petro-oligarchy

Trump admin opens bids for ANWR drilling

The Trump administration on Nov. 16 announced formal proceedings to sell oil and gas leases in Alaska's Arctic National Wildlife Refuge (ANWR). The Bureau of Land Management (BLM) Alaska State Office issued a call for "nominations" on several lease tracts considered for the upcoming Coastal Plain Oil & Gas Lease Sale, covering approximately 1.5 million acres of the refuge along the coast of the Arctic Ocean. The notice launches the beginning of a 30-day public comment period before the agency moves forward with lease sales.

Iraq and Afghanistan: US troops out, Chevron in?

On a visit to Baghdad this week, Gen. Frank McKenzie, chief of the Pentagon's Central Command, announced that US forces in Iraq will be reduced in the coming weeks from some 5,200 troops to about 3,000. McKenzie later told reporters that troop levels in Afghanistan will drop from the current 8,600 to 4,500. All of this is to happen by "late October," he said. How convenient. (AP, Politico) This all smells more of politics that strategy. There are still more than 10,000 ISIS fighters remaining across Iraq and Syria, according to a UN estimate from August. So, as Defense One comments, "any 'mission accomplished' moment remains elusive to clear-eyed observers of ISIS and the Middle East."

Rojava Kurds cut deal with US oil company

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."

Ninth Circuit approves drilling within Alaska reserve

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.

UN climate talks delayed one year by COVID-19

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

San Francisco suit against oil companies remanded

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.

Yes, 'peak oil'—but demand, not supply

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)

Negative oil prices slow tar sands production

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)

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