The King Operating team sat down and discussed several key issues that are impacting the world markets today.
1: The impact of the fall of Kabul and 2: What does the market think of the increase of the Delta Variant in the world?
In the last segment, we covered questions from the audience on the two main topics and on current King Operating Operations.
Fill out the form below and we will send you the Questions and Answers report in PDF including information from the King Operating research team. Thank you and we look forward to seeing you next Tuesday for another roundtable discussion.
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Just a few of the questions from the roundtable:
1: The fall of Kabul is an unexpected change in the Geopolitical structure in the Middle East.
Current Issue:
- 36 million people live in Afghanistan according to the 2019 statistics
- Since 9/11, the United States has amassed an estimated two trillion U.S. dollars of war spending in Afghanistan, with the interest on additional borrowing alone costing over 456 billion U.S. dollars. These figures include budgetary spending between FY 2001 and FY 2019.
- Afghanistan leads the Global Terrorism Index of 2020 with a 9.59 out of 10. The chart in the appendix.
- China last month had meetings with the Taliban leaders with commitments to recognize them as a legitimate country government.
- Russia has announced that they will open discussions with the Taliban within the next few days also recognizing the Taliban’s government
- In 2020 Afghanistan had over 2,595,000m refugees. The chart is in the appendix.
- India relies on natural gas imports as a cleaner energy source than their large use of coal for electrical generation.
Questions for King Operating Team Members – On Oil and Gas in Afghanistan
Question: Do they drill for oil in Afghanistan?
Answer:
- Currently, Afghanistan uses about 5,000 bpd – and produces 0
- In 2009 they had their first licensing rounds for E&P
- Most of the oil and gas fields were discovered in the 1970’s during Soviet-led exploration campaigns, the only exception being the Angot oil field within the Kashkari block that was discovered in 1959. Angot is also the only oil field to have been in sustained production in Afghanistan, according to the Ministry.
Question: What are some of the key natural gas issues in the Geopolitical Area?
Answer:
- India is ranked 14th in the world for natural gas imports, but number 2 or 3 for oil-importing. They are increasing their LNG imports and none from the northern Afghanistan borders. Low-cost energy sources are tough to transport into the region.
- Pakistan’s Northern area also needs natural gas, but Pakistan does not even fall in the top 20
- The northern region is supplied by natural gas from the pipeline starting in Turkmenistan through Afghanistan’s dangerous areas with a high risk of disruption.
Question: Why would Russia want to recognize the Taliban with no production and little imports?
Answer:
- Russia needs to export energy of all kinds. An estimated 35% of their GDP is made up of exporting oil and gas.
- Putin wants to embarrass the United States any time he can and will do anything to follow up on the promise to embarrass and take down the U.S. shale producers.
