control of oil

'Disaster' seen as Libyan oil facility burns

Libya's National Oil Corporation (NOC) is warning of an "environmental disaster" following clashes at the country's Ras Lanuf oil terminal that set storage tanks of the Harouge Oil Company on fire. “Further damage to these oil sites could have a huge impact on the Libyan oil sector and the national economy.," the statement said. The chief of the Petroleum Facilities Guard, Ibrahim Jadran, launched a military operation in Libya's "oil crescent" last week to take the Ras Lanuf and Sidra terminals from Operation Dignity militia forces.  Jadran called Operation Dignity “a terrorist entity.”  Operation Dignity and the affiliated "Libyan National Army," led by commander Khalifa Haftar, are loyal to Libya's unrecognized eastern government. (Al Jazeera, June 18; Libya Observer, June 16)

'Gasolinazo' protests rock Peru

Hundreds marched on Peru's Congress building June 5, in a rally that ended in clashes with the riot police in Lima's central Plaza San Martín, and a police car set on fire. The "Shut Down Congress" (Cierren el Congreso) mobilization was called to protest both economic austerity and official corruption, and came amid new revelations of vote-buying.  It was the second such march since May 31, which saw a similar mobilization in downtown Lima. The press has dubbed the protest wave the "gasolinazo," as the high price of petrol (despite depressed global oil prices) is a key grievance.

Assad turns oil over to Putin for military protection

Dictator Bashar al-Assad flew to Vladimir Putin's summer residence in the Black Sea resort of Sochi for talks on the prosecution of the Syrian war and their future plans for the country. Assad congratulated Putin on his new term as president, following his March re-election (amid waves of protest), and (of course) thanked the Russian military for its support in re-conquering Syria. "Stability is improving," Assad told Putin at he opening press conference. Invoking the intermittent Russia-brokered peace talks in Kazakhstan (now largely irrelevant, that most of the country has been re-conquered), Assad added that "we have always wholeheartedly supported the political process, which should proceed in parallel with the war on terrorism." (Reuters) As Assad arrived in Sochi, Putin announced that Russian military vessels with Kalibr cruise missiles would be on permanent stand-by in the Mediterranean to counter what he called the "terrorist threat" in Syria. (Moscow Times)

New oil shock feared in wake of Iran debacle

After all the talk we've heard in recent years about how depressed oil prices are now permanent, in the wake of Trump's announced withdrawal from the Iran nuclear deal Bank of America is predicting that the price of Brent crude could go as high as the once-dreaded $100 per barrel in 2019. The report also cited collapsing production in Venezuela due to the crisis there. Brent prices have risen above $77 per barrel since Trump's announcement. Prices have jumped more than 8% over the past month and 15% since the beginning of the year. According to the analysis, investors fear that renewed sanctions on Iran could lead to supply disruptions. (CNNMoney, May 10) Although the report failed to mention it, the Israeli air-strikes on Iranian targets in Syria have doubtless contributed to the jitters.

Oil contracts at issue in Peru political scandal

Seemingly irregular oil contracts have emerged as a factor in the ongoing political scandal that last week brought down Peru's president Pedro Pablo Kuczynski. Following accusations from left-opposition congressmember Manuel Dammert (Nuevo Perú), state agency PeruPetro admitted that hours before leaving office on March 21, Kuczynski had issued a Supreme Decree initiating the process of approving five offshore oil concessions with a private company—but without the involvement of PeruPetro in vetting the contracts, as required by law. Calling the deals "lobista," Dammert is demanding that new President Martín Vizcarra declare the contracts void. The exploration contracts for blocs off the coast of Tmubes region are with Irish company Tullow Oil, They still must be approved by the ministries of Energy & Mines and Economy & Finance. (Gestión, March 29; TeleSur, March 26; Gestión, March 24)

Environmental protester shuts Libyan oil-field

The company operating Libya's biggest oilfield, Sharara, announced March 4 that it had been shut down after a citizen closed the pipeline that pumps the field's oil to al-Zawiya refinery. The field is run by a joint venture between Libya's National Oil Corporation with Spain's Repsol, French Total, Austria's OMV and Norway's Statoil. The individual, named as Hatem al-Hadi from Zintan, claimed the pipeline passes through his land and caused environmental pollution, the Mellitah Oil & Gas consortium said in a statement. The same person reportedly closed the pipeline last year and then reopened after the company pledged that his six hectares of land would be cleaned. The company has apparently failed to follow through on its promise. With this latest closure of the Sharara field, Libya's oil output dropped to a six-month low of 750,000 barrels per day, after reaching 1 million bpd last year.

Russian Cossacks fight in Syria?

Mystery continues to surround the Feb. 8 US air-strikes on Syria's Deir ez-Zor governorate, which Damascus called a "brutal massacre" of some 200 pro-regime troops. This was the latest of just a handful of times that pro-regime forces have been targeted by the US. Initial reports said private Russian mercenaries were among those killed in the strikes, wihch were apparently in retaliation for regime attacks on US-backed Syrian Democratic Forces in the area. At issue seems to have been the "Coneco" gas-field, although the typically garbled media accounts contradict each other on whether regime forces were attempting to take it from the SDF or vice versa. But another blast at an arms depot in the same area is again said to have left 15 Russian private security personnel dead. The Syrian Observatory for Human Rights said those killed in the Feb. 15 incident at Tabiya Jazira were Russians "protecting the oil and gas fields controlled by the Syrian regime." (SBS, UNIAN, AFP, Feb. 15)

Arctic oil scramble in offing after GOP tax bill

As a part of the Republican tax overhaul bill, Congress voted Dec. 20 to open Alaska's Arctic National Wildlife Refuge (ANWR) to oil and natural gas drilling, after more than four decades of contestation on the matter. The House voted 224-201 to pass the bill, mostly along party lines. This finalizes the legislation, as the Senate version was passed by a 51-48 party-line vote earlier in the day. Once President Trump signs the law, the oil industry will have finally achieved a long-sought goal. "We're going to start drilling in ANWR, one of the largest oil reserves in the world, that for 40 years this country was unable to touch. That by itself would be a massive bill," Trump boasted. "They've been trying to get that, the Bushes, everybody. All the way back to Reagan, Reagan tried to get it. Bush tried to get it. Everybody tried to get it. They couldn't get it passed. That just happens to be here."

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