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The BP joint venture with TNK produces a quarter of BP's oil production. The arrest of 2 employees charged with industrial espionage may be the first move in a series of moves designed to get better negotiated terms for the venture than were originally obtained a Russian strategy thats been used before.

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Andrew Kramer reports from the front near the city of Mariupol in eastern Ukraine with signs of a breakdown in the second Minsk accord. Following the breakdown of the Minsk agreement of September 2014 by February 2015, with fighting around the town of Debaltseve, leaders of Russia, Germany, France and the separatist eastern regions of Donetsk and Luhansk met again in Minsk, Belarus, on Feb 11, 2015. This led to the second Minsk Agreement and a ceasefire. This agreement called for release of prisoners, a zone to separate the soldiers on each side, constitutional reforms for decentralization in Ukraine giving autonomy to the Donetsk and Luhansk areas, and monitoring by the Organization for Security and Cooperation in Europe (OSCE). Minsk II agreement is under strain as the economic blockade by Kiev, and separatist violations of the ceasefire, have created a tense situation by June 2015. The second Minsk agreement was reached under pressure from the U.S. saying it would send arms to the government in Kiev if Russia continued to send troops into Ukraine, and Germany seeking to avoid a further escalation of the conflict. In the background the U.S. and the EU continued economic sanctions on Russia, and the Russian economy suffered from a decline in oil prices as a result of Saudi pricing decisions....

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This report in the WSJ provides details on the groundwork that was laid by the Trump administration as it worked to find a solution to the problems facing Venezuela with refugees and economic crisis, and months of protests. The plans were set in the days before Nicholas Maduro took office for the second term as president. The night before Juan Guaido, head of the National Assembly, declared himself president, U.S. vice president Mike Pence stated that the U.S. would support him if he took the reins of government from Maduro by invoking a clause in the Venezuelan Constitution that makes the head of the National Assembly take the office of president if the existing president is declared illegitimate taking office unlawfully. About 60 nations did not recognize the elections that gave Maduro a second term. On Jan 2 Mr Trump who feels deeply about the collapse of the Venezuelan economy and rising poverty, the suffering of the Venezuelan people, met with presidents of Brazil and Colombia. Colombian president Ivan Duque and Trump hinted at a plan to cooperate to help people fleeing Venezuela and respecting its democratic heritage. Mr Pompeo spoke to allies of the U.S. The National Assembly laid out its plans on Jan 15, for using a constitutional mechanism that allows the head of the Assembly to lead an interim government till new elections are held if the existing president is declared illegitimate. A leading Republican senator of Cuban origin Mr. Rubio supported the move. On the eve of protests in Venezuela Rubio and two other senators from Florida met Mr. Trump and Pence at the White House. Also present were Bolton, Pompeo, Ross and Treasury Secretary Mnuchin. Mr. Trump then decided to do it. He placed a call to Mr. Guiado  to tell him that if the National Assembly invoked Article 233 the U.S. president would back him.  The U.S. believes the rank and file in the military are with the opposition even though its leaders back Maduro. After the U.S. action, the governments of Brazil, Argentina, Chile, Peru, Colombia, backed the move for an interim government. The European Union called for free and credible elections. Russia and Mexico supported Maduro.  The State Department instructed the U.S. Federal Reserve about Guiado government as the sole representative for Venezuelan assets in banks. Sanctions could be placed on Venezuelan oil exports as backup efforts proceed to support the interim government. ...

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After delaying taking a loan from the IMF, a multilateral lender known for setting austerity conditions for its loans, Pakistan finally accepts a IMF loan of $6 billion over 3 years. In August 2018 Pakistan turned to Saudi Arabia for $3 billion loan and deferring oil payments of a similar amount, UAE for $3 billion, and China adding another $2.2 billion. A sharp drop in the country's currency reserves left Pakistan little choice. Other problems were a overvalued exchange rate that hurt exporters under the previous government and fiscal spending on needed infrastructure that could not be matched with changes in tax collection. Pakistan has some of the poorest tax collection in Asia, depriving the government of the funds needed to finance infrastructure.  The IMF loan is a smaller loan so that Pakistan would feel less compelled to comply with the difficult conditions often imposed by the IMF that has made it unpopular in developing countries, particularly in Latin America. This is the 21st IMF loan to Pakistan. Only Argentina has had to turn to the IMF for 21 loans. For example the IMF conditions to Pakistan require increasing the electricity and gas prices. Under the IMF plan Pakistan must cut its budget deficit before debt service to 0.6% of GDP next fiscal year starting in July 2019 from the deficit of 1.7% expected this year.  To do this tax breaks of 350 billion rupees or $2.5 billion next year have to be removed. The central bank autonomy was also promised and with this 2 former Pakistani IMF officials now head the central bank. Because widening the tax collection base and better tax collection are promises made in the past to IMF which have not happened, this report in the Economist magazine says implementation in this IMF plan will also be lax, more so as the IMF loan is small and supplemented with funds from other countries. A cartoon in one magazine critical of the IMF shows the IMF officials from Pakistan negotiating for the Pakistan central bank with the IMF head Christine Lagarde. Increasing the Pakistan tax base is essential for Pakistan's development to invest in infrastructure similar to what is happening in India. Releasing funds for infrastructure, roads and railways, hospitals and education, requires a larger tax base in all South Asian countries. Without this internal capital and showing results of spending -with successful infrastructure implementation with least or no corruption or overspending- countries risk falling behind.  ...

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The Obama administration announces its decision not to allow offshore drilling in the eastern Gulf of Mexico or off the Atlantic coast through 2017. This is a shift from earlier policy. The Interior Secretary said the department will gather new environmental information about drilling off the coast of Alaska, which could postpone activity there. The Interior Department will also conduct "supplemental" environmmental analysis of Shell's plan to drill an exploratory well in the Beaufort Sea in 2011. Political factors may have influenced the decision, as the Obama administration is looking for business interests to support its other energy and climate change priorities, as part of what Interior Secretary Salazar called "a balanced package." Salazar cited scientific concerns. The President of the Ameican Petroleum Institute, Jack Gerard, said he failed to understand how a March 2010 decision based on science could go through a complete reversal now.

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Chevron's difficulties getting Russia to agree to proposed expansion of Caspian Pipeline Consortium's pipeline from Kazakhstan to Black sea port. Russia wants better terms and more revenue from the pipeline. Chevron's wants to boost output from Tengiz to 550,000 barrels a day by end of 2008 and needs pipeline expansion to transport the oil.

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Petrobras plans a public offering of shares in September 2010 to raise money for a capital increase. This will finance its large offshore drilling investment plans.

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Parussini describes the different style of new RBI Governor Urjit Patel, who is no rock star economist like his predecessor Raghuram Rajan. Rajan is quoted as once saying; "My name is Raghuram Rajan and I do what I do." Rajan engaged widely with the media. At his first press conference Patel made a short statement thanking RBI staff, and turned it over to staff at RBI who talked about financial supervision, banking regulation and other issues. Patel's answers were short without follow-up questions, the whole event over in 20 minutes. Patel was chosen by the new government of prime minister Modi to run RBI in 2016.

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Aluminium prices since the end of 2006 have gone up 20%, while crude oil prices have gone up significantly. And input prices have gone up so companies like Alcoa are simply passing on the input prices and not gaining any benefits. China meets its demand for aluminium through its own production and this keeps aluminium prices under control.

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BP' problems some industry wide such as the higher cost of oil exploration, and others such as slower work at its Thunder horse production platform in the Gulf of Mexico and refinery outages. Action Tom Hayward is taking to solve these problems such as hiring more engineers and getting more people in the field to work as engineers.

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WSJ asks the question how are companies run in America by CEO's during the 9 month old pandemic? To answer that question it looks at Emerson Electric, based in Ferguson, Missouri, with its 90,000 employees in the U.S. and around the world. David Farr is CEO of American conglomerate Emerson Electric that makes products in a number of industries, for longer than most CEO's in America. At 65 years today, he has managed the company since he became CEO at the age of 45. It has 8000 employees in China and 10,000 in Mexico, and plants in the midwest, all hard hit by the pandemic. Add to this racial riots after killing of a black man in Ferguson, Missouri, and you have a challenging situation for any CEO.    As a son of a plant manager at a Corning plant in Corning, New York and growing up in a manufacturing environment in England, his instincts are that customers are what matter the most. That shrinking production could lead to some competitors making it and others shrinking if they did not act quickly to protect their supply chains. His goal is to keep factories running to have parts ready for their customers who made the finished product in the oil and gas industry and in factories where Emerson supplied the automated processes. As a first step he has 7 charter planes fly parts from a Nanjing factory to Shanghai when the trucks stopped moving. He campaigns with the Mexican ambassador to the U.S. to have the company listed as essential business to be kept open in a lockdown but fails. He gets up at 5.30 am and works till 8 pm and spends most nights reading, lounging with 2 spaniels, and going to bed early. He tells his son who works at Caterpillar company to get back to work as soon as he can as he believes being on the job is really really important. Yet he is worried up his daughter working as a pastry chef in New York and wants her to come back home to the midwest. He is a manager in the old style saying he wouldn't hire American workers because the Obama administration was out to destroy American manufacturing with its environmental rules forgetting that he was doing just that in the end-  and what had America and the concept of a free nation and a free people with opportunities for all have anything to do with like or dislike of any president or party. He also has his quirks, keeping 5 baseball bats and swinging a bat while he took walks and did some thinking. Passionate, hard working, and getting it done he keeps Emerson in the game as an industrial competitor from the U.S. ...

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Biden's ultimate faith in the fairness of the American cause and the American people gets him two big wins with the $280 billion semiconductor bill, and the $369 billion climate change action bill. Biden says about this when many had given up hope- "The work of government can be slow and frustrating, and sometimes even infuriating. Then the hard work of hours, days and months from people who refuse to give up pays off. History is made. Lives are changed." With Europe at war and struggling to get through the winter with gas rationing it was up to America to lead the way as the world faces ever increasing floods, fires and heat waves that affect food supply and environment. And Schumer? The New York Democrat asked about the effort quoted his father who passed away last year. "As my late father said: you need to persist. God will reward you." For months Mr. Manchin a critical vote in the US Senate had opposed the Democrats proposed bills. Then Senators Mark Warner of Virginia, Chris Coons of Delaware, John Hickenlooper of Colorado took a different approach. They did not openly criticize Mr. Manchin, and appealed to his sense of history, his zeal for playing a leading role in a high stakes legislative deal. Schumer and Biden were willing to make some concessions for fossil energy now that with the war in Ukraine the US needed to export LNG to Europe to replace Russian supplies. China and India were still going to be using fossil fuels after COP26 and after the pandemic induced lower growth. The US had to find a different approach some fossil fuel concessions would make it possible to use it as abridge towards the larger goal of getting ahead on renewable energy in a big way. This opened the way for a deal that centrists could support.  ...

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This is the biggest climate bill in history. The NYT looks at the $369 billion Biden Climate bill to show how it will cut carbon emissions by 40% by 2030 over 2005 levels.

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How the Russian aircraft industry is being consolidated to produce a win-win relationship between Europe and Russia- markets, lower costs and R&D for Europe, advances for Russia's aircraft industry and new markets for Russian aircraft in the regional and cargo planes market.