control of oil
Argentina: new energy law seeks foreign capital
Argentina's Chamber of Deputies voted 130-116, with one abstention, on Oct. 30 to pass a new version of a 1967 federal law governing the exploitation of oil and gas resources. The controversial new version had already been approved by the Senate; it will become law once it is signed and published in the Official Gazette by President Cristina Fernández de Kirchner. Under the revised law—which was pushed through the National Congress by the Front for Victory (FPV), President Fernández's center-left faction of the Peronist Justicialist Party (PJ)—concessions will be granted to private companies for 25 years for conventional oil drilling, for 30 years for offshore drilling and for 35 years for unconventional techniques like hydrofracking. The royalties the companies pay on oil and gas sales will be limited to 12% for the federal government and to just 3% for the oil-producing provinces, which technically control the resources. Private companies can also benefit from a provision letting them sell 20% of their production in international markets without paying export taxes if they invest $250 million over a three-year period.
Mexico: Supreme Court rejects energy referendum
In a 9-1 decision on Oct. 30, Mexico's Supreme Court of Justice of the Nation (SCJN) rejected two proposals to put President Enrique Peña Nieto's "energy reform"—a program for a partial privatization of the country's energy industry—to a vote in an official referendum. The court agreed on Oct. 17 to consider a referendum proposal from the center-left National Regeneration Movement (MORENA), which had presented a petition with two million signatures; a larger center-left party, the Party of the Democratic Revolution (PRD), made a similar proposal. The justices ruled that voting on Peña Nieto's energy program would violate a constitutional prohibition against referenda on federal revenue policies. The two parties had argued that the vote concerned the use of national resources, not revenue. (New York Times, Oct. 30, from AP; La Jornada, Mexico, Oct. 31)
Mexico: privatization scandals multiply
The Sept. 26-27 killing and abduction of several dozen students in the southwestern state of Guerrero could be creating problems for Mexican president Enrique Peña Nieto's efforts to improve the country's international image and to continue the opening of its economy to private businesses. Los Angeles Times correspondent Tracy Wilkinson reported on Oct. 25 that Peña's "government is clearly concerned it is losing a finely crafted domestic and international public relations campaign that emphasized major reforms of Mexico's energy sector. Publications in the US and Europe that once lavished praise on the president have turned the tables." (LA Times, Oct. 25)
ISIS advances on Kobani —and Baghdad
Iraq's military has halted ISIS forces just 40 kilometers outside of Baghdad. Iraqi government air-strikes Sept. 28 held the jihadist fighters at Ameriyat al-Fallujah, a strategic town west of Baghdad and south of ISIS-controlled Fallujah. But panic spread in the capital as rumors circulated of ISIS attacks in the capital's immediate suburbs. Reports indicate some 1,000 Iraqi soldiers were killed in the offensive over the weekend. (Rudaw) Meanwhile, ISIS advanced to within three kilometers of the Kurdish town of Kobani in northern Syria. Kobani official Idriss Nassan appealed to the outside world for urgent assistance: "We need help. We need weapons. We need more effective air-strikes. If the situation stays like this, we will see a massacre. I can't imagine what will happen if ISIS gets inside Kobani." (CNN)
Ecuador: mobilizations for and against Correa
Supporters and opponents of Ecuador's President Rafael Correa took to the streets of Quito by the thousands Sept. 17—at one point clashing with each other, resulting in eight arrests. Authorities claimed several police officers were injured. Correa, who addressed his supporters at Plaza de la Independencia, boasted that the pro-government march was "bigger, much, much bigger." This was contested by organizers of the opposition march, who claimed to have mobilized some 5,000. The opposition rally was called by the Unitary Workers' Front (FUT), the country's principal trade union federation, in alliance with the indigenous organizations CONAIE and Ecuarunari. FUT called the march to oppose Correa's reform of the labor code, which union leaders denounced as a "neoliberal" roll-back of workers' rights. The indigenous groups joined to protest ongoing oil and mineral development.
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.

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