Carsky Ukrit
PRESIDENT PROKOP DISCUSSES OIL
Auxiliary Presidential Palace, October 19, 5405: The Council of Ministers met at Carsky Ukrit, the Auxiliary Presidential Palace, to discuss energy policy. Afterward, ZLATENICO OKO asked President Dominik Prokop if any conclusions were reached, and he responded:
The focus was of our meeting was crude oil. We are currently meeting our need for the stuff with our import arrangements. Some years ago we had a study team evaluate petroleum extraction probability. In view of the change in petroleum supply in Majatra we took another look at its conclusions.
There is crude oil and natural gas there. Our scientific team was confident we pretty much know where it is. Confident enough that we believe we would not be wasting our time if we try to extract it. It seems steps taken have considerably reduced the panic which means now we and others can look the problem in the eye and see a lot more clearly than when in the throes of turmoil.
We need to be clear about the oil. Lake Majatra does not have enough to generate the electricity to light up all of Terra. What it does have is almost enough to meet the oil and natural gas usage needs for the five nations abutting Lake Majatra. But without a drop left over for the rest of Terra. And if all five got considerably greener there would be enough for the five. Make no mistake, Lake Majatra is not going to create an oligarchy of oil barons setting Terran oil prices.
Why would Deltarska be interested? Mainly to make it so we are not dependent on one source that could be blockaded. Why would the other nations with access to Lake Majatra be interested. So that they could after a time be reasonably certain of their supply of oil and gas.
Why would other nations in Majatra be interested in it happening. Some nations would no longer need a share of the oil and gas imported from Vascania or other sources so shortages would be considerably less likely to materialize
For that matter why Moledat Medinat encourage Lake Majatra being used to supply oil and gas to several nations. That much less need to round up petroleum for its client states.
We came up with Plans A, B and C. Plan A is the functional nations begin extracting petroleum from Lake Majatra. Ownership of the oil and gas reserves is in the Sovereign People of those nations. And remain so. The right to drill and extract for a certain period of time in a certain area would be leased to citizens and businesses. Lessees could then contract with others including foreign interests to help with extracting, shipping, refining ad selling. But no foreign interests could own any part of the actual oil reserves. This is essentially model designed in Jumhuriat al-Badara five hundred some years ago.
There are a number of obstacles to Plan A. First off, Cobura is in turmoil, Jakania and Zardugal are not in a position to participate, and the relationship of Jelbe and Deltaria drips venom. Additionally Jelbe may well have existing obligations precluding participation. Still, tensions cool and at some point self interest may outweigh distaste.
Secondly, if not all around Lake Majatra are involved, the rights of those that do not can not be simply ignored.
Third, Cobura, Jelbe and Deltaria are not existing oil producers so getting some group that is to do exploratory drilling and set up the oil rigs would really be helpful. ENIST of Istalia would be ideal if available. Qat Oil Services in Badara and KNOC of Kafuristan likely are unavailable for the moment. So we might need to enlist the help of companies from outside Majatra. Vascania, Trigunia, North Dovani and Dorvik have ongoing operations. Since the Plan A idea is keep title to the reserves in the Sovereign Peeople., we would be asking to pay for professional services but not offering a share in ownership. There may well be others who actually drill and set up extraction operations.
Plan B would be going it alone if no one else is interested while Plan C is continuing to rely on imports.
Our thinking at the moment is see if Plan A is possible. The truth is we are not optimistic.