Australia to Zimbabwe: ‘Drill, Baby, Drill’

According to a new published estimate from Australian firm Invictus Energy Ltd., Zimbabwe is sitting on the equivalent of 4.3 billion barrels of oil — a 2.7-fold increase from previous estimates.

This vast reserve is located in the Cabora Bassa Basin of Mashonaland Central Province, along the Mozambican border. The basin is considered one of the largest under-explored interior rift basins in Africa, and Invictus has raised about $8.4 million in private investment to fund future drilling activities. The firm plans to raise more capital in the coming months.

“This updated estimate is the culmination of the excellent work from the Invictus technical team over the last 12-18 months to deliver this result in the lead up to our drilling program,” Scott Macmillan, Invictus founder and managing director, said in his report.

Farai Maguwu, executive director of Zimbabwe’s Centre for Natural Resource Governance, noted the similarities between oil reserves and diamond deposits, calling for transparency regarding who would benefit.

“If we discover the oil and gas will still follow the Marange [diamond field] model, where only those with political power and guns will benefit … but the local community will only receive propaganda, intimidation and pollution and loss of their natural capital,” he told OZY, “that is the concern.”

French multinational firm TotalEnergies has announced the start of oil production at Nigeria’s Ikike Field, which is expected to deliver the equivalent of 50,000 barrels daily by year end. Located about 12 miles from Nigeria’s seacoast, the project is considered low emissions due to its proximity to preexisting petroleum production facilities. (Sources: TotalEnergies, Reuters)

Morgan Stanley and Bank of America have reported double-digit increases in their loan divisions, a development driven by wealthy customers who borrow against their own portfolios of stocks, bonds and other securities. Interest rate increases at the Federal Reserve have raised the cost of borrowing — yet the most well-off can borrow more cheaply by using their securities as collateral. “Volatility and market decline are when the wealthy make their money,” said Mike Kosnitzky of Pillsbury Winthrop Shaw Pittman’s private wealth division. “This is a buy time.” (Source: The Wall Street Journal)

Thousands of workers from the multinational aerospace firm Boeing will strike in August to demand better compensation. In a statement, the International Association of Machinists and Aerospace Workers said, “We cannot accept a contract that is not fair and equitable, as this company continues to make billions of dollars each year off the backs of our hardworking members. Boeing previously took away a pension from our members, and now the company is unwilling to adequately compensate our members’ 401(k) plan.” According to Bloomberg News, the strike affects two plants in Missouri and one in Illinois which manufacture aircraft for the U.S. military, including the F-18, F-15 and MQ-25 unmanned refueler. (Sources: IAM, Bloomberg)

Gold obtained illegally by a trader in the Amazon rainforest was allegedly later purchased by Amazon, Apple, Microsoft and Alphabet (Google) for use in consumer electronics. According to an investigative report by Reuters, the Brazilian sustainability think tank Instituto Escolhas estimates that, during President Jair Bolsonaro’s first two years in office, the country produced 84 tons of illegal gold. Unlawful mining pollutes waterways and destroys rainforests, and has led the land’s Indigenous inhabitants into deadly conflict with miners. (Source: Reuters)