petro-oligarchy

Obama's seventh year: a World War 4 Report scorecard

World War 4 Report has been keeping a dispassionate record of Barack Obama's moves in dismantling, continuing and escalating (he has done all three) the oppressive apparatus of the Global War on Terrorism (GWOT) established by the Bush White House. This year, the stakes got much higher, with multiple foreign interventions in Syria and ISIS striking in Europe. On the night of Obama's 2016 State of the Union address, we offer the following annotated assessment of which moves over the past year have been on balance positive, neutral and negative, and arrive at an overall score:

Ecuador reaches settlement with Oxy Petroleum

Ecuador will make a $1 billion payment to US oil giant Occidental Petroleum following a settlement on terms of a World Bank arbitration panel, President Rafael Correa announced Jan. 9. The International Center for Settlement of Investment Disputes (ICSID) initially ordered Ecuador to pay the company $1.77 billion plus interest in the 2012 ruling. Correa in his weekly media address said that his government had succeeded in negotiating the sum down significantly. In his radio address, Correa said that in "a good faith gesture" Ecuador made an initial payment last month of 100 million dollars, and set up a schedule to complete payment of the balance by April. "We signed an agreement with Oxy yesterday and we have settled the matter in an amiable way," he said.

Obama and the KXL-TPP contradiction

An ominously ironic juxtaposition of news stories, for those who are paying attention. First, the apparent good news. President Obama announced Nov. 6 that he's rejected the Keystone XL oil pipeline, after seven years of deliberation on the question. Obama invoked the prospect of leaving the 800,000 barrels a day of Canadian shale oil the pipeline would carry in the ground. "America is now a global leader when it comes to taking serious action to fight climate change," the president said. "And, frankly, approving this project would have undercut that global leadership." (NYT, Nov. 6) But one day earlier, Obama notified Congress of his intent to sign the Trans-Pacific Partnership (TPP), and finally released the text of the heretofore secretive trade deal. The notification starts a 90-day countdown to the next step in the approval process—seeking Congressional authorization. (The Hill, Reuters, Nov. 5)

Retreat on Arctic drilling —push to open ANWR

This year has seen the rise and fall of Shell Oil's plan to begin offshore Arcitc drilling in Alaskan waters. Now, the Interior Department has announced the cancellation of two pending Arctic offshore lease sales that were scheduled under the current five-year offshore leasing program for 2012-2017—Chukchi Sea Lease Sale 237 and Beaufort Sea Lease Sale 242. Additionally, the Department announced denial or requests from Shell and Statoil for extensions that would have allowed for retention of their leases beyond their primary terms of 10 years. DoI stated that "the companies did not demonstrate a reasonable schedule of work for exploration and development under the leases, a regulatory requirement necessary for BSEE [Bureau of Safety and Environmental Enforcement] to grant a suspension." But in justifying the decisions, Secretary Sally Jewell openly stated that in light of "current market conditions, it does not make sense to prepare for lease sales in the Arctic in the next year and a half." (Alaska Native News, Oct. 16) This amounts to a virtual admission that the idea here is "banking" the oil under the sea, until currently depressed prices start to rise again.

US eases oil export ban

The US Department of Commerce on Aug. 14 agreed to allow limited crude oil trading with Mexico, easing a ban on crude exports that has been in place for 40 years. Members of the US Congress were informed by the Department of Commerce that it plans to approve an application by Petroleos Mexicanos (Pemex), Mexico's state-run oil company, to trade heavy oil pumped in Mexico for light crude pumped in the US. Despite applications from some dozen other countries, which were denied, Canada is the only other nation currently exempt from the ban. Unlike in the agreement with Mexico, Canada is not required to export similar crude quantities to the US. An end to the ban has been called for by both members of Congress and oil producers, including Exxon Mobil Corp.

China allows first pollution suit under new law

China's Qingdao Maritime Court on July 27 ruled that a lawsuit against ConocoPhillips China and China National Offshore Oil for a 2011 oil spill can proceed. The suit was brought by the China Biodiversity Conservation and Green Development Foundation and it the first case to proceed since the country revised a law (LoC backgrounder) allowing NGOs to directly sue polluters in the public interest. The Chinese government has already fined the companies approximately $258 million for the spill. Other cases are also pending under the law, which became effective on Jan. 1.

Ice Age fears: don't believe the hype

Russia Today on July 12 announces breathlessly: "Earth is facing the prospect of a 'mini ice age' this century, with our sun's activity projected to fall 60 percent in the 2030s, British astrophysicists say, based on the results of new research that they claim allows exact predictions of solar cycles." The scientists in question are a team from Northumbria University led by a Professor Valentina Zharkova. While the lead researcher's nice Russian name must be appealing to RT, there are other aspects of the story that doubtless make it even more irresistible. We smell Putin propaganda to allow him to go on exploiting Arctic oil without having to worry about contributing to global warming. Why have we seen this reported in few sources other than the unreliable (and state-controlled) RT? 

Mexico sells offshore oil blocs, but majors are shy

For the first time in nearly 80 years, Mexico opened its oil industry to foreign companies, offering 14 offshore exploration blocs in a July 15 auction. However, only two of the blocs were sold, falling short of expectations. ExxonMobil, Chevron and Total all passed on the first 14 shallow-water oil blocs in the Gulf of Mexico. A consortium of Mexico-based Sierra Oil & Gas, Texas-based Talos Energy and UK-based Premier Oil Plc won Bloc No. 2 after the first bloc didn't receive a bid, Mexico's National Hydrocarbons Commission and Energy Secretariat announced. Only nine companies took part in the auction, fewer than the 25 originally planned. A larger auction is planned for next month. The blocs are near the US-Mexico transboundary waters, and close to some of the most significant discoveries of the past 15 years on the US side. A new Hydrocarbon Law, allowing for production-sharing and profit-sharing, was instated in 2014. Over the past decade, Mexico has fallen from the world's fifth oil producer to tenth. (FuelFix, July 16; FuelFixBBC News, July 15; WSJ, July 12)

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