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anonymous

Oil and Militancy in the Niger Delta - 0 views

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    "With militancy in the Niger Delta on the rise, Nigerian President Goodluck Jonathan must convince oil investors to keep their money in Nigeria while retaining the services of Niger Delta militants -- one of his most potent political tools. The Movement for the Emancipation of the Niger Delta grew from popular protest movements that believed energy companies were exploiting their home region. But militancy then became an extortion method by which the region's political elite could gain a stake in the federal government. Leaders and commanders, including imprisoned former leader Henry Okah, were given political and security leeway to attack energy infrastructure on the condition that they minimize foreign casualties and allow for enough crude oil production to leverage in political negotiations. Okah's former commanders remain in the Niger Delta and, under the auspices of oil pipeline and waterway security contracts, prosper from private and public payoffs. Frequently these leaders are in Abuja managing their relationships with government officials. Abuja will use Okah's 24-year sentence, announced by a South African court March 26, to show that it is trying to contain militancy in the Niger Delta. Jonathan's administration does not want international oil companies invested in the Nigerian oil sector to lose confidence in Nigeria's security environment or to relocate to more stable and secure countries. Increased bunkering, kidnapping and piracy operations have validated concerns of even more militancy in the region. In fact, Italian energy company ENI and Royal Dutch/Shell recently shuttered two pipelines, bringing some 200,000 barrels of oil per day offline."
anonymous

Energy Politics of the Middle East - 0 views

  • If Iraq invaded Saudi Arabia, something that it probably could have accomplished in less than a week, Saddam could have potentially controlled 45% of the world's total oil reserves. It was no wonder that the U.S. was able to get quick international support for Operation Desert Shield.
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    "One of the questions brought up in last weeks class presentation was how the presence of oil affects international relations within the region and with outside powers. Oil is by far the most important commodity in the Middle East, with up to 66% of the world oil reserves being located there. Furthermore, there are large quantities of oil located in the Caspian Sea, estimated to be worth up to $12 trillion. This makes dealing with Iran all the more important. But the point is, oil is one of the major reasons that large powers want to have a strong influence in the region, to ensure the stability (and the exports) of the states producing the oil." By Ted at Ted's Middle East Blog on October 14, 2010
anonymous

East China Sea, a Treasure for Oil, Is Fraught With Danger - 0 views

  • China and Japan thirst after an estimated 60 million to 100 million barrels of oil under the 482,000-square-mile sea east of Shanghai. Add to that 1 trillion to 2 trillion cubic feet of natural gas reserves. Their economies, Asia's two largest, need fuel for manufacturing of just about everything in the world. Both are net importers today.
  • Political analysts say a one-sided move to drill for oil or gas in the surrounding sea comes with so much risk that nothing's going on. China and Japan have discovered plenty of other sources for economic development oil in the meantime. Even the South China Sea, claimed by six governments, has stabilized since summer, letting oil exploration gingerly move forward.
  • "While resources are at stake, no one can realistically expect to safely drill for oil or gas if there is a full-on territorial dispute that could get militarized, since oil and gas rigs are inherently indefensible," says Scott Harold, associate political scientist with the American think tank Rand Corp.
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  • in 2008 China and Japan had signed a resource-sharing deal for a disputed oil field, called Chunxiao by Beijing and Shirakaba by Tokyo. Then, two years ago, Japan accused China of breaking its word by going ahead on its own.
  • Looking at who had sought oil or gas there previously - as far back as the 1980s -- points to who now might lose out under today's conditions.
    • anonymous
       
      Writer note: It would have been super cool to *explain* that rather than allude to it.
  • A number of foreign firms have partnered with China in the ocean since the country began exploring there from 1983
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    "Looking for oil in the South China Sea is an adventure, but in a fun way U.S. Navy recruiters used to tell us in high school. To probe the nearby East China Sea at the moment might just get your rig shot."
anonymous

U.S. Energy Information Administration (EIA) - 0 views

  • The East China Sea is a semi-closed sea bordered by the Yellow Sea to the north, the South China Sea and Taiwan to the South, Japan's Ryukyu and Kyushu islands to the East and the Chinese mainland to the West. Evidence pointing to potentially abundant oil and natural gas deposits has made the sea a source of contention between Japan and China, the two largest energy consumers in Asia.
  • The sea has a total area of approximately 482,000 square miles, consisting mostly of the continental shelf and the Xihu/Okinawa (Chinese name/Japanese name) trough, a back-arc basin formed about 300 miles southeast of Shanghai between the two countries. The disputed eight Daioyu/Senkaku (Chinese/Japanese name) islands lie to the northeast of Taiwan, with the largest of them two miles long and less than a mile wide. Though barren, the islands are important for strategic and political reasons, as ownership can be used to bolster claims to the surrounding sea and its resources under the United Nations Convention on the Law of the Sea. To date, China and Japan have not resolved their ownership dispute, preventing wide-scale exploration and development of East China Sea hydrocarbons.
  • The East China Sea basin, particularly the Xihu/Okinawa Trough, is a potentially rich source of natural gas that could help meet Chinese and Japanese domestic demand.
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  • China recently became the second largest net oil importer in the world behind the United States and the world's largest global energy consumer. Gas imports have also risen in recent years, and China became a net natural gas importer for the first time in almost two decades in 2007.
  • Japan is the third largest net importer of crude oil behind the United States and China, as well as the world's largest importer of liquefied natural gas (LNG), owing to few domestic energy resources.
  • Therefore, both China and Japan are interested in extracting hydrocarbon resources from the East China Sea to help meet domestic demand.
  • Hydrocarbon reserves in the East China Sea are difficult to determine. The area is underexplored and the territorial disputes surrounding ownership of potentially rich oil and natural gas deposits have precluded further development.
  • The EIA estimates that the East China Sea has between 60 and 100 million barrels of oil (mmbbl) in proven and probable reserves.
  • China began exploration activities in the Each China Sea in the 1980's, discovering the Pinghu oil and gas field in 1983. Japan co-financed two oil and gas pipelines running from the Pinghu field to Shanghai and the Ningbo onshore terminal on the Chinese mainland through the Asian Development Bank and its own Japanese Bank of International Cooperation (JBIC).
  • More recently, both China and Japan have concentrated their oil and gas extraction efforts in the contested Xihu/Okinawa trough.
  • Only the Pinghu field, operational since 1998, has produced oil in significant quantities to date. Pinghu's production peaked at around 8,000 to 10,000 barrels per day (bbl/d) of oil and condensate in the late 1990's, and leveled off to around 400 bbl/d in recent years. In the medium-term, the East China Sea is not expected to become a significant supplier of oil.
  • EIA estimates that the East China Sea has between 1 and 2 trillion cubic feet (Tcf) in proven and probable natural gas reserves.
  • In 2012, an independent evaluation estimated probable reserves of 119 Bcf of natural gas in LS 36-1, a promising gas field north of Taiwan currently being developed as a joint venture between CNOOC and U.K. firm Primeline Petroleum Corp.
  • The uncontested Pinghu field began producing in 1998, reaching a peak of approximately 40 to 60 million cubic feet per day (Mmcf/d) in the mid-2000's and declining in recent years.
  • China began producing at the contested Tianwaitian/Kashi field in 2006, claiming it as part of its Exclusive Economic Zone.
  • The Chinese government prioritizes boosting the share of natural gas as part of total energy consumption to alleviate high pollution from the country's heavy coal use. To that end, Chinese authorities intend to ramp up production and increase East China Sea gas to flow into the Yangtze River delta region, which includes Shanghai and Hangzhou, two large cities with growing gas demand.
  • In the 1990's, several foreign companies drilled a series of dry holes in uncontested waters.
  • In 2003, Unocal and Royal Dutch Shell announced a joint venture (JV) with CNOOC and Sinopec to explore gas reserves in the Xihu/Okinawa trough. However, Unocal and Shell withdrew from exploration projects in late 2004, citing doubts over the commercial viability of developing energy resources in the disputed area.
  • The companies plan to build pipelines and a 42 Mmcf/d onshore processing terminal at Wenzhou to accept the future gas supplies from the LS 36-1 field.
  • China and Japan have two separate, but interlinked disputes: where to demarcate the sea boundary between each country and how to assign sovereignty over the Daioyu/Senkaku Islands.
  • Despite multiple rounds of high-level negotiations between China and Japan, the two countries have thus far been unable to resolve territorial issues related to the East China Sea.
  • Until these disputes are resolved, it is likely that the East China Sea will remain underexplored and its energy resources will not be fully developed.
    • anonymous
       
      "resolved" is quaint sounding.
  • The Daioyu/Senkaku Islands consist of five uninhabited islets and three barren rocks. Approximately 120 nautical miles southwest of Okinawa, the islands are situated on a continental shelf with the Xihu/Okinawa trough to the south separating them from the nearby Ryukyu Islands.
  • Japan assumed control of Taiwan and the Daioyu/Senkaku islands after the Sino-Japanese War in 1895. Upon Japan's defeat in World War II, Japan returned Taiwan to China, but made no specific mention of the disputed islands in any subsequent document.
  • For several decades after 1945, the United States administered the islands as part of the post-war occupation of Okinawa. The islands generated little attention during this time
  • Although China had not previously disputed Japanese claims, the PRC claimed the islands in May 1970 after Japan and Taiwan held talks on joint exploration of energy resources in the East China Sea.
  • When the United States and Japan signed the Okinawa Reversion Treaty returning the disputed islands to Japanese control as part of the Okinawa islands, both the PRC and Taiwan challenged the treaty.
  • China claims the disputed land based on historic use of the islands as navigational aids. In addition, the government links the territory to the 1895 Shimonoseki Peace Treaty that removed Japanese claims to Taiwan and Chinese lands after World War II.
  • Japan claims that it incorporated the islands as vacant territory (terra nullius) in 1895 and points to continuous administration of the islands since that time as part of the Nansei Shoto island group.
  • According to the Japanese, this makes ownership of the islands a separate issue from Taiwan and the Shimonoseki treaty. Japan cites the lack of Chinese demands on the area prior to 1970 as further validation for its claim.
    • anonymous
       
      Both claims seem (on the surface) prudent and plausible. The perfect recipe for conflict.
  • China and Japan apply two different approaches to demarcating the sea boundary
  • Japan defines its boundary as the UNCLOS Exclusive Economic Zone (EEZ) extending westward from its southern Kyushyu island and Ryukyu islands.
  • China defines its boundary using the UNCLOS principle of the natural extension of its continental shelf.
  • The overlapping claims amount to nearly 81,000 square miles, an area slightly less than the state of Kansas.
    • anonymous
       
      Seriously? We're describing this in terms of "it's as big as Kansas"? I wonder how many "Empire State Buildings" would fit in it.
  • Japan has proposed a median line (a line drawn equidistant between both countries uncontested EEZs) as a means to resolve the issue, but China rejected that proposal.
  • Under UNCLOS, Article 121 (3), "Rocks which cannot sustain human habitation or economic life of their own shall have no exclusive economic zone or continental shelf". The Japanese have claimed that the disputed islands generate an EEZ and continental shelf. China has not taken an official position on the status of the Daioyu/Senkakus as rocks or islands.
    • anonymous
       
      I must be such a geo-nerd to find this fascinating.
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    "Although the East China Sea may have abundant oil and natural gas resources, unresolved territorial disputes continue to hinder exploration and development in the area." This has a great explainer.
anonymous

WikiLeaks cables: Saudi Arabia cannot pump enough oil to keep a lid on prices - 0 views

  • The cables, released by WikiLeaks, urge Washington to take seriously a warning from a senior Saudi government oil executive that the kingdom's crude oil reserves may have been overstated by as much as 300bn barrels – nearly 40%.
  • According to the cables, which date between 2007-09, Husseini said Saudi Arabia might reach an output of 12m barrels a day in 10 years but before then – possibly as early as 2012 – global oil production would have hit its highest point. This crunch point is known as "peak oil".
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    "US diplomat convinced by Saudi expert that reserves of world's biggest oil exporter have been overstated by nearly 40%"
anonymous

Nigerian Characteristics - 0 views

  • To talk about an individual's personality and tendencies is easy for those who know the person well; to talk about the personality and tendencies of millions of people who form a nation is much trickier and fraught with moral risk.
  • For the result is often simplistic stereotyping of what are often very complex identities.
  • national traits are the product of a people's experience of living on a singular terrain for centuries and longer, leading to an identifiable national or ethnic culture and thus to specific characteristics.
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  • To deny this altogether is to immobilize observation, which, in turn, leads to analysis that is both unrealistic and naive.
  • Thus, we come to Nigeria, a country of more than 166 million people with severe overcrowding due to the fact that much of the country is desert and swamps where few people can live.
  • For too many Nigerians, life is a Hobbesian, zero-sum game that adds up to an aggressive, predatory system of survival of the fittest. Nigeria is a place where life is too often a matter of who can intimidate whom. Indeed, war, crime and thuggery are the province of young males, and Nigeria's population is composed of many of them.
  • Nigeria is an assemblage of several British-ruled territories: specifically a Muslim north that the British governed indirectly through traditional rulers and a non-Muslim south that the British ruled directly. The tension between the different parts of Nigeria has dominated political life for decades, leading to coups and counter-coups and significant periods of democracy characterized by exceedingly high levels of corruption, which is, in turn, part of the spoils system that staves off civil war.
  • For Nigerian politics at the highest levels is as predatory as life on the street.
  • There are essentially three geographical parts to Nigeria:
  • a Muslim-dominated north of desert and semi-desert, which produces the Hausa officers' corps that for decades has dominated the military and, by association, politics for significant periods
  • a southwestern region dominated by the Yoruba people, which contains the commercial capital of Lagos
  • and the southeast where much of the oil is located, dominated by the Igbo tribe.
  • Abuja, to no one's surprise, is less the capital city than the point of arbitration for a weak and sprawling empire otherwise known as the state of Nigeria. Abuja is where the economic spoils are distributed -- the benefit of upwards of 2.5 million barrels of oil pumped daily.
  • Ignored for decades and violently intimidated during the 1990s, the Ijaw in the 2000s waged an increasingly militant campaign to assert their presence. Pipeline sabotage and bombings of oil facilities effectively held the country's economy for ransom. The Ijaw were accommodated in 2007 and were rewarded with the vice presidency, in exchange for curtailing the sponsorship of militant groups like the Movement for the Emancipation of the Niger Delta, or MEND.
  • Indeed, Nigeria attests to the triumph of naked power and geography over the realm of ideas. Nigeria's strength is evinced in the fact that its peacekeepers have successfully led intervention forces in Sierra Leone and Liberia, and in the fact that Nigerian businessmen are all over West Africa playing pivotal roles in local economies.
  • Nigerians can be found as captains of continental and even global industry, if the black market sectors of business scams and drug, human, car and crude oil smuggling rackets are included. But Nigeria is weak in the sense that its own condition of semi-anarchy makes it impossible for Nigeria to police the region the way a great regional power should.
  • Nigeria and South Africa both should be imperial powers in West Africa and southern African respectively, helping to stabilize places like Mali and the Congo. But they clearly are not due to their own internal weaknesses.
  • Nigeria will totter onwards. It will not descend into civil war because all the regional and ethnic groups understand limits -- and how they can all, at one point or another, benefit from a flagrant system of spoils and kickbacks. Corruption, make no mistake, while it contributes to misrule, is also a pacifying force in Nigeria. But neither will there be the emergence of a strong state.
    • anonymous
       
      Corruption = Semi-stability. Depressing.
  • It is a maxim of Western elites that economic development and global integration will lead to civil societies in places like Nigeria. There is an important element of truth in that, but such a truth has severe limits. Economic growth also leads to wider disparities as well as more spoils to fight over.
  • In the case of Nigeria, there is effectively one spoil: those 2.5 million barrels of crude oil per day. And global society has sunk roots mainly among the elites, not among the tens of millions of people in a place like Nigeria for whom life is a constant, predatory struggle. Nigeria should keep us humble about the human condition and the persistence of national characteristics.
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    "Individuals are more concrete than the national or ethnic group of which they form a part. To talk about an individual's personality and tendencies is easy for those who know the person well; to talk about the personality and tendencies of millions of people who form a nation is much trickier and fraught with moral risk. For the result is often simplistic stereotyping of what are often very complex identities. Nevertheless, to assume Danes harbor the same national characteristics as, say, Chinese, is absurd. The fact is, national traits are the product of a people's experience of living on a singular terrain for centuries and longer, leading to an identifiable national or ethnic culture and thus to specific characteristics. To deny this altogether is to immobilize observation, which, in turn, leads to analysis that is both unrealistic and naive."
anonymous

Gulf Oil Spill : The Effects on Wildlife - 0 views

  • More Animals Are Dying, but the Causes Have Not Yet Been Determined More than 3,000 birds, sea turtles and dolphins have been found dead or debilitated in the gulf since the oil spill began. A majority of the dead were not visibly oiled, and officials have yet to determine why they died. But they have confirmed that many more animals are dying than during the same time period in previous years.
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    An excellent interactive graphic of the Gulf Oil Spill's current effect on wildlife. By The New York Times on July 14, 2010.
anonymous

Borderlands: The View Beyond Ukraine - 0 views

  • from Poland to Azerbaijan, I heard two questions: Are the Russians on the move? And what can these countries do to protect themselves?
  • Moscow is anxious too, and some Russians I spoke to expressed this quite openly. From the Russian point of view, the Europeans and Americans did the one thing they knew Moscow could not live with: They installed a pro-Western government in Kiev.
  • A pro-Western government now controls Ukraine, and if that control holds, the Russian Federation is in danger.
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  • When the Russians look at a map, this is what they see: The Baltic states are in NATO and Ukraine has aligned with the West.
  • The anti-Western government in Belarus is at risk, and were Minsk to change its loyalties, Russia's potential enemies will have penetrated almost as deeply toward the Russian core as the Nazis did. This is a comparison I heard Russians make several times.
  • For them, the Great Patriotic War (World War II), which left more than 20 million Soviet dead, is a vivid, living memory, and so is Hitler's treachery. Russians are not a trusting people and have no reason to be. The same is true of the Central Europeans, the Turks and the Caucasians. Nothing in their past permits them the luxury of assuming the best about anyone.
  • In recent weeks, three things have become obvious.
  • The first is that the Russians will not invade Ukraine directly.
  • Equally clear is that no European power can defend the line running from Poland to Romania with the decisive force needed to repel a Russian attack -- or even support these countries against Russian pressure and potential subversion.
  • Berlin does not want another Cold War. Germany depends on Russian energy and ultimately is satisfied with the status quo. The rest of Europe cannot intervene decisively.
  • Finally, this means that any support to Europe's eastern flank must come from the United States.
  • Washington is not ready to outline the nature and extent of its support, and from the American point of view, so long as the Russians are focused on Ukraine, there is still time to do so.
  • The primary concern for the United States would logically be Poland, the most vulnerable country on the North European Plain.
  • we see the United States beginning to adopt a Black Sea strategy centered on Romania.
  • Put simply, a competent rival Black Sea fleet would create problems for Russia, particularly if the Ukrainian regime survives and Crimea is isolated.
  • It is important to note the extensive diplomacy ongoing between the United States and Turkey
  • What we are seeing is regional players toying with new alliance structures. The process is in its infancy, but it is already forcing the Russians to consider their future.
  • An added dimension to this is of course energy. The Russians would appear to have the advantage here: Many of the nations that fear Moscow also depend on it for natural gas.
  • Natural gas is a powerful lever, but it is not particularly profitable.
  • Deployment of military force, while necessary, is therefore not the core element of the developing Western strategy.
  • Rather, the key move is to take steps to flood the world market with oil -- even knowing that implementing this strategy is extremely difficult.
  • It will be years before these and other alternative sources of energy come online -- indeed, some may never be available -- and there are many constraints, especially in the short term.
  • U.S. companies and oil-producing allies who depend on high oil prices would suffer alongside Russia -- an expensive collateral to this policy. But the game here is geopolitical futures.
  • For the United States, the game is not to massively arm Poland, build a Romanian navy or transform the world oil markets. It is simpler than that: Washington wants to show that it is ready to do these things.
  • Such a show of will forces the Russians to recalculate their position
  • The future for Russia becomes the one thing no nation wants: uncertain.
  • Russia now has two choices.
  • The first is to destabilize Ukraine. Success is uncertain, and Moscow cannot predict the U.S. response.
  • The fallback for Russia is to neutralize Ukraine.
  • Russia would leave the current government in place so long as Kiev pledges not to join Western-led multinational structures
  • The Western strategy is to create a credible threat to fundamental Russian interests.
  • From the U.S. point of view, a Western-oriented but neutral Ukraine would create a buffer zone without forcing a confrontation with Russia.
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    "I traveled between Poland and Azerbaijan during a rare period when the forces that shape Europe appear to be in flux, and most of the countries I visited are re-evaluating their positions. The overwhelming sense was anxiety. Observers from countries such as Poland make little effort to hide it. Those from places such as Turkey, which is larger and not directly in the line of fire, look at Ukraine as an undercurrent rather than the dominant theme. But from Poland to Azerbaijan, I heard two questions: Are the Russians on the move? And what can these countries do to protect themselves?"
anonymous

U.S.: The Ramifications of the Deepwater Horizon Oil Spill - 0 views

  • BP executives reportedly told the U.S. Congress on May 4 that while the oil is officially estimated to be gushing out at 5,000 barrels per day (bpd) the rate could be as high as 60,000 bpd. In other words, the problem could be far greater and more pressing than previously thought.
  • Offshore oil production accounts for about one third of global oil production, and the demand for it will not disappear. However, the United States already strictly regulates offshore drilling, and regulations will increase as a result of the Deepwater Horizon incident.
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    By StratFor on May 6, 2010.
anonymous

Israelis, Saudis and the Iranian Agreement - 0 views

  • The mere fact that the U.S. secretary of state would meet openly with the Iranian foreign minister would have been difficult to imagine a few months ago, and unthinkable at the beginning of the Islamic republic. 
  • The U.S. goal is to eliminate Iran's nuclear weapons before they are built, without the United States having to take military action to eliminate them.
  • The Iranians' primary goal is regime preservation.
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  • Western sanctions have dramatically increased the economic pressure on Iran and have affected a wide swath of the Iranian public.
  • The election of President Hassan Rouhani to replace Mahmoud Ahmadinejad after the latter's two terms was a sign of unhappiness.
  • The logic here suggests a process leading to the elimination of all sanctions in exchange for the supervision of Iran's nuclear activities to prevent it from developing a weapon. Unless this is an Iranian trick to somehow buy time to complete a weapon and test it, I would think that the deal could be done in six months.
  • An Iranian ploy to create cover for building a weapon would also demand a reliable missile and a launch pad invisible to surveillance satellites and the CIA, National Security Agency, Mossad, MI6 and other intelligence agencies. The Iranians would likely fail at this, triggering airstrikes however risky they might be and putting Iran back where it started economically. While this is a possibility, the scenario is not likely when analyzed closely.
  • There is a bit of irony in Israel and Saudi Arabia being allied on this issue, but only on the surface. Both have been intense enemies of Iran, and close allies of the United States; each sees this act as a betrayal of its relationship with Washington.
  • In a way, this marks a deeper shift in relations with Saudi Arabia than with Israel.
  • It was a massive producer of oil. It was also the protector of Mecca and Medina, two Muslim holy cities, giving the Saudis an added influence in the Islamic world on top of their extraordinary wealth. 
  • It was in British and American interests to protect Saudi Arabia from its enemies, most of which were part of the Muslim world.
  • Absent the United States in the Persian Gulf, Iran would have been the most powerful regional military power.
  • The problem from the Saudi point of view is that while there was a wide ideological gulf between the United States and Iran, there was little in the way of substantial issues separating Washington from Tehran.
  • The United States did not want Iran to develop nuclear weapons. The Iranians didn't want the United States hindering Iran's economic development. The fact was that getting a nuclear weapon was not a fundamental Iranian interest, and crippling Iran's economy was not a fundamental interest to the United States absent an Iranian nuclear program.
  • The Iranians want investment in their oil sector and other parts of their economy. American oil companies would love to invest in Iran, as would other U.S. businesses.
  • There are other significant political issues that can't be publicly addressed. The United States wants Iran to temper its support for Hezbollah's militancy, and guarantee it will not support terrorism. The Iranians want guarantees that Iraq will not develop an anti-Iranian government, and that the United States will work to prevent this.
  • From the Saudi point of view, Iranian demands regarding Iraq will be of greatest concern.
  • From the Israeli point of view, there are two threats from Iran. One is the nuclear program.
  • The other is Iranian support not only for Hezbollah but also for Hamas and other groups in the region.
  • But in the end, this is not the problem that the Saudis and Israelis have. Their problem is that both depend on the United States for their national security. Neither country can permanently exist in a region filled with dangers without the United States as a guarantor.
  • Israel needs access to American military equipment that it can't build itself, like fighter aircraft. Saudi Arabia needs to have American troops available as the ultimate guarantor of their security, as they were in 1990.
  • What frightens them the most about this agreement is that fact. If the foundation of their national security is the American commitment to them, then the inability to influence Washington is a threat to their national security.
  • The fact is that neither the Saudis nor the Israelis have a potential patron other than the United States.
  • The United States is not abandoning either Israel or Saudi Arabia. A regional policy based solely on the Iranians would be irrational. What the United States wants to do is retain its relationship with Israel and Saudi Arabia, but on modified terms.
  • The modification is that U.S. support will come in the context of a balance of power, particularly between Iran and Saudi Arabia. While the United States is prepared to support the Saudis in that context, it will not simply support them absolutely.
  • The Saudis and Israelis will have to live with things that they have not had to live with before -- namely, an American concern for a reasonably strong and stable Iran regardless of its ideology.
  • The American strategy is built on experience in Iraq and Afghanistan. Washington has learned that it has interests in the region, but that the direct use of American force cannot achieve those goals, partly because imposing solutions takes more force than the United States has and partly because the more force it uses, the more resistance it generates. Therefore, the United States needs a means of minimizing its interests, and pursuing those it has without direct force.
  • Saudi Arabia is not abandoned, but nor is it the sole interest of the United States.
  • In the same sense, the United States is committed to the survival of Israel.
  • If Iranian nuclear weapons are prevented, the United States has fulfilled that commitment, since there are no current threats that could conceivably threaten Israeli survival. Israel's other interests, such as building settlements in the West Bank, do not require American support.
  • With this opening to Iran, the United States will no longer be bound by its Israeli and Saudi relationships. They will not be abandoned, but the United States has broader interests than those relationships, and at the same time few interests that rise to the level of prompting it to directly involve U.S. troops.
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    "A deal between Iran and the P-5+1 (the five permanent members of the U.N. Security Council plus Germany) was reached Saturday night. The Iranians agreed to certain limitations on their nuclear program while the P-5+1 agreed to remove certain economic sanctions. The next negotiation, scheduled for six months from now depending on both sides' adherence to the current agreement, will seek a more permanent resolution. The key players in this were the United States and Iran. "
anonymous

Letter from Kurdistan | Stratfor - 3 views

  • The armies fought to the limits of their empires and, after a series of wars culminating in the Treaty of Zuhab of 1639, the Zagros Mountains came to define the borderland between the Ottomans and Persians, with the Kurds stuck in the middle.
  • The Turkic-Persian competition is again being fought in Kurdistan, only this time, energy pipelines have taken the place of gilded cavalry.
  • Roughly 25 million Kurds occupy a region that stretches from the eastern Taurus Mountains in Turkey through the Jazira Plateau of northeastern Syria across the mountains and plateaus of southeastern Anatolia before dead-ending into the northern spine of the Zagros Mountains, which divide Iran and Iraq.
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  • This is a territory spread across four nations with bitter histories and a shared commitment to prevent Kurdish aspirations for independence from eroding their territorial integrity.
  • the Kurds remained too divided and weak to become masters of their own fate able to establish a sovereign Kurdish homeland.
  • But unique circumstances over the past decade enabled a politically coherent Iraqi Kurdistan to temporarily defy its own history and inch toward quasi-independence.
  • The chain of events began with the 2003 toppling of Saddam Hussein.
  • His attempts to eradicate Iraq's Kurdish population through chemical attacks in the Anfal campaign of the late 1980s and other aggressions in the region eventually led to the creation of a U.S.-imposed no-fly zone in northern Iraq after the 1991 Gulf War.
  • Iraq's Kurdish leadership put aside their differences to form the Kurdistan Regional Government
  • When U.S. troops withdrew from Iraq, a nervous Kurdistan looked to energy firms as their next-best insurance policy.
  • as tensions with Baghdad grew over the distribution of energy revenues, the Iraqi Kurds unexpectedly found a sponsor in Ankara.
  • a new strategy toward its Kurdish population. Instead of suppressing Kurdish autonomy with an iron fist, Ankara went from regarding Kurds as confused "mountain Turks" to recognizing Kurdish language and cultural rights and launching its most ambitious peace negotiation to date with the Kurdistan Workers' Party.
  • The Iranian regime was busy defending its allies in Syria and Lebanon while trying to manage a highly antagonistic relationship with the United States.
  • A cooperative Ankara, a weak Damascus, a preoccupied Tehran, an overwhelmed Baghdad and a host of anxious investors formed the ingredients for an audacious pipeline project.
  • When the pipeline quietly skirted past the power plant it was supposed to feed, underwent a conversion to transport oil and began heading northward to Turkey, the secret was out: Turkey and the Kurdistan Regional Government were working to circumvent Baghdad and independently export Kurdish energy.
    • anonymous
       
      This gets my vote for a future 'proximal cause' of a regional dispute that has yet to flourish.
  • As the pipeline construction progressed, Kurdish peshmerga forces continued spreading beyond formal Kurdistan Regional Government boundaries in disputed areas and held their ground against demoralized Iraqi army forces.
  • And in the name of guarding against a real and persistent jihadist threat, Kurdish forces built deep, wide ditches around the city of Arbil and are now building one around the disputed oil-rich city of Kirkuk, marking the outer bounds of a slowly expanding Kurdish sphere of influence.
  • We have now arrived at the question of when, and not if, Kurdish oil will flow to Turkey without Baghdad's consent.
  • Turkey has put itself in a position where it can receive 250,000 to 300,000 barrels per day of crude from Iraqi Kurdistan
  • Plans are quietly being discussed to build another parallel line on the Turkish side to Ceyhan to completely divorce the pipeline infrastructure from any claims by Baghdad.
  • The speed and cunning with which the pipeline was completed demand respect, even -- however reluctantly -- from an outraged Baghdad.
  • Iran and the United States are both serious about reaching a strategic rapprochement in their long-hostile relationship. Though there will be obstacles along the way, the foundation for a U.S.-Iranian detente has been laid.
  • For now, the United States is trying to avoid becoming entangled in this political morass, prioritizing its negotiation with Iran while publicly maintaining a "one Baghdad, one Iraq" policy.
  • the sharpest tools Iran and its allies in Baghdad have to undermine Turkey's alliance with the Kurdistan Regional Government are the Kurds themselves.
  • The past decade of Kurdish unity between Massoud Barzani's Kurdistan Democratic Party and Jalal Talabani's Patriotic Union of Kurdistan is highly anomalous and arguably temporary.
  • On the surface, the Kurdistan Democratic Party and Patriotic Union of Kurdistan have united their peshmerga forces into a single, unified ministry. In reality, the political lines dividing Peshmerga forces remain sharper than ever.
  • One does not even have to reach far back in history to get a sense of just how deep Kurdish rivalries can run. The Kurdistan Democratic Party and Patriotic Union of Kurdistan were engaged in an all-out civil war from 1994 to 1996 that arose from a property dispute.
  • the Kurdistan Democratic Party reached out to Ankara for assistance, while the Patriotic Union of Kurdistan took help from Iran and even Saddam Hussein.
  • But matters of territorial integrity, financial sovereignty and nationalism are not easily trifled with at the intersection of empires.
  • "you know … we have a saying here. Kurdistan is a tree. After a long time, we grow tall, we become full of green leaves and then the tree shrivels and becomes bare. Right now, our leaves are green. Give it enough time. This tree won't die, but our leaves will fall to the ground again."
  •  
    "At the edge of empires lies Kurdistan, the land of the Kurds. The jagged landscape has long been the scene of imperial aggression. For centuries, Turks, Persians, Arabs, Russians and Europeans looked to the mountains to buffer their territorial prizes farther afield, depriving the local mountain dwellers a say in whose throne they would ultimately bow to."
anonymous

Oh Well - 0 views

  • But the real lesson of the oil spill may be how bad we are at dealing with unlikely but disastrous events. "We deal with them by ignoring them until they happen, and then overreacting," says John Harrald, a professor at George Washington University's Institute for Crisis, Disaster, and Risk Management.
    • anonymous
       
      This is like the "big number" problem, where humans have hard time thinking of big numbers, because they're so abstract. For the same reason, we can't figure odds and don't understand sudden systemic changes.
  •  
    Why we're so bad at dealing with unlikely disasters like the Louisiana oil spill. - By Christopher Beam - Slate Magazine on May 3, 2010.
anonymous

The Effects of the Gulf Oil Spill - 0 views

  • how deep an impression the cumulative effect will make on the American psyche — and how it will affect the nation’s behavior.
  • At the current pace, in five days the amount of oil spilled will surpass the 75,000 barrels spilled when a Union Oil well blew out off the coast of Santa Barbara in 1969. In 40 days the spill will surpass the 260,000 barrels spilled by ExxonMobil when the Valdez tanker hit a reef off the Alaska coast in 1989.
  • Both the Santa Barbara and the Valdez spills were significant political events in the United States, leading to a rise in environmentalism and stricter regulation on energy companies and offshore drilling. The Deepwater Horizon incident appears destined to have a similar or even greater impact. It has already prompted California Governor Arnold Schwarzenegger to abandon his push to expand regional offshore drilling, and caused pressure for U.S. President Barack Obama to suspend his recently announced plans to expand federal offshore drilling.
  •  
    By StratFor on May 4, 2010. A look at the psychological affects to the American mind.
anonymous

The Turkish Role in Negotiations with Iran - 0 views

  • The Iranians have achieved a similar position. By far the weakest of the negotiators, they have created a dynamic whereby they are not only sitting across the table from the six most powerful countries in the world but are also, like the North Koreans, frequently being coaxed there.
  • If the United States withdraws from the region, Iran becomes the most powerful conventional power in the Persian Gulf, regardless of whether it has nuclear weapons.
  • Given that the United States is officially bound to leave Iraq by the end of this year, Iran is becoming substantially more powerful.
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  • The drawdown of American forces in Iraq is the first step. As U.S. power declines in Iraq, Iranian power increases.
  • If it continues its withdrawal of forces from Iraq, Iraq will be on its way to becoming an Iranian satellite.
  • If Iraq becomes an Iranian ally or satellite, the Iraqi-Saudi and Iraqi-Kuwaiti frontier becomes, effectively, the frontier with Iran.
  • with the most strategically located country in the Middle East — Iraq — Iran now has the ability to become the dominant power in the Middle East and simultaneously reshape the politics of the Arabian Peninsula.
  • Assuming that the United States is not prepared to increase forces in Iraq dramatically, the Iranians now face a historic opportunity.
  • As STRATFOR has said and WikiLeaks has confirmed, it is the Saudis who are currently pressing the United States to do something about Iran, not because of nuclear weapons but because of the conventional shift in the balance of power.
  • The destruction of Iranian naval power is critical, since Iran’s most powerful countermove in a war would be to block the Strait of Hormuz with mines, anti-ship missiles and swarming suicide craft, cutting off the substantial flow of oil that comes out of the strait. Such a cutoff would shatter the global economic recovery. This is Iran’s true “nuclear” option.
  • Iran comes to the table with two goals
  • The first is to retain the powerful negotiating hand it has by playing the nuclear card. The second is to avoid an air campaign by the United States against Iran’s conventional capabilities.
  • The Iranians would not have to invade militarily to be able to reshape the region. It would be sufficient for there to be the potential for Iran to invade. It would shift the regime survival question away from Iran to Saudi Arabia.
  • the choices appear to be
  • accepting the shift in the regional balance in favor of Iran, reversing the withdrawal of U.S. forces from Iraq or attempting to destroy Iran’s conventional forces while preventing the disruption of oil from the Persian Gulf.
  • There is, of course, the option of maintaining or intensifying sanctions.
  • The Europeans are hardly of one mind on any subject save one: They do not want to see a disruption of oil from the Persian Gulf.
  • Therefore, at the table next week will be the Americans, painfully aware that its campaigns look promising at the beginning but frequently fail; the Europeans and Chinese, wanting a low-risk solution to a long-term problem; and the Russians, wanting to appear helpful while hoping the United States steps in it again and ready to live with soaring energy prices. And there are the Iranians, wanting to avoid a conventional war but not wanting to forego the opportunity that it has looked for since before the Islamic Republic — domination of the Persian Gulf.
  • The Turks opposed the U.S. invasion of Iraq because they expected it to fail to establish a viable government in Baghdad and thereby to destroy the balance of power between Iraq and Iran.
  • the United States was unprepared for the unilateral role Turkey and Brazil played at the time they played it.
  • It is all very good to want to negotiate as a neutral party, but the most important party isn’t at the table: Saudi Arabia. Turkey wants to play a dominant role in the Muslim world without risking too much in terms of military force. The problem for Turkey, therefore, is not so much bringing the United States and Iran closer but bringing the Saudis and Iranians closer, and that is a tremendous challenge not only because of religious issues but also because Iran wants to be what Saudi Arabia opposes most: the dominant power in the region.
  • The nuclear issue is easy simply because it is not time-sensitive right now. The future of Iraq is time-sensitive and uncertain.
  • If Turkey wants to play a constructive role, it must find a formula that satisfies three needs.
  • The first is to facilitate the American withdrawal
  • The second is to limit the degree of control Iran has in Iraq
  • The third is to persuade Saudi Arabia that the degree of control ceded to Iranians will not threaten Saudi interests
  • Having regional power is not a concept. It is a complex and unpleasant process of balancing contradictory interests in order to prevent greater threats to a country’s interests emerging in the long run.
  • As the Americans have learned, no one will thank them for it, and no one will think better of them for doing it. The only reason for a deeper involvement as mediator in the P-5+1 talks is that stabilizing the region and maintaining the Persian-Arab balance of power is in Turkey’s national interest. But it will be a wrenching shift to Turkey’s internal political culture. It is also an inevitable shift. If not now, then later.
  •  
    "The P-5+1 talks with Iran will resume Jan. 21-22. For those not tuned into the obscure jargon of the diplomatic world, these are the talks between the five permanent members of the U.N. Security Council (the United States, Britain, France, China and Russia), plus Germany - hence, P-5+1. These six countries will be negotiating with one country, Iran. The meetings will take place in Istanbul under the aegis of yet another country, Turkey. Turkey has said it would only host this meeting, not mediate it. It will be difficult for Turkey to stay in this role."
anonymous

The Significance of Libya's Gulf of Sidra Energy Assets | STRATFOR - 0 views

  • The directors of several oil companies in the Gulf of Sidra region of eastern Libya announced they were splitting from embattled leader Moammar Gadhafi and had “pledged loyalty to the people,” Zawya Dow Jones reported Feb. 23.
  • Currently, the fluid situation in eastern Libya makes it difficult to draw boundaries between cities controlled by pro- and anti-Gadhafi forces. While there appears to be an east-to-west domino effect, protests are still contained in individual cities, and their success in recruiting the support of local tribes, military forces or business leaders is different from city to city. Geographic limitations will further constrain the ability of protesters in these cities to coalesce for a push westward.
  • It is still very early in the conflict, and there is no indication that anti-Gadhafi forces are consolidating in eastern Libya, but control of the Gulf of Sidra could provide crucial strategic depth to a region of Libya that is breaking away from Tripoli’s control.
  •  
    "The heads of several oil companies in eastern Libya's Gulf of Sidra region announced Feb. 23 they had "pledged loyalty to the people" and were splitting from Moammar Gadhafi's regime. The Gulf of Sidra is critical to Libya's energy exports and its major ports handle approximately 77 percent of Libya's oil exports. It is still very early in the conflict, but if eastern forces gain control over this region, it could provide crucial strategic depth in their fight against Tripoli."
anonymous

Libya, the West and the Narrative of Democracy - 0 views

  • There is no question that the intervention is designed to protect Gadhafi’s enemies from his forces. Gadhafi had threatened to attack “without mercy” and had mounted a sustained eastward assault that the rebels proved incapable of slowing.
  • they want to intervene to protect Gadhafi’s enemies, they are prepared to support those enemies (though it is not clear how far they are willing to go in providing that support), but they will not be responsible for the outcome of the civil war.
  • Three assumptions have been made about this unrest.
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  • The first was that it represented broad-based popular opposition to existing governments
  • Second, it assumed that these revolutions had as a common goal the creation of a democratic society.
  • Third, it assumed that the kind of democratic society they wanted was similar to European-American democracy, in other words, a constitutional system supporting Western democratic values.
    • anonymous
       
      As regards item #3, I call 'projection.' As usual, the West interprets events in a manner that reinforces our own sense of self importance and historical righteousness.
  • Whether they supported the demonstrators in Tahrir Square is a matter of conjecture. They might have, but the demonstrators were a tiny fraction of Egyptian society
  • a narrative on what has happened in the Arab world has emerged and has become the framework for thinking about the region.
  • The narrative says that the region is being swept by democratic revolutions (in the Western sense) rising up against oppressive regimes. The West must support these uprisings gently. That means that they must not sponsor them but at the same time act to prevent the repressive regimes from crushing them.
  • Gadhafi did not run Libya for the past 42 years because he was a fool, nor because he didn’t have support. He was very careful to reward his friends and hurt and weaken his enemies, and his supporters were substantial and motivated.
  • Italy has an interest in Libyan oil, and the United Kingdom was looking for access to the same. But just as Gadhafi was happy to sell the oil, so would any successor regime be; this war was not necessary to guarantee access to oil. NATO politics also played a role. The Germans refused to go with this operation, and that drove the French closer to the Americans and British. There is the Arab League, which supported a no-fly zone (though it did an about-face when it found out that a no-fly zone included bombing things) and offered the opportunity to work with the Arab world.
  • Waging war for ideological reasons requires a clear understanding of the ideology and an even clearer understanding of the reality on the ground. In this intervention, the ideology is not crystal clear, torn as it is between the concept of self-determination and the obligation to intervene to protect the favored faction. The reality on the ground is even less clear. The reality of democratic uprisings in the Arab world is much more complicated than the narrative makes it out to be, and the application of the narrative to Libya simply breaks down. There is unrest, but unrest comes in many sizes, democratic being only one.
  •  
    "Forces from the United States and some European countries have intervened in Libya. Under U.N. authorization, they have imposed a no-fly zone in Libya, meaning they will shoot down any Libyan aircraft that attempts to fly within Libya. In addition, they have conducted attacks against aircraft on the ground, airfields, air defenses and the command, control and communication systems of the Libyan government, and French and U.S. aircraft have struck against Libyan armor and ground forces. There also are reports of European and Egyptian special operations forces deploying in eastern Libya, where the opposition to the government is centered, particularly around the city of Benghazi. In effect, the intervention of this alliance has been against the government of Moammar Gadhafi, and by extension, in favor of his opponents in the east."
anonymous

In a pure coincidence, Gaddafi impeded U.S. oil interests before the war - 1 views

  • Why -- at a time when American political leaders feel compelled to advocate politically radioactive budget cuts to reduce the deficit and when polls show Americans solidly and increasingly opposed to the war -- would the U.S. Government continue to spend huge sums of money to fight this war?  Why is President Obama willing to endure self-evidently valid accusations -- even from his own Party -- that he's fighting an illegal war by brazenly flouting the requirements for Congressional approval?  Why would Defense Secretary Gates risk fissures by so angrily and publicly chiding NATO allies for failing to build more Freedom Bombs to devote to the war?  And why would we, to use the President's phrase, "stand idly by" while numerous other regimes -- including our close allies in Bahrain and Yemen and the one in Syria -- engage in attacks on their own people at least as heinous as those threatened by Gaddafi, yet be so devoted to targeting the Libyan leader?
  • I have two points to make about all this:
  • The reason -- the only reason -- we know about any of this is because WikiLeaks (and, allegedly, Bradley Manning) disclosed to the world the diplomatic cables which detail these conflicts. 
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  • Is there anyone -- anywhere -- who actually believes that these aren't the driving considerations in why we're waging this war in Libya?  After almost three months of fighting and bombing -- when we're so far from the original justifications and commitments that they're barely a distant memory -- is there anyone who still believes that humanitarian concerns are what brought us and other Western powers to the war in Libya?
  • Instead, what distinguished Gaddafi and made him a war target was that he had become insufficiently compliant -- an unreliable and unstable servant to the West.
  • Wars are typically caused by the interests of multiple factions and rarely have just one motive.  As Jim Webb explained in arguing that the U.S. has no vital interest in Libya, the French and British are far more reliant on Libyan oil than the U.S. is (and this reader offers a rational dissent and alternative explanation for the war).  But the U.S. has long made clear that it will not tolerate hostile or disobedient rulers in countries where it believes it has vital interests, and that's particularly true in oil rich nations (which is one reason for the American obsession with Iran).
  •  
    "When the war in Libya began, the U.S. government convinced a large number of war supporters that we were there to achieve the very limited goal of creating a no-fly zone in Benghazi to protect civilians from air attacks, while President Obama specifically vowed that "broadening our military mission to include regime change would be a mistake." This no-fly zone was created in the first week, yet now, almost three months later, the war drags on without any end in sight, and NATO is no longer even hiding what has long been obvious: that its real goal is exactly the one Obama vowed would not be pursued -- regime change through the use of military force. We're in Libya to forcibly remove Gaddafi from power and replace him with a regime that we like better, i.e., one that is more accommodating to the interests of the West. That's not even a debatable proposition at this point." - Glenn Greenwald - Salon.com
anonymous

A Brief History of the Corporation: 1600 to 2100 - 1 views

  • In its 400+ year history, the corporation has achieved extraordinary things, cutting around-the-world travel time from years to less than a day, putting a computer on every desk, a toilet in every home (nearly) and a cellphone within reach of every human.  It even put a man on the Moon and kinda-sorta cured AIDS.
  • The Age of Corporations is coming to an end. The traditional corporation won’t vanish, but it will cease to be the center of gravity of economic life in another generation or two.  They will live on as religious institutions do today, as weakened ghosts of more vital institutions from centuries ago.
  • this post is mostly woven around ideas drawn from five books that provide appropriate fuel for this business-first frame. I will be citing, quoting and otherwise indirectly using these books over several future posts
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  • For a long time, I was misled by the fact that 90% of the available books frame globalization and the emergence of modernity in terms of the nation-state as the fundamental unit of analysis, with politics as the fundamental area of human activity that shapes things.
  • But the more I’ve thought about it, the more I’ve been pulled towards a business-first perspective on modernity and globalization.
  • The human world, like physics, can be reduced to four fundamental forces: culture, politics, war and business.
  • Culture is the most mysterious, illegible and powerful force.
  • But one quality makes gravity dominate at large space-time scales: gravity affects all masses and is always attractive, never repulsive.  So despite its weakness, it dominates things at sufficiently large scales. I don’t want to stretch the metaphor too far, but something similar holds true of business.
  • On the scale of days or weeks, culture, politics and war matter a lot more in shaping our daily lives.
  • Business though, as an expression of the force of unidirectional technological evolution, has a destabilizing unidirectional effect. It is technology, acting through business and Schumpeterian creative-destruction, that drives monotonic, historicist change, for good or bad. Business is the locus where the non-human force of technological change sneaks into the human sphere.
  • Culture is suspicious of technology. Politics is mostly indifferent to and above it. War-making uses it, but maintains an arms-length separation.
  • Business? It gets into bed with it. It is sort of vaguely plausible that you could switch artists, politicians and generals around with their peers from another age and still expect them to function. But there is no meaningful way for a businessman from (say) 2000 BC to comprehend what Mark Zuckerberg does, let alone take over for him. Too much magical technological water has flowed under the bridge.
  • It is business that creates the world of magic, not technology itself. And the story of business in the last 400 years is the story of the corporate form.
  • There are some who treat corporate forms as yet another technology (in this case a technology of people-management), but despite the trappings of scientific foundations (usually in psychology) and engineering synthesis (we speak of organizational “design”), the corporate form is not a technology.  It is the consequence of a social contract like the one that anchors nationhood. It is a codified bundle of quasi-religious beliefs externalized into an animate form that seeks to preserve itself like any other living creature.
  • What was new was the idea of a publicly traded joint-stock corporation, an entity with rights similar to those of states and individuals, with limited liability and significant autonomy
  • two important points about this evolution of corporations.
  • The first point is that the corporate form was born in the era of Mercantilism, the economic ideology that (zero-sum) control of land is the foundation of all economic power.
  • In politics, Mercantilism led to balance-of-power models.
  • In business, once the Age of Exploration (the 16th century) opened up the world, it led to mercantilist corporations focused on trade
  • The forces of radical technological change — the Industrial Revolution — did not seriously kick until after nearly 200 years of corporate evolution (1600-1800) in a mercantilist mold.
  • Smith was both the prophet of doom for the Mercantilist corporation, and the herald of what came to replace it: the Scumpeterian corporation.
  • The corporate form therefore spent almost 200 years — nearly half of its life to date — being shaped by Mercantilist thinking, a fundamentally zero-sum way of viewing the world.
  • It was not until after the American Civil War and the Gilded Age that businesses fundamentally reorganized around (as we will see) time instead of space, which led, as we will see, to a central role for ideas and therefore the innovation function.
  • The Black Hills Gold Rush of the 1870s, the focus of the Deadwood saga, was in a way the last hurrah of Mercantilist thinking. William Randolph Hearst, the son of gold mining mogul George Hearst who took over Deadwood in the 1870s, made his name with newspapers. The baton had formally been passed from mercantilists to schumpeterians.
    • anonymous
       
      So, Mercantilism was about colonizing space. Corporatism is about colonizing time. This is a pretty useful (though arguably too-reductionist) way to latch on to the underpinning of later thoughts.
  • This divide between the two models can be placed at around 1800, the nominal start date of the Industrial Revolution, as the ideas of Renaissance Science met the energy of coal to create a cocktail that would allow corporations to colonize time.
  • The second thing to understand about the evolution of the corporation is that the apogee of power did not coincide with the apogee of reach.
  • for America, corporations employed less than 20% of the population in 1780, and over 80% in 1980, and have been declining since
  • Certainly corporations today seem far more powerful than those of the 1700s, but the point is that the form is much weaker today, even though it has organized more of our lives. This is roughly the same as the distinction between fertility of women and population growth: the peak in fertility (a per-capita number) and peak in population growth rates (an aggregate) behave differently.
  • a useful 3-phase model of the history of the corporation: the Mercantilist/Smithian era from 1600-1800, the Industrial/Schumpeterian era from 1800 – 2000 and finally, the era we are entering, which I will dub the Information/Coasean era
    • anonymous
       
      I think it would be useful to map these eras against the backdrop of my previously established Generational timeline (as well as the StratFor 50-year cycle breakdown) in order to see if there are any self-supporting model elements.
  • By a happy accident, there is a major economist whose ideas help fingerprint the economic contours of our world: Ronald Coase.
  • To a large extent, the history of the first 200 years of corporate evolution is the history of the East India Company. And despite its name and nation of origin, to think of it as a corporation that helped Britain rule India is to entirely misunderstand the nature of the beast.
  • Two images hint at its actual globe-straddling, 10x-Walmart influence: the image of the Boston Tea Partiers dumping crates of tea into the sea during the American struggle for independence, and the image of smoky opium dens in China. One image symbolizes the rise of a new empire. The other marks the decline of an old one.
  • At a broader level, the EIC managed to balance an unbalanced trade equation between Europe and Asia whose solution had eluded even the Roman empire.
  • For this scheme to work, three foreground things and one background thing had to happen: the corporation had to effectively take over Bengal (and eventually all of India), Hong Kong (and eventually, all of China, indirectly) and England.
  • The background development was simpler. England had to take over the oceans and ensure the safe operations of the EIC.
  • eventually, as the threat from the Dutch was tamed, it became clear that the company actually had more firepower at its disposal than most of the nation-states it was dealing with. The realization led to the first big domino falling, in the corporate colonization of India, at the battle of Plassey.
  • The EIC was the original too-big-to-fail corporation. The EIC was the beneficiary of the original Big Bailout. Before there was TARP, there was the Tea Act of 1773 and the Pitt India Act of 1783. The former was a failed attempt to rein in the EIC, which cost Britain the American Colonies.  The latter created the British Raj as Britain doubled down in the east to recover from its losses in the west. An invisible thread connects the histories of India and America at this point. Lord Cornwallis, the loser at the Siege of Yorktown in 1781 during the revolutionary war, became the second Governor General of India in 1786.
  • But these events were set in motion over 30 years earlier, in the 1750s. There was no need for backroom subterfuge.  It was all out in the open because the corporation was such a new beast, nobody really understood the dangers it represented.
  • there was nothing preventing its officers like Clive from simultaneously holding political appointments that legitimized conflicts of interest. If you thought it was bad enough that Dick Cheney used to work for Halliburton before he took office, imagine if he’d worked there while in office, with legitimate authority to use his government power to favor his corporate employer and make as much money on the side as he wanted, and call in the Army and Navy to enforce his will. That picture gives you an idea of the position Robert Clive found himself in, in 1757.
  • The East India bubble was a turning point.
  • Over the next 70 years, political, military and economic power were gradually separated and modern checks and balances against corporate excess came into being.
  • It is not too much of a stretch to say that for at least a century and a half, England’s foreign policy was a dance in Europe in service of the EIC’s needs on the oceans.
  • Mahan’s book is the essential lens you need to understand the peculiar military conditions in the 17th and 18th centuries that made the birth of the corporation possible.)
  • The 16th century makes a vague sort of sense as the “Age of Exploration,” but it really makes a lot more sense as the startup/first-mover/early-adopter phase of the corporate mercantilism. The period was dominated by the daring pioneer spirit of Spain and Portugal, which together served as the Silicon Valley of Mercantilism. But the maritime business operations of Spain and Portugal turned out to be the MySpace and Friendster of Mercantilism: pioneers who could not capitalize on their early lead.
  • Conventionally, it is understood that the British and the Dutch were the ones who truly took over. But in reality, it was two corporations that took over: the EIC and the VOC (the Dutch East India Company,  Vereenigde Oost-Indische Compagnie, founded one year after the EIC) the Facebook and LinkedIn of Mercantile economics respectively. Both were fundamentally more independent of the nation states that had given birth to them than any business entities in history. The EIC more so than the VOC.  Both eventually became complex multi-national beasts.
  • arguably, the doings of the EIC and VOC on the water were more important than the pageantry on land.  Today the invisible web of container shipping serves as the bloodstream of the world. Its foundations were laid by the EIC.
    • anonymous
       
      There was an excellent episode of the original Connections series that pointed this out, specifically focusing on the Dutch boats and the direct line to container ships and 747 cargo planes.
  • A new idea began to take its place in the early 19th century: the Schumpeterian corporation that controlled, not trade routes, but time. It added the second of the two essential Druckerian functions to the corporation: innovation.
  • I call this the “most misleading table in the world.”
  • corporations and nations may have been running on Mercantilist logic, but the undercurrent of Schumpeterian growth was taking off in Europe as early as 1500 in the less organized sectors like agriculture. It was only formally recognized and tamed in the early 1800s, but the technology genie had escaped.
  • The action shifted to two huge wildcards in world affairs of the 1800s: the newly-born nation of America and the awakening giant in the east, Russia. Per capita productivity is about efficient use of human time. But time, unlike space, is not a collective and objective dimension of human experience. It is a private and subjective one. Two people cannot own the same piece of land, but they can own the same piece of time.  To own space, you control it by force of arms. To own time is to own attention. To own attention, it must first be freed up, one individual stream of consciousness at a time.
  • The Schumpeterian corporation was about colonizing individual minds. Ideas powered by essentially limitless fossil-fuel energy allowed it to actually pull it off.
  • it is probably reaosonably safe to treat the story of Schumpeterian growth as an essentially American story.
  • In many ways the railroads solved a vastly speeded up version of the problem solved by the EIC: complex coordination across a large area.  Unlike the EIC though, the railroads were built around the telegraph, rather than postal mail, as the communication system. The difference was like the difference between the nervous systems of invertebrates and vertebrates.
  • If the ship sailing the Indian Ocean ferrying tea, textiles, opium and spices was the star of the mercantilist era, the steam engine and steamboat opening up America were the stars of the Schumpeterian era.
  • The primary effect of steam was not that it helped colonize a new land, but that it started the colonization of time. First, social time was colonized. The anarchy of time zones across the vast expanse of America was first tamed by the railroads for the narrow purpose of maintaining train schedules, but ultimately, the tools that served to coordinate train schedules: the mechanical clock and time zones, served to colonize human minds.  An exhibit I saw recently at the Union Pacific Railroad Museum in Omaha clearly illustrates this crucial fragment of history:
  • For all its sophistication, the technology of sail was mostly a very-refined craft, not an engineering discipline based on science.
  • Steam power though was a scientific and engineering invention.
  • Scientific principles about gases, heat, thermodynamics and energy applied to practical ends, resulting in new artifacts. The disempowerment of craftsmen would continue through the Schumpeterian age, until Fredrick Taylor found ways to completely strip mine all craft out of the minds of craftsmen, and put it into machines and the minds of managers.
  • It sounds awful when I put it that way, and it was, in human terms, but there is no denying that the process was mostly inevitable and that the result was vastly better products.
  • The Schumpeterian corporation did to business what the doctrine of Blitzkrieg would do to warfare in 1939: move humans at the speed of technology instead of moving technology at the speed of humans.
  • Blitzeconomics allowed the global economy to roar ahead at 8% annual growth rates instead of the theoretical 0% average across the world for Mercantilist zero-sum economics. “Progress” had begun.
  • Two phrases were invented to name the phenomenon: productivity meant shrinking autonomously-owned time. Increased standard of living through time-saving devices became code for the fact that the “freed up” time through “labor saving” devices was actually the de facto property of corporations. It was a Faustian bargain.
  • Many people misunderstood the fundamental nature of Schumpeterian growth as being fueled by ideas rather than time. Ideas fueled by energy can free up time which can then partly be used to create more ideas to free up more time. It is a positive feedback cycle,  but with a limit. The fundamental scarce resource is time. There is only one Earth worth of space to colonize. Only one fossil-fuel store of energy to dig out. Only 24 hours per person per day to turn into capitive attention.
  • Then the Internet happened, and we discovered the ability to mine time as fast as it could be discovered in hidden pockets of attention. And we discovered limits. And suddenly a new peak started to loom: Peak Attention.
  • There is certainly plenty of energy all around (the Sun and the wind, to name two sources), but oil represents a particularly high-value kind. Attention behaves the same way.
  • Take an average housewife, the target of much time mining early in the 20th century. It was clear where her attention was directed. Laundry, cooking, walking to the well for water, cleaning, were all obvious attention sinks. Washing machines, kitchen appliances, plumbing and vacuum cleaners helped free up a lot of that attention, which was then immediately directed (as corporate-captive attention) to magazines and television.
  • The point isn’t that we are running out of attention. We are running out of the equivalent of oil: high-energy-concentration pockets of easily mined fuel.
  • There is a lot more money to be made in replacing hand-washing time with washing-machine plus magazine time, than there is to be found in replacing one hour of TV with a different hour of TV.
  • . To get to Clay Shirky’s hypothetical notion of cognitive surplus, we need Alternative Attention sources. To put it in terms of per-capita productivity gains, we hit a plateau.
  • When Asia hits Peak Attention (America is already past it, I believe), absolute size, rather than big productivity differentials, will again define the game, and the center of gravity of economic activity will shift to Asia.
  • Once again, it is the oceans, rather than land, that will become the theater for the next act of the human drama. While American lifestyle designers are fleeing to Bali, much bigger things are afoot in the region. And when that shift happens, the Schumpeterian corporation, the oil rig of human attention, will start to decline at an accelerating rate. Lifestyle businesses and other oddball contraptions — the solar panels and wind farms of attention economics — will start to take over.
  • It will be the dawn of the age of Coasean growth.
  • Coasean growth is not measured in terms of national GDP growth. That’s a Smithian/Mercantilist measure of growth. It is also not measured in terms of 8% returns on the global stock market.  That is a Schumpeterian growth measure. For that model of growth to continue would be a case of civilizational cancer (“growth for the sake of growth is the ideology of the cancer cell” as Edward Abbey put it).
  • Coasean growth is fundamentally not measured in aggregate terms at all. It is measured in individual terms. An individual’s income and productivity may both actually decline, with net growth in a Coasean sense.
  • How do we measure Coasean growth? I have no idea. I am open to suggestions. All I know is that the metric will need to be hyper-personalized and relative to individuals rather than countries, corporations or the global economy. There will be a meaningful notion of Venkat’s rate of Coasean growth, but no equivalent for larger entities.
  • The fundamental scarce resource that Coasean growth discovers and colonizes is neither space, nor time. It is perspective.
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    This is a lay friendly, amateur, mental exploration of the Corporation. It's also utterly absorbing and comes with the usual collection of caveats that we amateurs are accustomed to rattling off when we dunk ourselves into issues much bigger than ourselves. Thanks to BoingBoing, via Futurismic, for the pointer: http://www.boingboing.net/2011/06/23/a-brief-history-of-t.html http://futurismic.com/2011/06/22/a-brief-history-of-the-corporation-1600-to-2100/ "The year was 1772, exactly 239 years ago today, the apogee of power for the corporation as a business construct. The company was the British East India company (EIC). The bubble that burst was the East India Bubble. Between the founding of the EIC in 1600 and the post-subprime world of 2011, the idea of the corporation was born, matured, over-extended, reined-in, refined, patched, updated, over-extended again, propped-up and finally widely declared to be obsolete. Between 2011 and 2100, it will decline - hopefully gracefully - into a well-behaved retiree on the economic scene."
anonymous

Preventing an Arctic Cold War - 0 views

  • This unexpected transformation has radically altered the stakes for the Arctic, especially for the eight nations and indigenous peoples that surround it.
  • But while there has been cooperation on extracting the region’s oil, gas and mineral deposits, and exploiting its fisheries, there has been little effort to develop legal mechanisms to prevent or adjudicate conflict. The potential for such conflict is high, even though tensions are now low.
  • In 1996, eight countries — the United States, Russia, Canada, Norway, Finland, Sweden, Iceland and Denmark (which manages the foreign affairs and defense of Greenland) — and groups representing indigenous peoples established the Arctic Council to chart the region’s future. So far, this high-level forum has identified sustainable development and environmental protection as “common Arctic issues.” But another crucial concern — maintaining the peace — was shelved in the talks that led to the council’s creation. The fear then, as now, was that peace implied demilitarization. It doesn’t. But if these nations are still too timid to discuss peace in the region when tensions are low, how will they possibly cooperate to ease conflicts if they arise?
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  • How, for instance, will each nation position its military and police its territory? How will the Arctic states deal with China and other nations that have no formal jurisdictional claims but have strong interests in exploiting Arctic resources? How will Arctic and non-Arctic states work together to manage those resources beyond national jurisdictions, on the high seas and in the deep sea?
  • NATO’s top military commander, Adm. James G. Stavridis of the United States Navy, warned in 2010 of an “icy slope toward a zone of competition, or worse, a zone of conflict” if the world’s leaders failed to ensure Arctic peace.
  • President Vladimir V. Putin of Russia, whose economy is reliant on its rich deposits of oil and natural gas, clearly understands the benefits of a northern sea route and of the hydrocarbon deposits on his nation’s continental shelf, and has emphasized the importance of peace and cooperation in the Arctic. So have leaders of other Arctic nations. But we have heard virtually nothing from President Obama, even as he has made the dangers of a warming earth a priority of his second term.
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    "JUST a quarter-century ago, and for millenniums before that, the Arctic Ocean was covered year-round by ice, creating an impregnable wilderness that humans rarely negotiated. Today, as the effects of global warming are amplified in the high north, most of the ocean is open water during the summer and covered by ice only in the winter."
anonymous

The World Through Putin's Eyes - 0 views

  • Russia's flat topography affords little natural protection and is therefore bereft of natural borders. Land powers, as they have no seas to protect them, are more insecure than island nations and continents like the United States and Great Britain.
  • But Russia is particularly insecure.
  • Putin knows, therefore, that Russia cannot rule Eastern Europe. But he does require a degree of diplomatic and economic acquiescence in order to keep countries like Poland and Romania hobbled.
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  • Putin is happy that Russia's geography grants him access to massive natural gas deposits, as well as the pathways to export that natural gas to Europe, particularly to Eastern Europe. This provides him with economic and, thus, political leverage over former Warsaw Pact states. But he is nervous.
  • Countries by the Baltic Sea are building or planning to build regasification plants that will allow them to import natural gas in liquid form from other parts of the world, thereby undermining Russia's energy monopoly in Eastern Europe. Then there are the shale gas deposits in Poland and Ukraine that might further increase the energy options of those geopolitical bellwether countries. Putin needs to be a worrier.
  • Are they aware that when I took power there was political chaos and criminal anarchy, with ordinary Russians robbed of their dignity? In Putin's mind, he restored a large measure of order -- without which no progress is possible in the first place. And whatever his numerous faults, he is painfully aware that he is not in total control.
  • American journalists, politicians and government officials must drive Putin to distraction. They assault him on moral grounds. After all, "He is a dictator!" they say. "He tolerates and even encourages corruption and rampant thuggery!" But do they know I am dealing with Russia -- not with the United States? Putin must think.
  • Putin wants a discussion with the Americans based on geopolitical interests, not values.
  • The Communists required totalitarianism to exercise real control. But he is no mass murderer like Stalin; he is not relocating whole populations to Siberia. He is just a ruler with strong autocratic tendencies, something common to Russia. What do the Americans want of me! Why do they interfere with my domestic affairs through the support of these human rights organizations? And, by the way, don't the Americans realize that toppling Bashar al Assad in Syria might mean a worse human rights situation there; not a better one?
  • President Richard Nixon went to China to negotiate with Mao Zedong because it was in America's interest to do so; the fact that Mao had just killed millions in the Great Proletarian Cultural Revolution was not an over riding detail. So where is my Nixon? Putin must think.
  • The Russian Far East, an area roughly twice the size of Europe, has a paltry population of fewer than 7 million that may fall to fewer than 5 million in coming decades.
  • But geography dictates that Russia's alliance with China is mainly tactical. While Russia is delivering increasing amounts of oil (and probably natural gas soon, too) to China, something for which Beijing is grateful, the two giant nations share long borders in the Far East and in Central Asia that through the centuries have been volatile.
  • on the other side of the border Russia faces a population of 100 million people in Chinese Manchuria. Resource acquisition is the principal goal of Chinese foreign policy, and the Russian Far East is rich in reserves of natural gas, oil, timber, diamonds and gold.
  • Unless China itself implodes -- a possibility but not a probability -- China must be seen as a long-range threat to Russia.
  • Nixon would understand Russia's geopolitical insecurities and partially assuage them, in order to gain some leverage over China, just as four decades ago he had moved closer to China in order to gain some leverage over Russia.
  • Were the United States to give Russia more leeway in the Caucasus and Central Asia -- rather than trying to compete with Russia in those regions -- Russia might find ingenious ways to make China more nervous along its land borders. And that, in turn, would make China somewhat less able to devote so much of its energy to projecting power in the Pacific Basin, where it threatens American allies.
  • None of this would remotely fall into the category of aggressive or irresponsible international behavior, mind you. Trying to adjust the global balance of power in one's favor is a perennial goal of statesmanship.
  • In 1972, the American media praised Nixon for going to China and negotiating with a mass murderer. Now the same media would not let President Barack Obama go to Moscow to negotiate with a normal autocrat unless he delivers scolding lectures on human rights.
  • But even if Obama intellectually realizes such truths and opportunities, the public policy climate in the United States is not that of the Cold War, which would have allowed for a broader dynamic between Washington and Moscow to each side's mutual benefit. The result is that China profits, to the endless frustration of Putin. As for the United States, it gains little advantage in the outcome.
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    "Few people comprehend Russia's vulnerabilities like its leader, Vladimir Putin. He must try to govern a country that extends through nearly half the longitudes of the earth but that has fewer people than Bangladesh. What's more, Russia's population is declining, not increasing. All the Arctic seas to Russia's north are ice-blocked many months of the year, so with the exception of its Far East, Russia is essentially a landlocked nation. "
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