petro-oligarchy

Control of oil at issue in NAFTA re-negotiation

As "NAFTA 2.0" negotiations open, a provision that essentially locks in Canada's current levels of oil exports to the US is drawing opposition from unlikely allies across the Canadian political spectrum but winning staunch support in the "Oil Patch," as the country's petroleum industry is colloquially called.  The "proportionality clause" originally appeared in the US-Canada Free Trade Agreement of 1988 and became a major issue in that year's national election that returned Prime Minister Brian Mulroney to office. It was replicated six years later in the North American Free Trade Agreement—although Mexico won an exemption. The clause can be invoked if a government in Canada reduces US access to Canadian oil, natural gas, coal, electricity or refined petroleum products without a corresponding reduction in domestic access to those resources.

Trump finally meets a 'dictator' he doesn't like

Well, this is cute. The Trump White House condemned Venezuela as a "dictatorship" in the wake of the contested Constituent Assembly vote, and imposed sanctions on President Nicolás Maduro. The immediate pretext is the detention of opposition figures Leopoldo López and Antonio Ledezma, who were transferred from house arrest to military prison, accused of leading protests in defiance of a nationwide ban. Trump said in a statement that the United States "condemns the actions of the Maduro dictatorship," and holds Maduro "personally responsible for the health and safety of Mr. López, Mr. Ledezma, and any others seized."

Venezuela: is the problem really 'socialism'?

There is an unseemly tone of gloating to conservative commentary on the crisis in Venezuela, with pundits calling out their opposite numbers on the left for their cheerleading for the regime and pointing to the current chaos as evidence that "socialism" doesn't work. Indeed, many left-wing commentators deserve to be called out for their uncritical attitude toward the late Hugo Chávez and his mediocre successor Nicolás Maduro. But a case can be made that, contrary to conservative and mainstream assumptions, the problem is precisely that the Bolivarian Revolution has been insufficiently revolutionary and socialist.

Venezuela: independent left rejects both sides

The vote for Venezuela's Constituent Assembly opened July 30 amid ongoing and widespread angry street protests, in defiance of a nationwide ban on demonstrations. Violence broke out as protesters attempted to block access to polling stations, resulting in at least 14 deaths. Those killed include two prominent leaders—one from each side. Ricardo Campos, a youth secretary with the opposition Acción Democrática party, was shot dead during a protest in the northeastern town of Cumana. José Félix Pineda Marcano, a chavista leader and Constituent Assembly candidate, was killed in an invasion of his home in Ciudad Bolívar. Two youths, aged 17 and 13, and a solider were killed in street-fighting in Táchira. Violence in the days leading up to the vote drove the death toll over four months of unrest above 100. (BBC News, RCN Radio, KaosEnLaRed, Clarín, July 30; AP, NPR, July 27)

US signs Arctic climate declaration —with caveats

US Secretary of State Rex Tillerson on May 11 signed the Fairbanks Declaration, affirming the neeed for protection of the Arctic's climate. The move, at the 10th Arctic Council Ministerial Meeting held in the Alaska city, came after much speculation that the US would decline to sign, or even use the occasion to announce its withdrawal from the Paris Agreement. The Fairbanks Declaration notes the importance of the Paris Agreement, while stating that "the Arctic is warming at more than twice the rate of the global average." The US getting on board was apparently the fruit of behind-the-scenes diplomatic pressure. "I think we were able to push the US back as much as possible," Rene Solderman, Finland's senior adviser on Arctic affairs, told reporters after the ministerial session.

Trump lifts restrictions on offshore drilling

President Donald Trump signed an executive order on April 28 to lift restrictions placed on offshore oil drilling by the previous administration. According to a statement, about 94% of the US Outer Continental Shelf (OCS) was either off-limits to or not considered for oil and gas exploration and development under previous rules. Trump blamed federal regulations for high unemployment in the state of Alaska, where oil and gas are a significant part of the economy, and said lifting restrictions would create thousands of jobs. Opponents, including US Congressman Charlie Christ (D-FL), criticized the move, citing environmental risks posed by drilling, especially naming the 2010 Deep Water Horizon oil spill.

Trump-Putin breach: real or charade?

This week's unnerving incident in which US jets intercepted two Russian bombers off the coast of Alaska leaves us wondering how to read events. Russia sent the two "nuclear-capable" bombers to within 100 miles of Kodiak Island April 17, prompting the US to scramble two F-22 stealth fighter jets from Elmendorf Air Force Base. The US and Russian craft were side-by-side for a full 12 minutes, until they crossed out of the US Air Defense Identification Zone (ADIZ). (The Telegraph, April 18) This came as ExxonMobil was seeking a waiver from US sanctions against Russia to move ahead with its Black Sea venture with Rosneft. The decision rested with the Treasury Department's Office of Foreign Assets Control (OFAC), while Secretary of State (and ex-Exxon CEO) Rex Tillerson is officially recusing himself from any matters involving the company for two years. Still, it is counterintuitive (at least) that OFAC turned down the waiver April 21. (NYT, April 21; Fox Business, April 19)

Venezuelan oil goad in US-Russia game

Amid a new eruption of massive protests and deadly street clashes in Venezuela comes word that General Motors says it will immediately halt operations in the country after its plant in the industrial hub of Valencia was unexpectedly seized by authorities. GM described the takeover as an "illegal judicial seizure of its assets," and pledged to "vigorously take all legal actions, within and outside of Venezuela" to challenge the expropriation. (CNN, NBC, April 20) But the news comes along with even more unexpected indications of quiet overtures between the governments of Nicolás Maduro and Donald Trump...

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