control of oil

Syria: will fall of Aleppo internationalize the war?

Some 70,000 civilians from Aleppo are fleeing to the Turkish border, as Syrian regime troops backed by Russian warplanes advance on the city. They will join some 30,000 already amassed at the border and hoping Turkish authorities will allow them to cross. (Al Jazeera) Independent journalists have posted grim video footage and photos of the exodus to Facebook. French journalist Natalie Nougayrède writes in a commentary for The Guardian that "What happens next in Aleppo will shape Europe's future." 

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.

Libya: ISIS attacks oil export terminals

At least two members of Libya's Petroleum Facilities Guard were killed Jan. 4 as ISIS militants attacked the Sidra and Ras Lanouf oil export terminals. Militants launched two suicide car-bomb attacks at the security gate of the Sidra facility in a diversionary strike while another force of up to a dozen vehicles looped south and attacked Ras Lanouf, some 30 kilometers to the east. One of the facility's storage tanks was set ablaze in the assault. The attack comes two weeks after French Defense Minister Jean-Yves Le Drian warned that ISIS was planning to seize Libya's oil facilities. Sidra and Ras Lanouf are under control of the internationally recognized government based in Libya's east, but last year were the scene of battles as Libya Dawn forces loyal to the Tripoli-based regime attempted to take the facilities. Sidra and Ras Lanouf lie near the border between the rival regimes' territories They also lie just east of Sirte, the principal ISIS stronghold in Libya. (Libya Herald, BBC News, CBS, Jan. 4)

Bolivia: first woman serves as military commander

For the first time in Bolivia's history, a woman assumed the post of chief of the Armed Forces High Command as Gen. Gina Reque Terán was sworn in Dec. 30. In her inaugural speech she vowed: "We will work ardently in the struggle against the narco-traffic and contraband, for the protection of natural resources... We will be forever alert to respond to any natural disaster... We will be prepared for any contingency." President Evo Morales in his own comments noted the military's role in the 2006 nationalization of Bolivia's hydrocarbons, which allowed the country to "liberate" itself economically. He also thanked the armed forces for their support in confronting the secessionist movement in Bolivia's east.

Syria and Ukraine wars headed for convergence?

Disturbing reports emerged Dec. 14 that the Russian navy forced a Turkish merchant ship to change course in a brief confrontation in the Black Sea. Russian naval forces were apparently protecting vessles that were towing two oil drilling platforms that are being disputed between Russia-annexed Crimea and Ukraine. Following the annexation of Crimea last year, the Chernomorneftegaz drilling company—a subsidiary of Ukraine's parastatal Naftogaz—was seized by the Crimean regional parliament. Ukraine says it will challenge the seizure before international arbitrators. Chernomorneftegaz's drilling platforms, operating in international waters off the Ukrainian port of Odessa, were being relocated to Russian territorial waters when they were bocked by a Turkish merchant ship. Moscow's Defense Ministry said the incident was "resolved" when a Russian missile cruiser chased the Turkish vessel off. In another incident reported one day earlier, the Defense Ministry said its destroyer Smetlivy "fired warning shots" to deter a Turkish fishing vessel in the Aegean Sea "to avoid a collision." Turkey's military attaché in Moscow was summoned to the Ministry over the incident. (Daily Sabah, Dec. 15; RT, Dec. 14; RT, Dec. 13)

Russo-Turkish pipeline route on hold amid crisis

With Moscow threatening sanctions against Turkey in the aftermath of the downing of a Russian warplane on the Syrian border, plans for a Russo-Turkish free trade zone appear be on hold—along with key energy projects. Foremost among these is the TurkStream gas pipeline, which Economy Minister Alexei Ulyukayev said Moscow could "restrict." (Reuters) TurkStream is being developed by GazProm, the Russian energy giant, to export Russian (and potentially Central Asian) natural gas through Turkey via the Black Sea. Ulyukayev's hedging is understandable: this has long been a strategic project for Moscow, which has long nurtured a grudge over the Baku-Ceyhan pipeline—linking the Caucasus to Turkish port of Ceyhan through a route that by-passes Russia.

Glencore secures Libya oil contract

Media accounts Nov. 20 report that Glencore, the commodity trader with global mining operations, has secured a deal with Libya’s National Oil Corporation (NOC) to broker the nation's crude. The agreement, initiated in September with an option to renew in December, covers 150,000 barrels a day, or roughly half the amount currently being exported. According to Reuters: "Under the arrangement...Glencore loads and finds buyers for all the Sarir and Messla crude oil exported from the Marsa el-Hariga port near the country's eastern border with Egypt." The reports portray the deal as uncontroversial. The Financial Times writes: "The National Oil Corporation, along with the central bank, is one of the few institutions still functioning in Libya, where a civil war has left the country divided between an internationally recognised government in the east and an Islamist militia in the west that controls the capital Tripoli." In fact, the NOC is also divided, with feuding branches controlled by the rival regimes. Marsa el-Hariga is just outside Tobruk, exiled seat of the recognized government. We can be certain that the Glencore deal will raise protests (at least) from Tripoli.

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