In response to Mimi's article about offshore drilling in China by the Chevron corporation, Chevron is also beginning to explore for oil in deep water of the shore of Liberia. This deal will grant the Chevron corporation 3,700 square miles of offshore drilling and will also hold 70% interest in concessions. This is actually a very interesting endeavor as the nation of Liberia has yet to produce crude oil and this is also the first time that a large integrated oil company has ever gotten involved with Liberia, as this country is still healing with from its years of civil war and political unrest. Many people including myself believe that if oil is discovered there than this is what Liberia needs to get off its feet, rebuild its nation, and than possibly put it in the status of the up and coming African nations. Even if oil is not found, however, this involvement by Chevron will still help to boost the economy of this small nation. This deal is good for Liberia but it is great for Chevron as well as it is a country still open to foreign investment, has a high possibility of producing large amount of crude oil, and Chevron could have a monopoly on this nation easily.
In my own personal opinion this is great for both the corporation and for Liberia. It will strengthen a nation while at the same time strengthening a cooperation. This deal will be one of the best that Chevron has made in quite a while as it is rare to find an amount of pay this large now and days. Overall I fell this deal will help everyone involved and is a great endeavor.
Ryan Parker
http://online.wsj.com/article/SB10001424052748703453804575479981224884048.html?mod=WSJ_Energy_leftHeadlines
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