control of oil

The Andes

Oil spike sparks national uprising in Ecuador

Ecuador’s national indigenous alliance CONAIE announced an “indefinite” paro (general strike), in response to a sudden jump in petrol prices. Things escalated when CONAIE leader Leonidas Iza was arrested in Cotopaxi province, where he was apparently participating in a blockade of the Panamerican highway. He was held at a military base, but released the next day following angry protests over his detention and a CONAIE call for “radicalization” of the campaign. Roadblocks are reported in at least 14 of the country’s 24 provinces, including Pichincha, where the capital Quito is located. CONAIE has presented the government of President Guillermo Lasso with a list of 10 demands. These include, in addition to a drop in fuel prices, a moratorium on new oil and mineral leases, and reparations to communities impacted by extractive projects. (Photo: Kawsachun News)

Europe

Hungary dictatorship consolidates; Putin pleased

Hungarian Prime Minister Viktor Órban declared a state of emergency, citing threats originating from the war in Ukraine. The declaration, allowing him to rule by decree, came days after his Fidesz party used its supermajority to pass a constitutional amendment allowing the government to impose a state of emergency in the event of war in a neighboring country. Órban declared a similar emergency in response to the COVID-19 pandemic in 2020, and those assumed special powers, having been extended by the National Assembly multiple times, were set to expire just days before the new declaration. The declaration also came days after Tucker Carlson and friends from the American far right attended the Conservative Political Action Conference in Budapest. It also comes as Hungarian officials are blocking a European Union plan for an embargo of Russian oil, and calling for removal of the question from the agenda of an imminent EU summit. (Photo: Pixabay)

Europe

Transnistria blasts signal spread of Ukraine war

A series of blasts tore through the building of the de facto “Ministry of State Security” in Tiraspol, capital of Moldova’s Russian-backed separatist enclave of Transnistria. Officials said the building was fired on by unknown assailants with grenade launchers. Ominously, the attack came one day after a Russian military commander openly broached extending Moscow’s war in Ukraine to neighboring Moldova, to “give the Russian army access to Transnistria.” The blasts also came on the same day as large explosions in Bryansk, a Russian town near the Ukrainian border which is serving as a key staging area for the invasion. Bryansk is a hub on the Druzhba oil pipeline, and the flames engulfed a petroleum depot. Russian officials are speculating that Kyiv’s forces were behind the blasts, while Ukrainian officials speculate they were Russian “false flag” operations. (Photo of Druzhba blasts: Anonymous Operations)

Africa

Protests over fuel price hikes shake Mauritius

The African island nation of Mauritius exploded into angry protests, with residents of poor Kreol communities erecting roadblocks and fighting the police. The island had seen days of peaceful demonstrations over a sudden and drastic increase of petrol and gas prices, centered on the town of Camp-Levieux. Things turned violent after the arrest of “Darren,” a young protest leader, on charges of “participation in illegal demonstrations.” The police headquarters where he was being held was besieged, and protests spread quickly to other towns across the island. Police deployed anti-riot units and armored vehicles against youth hurling stones and Molotov cocktails. Things calmed when Darren was released on bail. But it remains to be seen if the increasingly debt-burdened government can strike a deal with the newly mobilized popular movement. (Photo: Zinfos Moris)

Afghanistan

Pipeline plans threatened by Af-Pak border clashes

Afghanistan authorities say some 60 civilians, including five children, were killed as Pakistan launched air-strikes across the border on Khost and Kunar provinces. The strikes follow a series of attacks on security forces by the Tehreek-e-Taliban Pakistan (TTP) in Pakistan’s borderlands. The escalation was harshly condemned both by the Taliban regime and the Afghan permanent mission in the United Nations—the loyalty of which remains unclear more than six months after the Taliban takeover. The new tensions come a week after top diplomats from China, Pakistan, Turkmenistan and other regional states met for a summit in China’s Anhui province on reviving the long-stalled Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline, which would deliver Central Asian gas to world markets through Afghan territory. (Photo via Khaama Press)

Planet Watch

$fracking$

Ukraine war windfall for US fracking industry

US President Joe Biden and European Commission president Ursula von der Leyen announced a joint Task Force to reduce Europe’s dependence on Russian hydrocarbons and “strengthen European energy security as President Putin wages his war of choice against Ukraine.” The press release states: “The United States will work with international partners and strive to ensure additional LNG volumes for the EU market of at least 15 bcm [billion cubic meters] in 2022, with expected increases going forward.” This means liquified natural gas from the US fracking industry. Environmental group Global Witness reacted with alarm to the announcement, stating: “If Europe truly wants to get off Russian gas the only real option it has is phasing out gas altogether.” (Image: FracTracker)

Planet Watch

Sri Lanka to Lima: ripples from Ukraine storm

Sri Lanka’s President Gotabaya Rajapaksa declared a nationwide state of emergency as angry protests over fuel shortages and power cuts erupted in the capital Colombo. When police repression failed to quell the protests, Rajapaksa sought to appease demands for his resignation with a purge of his cabinet. Peru’s President Pedro Castillo meanwhile imposed a curfew in Lima and its port of Callao in response to an eruption of protests over dramatic fuel price hikes. As street clashes broke out in the cities, farmers outraged at a jump in fertilizer costs blocked highways at several points around the country—including Ica, where a toll-booth was set on fire. The world has seen an oil price surge to $100 a barrel in the wake of Russia’s invasion of Ukraine. (Photo: Twitter via La Tercera)

Planet Watch

Ukraine war portends new oil shock

Long-depressed oil prices are suddenly soaring in response to the Russian invasion of Ukraine, with impacts already being felt globally. Exports from Kazakhstan and the Caspian Basin are virtually paralyzed, as the Black Sea pipeline terminal delivering the crude to Western markets is incurring a prohibitive “war risk insurance premium.” Berlin has suspended the Nord Stream 2 pipeline, which is to carry Russian gas under the Baltic Sea to Germany—and Russia has retaliated by threatening to cut gas supplies to Europe via the Nord Stream 1 line. In his executive order barring Russian oil and gas imports to the US, President Biden issued a warning to the oil companies, urging that the war should not serve as an excuse for price-gouging. But it is actually the oil futures market that plays a determinant role in fixing the international price. There’s a big psychological element involved, which is why every escalation in the Middle East (without fail) jacks up oil prices. A war in Europe will almost certainly mean another oil shock, with grim implications for the world economy and Biden’s political chances. (Photo of Kazakh oil-field via Wikimedia Commons)

The Andes

Peru: police pop presidential palace in petro-corruption probe

Special anti-corruption prosecutors backed up by National Police troops raided 15 properties around Peru’s capital Lima—including the presidential palace. The raids came as part of Megaoperation Resplandor 2022, an investigation into alleged irregularities in tenders for the purchase of biodiesel between parastatal PetroPerú and private firm Heaven Petroleum Operators. Also raided were the homes of PetroPerú director Hugo Ángel Cháves Arévalo, HPO manager Samir Abudayeh, and prominent entrepreneur Karelim López. The administration of President Pedro Castillo, a populist political outsider, has been wracked by repeated crises and scandals since he took office last July. (Photo: Wikipedia)

Mexico

Control of oil behind Mexico-Spain tensions

Mexico’s President Andrés Manuel López Obrador called for a “pause” in relations with Spain, in a speech that explicitly invoked the legacy of colonialism going back to the Conquest. But the speech was aimed principally at Spanish oil company Repsol, which had been favored during the presidential term of Felipe Calderón. Specifically, López Obrador questioned the granting of gas contracts in the Burgos Basin, in Mexico’s northeast. He charged that Repsol operated the fields less productively than the state company Pemex had. “In the end, less gas was extracted than Pemex extracted” before the contracts, he charged. Repsol is meanwhile under investigation by Spanish prosecutors on charges of graft related to the company’s efforts to fend off a take-over bid by Pemex. (Photo via Digital Journal)

Planet Watch

US judge invalidates massive offshore oil sale

A federal judge in Washington DC invalidated an oil and gas lease sale in the Gulf of Mexico, finding that the Biden administration failed to properly account for the auction’s environmental impact. In 2017, the Outer Continental Shelf Oil & Gas Leasing Program issued a five-year plan which proposed 10 region-wide lease sales. One of those was Lease Sale 257, for 80.8 million acres of Gulf waters, the largest offshore lease sale in United States history. President Biden had initially blocked the sale by executive order, but this was overturned by the courts in a case brought by Louisiana and other states. (Photo: Pixabay)

Planet Watch

Podcast: against ‘normalcy’ II

In Episode 106 of the CounterVortex podcast, Bill Weinberg continues his rant against the ubiquitous propaganda that normalizes the oppressive and dystopian pre-pandemic normality—or, as it is now incorrectly rendered, “normalcy” (sic). The opportunity for a crash conversion from fossil fuels that was posed by 2020’s pandemic-induced economic paralysis is now being squandered. As fossil-fuel prices soar, the Biden administration is continuing a Trump-era policy to aggressively open public lands to coal mining, refusing to return to an Obama-era moratorium on new leases. US greenhouse gas emissions dramatically bounced back in 2021—one of the hottest years on record. The global mean sea level is rapidly rising, and will keep rising for centuries even if the Paris Agreement goals are met, as seems less likely each day. And all this as hospitals remain overwhelmed coast to coast, and the National Guard is being mobilized to keep them functioning. Listen on SoundCloud or via Patreon. (Photo: CounterVortex)