India and China Cooperative
India and China, nations that are 4th and 2nd respectively in petroleum consumption amounts, have joined together their efforts in petroleum exploration and distribution much to the chagrin of other oil hungry nations. The combining of their efforts and pooling of their finances in this endeavor has allowed them to obtain rights to some of Iran’s largest producing fields and successfully find new fields within the borders of their own countries.
The first oil field procured by the joint venture of China National Petroleum Corporation (CNPC) and India’s Oil and Natural Gas Corporation (ONGC) was accomplished in 2005. The two largest oil companies in the respective countries successfully bid to share 37% of Petro-Canada’s stake in Syrian al-Furat oil and gas fields. While the companies had been working together in the past, this marked the first foreign property to be cooperatively purchased by the duo. These two oil producing giants are courting other Indian and Chinese companies to join in their efforts, proposing that all combine their technologies and monies to make higher bids on foreign fields, achieving the possibility of outbidding the major oil companies that tend to acquire all the drilling rights in the Western Hemisphere. Large oil companies like Shell and Mobile have been watching these developments with much trepidation.
Researchers project that the global demand for energy will grow as much as 55 percent in the next two decades, owing mostly to the growing needs of China and India, who combine for 45 percent of that total growth spurt. These two petroleum consuming giants have decide that cooperation between neighbors makes much more sense than competing with each other for supplies. Their newest acquisition is a 50 percent joint stake in a large Colombian oil field. The conglomerate successfully purchased this 50 percent share from a Texas-based oil and natural gas company, Ominex Resources Inc. Like Triple Diamond Energy Corp., also in Texas, Ominex finances oil exploration and extraction in order to continuously supply their customers’ oil and natural gas needs. The 50 percent share purchased from Ominex for roughly 800 million has the ability to supply China and India with nearly 10,000 barrels of oil daily.
India and China had in the past been major competitors for fuel supplies, but for the greater good of the two countries, put aside their differences in order to be successful in their goals. With natural gas and oil fields cross the earth rapidly depleting, certainly more of these cooperate efforts will emerge. Large companies, pooling their resources, will be much more successful as efforts to supply the world’s fuel needs prove to be more and more difficult.
