Subscribe to Inside Report (Click Here)    Join in discussions about economic matters by  Clicking Here

A Personal Note

If you know of a company that is recruiting for an innovative sales and marketing professional (I possess an MBA in addition to proven success with turnaround situations), please send me a note by clicking here.  Thanks!

Weekends: We feature more in depth analysis for subscribers who pony up the modest $30/year subscription fee.  This week we look at the lifestyle implications of several major trends now changing course.  More info click here.

The Big Aussie Oil Grab

While the War in Iraq - not going well - continues to grab the majority of headlines in U.S.-centric media, there's a new round of talks due to open today in the battle between (BIG) Australian and (small) East Timor interests over oil and gas reserves and leasing in the East Timor Sea.  What makes this so interesting is that Australia has offered exploration leases which are much closer to East Timor than they are to Australia and unlike the Middle East, where we marched into Iraq on the pretext of "securing freedom", the East Timor area is already under UN protection.  Click over to http://www.etan.org/news/2004/04move.htm for a run down on the East Timor perspective.  Addressed to the Australian government and people, the site says:

"We appreciate your honesty in admitting that your current exploitation of contested areas is a direct continuation of Australia’s support for and profiting from Indonesia’s illegal occupation of our land. But we do not appreciate your brute-power approach. It is not up to Australia alone to “accept” East Timor’s claim -- this is a matter to be resolved through negotiations or, if negotiations do not succeed, by an impartial legal process. It is a question of right, not might.

Unlike Australia, we are not a “lucky country.” One third of our people gave their lives for our independence, resisting and eventually overcoming a brutal invasion and occupation by Indonesia. Although your government finally came to our assistance when independence was almost assured in 1999, we remember that between 1975 and 1998 Australia gave diplomatic, military and political support to Indonesia’s illegal annexation. One significant factor in Australia’s deciding to abandon our people, who had helped you so much during World War II, was that you believed Australia would have easier access to Timor Sea petroleum under an Indonesian-controlled regime. Australia still bears the shame that you were more interested in oil money than human lives."

The East Timor view continues to make economic points about Australia's oil hegemony in the region:

"But when it comes to the Timor Sea, your generosity rings hollow. Since our liberation in 1999, Australia has been collecting money from the Laminaria-Corallina oil field, far closer to our shores than to yours. Your government has taken in more than US $1 billion in revenues from this area, and we have received nothing. During the same period, AusAID programs in East Timor have cost you about $100 million, with some additional expenses for your soldiers here (although you would have pay and feed those soldiers even if they stayed home). During 2003, the Commonwealth collected about US $172 million from Laminaria-Corallina, more than twice our government’s entire budget. "

Because of UN involvement, a whole lot of naked facts, and a country that is already "free" in the sense that the UN already more or less occupies the place, we're anxiously awaiting to see how the spinmeisters crank this one around to give the Australians and excuse.  I've already got the advertising slogan figured.  How about this:  East Timor:  Australian for Oil.

News from Elliott Wave International

On to Our Charts!

Write when you get rich - or sooner if you feel like it.

George Ure

Back to main page

All contents (c) 1998-2003 by George A. Ure, MBA, except authors as linked or noted