Tag: control of oil

The Andes

Venezuela re-privatizing oil resources

Faced with declining production and economic chaos, Venezuela is again opening its oil-fields to private companies—reversing much of the progress in asserting state control of the hydrocarbons industry that was made under Hugo Chávez. Just after a series of new contracts with private firms was announced, President Nicolás Maduro flew to Beijing for a meeting with Xi Jinping. The two leaders announced further deals to open Venezuela’s Orinoco Belt to Chinese companies. This comes a decade after Exxon withdrew from the Orinoco Belt, unable to come to terms with the Chávez government. (Photo via OilPrice.com)

North Africa

Libya: ‘official’ regime to lose control of Tripoli?

Armed street clashes have rocked Tripoli over the past week, as militias linked to the UN-backed Government of National Accord (GNA) have vied for control of the Libyan capital with rival militias that have launched an offensive on the city from the southeast. The most significant of these is the 7th Brigade from the town of Tarhuna, which has rejected a truce, vowing to continue fighting until it "cleanses Tripoli of militias." The city's electricity has intermittently gone out amid the fighting, and access to Facebook—the only news source for most Libyans—has been blocked, although it is unclear by whom. The GNA has declared a state of emergency in the city, and Prime Minister Fayez al-Sarraj has formed a "crisis committee" to try to broker peace. But warlord Khalifa Haftar in Benghazi, who is loyal to Libya's unrecognized eastern government, anticipated the fall of Tripoli, saying that "liberating the Libyan capital is inevitable." (Photo: Libya Observer)

Planet Watch

Canada: court halts Trans Mountain pipeline plan

Canada’s Federal Court of Appeal overturned the government’s approval of the Trans Mountain pipeline expansion. A number of groups challenged the approval, including several First Nations and two municipalities, asserting that the indigenous communities that would be impacted by the expansion were not adequately consulted on the project. Following the Federal Court’s decision, Alberta Premier Rachel Notley said she is pulling her province out of Canada’s national climate change plan until construction resumes. (Photo: Robzor)

Mexico

Trump announces ‘termination’ of NAFTA

President Trump announced that the US and Mexico have reached an agreement on a new trade deal called the United States-Mexico Trade Agreement, which will ultimately terminate the North American Free Trade Agreement (NAFTA). Trump called Mexican President Enrique Peña Nieto from the White House to announce the new deal. Among a number of changes to NAFTA, both parties agreed to a provision that would require a significant portion of vehicles to be made in high-wage factories, a measure aimed to discourage factory jobs from leaving the US. Trump said he is in communication with Canada about a new trade deal, but is unsure if it will be part of the US-Mexico Trade Agreement. The Trump administration expects the new pact to be signed by the end of November. (Map: CIA)

South Asia

China expands Indian Ocean military footprint

In addition to stationing troops on the disputed islands it claims in the South China Sea, Beijing is rapidly expanding its network of commercial ports across the Indian Ocean. This comes as China is sending warships into the Ocean with growing frequency, leading to fears that the commercial ports could presage military bases, The latest addition is the port of Hambantota in Sri Lanka, acquired in a debt swap deal—the Colombo government was forgiven $1 billion in debt to Beijing in exchange for the Hambantota facility. China has also gained access to facilities in Burma, Bangladesh, Pakistan, the Maldives, Seychelles and Oman as part of the maritime component of its Silk Road trade and infrastructure initiative. While the Silk Road is an ostensibly civilian project, China has also established its first foreign military base at Djibouti, leading Western wonks to warn that Beijing is seeking a "string of pearls" network of bases across the Indian Ocean.  (Map via CIMSEC)

The Andes

Colombia: ‘systematic’ attacks on social leaders

Thousands of Colombians took to the streets July 6 to protest the mounting wave of assassinations of social leaders in the country. The protests and vigils were largely ignored by the country’s political leaders, who have come under international pressure for their failure to respond to the wholesale killing that has claimed the lives of 311 community leaders since 2016. Days after the mobilization, the Inter-American Commission of Human Rights issued yet another call for the Colombian government to take urgent measures to call a halt to the ongoing attacks. Opposition leaders charge that the assassinations are a "systematic" campaign, and that authorities must break up resurgent paramilitary networks rather than just arresting individual sicarios (assassins). (Photo via Contagio Radio)

Africa

DRC opens rainforest to oil, logging interests

Concern is mounting for the Democratic Republic of Congo’s vast forests and rich wildlife as logging concessions and licenses to explore for oil in protected areas are prepared ahead of presidential elections later this year. A moratorium on industrial logging, in place since 2002, has been broken with three concessions reportedly handed out by the DRC environment ministry to Chinese-owned logging companies. A further 14 logging concessions are expected to be granted within months, according to a Greenpeace investigation. In addition, the government is preparing to reclassify large areas of Salonga and Virunga national parks—both UNESCO World Heritage sites—to allow oil exploitation. (Photo via Global Forest Watch)

Iraq

Econo-protests rock Iraq’s oil-rich south

Protests against unemployment, poor government services and corruption that began in Iraq's southern oil hub of Basra have spread to several other cities, including Najaf, Amara, Nasiriya and even Baghdad. At least three have been killed since the protests erupted a week ago. Prime Minister Haidar al-Abadi arrived in Barsa to try to calm the situation July 13, flying straight into the city from the NATO summit in Brussels. But the next day he convened a meeting of Iraq's National Security Council, where the decision was taken to cut Internet access in Basra and mobilize army troops to the city. Units from the elite Counter-Terrorism Service and the Army’s Ninth Division have now arrived in Basra. (Photo: Kurdistan24)

South Asia

ISIS terror targets restive Baluchistan

A suicide bomber killed at least 130 at a campaign rally in Pakistan’s Balochistan province— the deadliest attack in the country since 2014. A local candidate with the Balochistan Awami Party was among the dead. The local franchise of the Islamic State took credit for the attack. Radio Free Europe portrays the BAP as part of the Pakistani military establishment’s plan to undermine Baluch ethno-nationalist groups. Balochistan province is part of the larger region of Baluchistan, homeland of the Baluch people, long divided between Iran, Pakistan and Afghanistan. There are movements for Baluch independence in each of these countries, but they have been unable to unite across the nation-state boundaries. The attack may point to an ISIS strategy to disrupt electoral ethno-nationalist initiatives, and co-opt the Baluch struggle across all three borders, wedding it to Sunni extremism. (Map via Atheer)

North Africa

Crisis resolved at Libyan oil terminals —for now

Libya’s Tripoli-based National Oil Corporation (NOC) lifted the state of force majeure it had declared at four export terminals in the country's eastern "oil crescent," after the forces of eastern warlord Khalifa Haftar agreed to withdraw from the facilities. Exports are set to resume, and global oil prices began to fall as the news broke. The ports were all handed back to NOC control without any obvious concession being made to Haftar. The Guardian reports that Haftar had been pressing privately for Saddek Elkaber, the governor of the Libyan central bank, to step down, claiming that Elkaber was funnelling monies from the oil industry to militias opposed to him. A warning from Donald Trump that he would take legal action against those responsible for the impasse may have prompted Haftar's capitulation. (Photo: Libya Observer)

North America

Bay of Fundy flashpoint for US-Canada war?

In what the New York Times somewhat hyperbolically calls a “clash,” US Border Patrol vessels have over the past two weeks stopped at least 10 Canadian fishing boats in the Bay of Fundy between Maine and New Brunswick. Canada has responded by beefing up its Coast Guard patrols in what is being termed a “disputed gray zone” between the two countries’ territories. The maritime dispute dates back to the 1783 Treaty of Paris that ended the American Revolution, and is one of several between the US and Canada—including fishing waters at Dixon Entrance between Alaska and British Columbia, and areas of the petroleum-rich Beaufort Sea, near the Arctic Ocean. (Map: ResearchGate)

North Africa

Paralysis at Libya oil ports jacks up global price

Oil prices rose above $75 a barrel for the first time since November 2014, as Libya's National Oil Corporation declared force majeure at its principal oil ports, which continue to be battled over by rival armed factions. Prices for West Texas Intermediate crude rose to $75.27 a barrel before dropping back down to $72.73. After years of depressed global oil prices, analysts are again talking of a possible new "oil shock." Growing tensions between the US and Iran, and other factors, were also cited. Libya's Union of Oil and Gas Workers meanwhile issued a statement saying that the country's oil is the collective property of all Libyans, and should be removed from all political, regional and tribal disputes. (Photo: Libya Observer)