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Ed Webb

The Oil for Security Myth and Middle East Insecurity - MERIP - 0 views

merip.org/...h-and-middle-east-insecurity-2

opinion analysis MENA oil energy security US USA war military

shared by Ed Webb on 03 Jul 20 - No Cached
  • Guided by the twin logics of energy security and energy independence, American actions and alliances in region became a self-fulfilling prophecy. The very thing the United States sought to eliminate in the Middle East—insecurity—became a major consequence of America’s growing and increasingly militarized entanglement.
  • In effect, the essential relationship of dependency between the United States and the Middle East has never been “oil for security.” It has in fact been oil for insecurity, a dynamic in which war, militarization and autocracy in the region have been entangled with the economic dominance of North Atlantic oil companies, US hegemony and discourses of energy security.
  • Although the destabilizing contradictions of this dependency have now undercut both American hegemony and the power of the North Atlantic hydrocarbon industries, the oil-for-insecurity entanglement has nonetheless created dangerously strong incentives for more conflict ahead.
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  • Oil’s violent geopolitics is often assumed to result from the immense power its natural scarcity affords to those who can control it. Recent developments in global hydrocarbon markets, which saw negative prices on April 20, 2020 have once again put this scarcity myth to bed
  • In a series of studies that began in late 1980s, economists Jonathan Nitzan and Shimshon Bichler charted the extent to which the world’s leading oil companies enjoyed comparatively handsome rates of returns on equity—well ahead of other dominant sectors within North Atlantic capitalism—when major wars or sustained unrest occurred in the Middle East.
  • When oil prices began to collapse in the mid-1980s, the major oil companies witnessed a 14-year downturn that was only briefly interrupted once, during the 1990-1991 Gulf War.
  • The events of September 11, 2001, the launching of the global war on terror and the 2003 Anglo-American invasion of Iraq reversed the fiscal misfortunes of the North Atlantic oil companies in the previous decade. Collectively, they achieved relative returns on equity several orders of magnitude greater than the heyday of 1979 to 1981. As oil prices soared, new methods of extraction reinvigorated oil production in Texas, North Dakota, Pennsylvania and elsewhere. In effect, war in Iraq made the shale oil revolution possible
  • fracking—not only benefitted from sky-high oil prices, generous US government subsidies and lax regulation, but also the massive amounts of cheap credit on offer to revive the economy after 2008
  • In response to the Soviet invasion of Afghanistan and the Iran hostage crisis, the Carter Doctrine declared America’s intent to use military force to protect its interests in the Gulf. In so doing, Carter not only denounced “the overwhelming dependence of the Western democracies on oil supplies from the Middle East,” but he also proposed new efforts to restrict oil imports, to impose price controls and to incentivize more fossil fuel extraction in the United States, all in conjunction with solidifying key alliances (Egypt, Israel and Pakistan) and reinforcing the US military presence in the region.[5] In effect, America would now extract geopolitical power from the Middle East by seeking to secure it.
  • In denouncing certain governments as “pariahs” or “rogue states,” and in calling for regime change, American policy has allowed those leaders to institute permanent states of emergency that have reinforced their grip on power, in some cases aided by expanded oil rents due to heightened global prices
  • A 2015 report by the Public Accountability Initiative highlights the extent to which the leading liberal and conservative foreign policy think tanks in Washington—the American Enterprise Institute, Atlantic Council, Brookings, Cato, Center for Strategic and International Studies (CSIS), Council on Foreign Relations and Heritage Foundation—have all received oil industry funding, wrote reports sympathetic to industry interests or usually both
  • For some 50 years, the United States has been able to extract geopolitical power from Middle Eastern oil by posing as the protector of global energy security. The invention of the concept of energy security in the 1970s helped to legitimate the efforts of the Nixon, Ford and Carter administrations to forge new foundations for American hegemony amid the political, economic and social crises of that decade. In the wake of the disastrous US war efforts in Korea and Southeast Asia, Henry Kissinger infamously attempted to re-forge American hegemony by outsourcing US security to proxies like Iran under what is referred to as the Nixon Doctrine. At the same time, regional hegemons would be kept in check by “balancing” competing states against each other.
  • The realization of Middle Eastern insecurity was also made possible by the rapid and intensive arms build-up across the region in the 1970s. As oil prices skyrocketed into the 1980s, billions of so-called petrodollars went to purchase arms, primarily from North Atlantic and Soviet manufacturers. Today, the Middle East remains one of the most militarized regions in the world. Beyond the dominance of the security sector in most Middle Eastern governments, it also boasts the world’s highest rates of military spending. Since 2010, Middle Eastern arms imports have gone from almost a quarter of the world’s share to nearly half in 2016, mainly from North Atlantic armorers.
  • For half a century, American policy toward the Middle East has effectively reinforced these dynamics of insecurity by promoting conflict and authoritarianism, often in the name of energy security. High profile US military interventions—Lebanon in 1983, Libya in 1986 and 2011, the Tanker Wars in the late 1980s, the wars on Iraq in 1991 and 2003, Somalia in 1993, Afghanistan since 2001, the anti-Islamic State campaign since 2014 and the Saudi-Emirati war on Yemen since 2015—have received the most scrutiny in this respect, alongside the post-2001 “low intensity” counterterrorism efforts worldwide
  • cases abound where American policy had the effect of preventing conflicts from being resolved peacefully: Trump’s shredding of the 2015 Joint Comprehensive Plan of Action (JCPOA) nuclear agreement with Iran comes to mind; the case of the Israeli-occupied Palestinian territories and the Moroccan-occupied Western Sahara have likewise become quintessential “peace processes” that have largely functioned to prevent peace.
  • the myth of authoritarian stability
  • A year after the unexpected 2011 uprisings, the IMF’s former director Christine Lagarde admitted that the Fund had basically ignored “how the fruits of economic growth were being shared” in the region
  • What helps make energy security discourse real and powerful is the amount of industry money that goes into it. In a normal year, the oil industry devotes some $125 million to lobbying, carried out by an army of over 700 registered lobbyists. This annual commitment is on par with the defense industry. And like US arms makers,[9] the revolving door between government, industry and lobbying is wide open and constantly turning. Over two-thirds of oil lobbyists have spent time in both government and the private sector.[10]
  • From 2012 to 2018, organized violence in the Middle East accounted for two-thirds of the world’s total conflict related fatalities. Today, three wars in the region—Syria, Iraq and Afghanistan—now rank among the five deadliest since the end of the Cold War. Excluding Pakistan, the Middle East’s share of the worldwide refugee burden as of 2017 was nearly 40 percent at over 27 million, almost double what it was two decades prior.
  • profound political and financial incentives are accumulating to address the existing glut of oil on the market and America’s declining supremacy. A major war in the Middle East would likely fit that bill. The Trump administration’s temptation to wage war with Iran, change Venezuela’s regime and to increase tensions with Russia and China should be interpreted with these incentives in mind.
  • While nationalizing the North Atlantic’s petroleum industries is not only an imperative in the fight against climate change, it would also remove much of the profit motive from making war in the Middle East. Nationalizing the oil industry would also help to defund those institutions most responsible for both disseminating the myths of energy security and promoting insecurity in the Middle East.
Ed Webb

Beyond Oil: Lithium-Ion Battery Minerals and Energy Security - Foreign Policy Research ... - 0 views

www.fpri.org/...y-minerals-and-energy-security

energy China resources commodities technology climate trade OPEC Saudi KSA Russia oil

shared by Ed Webb on 11 Mar 21 - No Cached
  • Should the mass adoption of electric vehicles occur, access to reliable and affordable sources of minerals like cobalt, graphite, lithium, manganese, and nickel, which are used in modern electric-vehicle batteries, will come to occupy a larger share of energy security concerns, especially since one country has already gained control over much of the world’s production and processing of those minerals
  • oil has remained abundant and affordable, despite major production disruptions during the Arab Spring from 2010-2012, in Libya from 2013-2016, and in Venezuela after 2017. In fact, oil prices had dropped 60 percent from their 2008 highs by early 2020, even before the COVID-19 pandemic had made a dent in the global economy.
  • falling oil prices throughout the 2010s may have lulled Western policymakers into believing that the Russian Federation, whose economy is heavily reliant on oil and natural gas exports, would become more docile. It did not; instead, it continued to modernize its military and intimidate its neighbors
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  • OPEC and Russia bargained for months, but talks finally broke down after Moscow refused to limit its oil production to help stabilize oil prices in the wake of the slump in global oil demand caused by the COVID-19 pandemic. Calculating that it could hurt Russia enough to force it back to the negotiating table, Saudi Arabia boosted its daily oil output by 20 percent, flooding the market with oil. Not to be intimidated, Russia responded with a short-term increase in its own oil output (possibly to strike back at Saudi Arabia or to force some American shale-oil companies out of business or both). As a result, oil prices collapsed. The futures price for West Texas Intermediate crude touched a remarkable -$37 per barrel. Although beneficial for oil consumers, the Russia-Saudi Arabia oil price war was a reminder of the influence that state-driven oil producers still had over the world’s energy security.
  • a single country, China, has gained control over much of the world’s production and processing of the cobalt, graphite, lithium, manganese, and nickel used in lithium-ion batteries, the type of electricity-storage devices favored by electric-vehicle manufacturers today.
  • Chinese companies now control almost half of the DRC’s cobalt output, which constitutes over two-thirds of the world’s production. Perhaps of greater concern, China has come to dominate the refining and processing of those minerals. Eighty percent of the cobalt sulphates and oxides used for lithium-ion battery cathodes are processed in China.
  • China’s monopoly can be largely attributed to its relatively low energy costs and less stringent environmental regulations.
  • Though China controls a smaller share of the world’s production of lithium than that of other minerals, it has been buying up stakes in lithium mines around the globe.
  • Moving up the value chain, it is expected to build 101 of the 136 lithium-ion battery manufacturing plants that are currently planned over the next decade
  • n 2010, China abruptly restricted its rare-earth metal exports to Japan, nominally to protect the environment. But after a lengthy review, the World Trade Organization ruled against China’s restrictions. Since then, worries about relying on China as a strategic-minerals supplier have continued to grow. Sometimes, China feeds those fears. In one 2019 incident, China’s state-run Global Times flaunted the country’s dominance over rare-earth metals as a strategic weapon against other countries with the headline “China gears up to use rare-earth advantage.” Such not-so-veiled threats from government-linked media only fan suspicions that China will behave no better than Russia or Saudi Arabia—and possibly worse.
  • In 2019, the U.S. Department of State launched the Energy Resources Governance Initiative to “promote resilient and secure energy resource mineral supply chains” for all kinds of renewable energy and battery storage technologies.  The initiative’s membership has grown to include Australia, Botswana, Canada, Peru,
  • the world appears to be swapping its old dependency on OPEC and Russia, a fractious bunch that until recently was losing power to American oil-shale upstarts, for a new one on China, a single country with a one-party government
Ed Webb

Will the U.S.-Saudi Arabia Relationship Ever Reach a Breaking Point? - 1 views

foreignpolicy.com/...t-relationship-oil-geopolitics

USA US diplomacy military politics analysis opinion energy Iran KSA Saudi

shared by Ed Webb on 05 Jul 20 - Cached
  • Again and again, the unlikely partners would fall out—usually over the Arab-Israeli conflict, much later over the 9/11 attacks. But the fundamental bargain struck by U.S. President Franklin D. Roosevelt and then-King Ibn Saud in the waning days of World War II that consummated the U.S.-Saudi relationship 75 years ago would never break
  • lawmakers in oil states such as Texas, Louisiana, North Dakota, and Alaska accuse Saudi Arabia of waging “economic warfare” and have drafted legislation to immediately pull out U.S. troops and furl up a decades-old U.S. security umbrella that has protected the vulnerable Saudi state
  • many in Washington are coming to question the very fundamentals that have underpinned a very special bilateral relationship for 75 years—essentially, U.S. security to ensure the free flow of Saudi oil and Saudi support for U.S. designs in the Middle East
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  • Today’s tensions stem, in many ways, from the original foundations of the odd-couple relationship: an oil-for security bargain that always sought, but never fully managed, to bridge the divide between a liberal democracy and a conservative religious monarchy
  • Some experts believe U.S.-Saudi ties will ultimately weather the storm, as they always have, because of the need for a large, wealthy, and anti-Iran anchor for U.S. interests in the Middle East
  • “But we don’t need the Saudis anymore—this comes in a very different geopolitical environment than previous crises.”
  • Saudi Arabia was one of the only countries in the world that continued to receive U.S. Lend-Lease aid after the end of the war.
  • essentially underwriting the security of an oil-rich desert sheikdom to keep oil supplies flowing—and to keep the Soviets out of the Middle East.
  • Roosevelt had met Ibn Saud hoping for Saudi support for a Jewish homeland in the Middle East, which the king vehemently opposed, and the U.S. president—in Saudi eyes—gave his word not to press the matter. But Truman, Roosevelt’s successor, eventually supported the creation of Israel, sowing years of distrust and cries of betrayal in Saudi Arabia
  • “In my conversations with the king, the crown prince, and the deputy crown prince, they favored the effort to halt Iran’s nuclear weapons program. But they wanted more: They wanted us to push on Iran’s actions in Iraq, Syria, and Yemen, and we didn’t do that.”
  • The Iranian revolution, as well as an assault that same year on the Grand Mosque in Mecca, terrified Saudi leadership, who saw how vulnerable their own position was. The revolution, by removing the shah and creating permanent enmity with the United States, left Saudi Arabia as America’s main linchpin in the Middle East, all the bad blood from the oil embargo notwithstanding
  • Fearful of being toppled by religious radicals, Saudi leaders embraced a much more conservative line and empowered hard-line religious leaders in their own country, the first steps toward a decadeslong program to export the austere Wahhabi brand of Islam particular to the kingdom. Soon, wealthy Saudis, including one Osama bin Laden, started funding the Muslim mujahideen who were fighting the Soviet invasion of Afghanistan that began the same year as the Iranian revolution. Two decades later, that Saudi lurch toward a harsher official line on religion would end up creating the biggest crisis yet in the special relationship.
  • “The relationship never really recovered from 9/11,”
  • the George W. Bush administration, despite vehement Saudi objections, decided to invade Iraq to topple Saddam Hussein. Saudis feared that would open the door to greater Iranian influence on their doorstep, as in fact happened.
  • In the end, the United States and Saudi Arabia patched up the dispute, and the oil embargo ended by the spring of 1974. But the scars it left were deep and long-lasting, permanently damaging Saudi Arabia’s image in American popular opinion, and leaving deep-rooted fears that the Saudis could and would use their oil weapon to damage U.S. interests—a fear that has persisted even though the nature of the Saudi oil threat has changed.
  • “King Abdullah was very respectful and liked Obama personally, but there were things they couldn’t understand,” said Westphal, who was present for three of Obama’s record four trips to Saudi Arabia. “‘Why are you supporting Maliki, who is essentially handing over his country to the Iranians? How can you not depose Assad?’”
  • Since 1979, Saudi leaders had seen Iran as the gravest threat to the region and their own security, and U.S. efforts to reach a nuclear deal while seemingly letting Iran continue its destabilizing behavior in the region unsettled the Saudis.
  • “There’s no question that the Arab Spring unsettled the U.S. relationship with the Saudis. For them, the U.S. response [to calls for reform in the Arab world] was way too sympathetic, and the relationship cooled,”
  • Saudi leaders famously rolled out the red carpet, and a glowing orb, for Trump’s first overseas trip as president. It seemed a surprising about-face after Trump’s attacks on Muslims, and repeated attacks on Saudi Arabia, on the campaign trail, when he accused the kingdom of carrying out 9/11, criticized it for sponging off American protection, and threatened an economic boycott. Saudi leaders were happy to overlook Trump’s comments, eager to forge ties with an untested and unorthodox president before other foreign leaders could. “Washington is like Rome in the Roman Empire, and we are like a satellite state—you pay homage to the emperor,” Shihabi said. “You could put a monkey in the White House, and we’d pay homage.”
  • The playbook that has reliably worked since 1945 to ground the bilateral ties in personal relationships with the president now seems to be backfiring. Mohammed bin Salman, reviled by many in Congress for his alleged role in the Khashoggi killing, as well as other continued human rights abuses inside Saudi Arabia and in Yemen, is seen as being exceptionally close to Kushner and Trump. Riding the coattails of a historically unpopular, already-impeached president isn’t the best way to improve Saudi Arabia’s image.
  • Despite decades of close economic ties and military and counterterrorism cooperation, Saudi Arabia never seemed to plant deep roots in the United States that would institutionalize the relationship beyond kings, generals, and presidents. This meant when tensions flared up between the two countries, Riyadh didn’t have many outside allies to come to its defense in Washington
  • Mohammed bin Salman’s foreign-policy excesses: the disastrous war in Yemen, the bizarre virtual kidnapping of Lebanon’s prime minister to pressure Iran and Hezbollah, and an embargo on Qatar, its small neighbor and a key U.S. military partner. At home, there was the regular drumbeat of reports on human rights violations, plus a $100 billion shakedown on wealthy political rivals to consolidate power under the guise of an anti-corruption campaign.
  • As long as they’ve been a country—they’re so young—they really don’t know what their place in the world would be like without the backing of the United States,”
  • Unlike in 1973, when Saudi Arabia used the oil weapon to jack up oil prices and hurt the United States, this time crashing oil prices did the trick. U.S. shale producers need oil prices above $40 a barrel to break even; the Russian-Saudi price war sent the price of oil to $25 and then into the single digits, ensuring a wave of bankruptcies and economic hardship from Texas to North Dakota.
  • “The Saudis have a deep problem with the Democrats, and that’s been clear for a long time. Now they have spoiled their relationship with Republicans,”
  • In the summer of 2019, when Iranian attacks on oil tankers near the Persian Gulf threatened the flow of oil, Trump’s response was to tell allies such as Japan and South Korea to protect their own ships, questioning why the United States should continue to carry out a mission it’s done for decades unless other countries coughed up cash. That fall, key Saudi oil facilities were attacked, allegedly by Iran, knocking out 5 percent of global oil production in a matter of minutes. The U.S. response, other than a Trump tweet, was to do nothing.
  • The bitter recriminations during this spring’s oil price war, coming on the heels of the Khashoggi murder, the continued war in Yemen, and other Saudi missteps, give many observers reason to believe that the relationship is due for a fundamental rethink.
  • as long as the United States continues to view Iran as a major threat, close relations with Saudi Arabia will have a strong appeal
Ed Webb

40 years after the oil crisis: Could it happen again? - 2 views

www.washingtonpost.com/...l-crisis-could-it-happen-again

OPEC energy oil KSA Venezuela Iraq Iran economy

shared by Ed Webb on 16 Oct 13 - No Cached
  • Forty years ago today, the Organization of the Petroleum Exporting Countries (OPEC) voted to raise the posted price of their oil by 70 percent.  The next day, several Arab oil producers decided to impose an embargo on oil sales to the United States to punish it for supporting Israel in the unfolding Yom Kippur War.  While the two decisions were not formally linked, policymakers have worried ever since that OPEC could again restrict the global supply of oil. A lot has changed since 1973.  Oil embargoes used to happen fairly frequently: There was one in 1956, and another in 1967.  Until 1973, they didn’t attract much attention.  But due to structural changes in the oil market in the early 1970s, the one in 1973 had a huge impact.  Since that time, there hasn’t been a single international embargo. (The current sanctions against Iran are an importers’ boycott, not an exporters’ embargo.)  What happened?
  • Even without an embargo, policymakers worry that OPEC manipulates the oil market. For example, James Woolsey, a former CIA director and self-proclaimed energy hawk, argues that OPEC has a grip on global oil and gasoline prices so tight that the U.S. will never be free of its influence.  Like most people, Woolsey wrongly believes that OPEC is a powerful cartel. Many economic studies cast doubt on that idea, but there are still some scholars who support the proposition. OPEC rarely if ever influences its members’ oil production rates.  It has almost no impact on prices.  My research looked at OPEC’s behavior since 1982, when it first adopted formal production quotas for its members.  I found that joining OPEC has little influence on new members’ oil production rates; members cheat on their quotas a whopping 96 percent of the time; changes in OPEC quotas have little impact on changes in production; and members of OPEC produce oil at about the same rate as non-members of the group, all else equal.  Any of these findings would cast doubt on OPEC’s status as a cartel; collectively they are damning.
  • Most OPEC members – from Venezuela to Nigeria to Iraq – are pumping their oil as fast as they can, with no spare capacity
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  • OPEC is a political club.  It perpetuates a “rational myth” about its cartel power to generate political benefits and prestige for its members, both at home and abroad.  As long as OPEC is viewed as powerful, its leaders can falsely claim credit at home for “managing the economy.”
  • the world would be better off if it stopped assuming that OPEC drives world energy markets.  It does not.  Most of the credit or blame for rising oil prices in recent years rests with the energy demands of Asian customers, not diabolic moves by OPEC
Ed Webb

Leaking Ghost Tankers: Pollution in the Port of Aden - Peace Organization PAX - 0 views

paxforpeace.nl/...-pollution-in-the-port-of-aden

Yemen maritime RedSea environment pollution shipping war anaylsis OSINT

shared by Ed Webb on 04 Aug 22 - Cached
  • Decaying oil tankers at the coasts of Yemen pose serious risks to the environment and the people depending on it, reminding us starkly how conflicts can bring serious pollution risks. New open source research by PAX reveals multiple oil spills from rusty ships that have been polluting the coastal areas around the Port of Aden. If no action is taken by the authorities to remove these ships, it is only a matter of time before a new disaster will unfold.
  • Current international attention is mainly focused on finding a solution for the decaying oil tanker FSO SAFER loaded with 1.1 million barrels of oil. The tanker is at risk of sinking or exploding, which would create a regional environmental catastrophe. Yet over the course of the last years, smaller incidents around oil tankers in Yemen’s ports, the Red Sea and the Gulf of Aden have been mounting as well. Ranging from direct attacks on oil tankers to abandoned ships sinking and fires at port refineries, the conflict continues to create serious local pollution problems.
  • The war itself already poses serious environmental challenges that impact both Yemen’s population and its precious ecosystems. This ranges from structural leaking oil incidents documented by the Yemen environmentalist group Holmakhdar and the Sanaa Center, to broader environmental problems, and conflict-linked cutting and dying of millions of date palms, demonstrated by the open-source investigative group Bellingcat. The current weak state of governance and oversight around the many environmental challenges Yemen is facing continues to result in ongoing incidents that worsen the state of environment and affect the people depending on it.  Not only does this currently already lead to mounting environmental health risks and degraded ecosystems, these impacts will also worsen climate resilience for the conflict-affected country due to more extreme weather events, water shortages and rising temperatures
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  • According to the experts, over 40 tons of oil was leaked from the leaking tanker, though this has not been confirmed by the local authorities
  • PAX has observed leaks from two ships, including a large spill on July 5,2022 from the PEARL OF ATHENA that continued for 18 days until July 23. Oil slicks have washed ashore, polluting the coastal environment, and could pose a long-term risk to the marine environment in and around the bay of Aden, which could pose particular threats to the livelihoods of fishing communities. Hydrocarbons from crude oil and refined products contain toxic heavy metals such as lead, zinc, cadmium and mercury that can accumulate around coastal soils and sediments, be ingested by marine organisms such as fish, affect marine birds and mammals and impact marine ecosystems.
  • Large spills such as this one are also likely to hold up the arrival of ships that need to offload humanitarian goods in the container terminal. This is because ships are not able to go into the port until such slicks are removed to prevent further dispersal of the oil by the movement of incoming ships.  
  • The ongoing war in Yemen continues to stress local authorities’ capacities to address both the issues with dilapidated oil tankers and set up a proper environmental monitoring and enforcement mechanism for ships arriving in the Port of Aden
  • A damage assessment conducted by the UN Development Programme (UNDP) in 2021 found that at over 20 million USD was needed for reparations at the container terminal alone. The report, also stated that:  “Health, safety, and environmental awareness in the Port is currently unacceptable. The Port contains large areas of conflict-damaged debris, damaged and unusable equipment, and equipment and materials being stored for future use.”  
  • The arrival of ballast water on ships trading to ports in the Red Sea and Gulf of Aden (..) has the potential to do more harm to the marine environment than a major oil pollution incident. (..) Dumping of hazardous materials at sea in waters close to the Gulf of Aden has the potential to carry serious pollution hazards into the region.”   
  • the international community has failed to pick up the bill to effectively prevent a major environmental disaster with the FSO SAFER, despite the UN starting a public campaign to raise $20 million dollar to prevent a serious disaster posed by the tanker. Meanwhile, western countries continue to allow for billions in weapons sales to the countries bombing Yemen.  
  • The remaining tankers in the Port of Aden continue to pose a risk of sinking, which would likely lead to further environmental pollution with effects on coastal areas. This would particularly impact fishing communities and surrounding ecosystems
Ed Webb

OPEC Is in its Death Throes | Foreign Policy - 0 views

foreignpolicy.com/...arabia-united-states-oil-shale

Saudi KSA economy economics OPEC oil energy Russia Iran Iraq Venezuela Kuwait UAE

shared by Ed Webb on 21 Oct 16 - No Cached
  • In February, OPEC called for an oil production “freeze” to raise crude prices in conjunction with Russia. But this effort collapsed at a meeting in Doha, Qatar, in April when Iran refused to join any freeze in order to regain the pre-2012 production levels of close to 4 mbpd it enjoyed before U.S. and European Union nuclear sanctions were imposed, following the removal of certain sanctions after the 2015 nuclear deal. A similar proposal failed at the OPEC meeting in June, again following Iran’s refusal, despite outreach by the Qataris.
  • OPEC again called for a form of output cut on Sept. 28 at an extraordinary meeting in Algiers. Markets bit on the news, with Brent prices rising sharply by about 15 percent in the following week, from $46 to $52 per barrel.
  • Can action by the cartel sustain higher crude prices over the long term? Probably not. Like a desert mirage, the image of an OPEC resurrection vanishes when approached.
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  • The massive fall in oil prices from over $100 per barrel in early 2014 to under $30 by January 2016 was caused primarily by then-Saudi Minister of Petroleum Ali al-Naimi’s strategy to gain market share for the kingdom and hurt the U.S. tight oil (or “shale”) industry by allowing the market, not OPEC interventions, to set prices.
  • While Riyadh has cranked up its production from mid-2014 to today by over a million barrels a day (to a peak of 10.7 mbpd in August this year), its fiscal position has taken a serious blow, with the budget deficit rising from 3 percent of GDP to 16 percent in 2015
  • The resilience of U.S. shale makes the argument that OPEC has experienced a resurrection a fragile claim. The cartel can probably raise prices in the short term through an output cut, but it will only be so long, perhaps already by mid-2017, before the U.S. shale industry revives and grabs any market share conceded by OPEC in a higher price environment. This will ultimately bring prices lower again, all else being equal.
  • Within OPEC, while other Gulf Co-Operation states, namely Kuwait and the United Arab Emirates, may be prepared to make a small cut to their production, key producers like Iraq and Venezuela are in too difficult a fiscal position to agree to any major cut.
  • Outside OPEC, Russia reached a production record of 11.1 mbpd in August, eclipsing Soviet levels. Being so close to the maximum anyway, Russia has little to lose by supporting the OPEC output cut and agreeing not to raise production further. Yet the Kremlin is unlikely to impose actual cuts on the range of oil companies that operate in the country.
  • In the short term, it seems Riyadh’s fiscal position was under such pressure from low oil prices that something had to give. While the kingdom has eased the fiscal pressure by starting to issue sovereign debt, the burn rate through its foreign reserves has been relentless (from about $740 billion in mid-2014 to $550 billion today) as it has attempted to defend the currency in the face of substantial capital flight from the country since the oil price crash in 2014.
  • Climate change will plainly be a major problem of the 21st century, and the world is moving away from fossil fuels: game over for an unreformed Saudi Arabia.
  • Saudi Arabia will face hard years ahead as the oil market increasingly looks to U.S. shale, not OPEC, as a handrail to oil prices on the supply side. However, this might well be the jolt that Salman needs to push through painful but necessary reforms
Ed Webb

Warming Temperatures & Decades of Oil Spills Cause Irreversible Damage to the Persian G... - 0 views

www.ipsnews.net/...reversible-damage-persian-gulf

gulf pollution sustainability environment extinction water

shared by Ed Webb on 19 Sep 20 - Cached
  • According to estimates by experts, pollution levels in the Persian Gulf are 47 times higher than the world’s average and are steadily increasing. The 600-mile body of water that is also known as the Arabian Gulf currently has 34 oilfields with more than 800 wells. In addition, roughly 85% of the oil extracted in the Gulf countries is exported – 40% of the world export of crude oil and around 15% of the world’s total export of refined products come from the region – and more than half of all the oil is carried by ships. It is estimated that approximately 25,000 tanker movements sail in and out of the Strait of Hormuz, the only sea passage that connects the Persian Gulf to the open sea. Accidental spilling is unavoidable and, on average, 100–160 thousand tons of oil and oil products end up in the Gulf every year.
  • In 2017, ScanEx and the Institute of Oceanology of the Russian Academy of Sciences began conducting the pilot project on the satellite monitoring of the state of the water of the Persian Gulf. The results of the research confirmed the severe levels of oil pollution in the gulf waters and the damage, some of it which have been irreversible, on its marine life. “In addition to military-led pollution, other issues such as warming waters due to climate change and the increasing saline levels due to desalination efforts by countries in the Gulf area aggressively worsening marine productivity and habitats,” says George Stacey, an analyst working with Norvergence, an environmental advocacy NGO.
  • a combination of human activities was pushing at least 35 per cent of the fauna in the Gulf waters to extinction in the next 60 years.
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  • Fisheries of Bahrain, with a relatively large fishing industry, and Iran, with the highest catch and fewer employment alternatives due to sanctions, are pointed out to be particularly vulnerable
  • A lot of the damage done in the past few decades cannot be reversed completely but it is not too late to prioritize the sustainability of the marine ecosystems of the gulf waters right now because any damages to it will trickle down to impact the communities living on its coasts and reverse years of development and advancements.”
Julianne Greco

UPDATE: Lukoil Submits New Bid For Iraqi Oil Field-Official - WSJ.com - 0 views

online.wsj.com/...BT-CO-20091018-702105.html

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shared by Julianne Greco on 19 Oct 09 - Cached
  • -Competition is hotting up for rights to develop one of Iraq's largest oilfields after Russia's oil giant Lukoil (LKOH.RS) submitted this weekend an improved offer and accepted the government's production sharing terms, an official said.
  • Iraq is offering international oil companies a rare chance to gain a foothold in one of the world's largest deposits of crude at a time when few opportunities exist for private investors to exploit Middle East oil. In the Middle East, the industry is mainly controlled by state oil companies.
  • Lukoil is said to have raised the production plateau for the West Qurna-1 field in its new proposal and the company expects a decision by the Iraqi oil ministry on Monday or Tuesday, an industry official, with knowledge of the matter, said. The Russian company is partnering ConocoPhillips (COP) in the bid. Lukoil is now the second international oil company after Exxon to accept Baghdad's $1.90 a barrel payment fee for West Qurna, the most sought-after field in the country's first postwar petroleum round held at the end of June this year.
Ed Webb

The Oil Drum | IEA Economist Warns about World Oil Supply - 0 views

www.theoildrum.com/5634

oil energy futures future depression recession growth prediction

shared by Ed Webb on 03 Aug 09 - Cached
  • the market power of the very few oil-producing countries that hold substantial reserves of oil – mostly in the Middle East – would increase rapidly as the oil crisis begins to grip after 2010
  • Many people think there will be a recovery in a few years' time but it will be a slow recovery and a fragile recovery and we will have the risk that the recovery will be strangled with higher oil prices.
  • demand after 2010 is expected to exceed dwindling supplies
  • ...1 more annotation...
  • I fear that most governments, particularly members of the OECD, will waste time trying to downplay the possible ramifications of declining oil production and to assure the public that everything is under control.
Ed Webb

Trump tightens the screws on Iran's oil - 0 views

www.brookings.edu/...ghtens-the-screws-on-irans-oil

USA US Iran sanctions diplomacy Trump oil

shared by Ed Webb on 30 Jul 18 - No Cached
  • the White House is embarking on an economic offensive intended to collapse the Iranian government, which is already contending with a steady tempo of internal unrest driven by economic and political frustrations
  • Those who have lamented Obama’s restraint in the Middle East will now have another taste of its antithesis: the purposeful American disruption of the status quo underpinned by the assumption that things can only get better. Unfortunately, that rarely holds true in the Middle East
  • It’s not just oil: U.S. sanctions will be felt across every aspect of the Iranian economy, although in theory, agricultural products, medicines, and medical devices are exempted. In practice, the repercussions are sweeping and unpredictable
  • ...6 more annotations...
  • This time around, Washington has chosen to go it alone on Iran, after an intense but ultimately fruitless effort by Britain, France, and Germany to devise a compromise to save the nuclear deal. That awkward episode, in which the president appeared wholly uninformed about the talks, was a feature, not a bug; spurning compromise is the modus operandi for U.S. policy toward Iran, as the latest U.S. statements ruling out sanctions waivers or exemptions make clear.
  • without the reinforcement of multilateral measures or broad diplomatic support, the Trump administration is deploying U.S. sanctions on Iran as a bludgeon rather than a scalpel in hopes of wreaking maximum havoc on Iran as quickly as possible. The financial measures targeting Iran effectively cast a much wider net than traditional trade sanctions, and the risk of steep fines or worse—loss of access to the U.S. economy—acts as a powerful deterrent for individual and firm decisionmaking even in the absence of government buy-in.
  • Iran sends its largest oil volumes to China and India, where diverse and reliable energy supplies are critical components of economic growth and national security. Both governments can draw upon ample access to bespoke financial institutions and other creative workarounds that sustain trade with Iran and are likely to seek to exploit the opportunity to press Iran for discounts and favorable payment arrangements
  • As Iran’s OPEC governor, Hossein Kazempour Ardebili, observed: “You cannot place sanctions on two OPEC founder members and still blame OPEC for oil price volatility. … this is business, Mr. President—we thought you knew it.”
  • Through considerable internal turmoil and external conflicts, Iran has been a mainstay of global energy markets for a century; the only previous sustained rupture in Iranian supply came at the hands of a British embargo in 1951-53. That blockade ended with official American conspirators helping to effect the ouster of a troublesome Iranian leadership. At the time, this seemed like a victory for Washington; over the long term, that U.S. intervention to topple nationalist prime minister Mohammad Mossadeq proved to be a disaster for American interests and for Iran.
  • America’s open antagonism provides Tehran with another excuse to intensify repression and divert blame for the country’s woes
Ed Webb

Saudi Arabia's Crown Prince MBS Is Right Where Trump Wants Him - Bloomberg - 0 views

www.bloomberg.com/...is-right-where-trump-wants-him

KSA MBS Saudi Trump USA US oil economy politics diplomacy

shared by Ed Webb on 05 May 20 - No Cached
  • There came a moment during Donald Trump’s April 2 phone call to Mohammed bin Salman when Saudi Arabia’s crown prince and de facto ruler, apparently stunned by what the American president had just said, asked his aides to leave the room. No courtiers were present when their master, no slouch at intimidation himself, was apparently bullied into submission.
  • Trump had, in effect, threatened the complete withdrawal of American troops from the kingdom if the Saudis didn’t slash oil production.
  • broad, bipartisan support in Washington for punitive actions against Riyadh
  • ...5 more annotations...
  • the prince is as close to a pariah as a senior member of the royal family has ever been in the 75 years of the Saudi-American alliance
  • the crown prince must now recognize the limitations of his ill-judged strategy to base relations with the U.S., the kingdom’s indispensable ally, exclusively on the cultivation of the first family. Previous Saudi rulers would have been able to rely on friends in Congress to plead with the White House for leniency. But MBS has few friends in Washington — and the army of lobbyists he maintains there is of limited use in a crisis.
  • MBS’s dependence on Trump — and the White House veto — to override this antagonism made him highly vulnerable to presidential strong-arm tactics.
  • The prince is now in a bind. He desperately needs to rebuild bridges with Congress, but that will be harder now that he has injured U.S. oil interests. Nor can he easily submit to pressure from American lawmakers on other issues without losing face at home and in the Arab world. 
  • The timing of his humiliation by Trump is especially unpropitious: The twin blows of the oil war and the coronavirus pandemic have greatly damaged the Saudi economy and undermined his ambitious reform agenda at home. His cherished plan to build a futuristic megacity on the Red Sea coast is facing unexpected opposition. Much effort and cost will be required to extricate Saudi Arabia from the Yemeni quagmire with a semblance of dignity.
Ed Webb

Saudi Crown prince threatened economic pain on U.S. during oil standoff - The Washingto... - 0 views

www.washingtonpost.com/...audi-arabia-cut-oil-production

US USA foreignpolicy KSA Saudi diplomacy security energy oil China

shared by Ed Webb on 09 Jun 23 - Cached
  • Crown Prince Mohammed bin Salman threatened to fundamentally alter the decades-old U.S.-Saudi relationship and impose significant economic costs on the United States if it retaliated against the oil cuts
  • It is unclear whether the crown prince’s threat was conveyed directly to U.S. officials or intercepted through electronic eavesdropping, but his dramatic outburst reveals the tension at the heart of a relationship long premised on oil-for-security but rapidly evolving as China takes a growing interest in the Middle East and the United States assesses its own interests as the world’s largest oil producer.
  • Biden, who pledged to make Saudi Arabia a “pariah” as a presidential candidate, scarcely communicates with the crown prince but the president’s top aides have gradually rebuilt ties with him hoping the two nations can work together on pressing issues, including a long-sought peace deal in Yemen, a sustained cease-fire in Sudan, counterterrorism challenges and continued disagreements over the supply of oil.
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  • U.S. officials say the U.S.-Saudi relationship is too important to let languish given Riyadh’s economic and political clout and Beijing’s courtship of traditional U.S. partners in the Middle East.
  • Following Blinken’s meetings, differences appeared to remain over Saudi Arabia’s ambitions to generate nuclear power, seen by Washington and others as a potential proliferation risk, and the notion that the United States has a right to admonish the kingdom over its human rights record
  • a steady stream of high-level U.S. meetings in the kingdom in recent months, including trips by national security adviser Jake Sullivan, CIA Director William J. Burns, Biden’s top Middle East adviser Brett McGurk, and his senior energy security official Amos Hochstein.
  • The oil-rich country has sought to present itself as a global player unmoored to Washington. In recent months, Riyadh has been on a diplomatic tear, winding down hostilities in Yemen, restoring relations with arch-nemesis Iran, inviting Syrian President Bashar al-Assad back into the Arab League after a decade-plus ban, and ending its regional tiff with Qatar.
  • Saudi Arabia’s relationship with China, which the United States considers its top economic and security competitor, was also raised during Blinken’s news conference in Riyadh. The top U.S. diplomat denied any suggestion that the United States was forcing Saudi Arabia to choose between Washington and Beijing.AdvertisementA second leaked U.S. intelligence document from December warned that Saudi Arabia plans to expand its “transactional relationship” with China by procuring drones, ballistic missiles, cruise missiles and mass surveillance systems from Beijing. But U.S. officials say those warnings were exaggerated and did not come to fruition.
  • “China is the world’s second-largest economy. China is our largest trading partner. So naturally, there is a lot of interaction … and that cooperation is likely to grow,” he said. “But we still have a robust security partnership with the U.S. That security partnership is refreshed on an almost daily basis.”
Ed Webb

Biden signals rethink over Saudi ties amid anger at cuts in oil output | US news | The ... - 0 views

www.theguardian.com/...id-anger-at-cuts-in-oil-output

USA US oil energy weapons arms KSA Saudi MBS diplomacy Russia Ukraine

shared by Ed Webb on 11 Oct 22 - Cached
  • The Biden administration has said it is ready to consider tough new measures against Saudi Arabia after its decision last week to side with Vladimir Putin and cut oil production.Observers said the move signalled a dramatic abandonment of the US president’s recent attempts to seek a rapprochement with Crown Prince Mohammed bin Salman, and casts doubt over the future of the US-Saudi security relationship.
  • The congressional backlash against Saudi Arabia escalated sharply this week after Robert Menendez, the powerful Democratic chairman of the Senate foreign relations committee, threatened to freeze weapons sales and security cooperation with the kingdom, saying Prince Mohammed was helping to “underwrite Putin’s war through the Opec+ cartel”.
  • The move by the Opec+ group of the oil cartel and its allies to cut oil production over the objections of the White House, was a double blow to Biden, undermining his attempt to cut Russian revenues by lowering the oil price, and threatening a spike in domestic petrol prices weeks before congressional elections. It was all the more stinging as it followed a reconciliatory trip to Jeddah by Biden in July, when he was photographed fist-bumping with the crown prince.
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  • The administration will have to take some step like reducing American forces.
Ed Webb

Turkey Rattled by Weak Hand in Libya as Russia and Egypt Advance - 0 views

www.turkeyanalyst.org/...-russia-and-egypt-advance.html

Turkey Russia Egypt Libya mediterranean military

shared by Ed Webb on 09 Jan 19 - No Cached
  • By assisting Egypt to protect its western border, Moscow has re-forged the military links of its former alliance with Cairo
  • The 75-year-old Haftar, who retains the loyalty of the parliament in Tobruk, is a central actor in the Libyan civil war. A former ally of deposed Libyan strong man Moammar Gadhafi who received his military training in the Soviet Union, Haftar maintains deep ties with Russia. Haftar’s forces control most of Libya’s oil facilities, particularly after they captured the ports along Libya’s “Oil Crescent” in September 2016, resulting in a rise in oil production from 300,000 barrels per day (bpd) to over 700,000 bpd in January 2017.  On February 21, 2018 Russian oil giant Rosneft signed an investment and crude oil purchasing agreement with Libya’s National Oil Corporation, paving the way for a major Russian role in Libya’s oil industry.
  • In January 2017, Haftar was invited aboard Russia’s aircraft carrier in the Mediterranean in order to conduct a video conference with Russian Defense Minister Sergei Shoigu
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  • During Ahmet Davutoğlu’s tenure as Turkey’s prime minister, relations between Ankara and the Tobruk-based parliament deteriorated to the point where all Turkish firms were expelled from Libya. 
  • Ankara's efforts to gain influence in Libya pale in comparison to the security assets that Moscow and Egypt may be preparing for a more expanded military presence in Libya. On November 7, 2018, Haftar and his senior staff visited Moscow for their latest meeting with Russia's defense minister Sergei Shoigu. Following the session, the Libyan Armed Forces released a video showing the presence of Yevgeny Prigozhin, an associate of Russian President Vladimir Putin and linked to several Russian private military companies, including the Wagner Group that allegedly participated in operations in Syria. Prigozhin's presence at the Haftar-Shoigu meeting has suggested to observers within Russia and beyond that Moscow may be gearing up for some form of increased intervention in Libya with operations similar to those conducted in Syria.
  • from November 3 to 16, Egypt hosted a two-week long joint exercise with the militaries of Saudi Arabia, the United Arab Emirates, Bahrain, Kuwait, and Jordan. Dubbed Arab Shield 1, the exercise involved land, naval, and air forces as well as Special Forces and took place at Egypt's base in Marsa Matrouh. While some view the exercises as a step toward creating an 'Arab NATO' to confront Iran, the massive joint Arab exercise on Egypt's Mediterranean coast sent a clear signal to Turkey and demonstrated the sort of coalition Egypt could muster should it decide to expand its military footprint in Libya
  • both Russia and Egypt have strategic incentives to escalate their support for the aging Libyan commander Field Marshal Khalifa Haftar.  In April 2018, the general suffered a stroke and required hospitalization in an intensive care unit in Paris.  Although two of Haftar's sons are commanders in the Libyan National Army, it is unclear whether either one of them could maintain the loyalty of the coalition of diverse factions that have united under the figure of Khalifa Haftar.  It would behoove both Moscow and Cairo to press their current advantage and deepen their respective positions in preparation for a post-Haftar era.
  • Moscow’s military presence in Libya would enable the Kremlin to complete a Russian ring around the southern half of the eastern Mediterranean. It is worth noting that Vladimir Putin's Russia is more popular than NATO in Greece and among Greek Cypriots. With only 195 nautical miles (360 km) separating Tobruk and Crete, Turkey thus faces the prospect of eventually finding itself encircled by a Russian presence among all of its regional adversaries
  • The change in the balance of power in North Africa in favor of Russia and Egypt inevitably and severely undermines Turkey's already challenging strategic position in the Eastern Mediterranean.
Ed Webb

Iraqis rise up against 16 years of 'made in the USA' corruption | openDemocracy - 1 views

www.opendemocracy.net/...t-16-years-made-usa-corruption

Iraq opinion analysis US USA Iran corruption protests

shared by Ed Webb on 05 Dec 19 - Cached
  • Prime Minister Abdul-Mahdi has announced he will resign, and Sweden has opened an investigation against Iraqi Defense Minister Najah Al-Shammari, who is a Swedish citizen, for crimes against humanity.
  • Out of 198 contracts reviewed by the inspector general, only 44 had documentation to confirm the work was done.
  • while Iran has gained enormous influence and is one of the targets of the protests, most of the people ruling Iraq today are still the former exiles that the US flew in with its occupation forces in 2003, “coming to Iraq with empty pockets to fill” as a taxi-driver in Baghdad told a Western reporter at the time.
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  • The corruption of both US and Iraqi officials during the US occupation is well documented. UN Security Council resolution 1483 established a $20 billion Development Fund for Iraq using previously seized Iraqi assets, money left in the UN’s “oil for food” program and new Iraqi oil revenues. An audit by KPMG and a special inspector general found that a huge proportion of that money was stolen or embezzled by US and Iraqi officials.
  • According to Al Jazeera, “protesters are demanding the overthrow of a political class seen as corrupt and serving foreign powers while many Iraqis languish in poverty without jobs, healthcare or education.” Only 36% of the adult population of Iraq have jobs, and despite the gutting of the public sector under US occupation, its tattered remnants still employ more people than the private sector, which fared even worse under the violence and chaos of the US's militarized shock doctrine.
  • The US Congress also budgeted $18.4 billion for reconstruction in Iraq in 2003, but apart from $3.4 billion diverted to "security," less than $1 billion of it was ever disbursed. Many Americans believe US oil companies have made out like bandits in Iraq, but that’s not true either. The plans that Western oil companies drew up with Vice President Cheney in 2001 had that intent, but a law to grant Western oil companies lucrative “production sharing agreements” (PSAs) worth tens of billions per year was exposed as a smash and grab raid and the Iraqi National Assembly refused to pass it.
  • Ayad Allawi and the INA were the instrument for the CIA’s hopelessly bungled military coup in Iraq in 1996. The Iraqi government followed every detail of the plot on a closed-circuit radio handed over by one of the conspirators and arrested all the CIA’s agents inside Iraq on the eve of the coup. It executed thirty military officers and jailed a hundred more, leaving the CIA with no human intelligence from inside Iraq.
  • Allawi and the INA are still involved in the horse-trading for senior positions after every election, despite never getting more than 8% of the votes - and only 6% in 2018.
  • The cost of rebuilding Mosul, Fallujah and other cities and towns is conservatively estimated at $88 billion. But despite $80 billion per year in oil exports and a federal budget of over $100 billion, the Iraqi government has allocated no money at all for reconstruction. Foreign, mostly wealthy Arab countries, have pledged $30 billion, including just $3 billion from the US, but very little of that has been, or may ever be, delivered.
Ed Webb

How Iraqi Oil Is Changing the World - By Stephen Glain | Foreign Policy - 0 views

www.foreignpolicy.com/...raqi_oil_is_changing_the_world

oil OPEC diplomacy Iran Iraq KSA

shared by Ed Webb on 17 Mar 10 - Cached
  • For decades, Saudi Arabia has served as the world's central banker of oil supplies. In unstable times, most famously in the wake of Iraqi's 1990 invasion of Kuwait, it has drawn from its spare production capacity of some 1 million barrels to bring prices to heel.
  • Iraq's revival as a prominent oil exporter is bound to reshuffle a careful power balance in the energy-rich Arab world, particularly between bitter rivals Saudi Arabia and Iran. Saddam Hussein's 2003 toppling created a vacuum that both sides rushed to fill, for example deploying proxy forces at the height of Iraq's sectarian civil war. OPEC is another battlefield for the Saudi-Iran rivalry, and the Saudi kingdom is in no hurry to lose its uncontested status as No. 1. Now, as Iraq stabilizes politically and slowly rebuilds its oil-production capacity, both sides will have to accommodate a more assertive Baghdad. Even if oil production doesn't reach the Iraqis' goal, it will likely be higher than the approximately 1.7 million barrels per day that Iraq was producing just prior to the U.S. invasion.
  • quota smashers like Iran and Venezuela, who routinely oversell to pay for their costly entitlement programs
Ed Webb

Oil World Turns Upside Down as U.S. Sells Oil in Middle East - Bloomberg - 1 views

www.bloomberg.com/...-latest-sign-of-shale-s-spread

oil energy OPEC US USA economy UAE

shared by Ed Webb on 09 Feb 18 - No Cached
  • in a trade that illustrates how the rise of the American shale industry is upending energy markets across the globe, the U.A.E. bought oil directly from the U.S. in December
  • The end of a ban on U.S. exports in 2015 coupled with the explosive growth of shale production, has changed the flow of petroleum around the world. Shipments from U.S. ports have increased from a little more than 100,000 barrels a day in 2013 to 1.53 million in November, traveling as far as China and the U.K.
  • U.A.E. crude production was 2.85 million barrels a day in January, according to data compiled by Bloomberg. Output has declined from 3.07 million at the end of 2016 as OPEC and allies cut production to reduce a global glut and prop up prices.
Ed Webb

OPEC Sees Widening Gap in Iran's Oil Output Views - 0 views

www.nasdaq.com/...il-output-views-20120911-00382

oil Iran OPEC energy

shared by Ed Webb on 12 Sep 12 - No Cached
  • Iran pegs its August crude-oil production at 3.7 million barrels a day, up 5% from last year and broadly stable since the beginning of the year.
  • But secondary sources cited by OPEC--shipping and oil-industry experts with close knowledge of the country's production--put Iran's output at 2.8 million barrels a day, about 1 million barrels a day lower than Iran's estimates and 24% down compared with last year.
Ed Webb

Biden rebuffed as US relations with Saudi Arabia and UAE hit new low | US foreign polic... - 0 views

www.theguardian.com/...ns-saudi-arabia-uae-oil-crisis

US USA UAE KSA Saudi diplomacy economy oil weapons arms China Iran Russia Yemen Israel rights MBS MBZ

shared by Ed Webb on 03 Apr 22 - Cached
  • The UAE and Saudi Arabia continue to rebuff the US president as he attempts to counter soaring oil prices prompted by Russia’s invasion of Ukraine. And both countries have been unusually frank about their refusal to step in.
  • The Saudi and Emirati refusal to bail Biden out – or even to take his calls – has pushed relations between the Gulf states and Washington to an unprecedented low. The extraordinary flow of Russian wealth to Dubai, just as the US and Europe try to strangle Putin’s economy, has inflamed things further.
  • Usually opaque and often inscrutable, officials in Abu Dhabi and Riyadh have in recent weeks been uncharacteristically blunt to visiting diplomats about the nature of their grievances, and how far they are prepared to take them. One western diplomat told the Guardian that a Saudi counterpart had said: “This is the end of the road for us and Biden, but maybe the US also.”
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  • “While American policy is beset by baffling contradictions, Chinese policy is simple and straightforward. Beijing is offering Riyadh a simple deal: sell us your oil and choose whatever military equipment you want from our catalogue; in return, help us to stabilise global energy markets.“In other words, the Chinese are offering what increasingly appears modelled on the American-Saudi deal that stabilised the Middle East for 70 years.”
  • The former al-Arabiya editor-in-chief, Mohammed al-Yahya chose the previously unlikely forum of the Jerusalem Post to publish his views on the standoff.“The Saudi-US relationship is in the throes of a crisis,” he wrote. “I am increasingly disturbed by the unreality of the American discussion about the subject, which often fails to acknowledge just how deep and serious the rift has grown.
  • “Why should America’s regional allies help Washington contain Russia in Europe when Washington is strengthening Russia and Iran in the Middle East?”
  • The naked transactional diplomacy of Donald Trump was a formula more familiar to both, and had been readily deployed by China, to whom each is looking towards for closer trade, energy and even security ties.
  • “The UAE has invested a lot in its relations with Washington. We allocated the bulk of our investments of huge sovereign wealth funds in the American markets, excluding Asian and European markets, and had wanted to increase trade with Washington.”Abdulla said the UAE felt snubbed by Washington not signing a deal to supply new F-35 fighter jets.It was also angered by Biden’s distance following a deadly Houthi drone and rocket strike on Abu Dhabi.“What made matters worse was the Biden administration’s objection to sovereign Emirati decisions, such as receiving Bashar al-Assad … and putting pressure on Abu Dhabi to increase its oil production outside the context of the Opec agreement.“All this comes at a time when America is no longer the only superpower in the world, which prompted the UAE and other countries to diversify partners.”
Ed Webb

On Blaming Climate Change for the Syrian Civil War - MERIP - 0 views

merip.org/...hange-for-the-syrian-civil-war

Syria climate migration protests war agriculture security food foodsecurity ideology economy policy UN thinktanks discourse

shared by Ed Webb on 01 Oct 20 - No Cached
  • the Syria climate conflict narrative is deeply problematic.[2] Not only is the evidence behind this narrative weak. In addition, it masks what was really occurring in rural Syria (and in the country’s northeast region in particular) prior to 2011, which was the unfolding of a long-term economic, environmental and political crisis. And crucially, the narrative largely originated from Syrian regime interests in deflecting responsibility for a crisis of its own making. Syria is less an exemplar of what awaits us as the planet warms than of the complex and uncomfortable politics of blaming climate change.
  • much of Syria and the eastern Mediterranean region experienced an exceptionally severe drought in the years before the onset of Syria’s civil war: the single year 2007–2008 was northeastern Syria’s driest on record, as was the three-year period 2006–2009
  • it is reasonable to say, per the Columbia study, that climate change did make this particular drought more likely
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  • The widely reproduced claim that 2 to 3 million people were driven into extreme poverty by the 2006–2009 drought was drawn, extraordinarily, from analyses by the United Nations Development Programme (UNDP) of pre-drought poverty levels.[4] The claim that around 1.5 million people were displaced was derived from a single humanitarian news bulletin, seemingly on the basis of a misreading of the UN’s estimate of those affected—not displaced—by the drought. Using Syrian government numbers, the UN actually reported drought-period displacement to be around 40,000–60,000 families.
  • A presidential decree in 2008, which tightened restrictions on land sales across the northeastern-most province of Hasakah, led to the extensive loss of land rights and was credited by some organizations as a key factor in the increased migration from northeast Syria prior to the war
  • during 2008–2009 rural Syria was hit by triple-digit increases in the prices of key agricultural inputs. In May 2008 fuel subsidies were halved, leading to an overnight 342 percent spike in the price of diesel. And then in May 2009 fertilizer subsidies were removed, causing prices to rise anywhere from 200 to 450 percent. The fuel subsidy cuts had particularly devastating economic consequences, especially for farmers reliant on cheap fuel for groundwater irrigation.
  • The fact that a number of neighboring countries experienced equivalent precipitation declines during 2006–2009—or in Iraq’s case an even larger decline—but no comparable migration crises, suggests at the very least that the migration from Syria’s northeast must have been caused more by these Syria-specific factors than by the drought.
  • Proponents of the climate conflict thesis typically claim that drought-induced displacement caused a “population shock” within Syria’s urban peripheries, exacerbating pre-existing socio-economic pressures. Yet Syria’s cities grew rapidly throughout the decade before the civil war, not only during the drought years. By our calculations, excess migration from the northeast during 2008–2009 amounted to just 4–12 percent of Syria’s 2003–2010 urban growth (and this excess migration was not all triggered by drought)
  • As Syria’s pre-eminent breadbasket region—the heartland of strategic crop production—Hasakah was particularly vulnerable to economic liberalization and the withdrawal of input supports. No other region of the country was so dependent on groundwater for irrigation, a factor that made it particularly vulnerable to fuel price increases. Hasakah’s groundwater resources were also exceptionally degraded, even by Syrian standards
  • a deep and long-term structural agrarian crisis
  • it is evident that northeastern Syria’s agrarian troubles—and especially those in the province of Hasakah—went all the way back to 2000, and indeed earlier. Production of the two main government-designated strategic crops, wheat and cotton, was in decline in Hasakah from the early 2000s onward. Land and settlements were being abandoned there well before the drought. Net out-migration from Hasakah during this period was higher than from any other province. And the reasons for this lay not in the drought but in the contradictions of Syrian development.
  • an agrarian socialist development program, promoting rapid expansion of the country’s agricultural sector and deploying Soviet aid and oil income to this end. Among other elements, this program involved heavy investment in agricultural and especially water supply infrastructure, low interest loans for private well drilling, price controls on strategic crops at well above international market value, the annual wiping clean of state farm losses and, as already indicated, generous input subsidies
  • Environmentally, the model relied above all on the super-exploitation of water resources, especially groundwater—a problem which by the early 2000s had become critical. And economically, Syrian agriculture had become highly input dependent, reliant on continuing fuel subsidies in particular.
  • Within just a few short years, Syria embraced principles of economic liberalization, privatized state farms, liberalized trade and reduced price control levels. At the same time domestic oil production and exports fell rapidly, thus undermining the regime’s rentier foundations and its capacity to subsidize agriculture
  • Irrespective of any drought impacts, these developments essentially occurred when the props that had until then artificially maintained an over-extended agricultural production system—oil export rents, a pro-agrarian ideology and their associated price controls—were suddenly and decisively removed.
  • as Marwa Daoudy concludes in her new book on the subject, there is “little evidence” that “climate change in Syria sparked popular revolt in 2011”—but “a lot of evidence” that “suggests it did not.”
  • The region was also deeply affected by intense irrigation development and over-abstraction of groundwater resources within Turkey
  • It was Ba’athist state policies which had turned Hasakah into a region of wheat monoculture, failed to promote economic diversification and facilitated cultivation ever deeper into the badiya (the desert) while over-exploiting surface and groundwater resources. Moreover, these measures were taken partly for strategic and geostrategic reasons, bound up with regime interests in expanding and consolidating Hasakah’s Arab population (its project of Arabization), in controlling and excluding the province’s Kurdish population and in extending its control and presence within a strategically sensitive borderland and frontier region. During the heyday of Ba’athist agrarian development, Hasakah’s population and agricultural sector expanded like in no other area. With the collapse of this development model, rural crisis and out-migration were the inevitable result.
  • After an initial reluctance to acknowledge the depth of the crisis in the northeast, the government eventually embraced the climate crisis narrative with gusto. The drought was “beyond our powers,” claimed Asad. The drought was “beyond our capacity as a country to deal with,” claimed the Minister of Agriculture. “Syria could have achieved [its] goals pertaining to unemployment, poverty and growth if it was not for the drought,” proclaimed Deputy Prime Minister Abdullah al-Dardari.[12] Indeed, as the International Crisis Group reported, the Asad regime would regularly take diplomats to the northeast and tell them, “it all has to do with global warming,” blaming what was in essence a state-induced socio-ecological crisis on climatic transformations beyond its control.[13] This shifting of blame is essentially how the Syria climate crisis narrative began.
  • Official UN reports on the crisis in the northeast, which were produced in collaboration with the Syrian regime, were predictably drought-centric, barely mentioning any factors other than drought, omitting any criticisms of government policy and ignoring the existence of a discriminated-against Kurdish minority
  • International media reports on the subject were similarly focused on  drought, no doubt partly because of media preferences for simplified and striking narratives, but also because they relied upon UN sources and took these at their word
  • The climate crisis narrative reached its apogee in 2015, in the run-up to the UN Paris conference on climate change, when countless politicians and commentators turned to the example of Syria to illustrate the urgency of international action to limit greenhouse gas emissions.
  • regurgitated as a statement of fact in the scientific journal Proceedings of the National Academy of Sciences and by Western liberal politicians and eco-socialist campaigners alike
  • climate change is also much more than a physical reality and looming environmental threat: It is simultaneously an object of discourse, debate and rhetoric, a potent meta-narrative that can be invoked for explanation, legitimation, blame avoidance and enrichment.
  • climate change is already regularly invoked to questionable ends across the Middle East and North Africa. It is used to explain away ecological catastrophes actually caused by unsustainable agricultural expansion, to make the case for investment in new and often unnecessary mega-projects, to obscure state mismanagement of local environmental resources and to argue against the redistribution of such resources to oppressed and minority groups
  • blaming climate change is often a distraction from the real causes of socio-ecological crisis
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