control of oil

Next: Free Siberia?

Shelling in the rebel-held eastern Ukraine city of Donetsk left two dead Sept. 17, despite a ceasefire and a law passed by Kiev's parliament a day earlier granting greater autonomy to the country's east. Fighting centered on the city's airport, which remains in government hands, with nearby neighborhoods caught in the crossfire. Civilian casualties have continued to rise since the supposed ceasefire, adding to the estimated 3,000 people killed in the conflict so far. (The Independent, Sept. 17) In an asburd irony little noted by the world media, as Vladiimir Putin backs the brutal "People's Republics" (sic) in eastern Ukraine, he has cracked down on a separatist movement that has emerged in Siberia. Last month, when the Ukraine crisis was at a peak, Russian authorities banned a Siberian independence march and took hrash measures to prevent the media from even reporting it—threatening to block the BBC Russian service over its coverage of the movement. BBC's offense was an interview with Artyom Loskutov, an organizer of the "March for Siberian Federalization," planned for Aug. 17 in Novosibirsk, The Guardian reported.

Low oil price: calm before the storm?

We've long maintained that global oil prices are not determined by scarcity or even the laws of supply and demand so much as by politics—the price rises or falls in response to war or comparative stability in the Middle East. Oil fields don't have to actually go up in flames—the mere fear that this will happen is sufficient to drive up the price: it is about perception. We've also noted that the global petro-oligarchs are hoping to reap a windfall from the multiple global crises, plugging the North American energy boom as a key to security and low prices. But ultimately, high prices are needed to fuel continued expansion of the industry, whether in North America, the Arctic, Persian Gulf or Caspian Basin. So, to an extent, the global price is manipulated—we are alternately told that energy self-sufficiency is reducing reliance on unstable global markets, and that instability threatens our "way of life" so we had better loosen burdensome environmental restraints on new exploitation. At the moment, we are on the first part of the cycle: After an initial price shock when ISIS seized northern Iraq, prices have now stabilized, and we are being told it is thanks to domestic fracking and tar-sands oil. Soon enough (just you wait) they will be surging up again, especially if (as seems all too likely) the Middle East continues to escalate. This much is admitted in a Sept. 15 National Public Radio report, "With Turmoil Roiling Abroad, Why Aren't Oil Prices Bubbling Up?"...

Great Game for Arctic in Ukraine struggle?

Ukrainian President Petro Poroshenko and his Western allies charge that Moscow has sent at least 1,000 regular army troops into the two easternmost oblasts of Ukraine, Donetsk and Luhansk, to back up the separatist rebels there. Russia's President Vladimir Putin responds with an outburst of presumably unintentional irony. He compared Kiev's encirclement of rebel-held Donetsk and Luhansk to the 900-day Nazi siege of Leningrad in which 1 million civilians died. Speaking at a pro-Kremlin rally at a lakeside youth camp, he also told supporters—some waving banners bearing his face—that Russia remains a strong nuclear power and therefore "it's best not to mess with us." He added that Russians and Ukrainians "are practically one people"—recalling his recent references to the disputed areas of southeastern Ukraine as "Novorossiya." So, let's get this straight... he accuses his enemies of being like the Nazis while enouraging a fascistic personality cult around his own leadership, while making claims to the territory of a neighboring country on ethno-nationalist grounds, and while threatening use of nuclear weapons. This is another example of what we call the Paradoxical Anti-Fascist Rhetoric of Contemporary Crypto-Fascism. Although in Putin's case, it is barely crypto.

Syria: US intervention —against ISIS?

Boy, did we ever call this one. Contrary to the prevailing leftist conspiracy theory that the US was backing ISIS against Assad, we predicted earlier this year that the US would soon intervene in Syria against al-Qaeda and its offshoots such as ISIS. Today, the New York Times reports the comments of  Gen. Martin E. Dempsey, chair of the Joint Chiefs of Staff, that ISIS cannot be defeated unless the US or its partners take them on in Syria. "This is an organization that has an apocalyptic end-of-days strategic vision that will eventually have to be defeated," Dempsey said. "Can they be defeated without addressing that part of the organization that resides in Syria? The answer is no." Dempsey and Defense Secretary Chuck Hagel, who both spoke at a Pentagon press conference, stopped short of saying air-strikes on Syria are planned, but the comments were obviously intended to float the idea. 

Obama orders more troops to Iraq

Another 130 US troops arrived in northern Iraq on Aug. 12 on what the Pentagon described as a temporary mission to assess the scope of the humanitarian crisis facing thousands of displaced civilians trapped on Mount Sinjar. Kurdish sources said four US Osprey aircraft landed in Erbil, where the military advisors disembarked and were greeted by officials of the Kurdistan Regional Government (KRG). On a visit to California's Camp Pendleton, Defense Secretary Chuck Hagel emphasized: "This is not a combat boots on the ground kind of operation. We're not going back into Iraq in any of the same combat mission dimensions that we once were in in Iraq." (AP, Rudaw)

Iraq: ISIS poses Kurdish dilemma for Washington

Kurdish Peshmerga forces took control of the town of Zumar near Iraq's border with Syria Aug. 1, routing ISIS militants from oil installations they had taken in a surprise attack earlier in the day. Kurdish authorities said two Peshmerga troops were killed, along with several ISIS fighters, with several more ISIS militants taken prisoner. The Peshmerga victory comes two days after ISIS insurgents blew up the critical bridge over the Tigris River at Samarra, effectively cutting off Baghdad from Nineveh and Iraq's north. The emergence of the Peshmerga as a more potent force against ISIS than Iraq's national army (now approaching a state of disentegration) raises obvious dilemmas. In fact, in 2012, the town of Zumar was at the center of a political crisis between Baghdad and the Kurdistan Regional Government. The central government sent military units to Zumar to take the border post, but were stopped by Peshmerga forces. Zumar lies in the northwest of Nineveh governorate, on the border of teritory controlled by the KRG and ISIS. (See map.) (Rudaw, Aug. 1; BasNews, July 30)

US courts weigh fate of Kurdish oil shipment

Iraq's government persuaded a US judge in Texas to order the seizure of $100 million of oil inside a tanker anchored off Galveston that it claims was illegally pumped from wells in Kurdistan. Kurdish officials “misappropriated” more than 1 million barrels of oil from northern Iraq and exported them through a pipeline to the Turkish port of Ceyhan, according to a complaint filed in Houston federal court. Magistrate Judge Nancy Johnson in Galveston authorized US marshals to seize the cargo and have it moved ashore for safekeeping until the dispute is resolved. However, as the vessel remains outside US territorial waters, the order cannot be carried out. "Either they’ll bring the oil into port, where we'll take possession of it, or they'll sail off somewhere else," Phillip Dye Jr., Houston-based attorney for the Iraqi Oil Ministry, told Bloomberg, adding that his clients don’t know who bought the cargo. A State Department spokesman said last week that the government would warn potential buyers of oil from Iraqi Kurdistan the legal risks involved. (Bloomberg, WSJ, July 29)

Resistance to ISIS mounts in Syria, Iraq

More than 700 were killed in Syria over the course of July 18-19, in what the Syrian Observatory for Human Rights (SOHR) called the bloodiest 48 hours in the conflict to date. SOHR president Rami Abdul Rahman compared the violence to the gas attack in Ghouta last year, which he said killed some 500. The dead were mostly from fighting between ISIS and pro-government forces in clashes over the Shaar gas field near Homs. Reports of ISIS atrocities in Syria continue to mount. ISIS militants reportedly carried out the stoning of a woman charged with adultery in the stadium of Tabqa city July 18. SOHR said residents resisted ISIS pressure to participate in the stoning. (Asharq Al-Awsat, July 20)

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