Global oil companies are flocking to Iran. At the annual Iran Oil, Gas & Petrochemical International Exhibition in Tehran, in May, some 600 major energy companies from 32 countries took part. Above an Iranian employee talks to a Chinese visitor.European Pressphoto Agency[/caption]
Talks on Irans nuclear program restart this week in Vienna with the uneasy situation in Iraq giving the discussions a sense of urgency.
Sanctions, the Wests weapon of choice, are keepingaround 1.5 million barrels of Iranian oilfrom being sold andputting a squeeze on Tehrans finances. This looked like a smart move until Iraq blew up.
Global oil companies are flocking to Iran. At the annual Iran Oil, Gas & Petrochemical International Exhibition in Tehran, in May, some 600 major energy companies from 32 countries took part. Above an Iranian employee talks to a Chinese visitor.European Pressphoto Agency
Although the violence there remains far away from the majority of Iraqs oil-producing region, it is close enough to give the market the shivers. As The Wall Street Journals Cassie Werber explains, the amount of speculative money in Brent crude, the global benchmark,has never been higher and more than ever this is being placed on a still higher price.
Saudi Arabia has been covering for Iran but it can open its taps only so far. A loss of Iraqi crude would be a shut-in too far.
So when representatives of the P5+1 group of countriesgather in Vienna stakes are high. Iran suddenly has leverage and, it appears, will be sitting across the tablefrom some rediscovered friends.
The mood music suggests a deal, albeit with a ticking clock acting as metronome.
The loudest voices, though, dont belong to the diplomats around the negotiating table, but to the companies hoping to make some money out of any resolution. The Journals Jay Solomon, in Tehran, reports that global oil companies and auto makersare flocking to the Iranian capitalto jockey for position.
CHENIERE REINS IT IN
The previous Energy Journal noted a deal to send American liquefied natural gas to Australia, for resale into Asian markets.
The seller is Cheniere Energy, a Houston-based company that is at the vanguard of the great U.S. gas-export push.
It already has an export facility under construction at Sabine Pass, La., and hopes to use the guarantee of the Woodside Petroleum deal and two others with Indonesias Pertamina to find financial backing for another facility at Corpus Christi, Texas.
In the race to export U.S. LNG, first could be everything. Chenieres shares are up 70% this year, reflecting its leading position.
Such a performance has led to some big salaries, with the $142 million received last year by Chief Executive Charif Souki making him one of the most highly paid executives in the U.S.
But a plan to issue shares to executives and employees has been dropped after opposition from investors, as the Journals Daniel Gilbert reports.
Cheniere has never turned a profit.
By The Wall Street Journal
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