petro-oligarchy
Podcast: climate change and the global struggle II
In Episode 147 of the CounterVortex podcast, Bill Weinberg notes the recent statement from the UN Environment Program that "only a root-and-branch transformation of our economies and societies can save us from accelerating climate disaster." Studies from similarly prestigious global bodies have raised the prospect of imminent human extinction. An International Energy Agency report released last year warned that new fossil fuel exploration needed to halt by 2022 in order to keep warming within the limits set by the 2015 Paris Agreement. Adoption of new technologies and emissions standards does mean that CO2 emissions from energy generation (at least) are likely to peak by 2025. But the IEA finds that this would still lead to global temperatures rising by 2.5 C above pre-industrial levels by century's end—exceeding the Paris Agreement limits, with catastrophic climate impacts. And the catastrophic impacts, already felt in places like (just for example) Chad and Cameroon, win but scarce media coverage. Climate-related conflict has already escalated to genocide in Darfur, and possibly in Syria. The oil companies, meanwhile, are constitutionally incapable of writing off the "stranded assets" of vast hydrocarbon investments. Climate protests in Europe—at oil terminals and car shows (as well as, less appropriately, museums)—do win some attention. But the ongoing resistance to still-expanding oil mega-projects in places like Uganda and Tanzania are comparatively invisible to the outside world. The dire warnings from the UN and IEA raise the imperative for a globalized resistance with an explicitly anti-capitalist politics. Listen on SoundCloud or via Patreon.
Pipeline plans threatened by Af-Pak border clashes
Afghanistan authorities say some 60 civilians, including five children, were killed as Pakistan launched air-strikes across the border on Khost and Kunar provinces April 15 and 16. The strikes, carried out by both missiles and warplanes, follow a series of attacks by the Tehreek-e-Taliban Pakistan (TTP) in Pakistan's borderlands, including an April 14 ambush on a military convoy in North Waziristan district in the volatile Khyber Pakhtunkhwa province.
Ukraine war windfall for US fracking industry
US President Joe Biden and European Commission president Ursula von der Leyen on March 25 announced a joint Task Force to reduce Europe's dependence on Russian hydrocarbons and "strengthen European energy security as President Putin wages his war of choice against Ukraine." The press release states: "The United States will work with international partners and strive to ensure additional LNG volumes for the EU market of at least 15 bcm [billion cubic meters] in 2022, with expected increases going forward." This means liquified natural gas from the US fracking industry.
Ukraine war portends new oil shock
Long-depressed oil prices are suddenly soaring in response to the Russian invasion of Ukraine, with impacts already being felt globally. Kazakhstan, recently wracked by internal instability, is facing economic crisis as its crude exports are threatened. Most of these exports pass through a pipeline linking Kazakhstan's western oil-fields to Russia's Black Sea terminal at Novorossiysk. That terminal, owned by the Caspian Pipeline Consortium (CPC), lies within 250 kilometers of the Ukrainian port of Mariupol, now besieged by Russian forces. This proximity is sufficient for tankers loading at the Novorossiysk terminal to incur a "war risk insurance premium." According to S&P Global Platts, the premium has been high enough to deter buyers since the Russian invasion of Ukraine was launched late last month.
Peru: police pop presidential palace in petro-corruption probe
On Feb. 14, special anti-corruption prosecutors backed up by National Police troops raided 15 properties around Peru's capital Lima—including the presidential palace. The raids came as part of Megaoperation Resplandor 2022, an investigation into alleged irregularities in tenders for the purchase of biodiesel between parastatal PetroPerú and the private firm Heaven Petroleum Operators. Also raided were the homes of PetroPerú director Hugo Ángel Cháves Arévalo, HPO manager Samir Abudayeh, and prominent entrepreneur Karelim López. (TeleSur, CNN, InfoBae, Biofuel Digest, El Linea) The administration of President Pedro Castillo, a populist political outsider who was elected last year, has been wracked by repeated crises and scandals since he took office in July.
Control of oil behind Mexico-Spain tensions
Mexico's President Andrés Manuel López Obrador on Feb. 9 called for a "pause" in relations with Spain, in a speech that explicitly invoked the legacy of colonialism going back to the Conquest. But the speech was clearly aimed principally at Spanish oil company Repsol, which had been favored during the presidential term of Felipe Calderón. Specifically, López Obrador questioned the granting of gas contracts in the Burgos Basin, in Mexico's northeast. He charged that Repsol operated the fields less productively than the state company Pemex had. "In the end, less gas was extracted than Pemex extracted" before the contracts, he charged.
US judge invalidates massive offshore oil sale
A judge on the US District Court for the District of Columbia on Jan. 27 invalidated an oil and gas lease sale in the Gulf of Mexico, finding that the Biden administration failed to properly account for the auction's environmental impact. In 2017, the Outer Continental Shelf Oil & Gas Leasing Program issued a five-year plan which proposed 10 region-wide lease sales. One of those was Lease Sale 257, for 80.8 million acres of Gulf waters, the largest offshore oil and gas lease sale in United States history.
Peru demands Repsol pay in coastal oil spill
Peru's authorities declared an environmental emergency on Jan. 20 after announcing that 21 beaches around the Lima area were contaminated by an oil spill at a refinery run by Spanish multinational Repsol, calling it the "worst ecological disaster" in the city's history. The Environmental Evaluation & Control Organism (OEFA) estimated some 6,000 barrels of crude had spilled—dramatically above the mere seven gallons that Repsol had initially reported to authorities when the disaster occurred five days earlier. Some 1,740,000 square meters of coastline and 1,1187,000 square meters of sea have been covered in sludge that has blackened beaches and killed marine life. Peru is demanding compensation from Repsol, accusing the company of trying to cover up the scale of the disaster and not having a contingency plan in place.

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