Foreign Governments & Oil Deals

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Here is something I feel we are seeing way to much of lately. Foreign governments, and I use the term loosely, keep trying to change deals after the fact. This time it's Ecuador. It appears a new government has taken the reigns and they are trying to find the biggest cash cow to milk. In this instance it's foreign oil companies. They are hoping for a redesign of the current contracts to bring more cash into the government coffers. It should not surprise you that they will get what they want having learned from everyone's favorite deal breaker in Venezuela.

You have to ask yourselves why do these oil companies continue to put themselves in a position where they won't be able to predict what is going to happen any time a new government is installed. One of the reasons is because of insane energy policies in their country of origin which forces them to have to go abroad to find oil and natural gas. We here in North America are blessed with an abundance of resources. We are especially blessed with energy resources. However, due to politics and legal wrangling, we are unable to access or take advantage of that wealth.

Instead we are forced to drill in countries with governments that don't honor contracts or have to go looking for oil and gas in extreme environments. Can you say deep water drilling? Of even greater consequence, we open ourselves to a potential national security nightmare that could easily have been averted. Has anyone been paying attention to Israel and Iran? What do you think would happen to oil supplies coming out of the Middle East if they went to war over Iran's nuclear ambitions?. Not to mention the price spike that would go with it? I can promise you it will not benefit our anemic economy.

Until we start treating our energy needs and resources with a common sense approach, we will continue to be at the mercy of foreign governments and their desires. We will leave ourselves open to crippling financial pain and we risk completely destroying our economy. I really hope we come to our senses before that happens.