Japan - $869 million (14.6%);
b. Hong Kong - $761 million (12.8%);
c. People’s Republic of China - $625 million (10.5%)
d. Republic of Korea - $356 million (6.0%).
7. The Philippines has made remarkable progress in reducing poverty over the past three decades. According the World Bank the poverty rate has fallen by almost 80% between 1985 to 2024 and this is expected to continue. According to the World Bank the current poverty rate is 10.7% however, the official poverty rate methodology in the Philippines is different and indicates that 18.1% of people live below the national poverty line. Of the employed population, 2.2% earn less than $1.90 per day on purchasing power parity (PPP) as of 2022. Regardless based on the Philippines methodology a target of <9% in expected to be hit by 2028 - set by the leading President Ferdinand R. Marcos.
8. Major Foreign Investment Incentivisation. The Philippines adopts an open economy that allows 100% foreign ownership in most business sectors. Many government corporations are getting privatized and the major industries such as telecommunications, energy, banking, and shipping have been deregulated. This gives foreign investors more freedom to set up operations in the country. In 2023, the Philippines saw a 6.6% decrease in FDI net inflow, totalling $8.86 billion, which was slightly higher than the targets set. For 2024, there has been a reported increase in FDI net inflows, with a 23.1% rise in March compared to the same month in 2023. The net inflow for March 2024 was $686 million.
9. Strategic Location. For investors aiming to tap into the ASEAN Free Trade area’s vast market of over 600 million consumers, or to engage with the key economies of East Asia, including China, Japan, and Korea, the Philippines offers an ideal strategic position. Additionally, the nation’s prime location at the nexus of numerous global maritime and air routes makes it an excellent hub for integrating into the worldwide supply chains of various enterprises. Think of it as the versatile and dynamic Suez Canal of Asian trade with reduced regulation.
10. Finally, there are a number of additional other factors make the Philippines ripe for investment and growth;
A. The Philippines boasts a high literacy rate of 94.6%, ranking third globally, with English widely used in education, media, business, and daily life, following Filipino (Tagalog) as the national language. This is similar to Ireland in Europe, which is also the only native English speaking country remaining in the EU since UK’s exit - Brexit. This gives these countries a trading edge.
B. The country’s growing economy is complemented by low business start-up costs, with labor and operational expenses significantly lower than in Western countries, leading to substantial cost savings for foreign companies establishing back offices and development centers.
C. One of the world’s largest archipelagos, the Philippines is rich in natural resources, ranking among the top gold and copper producers, with diverse marine and land species unique to its thousands of islands, alongside stunning tourist destinations.
Bonus Note on President Rodrigo Duterte:
It would be remiss of me to not mention the previous President Rodrigo Duterte who took a very harsh approach to resolving drug related crime in the Philippines. According to the Philippine Drug Enforcement Agency, during 216,138 anti-illegal drugs operations conducted between July 2016 and September 2021, 311,686 people were arrested and 6,201 were killed by the police Whilst controversial, this low tolerant approach resolved and remedied a major drug and crime issue that Philippines was burdened with. This has made the country as a whole more appealing for nationals and tourists.
Duterte also increased infrastructure spending to an average of 5 percent of the country’s overall GDP – this is twice the budget in the administrations that came before him.
As you can tell from all of the above, the Philippines is staged to enter into a monumental period of growth. The Philippine Stock Exchange also suggests that the stage is set, lets have a look.
The Philippine Stock Exchange - PSE:PSEI
The PSE Composite Index (PSEi) is composed of the 30 largest and most active common stocks listed at the PSE.
The Top 5 Companies in the PSE are as follows;
1. SM Investments Corporation: A conglomerate with operations in retail, property, and financial services. It is one of the largest companies in the Philippines by market capitalization. Market Cap of $17 bln.
2. SM Prime Holdings (SMPH): One of Southeast Asia’s largest integrated property developers, offering lifestyle cities with malls, residences, offices, hotels, and convention centers. Market Cap of $13 bln.
3. BDO Unibank: The largest bank in the Philippines by assets, loans, and deposits. It offers a full range of banking services and products to the retail and corporate markets. As of June 2024, BDO Unibank has a market cap of $12.11 billion.
4. Golden MV Holdings: A company that develops memorial parks and columbarium facilities in the Philippines. It also engages in real estate through its subsidiary Bria Homes, Inc. Market Cap of $12 bln.
5. International Container Terminal Services Inc. (ICTSI): A leading operator of container ports and terminals in the global trade and shipping industry. Market Cap of $11.7 bln.
We might look at a couple of these company charts later in this article and possibly more in coming days.
The PSEi Index chart I am about to share reminds me of the Brazil Emerging Market ETF Index AMEX:EWZ chart which we previously shared weeks ago. It also looks a little like the AMEX:URA chart and or U.S. Small Cap 3000.
All these charts are forming long term pennants and breaking to the upside. We are still pending a decisive move on the PSEi below.
▫️ You can observe a compressing pennant with a breakout very likely approaching. Given the positive strides being made in the Philippines I am leaning towards a bullish break out in the above, however this will likely be a measure and slow move.
▫️ If this chart moves in the right direction and gets above its 21 day moving average we can presume the market is moving in the right direction in the Philippines and thus seek out some companies to invest in, knowing that the wind is at our back.
▫️ Investing in the above would obviously leave you exposed to a currency risk in the Philippine Peso. So you need to keep an eye on that currency pair.
▫️ The above chart is not a prediction, however it does have a double bottom look about it and with that in mind, there is a back end potential for an up to 12% currency gain in a longer term trade for U.S. investors. It’s a very interesting background set up.
▫️ This means if you invest in Filipino stocks or companies, there is potential here that you might get additional %’s from the back end currency play.
▫️ Equally, if we lose the current low on the Peso, this would lead to losing potential gains, the currency risk in the trade. So you need to watch both charts if you enter a trade.
Very important to keep an eye on the Philippine Peso if you’re an international investor converting your local currency into Pesos in order to invest in companies in the Philippines, however at present the chart looks like it might be an advantageous back end play. No Guarantees.
Now lets look at a Philippine Stock that is large, liquid and heavily relied upon by multiple sectors in the Philippines and obviously we need a DAMN GOOD CHART.
International Container Terminal Services - SET:ICT
▫️ The chart speaks for itself and presents a good 6:1 risk: reward set up.
▫️ That 100 SMA can provide a nice structural support for anyone wanting to stay in the trade longer or at least have a level that if convincingly lost, you can cut your losses. Equally the 100 SMA would also be a great entry level.
▫️ The above SET:ICT chart reminds me so much of the Reysas LoJistik BIST:RYSAS chart which is a similar business in logistics and transportation but in Turkey. Please have a look below.
COMPARISON
Reysas Lojistic - BIST:RYSAS
▫️ I am sharing this chart as a reference to potential outcomes for ICT.
▫️ Very Similar Company Sector and Chart to the above ICT Chart in Philippines. Could we see similar continued advances in ICT?
There are a number of REALLY interesting chart set ups for the Top 5 companies in the Philippine Stock Exchange (we shared these tickers earlier). I will definitely add these in coming days and weeks as I see a lot of opportunity in the Philippine market place and the currency looks like it might be about to gain positive ground.
It appears the Philippines is undergoing an monumental economic renaissance with the economic and demographic landscape looking incredibly favourable for this versatile archipelago. This nation of Islands is presenting an incredible investment opportunity, so great in fact, I’ve started looking at property there. It has so much potential and appears to be on the cusp of a major bull trend. We can watch the PSE chart and wait for the break out.
All these charts are available on my TradingView Page and you can go to them at any stage over the next few years press play and you'll get the chart updated with the easy visual guide to see how the Philippine stock market has performed. I hope it’s helpful.
PUKA
China: Back to the Grind (SHORT)China:
Morgan Stanley scenario:
Chinese stock indexes could plunge by another 20% from current levels over the next six to 12 months — and potentially remain lower for much longer if the hypothetical stress scenario persists.
China’s GDP could slow drastically, averaging 2% growth in 2023.
More than 11 million people could lose their jobs, likely sending the urban unemployment rate above 7%. Construction, accommodation and catering would see the most job cuts.
ASEA strong w only 0.382 retracement range;15 wedge BO or 13.40?ASEA has been in this yellow box consolidation range sine Feb2018 except during the pandemic plunge which is a BLACKSWAN event & should be discounted. The base of this box is at 13.40.
Right now ASEA is making a falling wedge. A falling wedge has a greater chance to break to the upside. If it holds the middle green zone of this box & bounce above 15, it will be a good time to buy.
But if green zone fails, next support buy zone is at a 13.40 bounce.
Maximum pain level is at 11.65, the FIB 0.618 pivot.
Not trading advice
Maybank is interested to test The main Trendline @ RM6.5It could be the best price level to buy and to keep for a few years.
The economy is not collapsing yet,
just a little hiccup caused by a global pandemic
But if it breaks the Trendline then I'll recommend every investor to increase their Gold Reserves quickly.
The 12 Apostles of Oil? (the future of “downstream assets")What is the future of the Oil Industry?
(A detailed study of Assets)
In the oil industry and in “the big-time” cooperate business “masters of business administration” "obese operations world" there is a term called “downstream”. Some companies get so chubby that they essentially dont need any of there sales stores that they actually sell their products in… in the oil industry a lot of companies “don't need gas stations” anymore so they “spin off” what is called their “downstream assets” and basically the gas stations are no longer part of the company. However, there is good and bad sides to this, it makes it easy to “own a McDonald’s franchise” but difficult to do anything “differently” or create “unique competition” with the financiers or the people that gave you the money. And the law is typically behind the “money” and not the people who own and run the businesses day to day.
For all practical industrial reasons ConocoPhillips (and perhaps all of the Earths Major Oil Operations) are not an American company or really “any specific” countries company. In fact the complexity of it all may minimizes a lot of the local legal business risks.
Perhaps one of the more interesting locations for “western” oil is 26 million square feet of “oil” headquarters in an area called the “Energy Corridor District” of West Houston Texas, The Energy Corridor is a business district in Greater Western Houston, Texas one of the largest cities in America and the location of many major “energy sector companies” operations including BP America, Citgo, ConocoPhillips, and Shell Oil Company and about 300 other smaller companies. Non-energy firms also have a presence including companies like Sysco and the largest company in the area is actually not involved with Oil originally they where a “former deep sea fishing company”.
Perhaps the most important strategic locations for ConocoPhillips is in the far north arctic and hot very very way way too hot Houston Texas. I was very surprised at how large the industrial complex was in the far north of Alaska. Before I knew almost anything about ConocoPhillips I was studying “the last and many of the most difficult road to find and get to on earth” and one of them was in the super far north of northern Alaska all the way up very near ConocoPhillips possible Oil Operations. Its one of the only roads in the far far north of Alaska that actually has google street view. One of the reasons I was interested in this place in particular is because Alaska is one of the “best places” on earth to go and “see the northern lights”. My friend told me about this place in the far arctic north of Alaska called “dead horse”… and she told me she use to drive up there when she lived in Anchorage sometimes to go and see the northern lights. She said that the northern lights up there come in all different types of colors. Alaska is one of the earths and Americas last “wild (natural and environmental) frontiers” if you even want to call it that? While I didn’t find any oil operations up there I did find a very small “remote” grocery store that apparently the only way to get food was by “air” and I was kinda interested in “shipping foods” (as a potential business opportunity and foods research) to strange an unusual places like the arctic and the thousands of islands in the deep pacific.
Perhaps the most “environmentally dangerous” locations that companies like ConocoPhillips operates are not on land where national governments can visit and carefully regulate and “help” oil operations but the most interesting and dangerous are deep at sea.
From what I’ve hearing from someone who works in the oil industry (as a friend of a really good geologist and person who likes to just study the earth for fun) on one of these oil platforms is that there is so much money involved that sometimes its like working on an “extremely dangerous pirate ship operation deep at sea” and its a very dangerous “man vs man” business in the deep sea “some people just don't come back” and the laws and rules are very different when your out in the middle of the sea… and especially on these deep sea oil rigs “if you talk too much… you might die…”?
Some of the most interesting and “dangerous” operations are located in a very unusual “side” of north western Australia near a town called “Darwin” Australia. Its rather different in Darwin and a remote northern side and even a little west of the “geological space needle” of Queensland Australia that points into the very large and indigenous “tribal islands” area of Asia Pacific Asia also known as the very special and mysteriously and extremely important geological island of “New Guinea”.
Unbelievably off the coast of Australia the company ConocoPhillips was able to essentially “buy” two, three actually 4??! entire fairly large “islands of gas” in the sea… These are not especially “deep waters” they are called “basins”. Two of these islands are called “Barossa and Caldita” in an area called BAYU-UNDAN in the “Timore Sea”… collectively these “islands of petrol gas and oil” are about 50 miles by 50 miles in total and they essentially “own them” through some type of “permits WA-315-P, WA-398-P and TP-28”? There is even a 200 mile “pipeline” in the middle of all this ocean essentially “shipping” the oil from BAYU-UNDAN all the way 200 miles back to Darwin Australia perhaps for “processing”?
If your interested in the details of how these pipelines work you should for sure take a look at the ConocoPhillips “fact sheet” from March of 2020 its very interesting to read the details about each location.
To work on these types of large oil projects many companies decrease their risk by working with other forging companies. Some of the companies Conoco Phillips is working out in the middle of the south east asian islands includes a lot of companies I’ve never known anything about but are probably very very large or at least have enough money and ability to get “deep sea permits” or make it look like its a “real” permit.
Co-Venturers include…
Origin Energy (40.0%),
PetroChina (20.0%)
Santos (25.0%),
SK Energy (37.5%)
Co-venturer: 3D Oil (25.0%),
Co-venturer: PETRONAS (40.0%)
Source: Conoco Phillips Corporate “Fact Sheet” March 2020 (PDF)
Whats particularly interesting to me as an amateur “arctic researcher” is that “most” or “many” of Conoco’s (easier) operations are located near very very unusual “polar arctic pivot points”. These are areas for example where you can see the “northern” lights a glowing light in the sky or where there is really good “arctic fishing” (like off the coast of Norway)
Whats interesting about this “American” company and perhaps many other oil companies is that 50% of all their employees (or technically they dont call them employees they say “payroll”) is say 17% Norwegen, 6% Indonesian, 7% Canadian, and 8% Australian (see website for latest details)
There are other very interesting “Conoco” locations off Tasmania … Tasmania is a very interesting point and its one of the most interesting islands on earth for really truly “cosmic” reasons. It “points” to the magnetic fields of the antarctic… For example if you use a “regular compass” on Tasmania the fields point “directly” to the south pole and the location of “magnetic pole”. This is a very very strange island and very very beautiful island too to the “southern magnetic field” or the “real” southern pole. If you have time for sure look up “ The Twelve Apostles” and take a look at the pictures… its an amazing natural wonder of the world that isn’t wildly widely known about. It maybe interesting to see if some of these oil companies might “invest” in building “lookout tours or tours” in the local naturalization parks to help people “see whats going on naturally”… See: Wikipedia "The_Twelve_Apostles_(Victoria)"
While there are other “oil” locations that Conoco + Philips is working another very interesting location related to the “magnetic fields” is at the “tail” of Argentina or what you might think of as the “connecting tail” of Antarctica to mainland “South America” (also known as Patagonia)? This oil “field” location is near (on on both borders of Argentina and Chile) its one of the most important famous and amazing “brilliantly” bright light blue melting glaciers. The pictures of this glacier goes on and on for as far as the eye can see and there is a strange “thawing mist” above the glaciers and strange bright blue ice burgs.
While I’m not going to focus on “all” the important operations they are ALL very very interesting to study. Because at one time these had a lot of “bio” mass or “fish”.
From a financial standpoint the oil rigs off the coast of Norway and in Northern Alaska maybe make the most sense and are the “safest” because they are “on land”. While the others located near the center of all the pacific islands and also “non great barrier” reef areas but “mini pacific island banks basin reefs” these are (Mystical places off the cost of Malaysia, Indonesia and Darwin Australia). These operations pose the most “public” environmental catastrophic risks to both the environment and the actual stock price. And if something goes wrong… few people know about it and yet all the fish know about it.
One of the most helpful projects Conoco is working on is actually located in Columbia. Columbia is not just “any country” in south America. Its the “center” of the “bridge” with north america and Central America. Columbia is the only country in all of south America with both Pacific Ocean and Atlantic Ocean “connections” and is “co sponsored” with another company called CNE Oil & Gas S.A. (20.0%).
The reason this project is so important to the rest of South America is because its helps with “real” international relations and is maybe the only time people there get to work with people in North America in something other then politics. A project like this also helps to bring “new wealth” to the country. However, Columbia is so important strategically that it maybe “the only hope” for stabilizing Venezuela with all of Central America and even preventing a “price war” over Oil with North America. Its not important to work with North America but it is important to work with modern x-drug lords soon to be “Oil Lords” of Columbia.
There are many possibilities of (neighboring) projects even though on a map these areas seem small and insignificant. Some oil “rigs” deep at see cost hundreds of millions of dollars to build and then suddenly sink for “no reasons”… Oil has the power to help develop “big industry” that might help organize other industry possibly including Nuclear Power. So what starts as a simple project in Columbia or even just “exploration” as they call it is VERY important even if its just a 50 mile by 50 mile “permit”.
In fact the oil discovered in Venezuela (suddenly became) the largest supply of oil on earth making sailing all the way to Saudi Arabia seem insane when you can sail from Houston to Venezuela almost over night. These projects with companies like CNE Oil & Gas S.A. (20.0%) are extremely complex and not necessarily “American” China and India has Oil needs too? This area of Columbia is “near” the “back door” to the amazon and a futuristic and yet “indigenous” high mountain cocaine tribal culture that may one day “have ideas that will blow everyones minds” about how to work with “natural resources”.
For now we dont know what oil companies are really trying to find in the “high mountain areas” like Columbia other then the worlds most important “new sexy hip” former “cocaine drug lords” towns like Bogotá and Medellín Columbia?
Anyway, I hope you have really enjoyed and learned a lot from this “story” of Conoco a company that an “American” oil company founded in 1875 as the Continental Oil and Transportation Co.
:)
Asher