petro-oligarchy

Planet Watch

Lower emissions from US power grid (at least)

The US Department of Energy released its preliminary estimate for the nation’s carbon emissions in the previous year. While falling far short of the kind of drop needed to meet the Paris Agreement goals, a dip in emissions was recorded—almost entirely due to changes in the electric power sector. US carbon emissions have been trending downward since 2007, when they peaked at about six gigatonnes. The COVID-19 pandemic produced a dramatic drop in emissions in 2020, bringing the yearly total to below five gigatonnes for the first time since before 1990, when DoE monitoring began. Carbon releases rose after the return to “normalcy“; 2023 marked the first post-pandemic decline. The drop is largely due to the phase-out of coal-burning power plants. However, electricity generation remains the second source of emissions, behind transportation. (Photo: Ralf Vetterle, Pixabay)

The Caribbean

Podcast: geopolitics of the Essequibo dispute

In Episode 205 of the CounterVortex podcast, Bill Weinberg looks at the recent re-escalation and (hopefully) denouement of the dispute over Esequibo—an oil-rich territory controlled by Guyana and claimed by Venezuela. Ironically, this claim was first asserted by the conservative, anti-communist Venezuela of the 1960s to help destabilize the anti-imperialist Guyana of Cheddi Jagan. Today, the left-populist but increasingly nationalistic regime of Nicolás Maduro even entertains hubristic claims to sovereignty over Venezuela’s other much larger neighbor, Colombia. But this revanchism appears to mask the fact that “revolutionary” Venezuela largely remains a petro-state with a rentier economy, vulnerable to drops in the global oil price, even if Chinese corporate exploiters have been replacing gringo ones. With the recent easing of sanctions, US giants like Chevron have even returned to Venezuela—while the extractivist model results in indigenous resistance. Contrary to the dogmas of left and right alike, the real root of the Venezuelan crisis is that the country is insufficiently socialist. Listen on SoundCloudor via Patreon. (Map: SurinameCentral via Wikimedia Commons)

Greater Middle East

Houthis vow to continue attacks on Red Sea shipping

The leadership of Yemen’s Houthi armed movement issued a statement saying they would not halt their military operations in the Red Sea unless Israel stops its “genocide crimes” in Gaza and allows humanitarian aid to enter the Strip. The move comes despite the US announcement of a new naval coalition to counter the attacks. The Houthis, backed by Iran, have launched over a dozen attacks on commercial ships in the Red Sea since Israel’s bombardment of Gaza began in October. A range of drones and ballistic missiles have been deployed against vessels in the Bab al-Mandab Strait, or Gate of Tears, which separates the Horn of Africa from the Arabian Peninsula—a chokepoint for global trade. Shipping firms have already started to pull their vessels from the Red Sea route, opting for the much longer passage around Africa. The closing of the Red Sea to shipping has obvious implications for the price of oil and the ongoing worldwide food and energy crisis. (Image: NASA via Wikimedia Commons)

Planet Watch

COP28: landmark deal, or messy compromise?

The COP28 climate summit concluded in the United Arab Emirates with a so-called “UAE Consensus” that resolves to “transition away from fossil fuels”—hailed as an historic first commitment to eliminate the principal cause of climate change. Many climate activists, however, assail the document as vague and non-binding. Another failure pointed to by skeptics is the lack of finance commitments to come out of COP28. The funds made available by rich countries to help developing countries adapt and transition continue to lag far behind what is needed. A New Collective Quantified Goal for Climate Finance is set to be discussed next year at COP29, to be held in Azerbaijan. (Photo: CounterVortex)

North America

Alberta invokes Sovereignty Act over emission regs

The legislature of the oil-producing Canadian province of Alberta invoked the controversial Alberta Sovereignty Act in response to new federal environmental policies. The provincial legislature passed a resolution resolving to “urge the Government to use all legal means necessary to oppose the implementation and enforcement of the Federal Initiative in Alberta.” The initiative referred to is Canada’s proposed Clean Energy Regulations, which the resolution says would have “an extreme chilling effect on investment” in Alberta’s energy sector. Premier Danielle Smith introduced the Sovereignty Act in November 2022, asserting that Albertans no longer wanted “Ottawa to…interfere in our constitutional areas of jurisdiction,” and proclaiming a right to provincial non-compliance. (Photo of Alberta’s shale oil fields by Kris Krug, via The Tyee)

Greater Middle East

‘Repressive petro-state’ UAE to host climate summit

Amnesty International joined with over 200 civil society organizations to call upon participating governments of the 28th Conference of the Parties (COP28) to address the human rights record and climate policies of the United Arab Emirates. The COP, the annual conference of governments from around the world to discuss climate policy, is to be held in the UAE in December—convened by Sultan al-Jaber, CEO of the Abu Dhabi National Oil Company (ADNOC). The open letter states: “We support the concerns expressed by climate justice movements that allowing COP28 to be held by the rulers of a repressive petrostate, and overseen by an oil executive, represents a blatant conflict of interest, and threatens the legitimacy of the whole process.” (WildPixar via Jurist)

The Andes

Oil intrigues behind Ecuador auto-golpe

President Guillermo Lasso dissolved Ecuador’s opposition-controlled National Assembly—just one day after his impeachment trial began. Lasso is to rule by decree until new elections are held. In the impeachment proceeding, Lasso stood accused of extortion and embezzlement related to alleged corruption at parastatal oil company Petroecuador and hydrocarbons transporter Flopec, allowing unprofitable contracts to benefit “third parties.” The country’s oil industry has been in crisis for nearly a year, repeatedly placed under force majeure by protests and sabotage of the trans-Andean pipeline. (Photo: Wikimedia Commons)

Central Asia

Kazakhstan: environmental suit against Caspian consortium

The government of Kazakhstan has brought a legal action for violation of environmental protection laws against the North Caspian Operating Company (NCOC), the consortium leading development of the country’s massive Kashagan oil field, seeking $5.14 billion in fines. In the complaint, the Ministry of Ecology & Natural Resources cites storage of sulfur on site in excess of permitted limits, burning of crude gas on flares without a permit, improper discharge of wastewater, and other violations. Kashagan is one of the largest oil-fields discovered on Earth over the past 40 years, with recoverable reserves estimated at up to 13 billion barrels. The consortium includes the Italian Eni, French Total, US-based ExxonMobil, Anglo-Dutch Shell, Chinese CNPC, Japan’s Inpex, and KazMunayGas, the Kazakh national operator. (Map: US Energy Information Administration via Jurist)

Africa

Oil contracts at issue in Somaliland conflict?

Fighting continues in Somalia’s northern breakaway state of Somaliland, where three administrative regions—Sool, Sanaag, and Aynaba—have taken up arms in a bid to rejoin the internationally recognized Mogadishu government. Somaliland accuses the government of Ethiopia (which is officially attempting to broker a dialogue in the conflict) of intervening on the side of the re-integrationist rebels, headquartered in the town of Las Anod, Sool region. Somaliland has been effectively independent since 1991, and has seen a more stable and secular social order than the regions controlled by the Mogadishu government. But now Mogadishu is asserting its right to grant oil contracts to foreign companies within Somaliland’s territory. Local media note that the new conflict erupted just after Mogadishu announced the issuing of an exploration lease to Turkish Genel Energy in Somaliland—indeed, within Aynaba, one of the contested regions. The move was protested as “illegal” by the Somaliland government, based in the city of Hargeisa. (Map: Siirski via Ethiopia Insight)

Europe

Nord Stream pipeline sabotage: rush to judgment

Ukraine is denying involvement in September’s attack on the Nord Stream pipelines following a New York Times report citing anonymous US officials to the effect that an unnamed “pro-Ukrainian group” was to blame. Russia’s online partisans are meanwhile hyping a piece by Seymour Hersh, similarly citing anonymous officials to the effect that the attack was a US covert operation. Rarely has there been a more blatant case of the cyber-commentariat deciding what to believe on the basis of political convenience. (Map: Wikipedia)

Planet Watch

Ecologists challenge approval of new Texas oil port

A group of environmental organizations filed a petition in the US Court of Appeals for the Fifth Circuit for review of the US Maritime Administration (MARAD) decision to license the Sea Port Oil Terminal (SPOT), to be built off the coast of Texas. The deep-water terminal is projected to expand production in the oil-rich Permian Basin. The activist groups said that expansion facilitated by the installation–to be largest offshore terminal in the US–threatens “disastrous levels of greenhouse gas pollution.” (Photo: Dylan Baddour/Inside Climate News)

The Andes

Venezuela: oil sanctions eased, Chevron pleased

Negotiations barely got started in Mexico between representatives of Venezuelan President Nicolás Maduro and his political opposition before the United States announced the loosening of oil sanctions imposed on the regime. The move, allowing Chevron to begin pumping oil again, comes amid global energy shortages following Russia’s invasion of Ukraine. Chevron is also to take operational control of the Petropiar refinery near Barcelona in northeast Venezuela. But profits are to go to Venezuela’s creditors in the US, not the state oil company, PDVSA. Social programs funded through PDVSA have been a cornerstone of Maduro’s support. (Map: Perry-Castañeda Library)