control of oil

Mexico sells offshore oil blocs, but majors are shy

For the first time in nearly 80 years, Mexico opened its oil industry to foreign companies, offering 14 offshore exploration blocs in a July 15 auction. However, only two of the blocs were sold, falling short of expectations. ExxonMobil, Chevron and Total all passed on the first 14 shallow-water oil blocs in the Gulf of Mexico. A consortium of Mexico-based Sierra Oil & Gas, Texas-based Talos Energy and UK-based Premier Oil Plc won Bloc No. 2 after the first bloc didn't receive a bid, Mexico's National Hydrocarbons Commission and Energy Secretariat announced. Only nine companies took part in the auction, fewer than the 25 originally planned. A larger auction is planned for next month. The blocs are near the US-Mexico transboundary waters, and close to some of the most significant discoveries of the past 15 years on the US side. A new Hydrocarbon Law, allowing for production-sharing and profit-sharing, was instated in 2014. Over the past decade, Mexico has fallen from the world's fifth oil producer to tenth. (FuelFix, July 16; FuelFixBBC News, July 15; WSJ, July 12)

Greece seeks 'security axis' with Cyprus, Israel

Greece is in turmoil over what can only be seen as the ruling Syriza party's bait-and-switch: the government called a referendum on the EU-mandated austerity plan, voters said "No," and then the administration went ahead and agreed to a similar plan, sparking the worst riots in Athens in years. Finance Minister Yanis Varoufakis stepped down, and most Syriza MPs have broken with Prime Minister Alexis Tsipras. Amid all this, the Jerusalem Post reports more news that will alienate Tsipras from his leftist base. It seems that on July 6, Tsipras' Foreign Minister Nikos Kotzias spoke in Jerusalem of developing what the JP calls an "axis of security" (uncertain if Kotzias himself used that phrase) made up of Greece, Cyprus and Israel. This is an ostensible response to what Kotzias called a "triangle of destabilization" delineated by Ukraine, Libya and Iraq/Syria. "We have to create inside this triangle a security and stability framework, and the relations between Israel, Cyprus and Greece are very important," Kotzias said. "I call it the stabilization line in this area."

Vietnam tilts to US in Pacific 'Great Game'

Here's another one to file under "Life's little ironies." Vietnam's Communist Party boss Nguyen Phu Trong (the country's "paramount leader") meets with Obama at the White House—a first, coming exactly 20 years after US-Hanoi diplomatic relations were restored. Why now? The Washington Post flatly states that Obama "is seeking to reconfigure a historically difficult relationship with Vietnam into a strategic partnership against China." White House officials "said Hanoi has been signaling interest in forging deeper economic and military ties with the United States," and also emphasized that Vietnam "is among the 12 nations involved in an expansive Pacific Rim trade pact." That's the Trans-Pacific Partnership—which is nearly openly conceived as a counter-measure to China's economic rise.

New York state puts fracking ban in place

The New York Department of Environmental Conservation (DEC) released a final environmental impact statement (PDF) on the dangers of fracking on June 29, which carries the force of law and officially bans fracking in the state. Signed by DEC commissioner Joseph Martens, the report cited significant water withdrawals, increased stormwater runoffs, potential severe flooding and inadequate waste disposal as possible dangers that may affect the state's water resources. The report also cited the dangers of increased greenhouse gas emissions and the release of naturally occurring radioactive material. The Department considered extensive mitigation measures but were not convinced as to their efficacy. "In the end...[t]he Department’s chosen alternative to prohibit high-volume hydraulic fracturing is the best alternative based on the balance between protection of the environment and public health and economic and social considerations." This decision confirms a report issued in December by New York Gov. Andrew Cuomo and his administration affirming their intent to block hydraulic fracturing across the state.

Israel denies backing Nusra after Golan lynching

In a grisly incident on the Israeli-annexed Golan Heights last week, Druze villagers attacked an Israeli military ambulance, killing one of two Syrian casualties it was carrying. The attack was apparently retaliation for the Nusra Front massacre of Druze villagers in Syria a week earlier. Al-Monitor reports that the IDF has launched an aggressive "information campaign" to convince the Golan Druze that Israel is not backing the Nusra Front. Media reports (Reuters, Forward) have been vague on who the casualties in the ambulance actually were, but blogger Michael Karadjis identified the murdered patient as Munthir Khalil from the "Revolutionary Command Council in Quneitra and Golan," a wing of the Free Syrian Army's Southern Front. Karadjis emphasizes that the Southern Front months ago issued a declaration cutting off all cooperation with the Nusra Front, and offered refuge to fleeing villagers after the massacre. He calls the incident "deadly consequences" of the "fairy tale" that Israel is backing Nusra.

Bolivia: government divided on Amazon road project

Bolivia's Vice-Minister of Government Alfredo Rada was asked by a reporter from TV show "Levántate Bolivia" June 25 how he viewed the controversial highway that would cut through the Isiboro Secure Inidgenous Territory and National Park (TIPNIS) in light of Pope Francis' recent encyclical on the dangers of climate change. Implicitly referencing the repression of protests against the highway in 2011, which resulted in suspension of the project, Rada responded: "At the time I considered, and still consider, that TIPNIS has been one of the errors of the government." (ANF, June 25; ENS, June 18) Just weeks earlier, President Evo Morales made a statement indicating that the highway project would be revived. At a ceremony marking the 45th anniversary of founding of Villa Tunari municipality, Cochabamba, which would be a hub on the new highway, Morales said: "This road, compañeros, will be realized." Alluding to the neighboring jungle department of Beni as a stronghold of the right-wing opposition, he added: "First, it will liberate Beni. Second, it will bring greater integration between the departments, we are convinced of this." He claimed the project has the support of the governments of Cochabamba and Beni departments, both now controlled by Morales' ruling Movement Towards Socialism (MAS). (La Razón, June 25)

Mexico cracks down on narco-oil

In an open acknowledgement that it cannot secure its pipeline system from plunder by criminal gangs, Mexico's state oil monopoly Pemex announced Feb. 18 that it will no longer pump refined gasoline and diesel through the duct network. Mexico lost $1.14 billion last year to pipeline thefts last year—a 70% increase over the previous year. This is an ominous sign that the drug cartels are becoming the real power on the ground throughout much of the country—moving beyond their mainstays of illicit substances to contraband control of legal commodities like oil and minerals, establishing a virtual parallel economy. Pemex will now only send "unfinished" fuel through its more than 14,000 kilometers of pipeline, reported El Universal. The company said in a statement: "Customers should make sure that the fuel they buy has been delivered from Pemex terminals, and not buy gasoline or diesel from anyone other than gas stations or authorized dealers, given that...it could damage motors."

Arunachal Pradesh: pawn in the new Great Game

Last month's US-India nuclear deal obviously signaled a rise in Sino-Indian tensions, seen by Beijing (accurately) as part of an encirclement strategy. The deal called for inclusion of India in the Nuclear Suppliers Group (NSG), which drew immediate criticism from China. The NSG is comprised of 46 nuclear supplier states, including China, Russia and the US, that have agreed to coordinate export controls on civilian nuclear material to non-nuclear-weapon states. The group has up to now been made up of signatories to the Non-Proliferation Treaty (NPT)—which, as China was quck to note, does not include India (or Pakistan, or the "secret" nuclear nation Israel). More to the point, India is not a "non-nuclear-weapon state." (The Diplomat, Feb. 14; Arms Control Association)

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