PROPOSED OUTLINE FOR THIRD WORLD ENERGY DEVELOPMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83M00914R001000060031-5
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 20, 2016
• Document Release Date: February 20, 2007
• Sequence Number: 31
• Publication Date: August 31, 1982
• Content Type: MEMO

3 1 A.jr 1982
MEMORANDUM FOR: Director of Central Intelligence
Deputy Director of Central Intelligence
VIA: Deputy Director for Intelligenc/
SUBJECT: Proposed Outline for Third World Energy Development
1. Action. None, for your information.
2. Background. Attached is the proposed outline for our follow-
up work on Third World energy development in US business opportunities
for your meeting. The outline develops some of the issues and questions
raised in the report published earlier this month. We expect this follow-
up report to be available for you by 15 September.
Attachment:
As stated
This entire memorandum is
classified CONFIDENTIAL
CONFIDENTIAL
 Approved For Release 2007/ WI: jQP83M00914R001000060031-5
US Business Opportunities in
Third World Energy Development
Theme: The US oil industry has technological, financial, and scale advantages over its
counterparts in the industrial and developing countries. What are the prospects for
greater involvement on the part of US firms in oil and gas exploration, production, and
marketing in the Third World?
Outline
A. The need for the US Government to convince (a) US firms and (b)
Third World nations that both can benefit from greater use of US
equipment, know-how, and capital in the search for and production of
energy resources.
B. This analysis will discuss both opportunities for and constraints on
greater participation by US oil companies in the Third World. It will
not be able to address the issue of profitability vis-s-vis the wide
range of investment alternatives open to firms, which is a key factor
from the foreign investors' point of view.
H. Comparative Advantages of US Firms
A. Advantages over competitors
1. Sophisticated equipment
2. Skilled crews able to transfer techniques
3. Greater exploration per dollar spent
4. Availability of financing
B. Big-name firms versus smaller entrepreneuers
1. Advantages and disadvantages of each
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C. Notable US successes to date in LDCs
1. Ivory Coast
2. Sudan
3. Angola/Cabinda
4. Peru
5. Thailand
A. Inducements to invest
1. Large amounts of available acreage
2. Export potential
3. Favorable investment climate
4. Stable political situation
B. Discouraging conditions
1. Unfavorable geology
2. Unfavorable petroleum legislation
3. Requirement to subsidize domestic consumption
4. Sluggish world oil market
IV. Countries where business potential exists
A. Good geology; good environment
1. Morocco
2. Malaysia
3. Mozambique
4. Angola/Cabinda
5. Colombia
B. Good geology; imperfect environment
1. India
2. Brazil
3. Pakistan
4. Guatemala
5. Chad
 Approved For Release 2007/02/20: CIA-RDP83M00914R001000060031-5
CONFIDENTIAL
SUBJECT: Proposed Outline for Third World Energy Development
Distribution:
Orig - Addressee
1 - DDCI
1 - Ex.Dir.
1 - Ex.Reg.
1 - DDI
1 - ADDI
1 - DDI Reg .
1 - D/OGI
1 - C/ECD
DDI/OGI (31 Aug 82)
CONFIDENTIAL