petro-oligarchy

Peru leaks: oil company rewrote environmental law

Leaked e-mails between the leaders of Peru's Energy & Mines Ministry (MEM) and Environment Ministry (MINAM) reveal that Australia's Karoon Energy International provided "technical support" in the proposed reform of the Hydrocarbon Regulation that would eliminate requirement for an environmental impact study before oil exploration. In one e-mail. MEM chief Eleodoro Mayorga was directly reproached by MINAM head Manuel Pulgar Vidal for bringing Karoon into the process. This was among some 3,500 messages hacked by Anonymous Perú from the account of ex-prime minister René Cornejo, dubbed by the press "Cornejoleaks." Karoon has operations at Bloc 238 in the northern coastal department of Tumbes. (La Republica, Panorama via Celendin Libre, Aug. 12; Peru21, Aug. 11)

Rival trade pacts vie for Pacific hegemony

In a move being openly portrayed as part of a race with the US-backed Trans-Pacific Partnership (TPP) for hegemony in the Asia-Pacific region, China has set up a working group to study the feasibility of a Free Trade Area of the Asia Pacific (FTAAP). The proposal comes ahead of a meeting in May of trade ministers from the Asia Pacific Economic Cooperation (APEC) forum, which China will host. Wang Shouwen, an assistant commerce minister, assured: "We think there will be no conflict between the FTAAP and the region's other FTAs under discussion." But reports note that the news comes just as progress of the TPP has snagged over Japanese insistence on protecting its agricultural and automotive sectors. Chinese President Xi Jinping in October said at the APEC business forum in Indonesia that Beijing will "commit itself to building a trans-Pacific regional cooperation framework that benefits all parties"—an obvious veiled criticism of the TPP. (Tax News, May 5; AFP, April 30)

Mexico: HP fined in latest Pemex scandal

On April 9 the California-based technology company Hewlett-Packard (HP) announced that it was paying a $108 million fine to the US Justice Department and the US Securities and Exchange Commission (SEC) to end an investigation into subsidiaries in Poland, Russia and Mexico that allegedly paid bribes to officials. The HP subsidiaries "created a slush fund for bribe payments, set up an intricate web of shell companies and bank accounts to launder money, employed two sets of books to track bribe recipients, and used anonymous email accounts and prepaid mobile telephones to arrange covert meetings to hand over bags of cash," according to a statement by the Justice Department. HP said the corruption "was limited to a small number of people who are no longer employed by the company."

Ukraine, austerity and gas

Coverage of Ukraine's newly inked deal with the International Monetary Fund is like the proverbial blind men and the elephant. Russia Today's headline is "Ukraine parliament passes austerity bill required by IMF," whereas the EU-aligned EurActiv put it: "IMF extends generous assistance to Ukraine." Forbes smarmily goes one better with "Ukraine Welcomes IMF Austerity Regime." RT tells us: "It is ordinary Ukrainians who will suffer the most under the new austerity measures as the floating national currency is likely to push up inflation, while spike in domestic gas prices will impact every household." But Reuters fleshes out the context for this a bit: "Moscow will not make it easy and Ukraine is already feeling some consequences from its break with Russia. Prime Minister Arseny Yatseniuk said...the price the country would pay for Russian gas, which accounts for over half of Ukrainian gas imports, would soar by almost 80 percent from April 1 as the seizure of Crimea had rendered a cheaper gas deal obsolete." So it seems that Russia as well as the IMF is imposing privation on Ukrainians, and is especially responsible for the spike in gas prices.

Gulf of Mexico: maybe you missed the bad news...

Well, natural gas has stopped flowing from a stricken rig off the Louisiana coast, the US Bureau of Safety and Environmental Enforcement informs us. The rig is owned by Hercules Offshore and operating for the Walter Oil and Gas Corp, about 42 miles southwest of Grand Isle. Hercules admits Mother Nature came to the rescue, saying the well became plugged with sand and sediment, basically snuffing itself out The leak started on the morning of July 23, and the fire burned for some 14 hours. It still isn't quite out yet, by most recent reports. (CNNAP, Times-Picayune, July 25; ENSAPHercules Offshore press release, July 24)

Supreme Court rules against Nigerians in Shell case

The US Supreme Court ruled unanimously April 17 in Kiobel v. Royal Dutch Petroleum that nothing in the Alien Tort Statute of 1789 (ATS) rebuts the US presumption against extraterritoriality and that suits challenging torture and international law violations that took place overseas cannot be brought in US Court. Chief Justice John Roberts authored the majority opinion. Kiobel was held over from last term when the court decided that the parties should brief on the circumstance when the ATS should apply extraterritorially. In the new ruling the court held that extraterritorial disputes—those concerning foreign actors that violate treaties to which the US is a party—cannot be litigated in the US under the ATS, and "sufficient force" is necessary to displace that presumption. The opinion also suggested that "mere corporate presence" will not suffice to bring suit in the US:

Leak at tar sands plant fouls Athabasca River

Suncor Energy is one of Canada's top tar-sands oil producers and a big pusher for the Keystone XL Pipeline (see Globe & Mail, Oct. 25, 2011). They are, of course, key players in the continental NAFTA shadow government. So why are we reading about their contamination of the Athabasca River in the Edmonton Journal (March 26) and not the New York goddam Times? Just asking.

Tainted water poured for hours before broken Suncor pipe sealed
EDMONTON — A waste-water pipe at Suncor’s oilsands plant leaked into a pond of treated water Monday, and the resulting diluted water flowed into the Athabasca River, a company official said Tuesday.

Peak oil apocalyptoids: eating crow yet?

Remember the incessant squawking a few years back, when oil prices were spiralling, about how we were approaching "peak oil"? Been mighty quiet from that set recently, hasn't it? Vince Beiser explains why in a piece called "The Deluge" in the Pacifc Standard, March 4:

The widely circulated fears of a few years ago that we were approaching "peak oil" have turned out to be completely wrong. From the Arctic to Africa, nanoengineered materials, underwater robots, side-scanning 3-D sonar, specially engineered lubricants, and myriad other advances are opening up titanic new supplies of fossil fuels, many of them in unexpected places—Brazil, Australia, and, perhaps most significantly, North America. "Contrary to what most people believe," declares a recent study from the Harvard Kennedy School, "oil supply capacity is growing worldwide at such an unprecedented level that it might outpace consumption."

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