control of oil

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)

Planet Watch

Podcast: against ‘normalcy’

In Episode 105 of the CounterVortex podcast, Bill Weinberg rants against the ubiquitous propaganda that normalizes the oppressive and dystopian pre-pandemic normality. Amid the relentless COVID-19 denialism, even mainstream voices are calling for a return to “normalcy” (sic)—which is not even a word. The opportunity for a crash conversion from fossil fuels that was posed by 2020’s pandemic-induced economic paralysis, when already depressed oil prices actually went negative, is now being squandered. President Biden just released oil from the Strategic Reserves to control soaring prices. Simultaneously, the administration is moving ahead with the largest offshore oil lease sale in US history. While during the 2020 lockdown. the usually smog-obscured Himalayas became visible from northern India for first time in decades, Delhi is now choked with emergency levels of toxic smog. During the 2020 lockdown, the total US death rate actually dropped because people were staying off the roads; US traffic deaths are now soaring. New York’s new Mayor Eric Adams wants to stake the city’s economic future to the cryptocurrency industry, even as China is cracking down on Bitcoin “mining” (sic) because of its “extremely harmful” carbon footprint. And amid all the empty hand-wringing about climate change, airlines are flying thousands of empty “ghost flights” in order to keep their slots at congested airports. The “return to normalcy” must be urgently resisted. As Bruce Cockburn observed long ago, the trouble with normal is it always gets worse. Listen on SoundCloud or via Patreon. (Photo: malingering via The Source Metro)

The Andes

Anti-war protests in northeast Colombia

Rural communities in Colombia’s northeastern Arauca department held anti-war protests amid inter-factional guerilla violence that has been terrorizing the region. Demanding attention from the government and international human rights organizations, some 1,200 marched in the hamlets of Puerto Jordan and Botalón. Recent days had seen an outbreak of fighting in the area between the National Liberation Army (ELN) and “dissident” factions of the demobilized FARC guerillas that have refused to lay down arms, in defiance of a 2016 peace agreement. At least 23 were killed in the clashes, which were said to be over control of smuggling routes across the nearby Venezuelan border. About a dozen local families were also forced to flee their homes. (Photo: Arauca Online via Colombia Reports)

Central Asia

Kazakhstan president asks Russia to help quash uprising

Kazakhstan’s President Kasym-Jomart Tokayev called participants in the protests that have swept the Central Asian nation “terrorists,” accusing them of attempting to undermine his government at the behest of foreign powers. After concessions such as a cabinet purge and instating fuel-price controls failed to quell the uprising, Tokayev quickly unleashed harsh repression. Declaring a state of emergency, he flooded the streets with riot police and pledged to “conduct counter-terrorist operations.” He also called on Russia and the other members of the Collective Security Treaty Organization (CSTO) to come to the defense of his regime. The CSTO has agreed to send “peacekeepers” to Kazakhstan. (Photo via Wikipedia)

Iraq

China scores major energy deal in Iraq

Iraq’s Ministry of Oil signed an $8 billion agreement with China’s state-owned Hualu Engineering & Technology to oversee expansion of al-Faw Petrochemical Complex, allowing its refinery to process 300,000 barrels per day of crude. The expansion of al-Faw complex, along the strategic Shatt al-Arab waterway in Basra governorate, is the largest yet undertaken in the Iraqi energy sector, and is seen as facilitating a new thrust of output by the country’s oil industry. The deal is a “build-own-operate transfer” (BOOT), which means Hualu could gain effective control of the facility. Hualu is majority-controlled by the giant China National Chemical Engineering Company (CNCEC). (Map: University of Texas Libraries)