In three nations that rely heavily on their national oil companies, energy ministers are under pressure.
In Kuwait, oil minister Saud Nasser al-Sabah will chair a committee to oversee the government's plan to use foreign companies to develop oil reserves.
The government wants to double the production capacity of seven northern oil fields (Raudhatain, Sabriya, Ratqa, Abdali, Bahra, Western Minagish, and Umm Gudair) to 1.3 million b/d by 2005, bringing Kuwait's capacity 40% higher, to 3 million b/d.
Foreign firms would invest about $7 billion in the projects (OGJ, Aug. 23, 1999, Newsletter).
The program is highly controversial because Kuwait's constitution forbids foreign ownership of natural resources.
Al-Sabah said the plan is consistent with the constitution because it would reimburse foreign firms for operating services, and they would not be paid on a production-sharing formula. However, they would get cash incentives for production.
The government believes it needs foreign expertise to boost production and thus national revenues.
State-owned Kuwait Petroleum Corp. has been a disappointment in recent years. KPC's profits are expected to drop $329 million to $1.8 billion for fiscal 2000. Al-Sabah has ordered an investigation.
Ecuador
Perhaps the two most powerful oil men in Ecuador have clashed and probably not for the first time.
Jorge Pareja, president of state-owned Petroecuador, recently submitted and then withdrew his resignation in a dispute with Energy Minister Rene Ortiz. Their disagreement became public after the ministry approved a higher production quota for ARCO-at the expense of Petro-ecuador's share.
Pareja later explained it had all been an error, and Petroecuador would continue at its previous production levels. Petroecuador produces about 75% of the nation's 395,000 b/d of exports.
Pareja once headed Petro-ecuador's predecessor firm and was energy minister in 1996. Ortiz is a former secretary general of the Organization of Petroleum Exporting Countries.
Both men took office in March, after their predecessors were forced to quit because of a severe gasoline shortage.
Greece
Greek Development Minister Evangelos Venizelos has been pressuring refining and marketing companies to absorb crude price increases, despite the realities of the world marketplace.
It seems that rising gasoline prices have jeopardized the Greek government's goal of holding inflation to 2%/year.
So the cabinet recently sent parliament a proposed law that would give it powers to limit gasoline price increases and the profits of refiners and marketers.
Refiners could be fined nearly $900,000 million and retailers $60,000 for violations.
Hellenic Petroleum Co., which is majority-owned by the government, and the country's two other refiners have absorbed recent oil price increases. But they've done so reluctantly, since it is costing them about $1 million/week.