In the imperial carve-up of northern Syria, US troops have since late last year been controlling the oil-fields of Deir ez-Zor province, in collaboration with the Kurdish-led Syrian Democratic Forces (SDF). Now reports are emerging that the Kurdish autonomous administration in the region has signed a 25-year contract with a little-known US company for exploitation of oil in SDF-held territory. The company, Delta Crescent Energy, incorporated in Delaware in February 2019, still apparently lacks a website. But its partners are said to include former US ambassador to Denmark James Cain; James Reese, a former officer in the US Army's elite Delta Force; and John P. Dorrier Jr., a former executive at UK-based GulfSands Petroleum. The GulfSands website indicates the British company has oil contracts in Syria that are "currently under Force Majeure as a result of EU sanctions."
The Ninth Circuit Court of Appeals on July 9 issued a ruling in favor of the US government, allowing oil drilling to proceed in the National Petroleum Reserve-Alaska (NPRA). The court rejected a claim by environmental groups that a 2012 impact statement prepared for earlier drilling within the NPRA was inadequate to cover new planned operations by oil companies elsewhere in the reserve, a critical caribou habitat.
International climate negotiations will be delayed by a full year because of the coronavirus pandemic, the UN Framework Convention on Climate Change (UNFCCC) and the UK government announced May 28. The next summit, officially dubbed the 26th UN Climate Change Conference of the Parties (COP26), was due to take place this November in Glasgow, but has now been put off to November 2021. Delaying the talks could encourage governments, industrial concerns and financial institutions to adopt recovery plans with high climate costs. The postponement is particularly critical given the failure of last year's summit, held in Madrid, to reach any agreement. Instead, critical decisions were put off for COP26. This means a full two years will have passed before any progress can be made. (STV)
The US Court of Appeals for the Ninth Circuit on May 26 reversed a federal judge's dismissal of a climate change lawsuit against oil companies including ExxonMobil, BP and Chevron by the cities of San Francisco and Oakland, setting the stage for the case to be heard in a more favorable California state court. The two cities, who first brought suit separately, are seeking billions of dollars from the companies in a special "abatement fund," alleging their practices knowingly led to problems the cities must now contend with, including rising seas and extreme weather. The cases were initially brought in state court, but they were combined and moved to federal court at the demand of the companies, on the basis that they raised questions of US law, such as the Clean Air Act. The case was dismissed in June 2018 by US District Judge William Alsup, who held that the courts lacked jurisdiction in the matter. A Ninth Circuit panel remanded the case back to Judge Alsup, ordering him to give further consideration to whether his court has jurisdiction. If he again finds his court lacks jurisdiction, the panel ruled, the case must return to state court.
After oil prices went negative for the first time ever last month, they are now starting to rise again as lockdowns imposed by the COVID-19 pandemic are gradually lifted. US crude is now back to nearly $30 a barrel. But this is less than half what the price was a year ago, and a third what it was a dozen years ago. Iraq, OPEC's second-largest producer, is at the forefront of the cartel's effort to squeeze supply to consumer nations, as part of its recent deal to curb output. Baghdad just announced a 30% cut of exports to Asia. But it remains to be seen if such measures will jack up prices and ease the economic pain that has led to a remobilization of anti-regime protests, despite pandemic fears. (Reuters, Bloomberg, Al Jazeera)
Despite last week's agreement by Saudi Arabia and Russia to end their price war, the oil market remains in free-fall amid the virtual shut-down of the world economy by the COVID-19 pandemic. The price of the main US oil benchmark, West Texas Intermediate, fell on April 20 to $30 below zero—the first time oil prices have ever turned negative. This means anyone trying to sell a barrel would have to actually pay a buyer. The global industry output of 100 million barrels a day would appear to be on borrowed time. (NYT)
Already depressed oil prices are now plummeting in response to the COVID-19 pandemic. Global oil consumption is said to be in "free-fall," and predicted to lead to the largest "annual contraction in history." Bloomberg reports that oil traders fear that demand "may contract by the most ever this year, easily outstripping the loss of almost 1 million barrels a day during the great recession in 2009 and even surpassing the 2.65 million barrels registered in 1980, when the world economy crashed after the second oil crisis." (OilChange)
Before Donald Trump left the London NATO summit in a huff, he made the startling claim at a press conference that the United States can do "what we want" with the oil-fields now under its control in northeast Syria. The Dec. 2 remarks are provided via White House transcript: "And I wanted to say that, in keeping the oil, ISIS was trying to, as you know, regain control of the oil. And we have total control of the oil. And, frankly, we had a lot of support from a lot of different people. But, right now, the only soldiers we have, essentially, in that area, are the soldiers keeping the oil. So we have the oil, and we can do with the oil what we want." This faux pas, jumped on by the British tabloid press, recalls Trump's 2016 campaign trail boast of his plans for Syria: "I'll take the oil"—and turn the seized fields over to Exxon!