pipeline wars

Puerto Rico: Fortuño loses —but did statehood win?

On Nov. 7 Puerto Rican governor Luis G. Fortuño conceded defeat in his bid for a second four-year term in an election the day before that also included voting for the legislature and the municipal governments, and a non-binding referendum on the island's status. With 96.35% of the ballots counted, Fortuño, the candidate of the pro-statehood New Progressive Party (PNP), had received 47.04% of the votes; Senator Alejandro García Padilla, running for the centrist Popular Democratic Party (PPD), won narrowly with 47.85%. Juan Dalmau Ramírez of the Puerto Rican Independence Party (PIP) came in third with 2.53%, less than the 3% required to maintain the party's ballot status. Three smaller parties split the remaining votes. (Prensa Latina, Nov. 7; Claridad, Puerto Rico, Nov. 8)

Keystone vs Enbridge: race or stratagem?

We noted earlier this year that the Canadian government is holding out the threat of selling the Alberta tar sands oil to China through the Northern Gateway pipeline that Enbridge Inc hopes to build to the British Columbia coast as a stratagem to pressure the US for rapid approval of TransCanada's Keystone XL pipeline, which would export that same oil to stateside refineries as far south as Texas. In January, President Barack Obama denied a permit (for the time being) to the main trunk that would bring the oil down from Canada (to Republican outrage). But in March, he announced he would approve construction of the southern leg, from Cushing, Okla., to the Texas coast—a move blasted by enviros as a betrayal and (natch) by Republicans as inadequate. (LAT, March 22; see map from the Washington PostThe southern leg is, of course, contingent on the northern leg, thus establishing greater pressure for it. Now, as work commences on the southern leg, it emerges that Enbridge, in addition to fighting Canada's own enviros to win approval of the Northern Gateway, is quietly but rapidly expanding its own pipeline network south of the 49th parallel. Is this bet-hedging—keeping access to US markets in case Canada's greens prevail over the Northern Gateway? Or are Enbridge and TransCanada throwing each other a wink—divvying up the US market between them while cultivating the "China card" to lubricate access to that market? We recall the famous admonition of Calouste Gulbenkian, the Armenian oilman who brokered the post-World War I carve-up of the Middle East among US and European companies: "Oilmen are like cats; you can never tell from the sound of them whether they are fighting or making love." Exhibit A, from the LA Times, Aug. 16:

Sudan and South Sudan strike oil deal —but border disputes remain

South Sudan and Sudan announced Aug. 4 they have reached a deal over the south's use of Khartoum's oil pipelines and distribution of oil revenues—potentially ending a dispute that prompted South Sudan to shut down its oil production in January and nearly led to war. Under the deal reached at talks in Addis Ababa, South Sudan will pay $9.48 per barrel to use one of Sudan's pipelines to export crude, and $11 to use a second leading to a refinery before reaching a sea terminal. Khartoum had originally demanded $36 per barrel.

China launches bid to undermine trans-Afghan pipeline project

Regional security has been seen as the biggest challenge for the planned trans-Afghan gas pipeline—officially the Turkmenistan-Afghanistan-Pakistan-India (TAPI) project, which would pass the war-torn Afghan provinces of Herat and Kandahar as well as Pakistan's restive Baluchistan province. But recent reports of a rival pipeline project being negotiated between ChinaTurkmenistan and Afghanistan may pose a more fundamental threat to the TAPI. On June 6-8, on the sidelines of the Shanghai Cooperations Organization summit in Beijing, Afghan President Hamid Karzai met with Chinese President Hu Jintao and China National Petroleum Corporation's (CNPC) head Jiang Jiemin to discuss the proposal. CNPC offered to conduct a technical and economic feasibility study for the proposed project on Afghan and Tajik territories. That the route would avoid the conflicted Pashtun-dominated areas of southern Afghanistan, making the project more attractive for investors. India's Institute for Defence Studies and Analyses says the Chinese pipeline could undermine the TAPI "akin to the manner in which TAPI played spoiler to the Iran-Pakistan-India (IPI) pipeline project." (IDSA, July 31)

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