It was pretty surreal to hear Leon Panetta warning of an actual war between China and Japan, arriving in Tokyo just as the two Asian powers are facing off over contested islands in the East China Sea. What made it so incongruous is that despite the obvious lingering enmities from World War II (which for China really started in 1937, or maybe even 1931), in the current world conflict that we call World War 4, warfare is explicitly portrayed even by Pentagon planners as an instrument of globalization—bringing the light of "free markets" and "integration" to benighted regions of the globe that continue to resist their lures. Warfare is now "asymmetrical," posing a single superpower and its allies against "terrorists" and insurgents, or at the very most against "rogue states." The old paradigm of war between rival capitalist powers has seemed pretty irrelevant for the past generation. In the Cold War with the Russians, the superpowers manipulated proxy forces while the US aimed for strategic encirclement of the rival power. In the New Cold War with China that is now emerging, the US again seeks strategic encirclement, and while there aren't any proxy wars being waged (no contemporary equivalent of Vietnam or Angola or Nicaragua), Japanese and South Koreans should beware of their governments being entangled in Washington's containment strategy—as Panetta's own comments acknowledge, games of brinkmanship can get out of control. And, as we noted, even as he made his warning, he was in Japan to inaugurate a new anti-missile radar system, ostensibly designed to defend against North Korea, but certain to be perceived in Beijing as a part of the encirclement strategy...

At least 26 are dead, 50 injured and seven still missing after a Sept. 18 explosion at a Petróleos Mexicanos  (Pemex) gas pipeline distribution center on the outskirts of Reynosa, on the Texas border in Tamaulipas state. The dead include four Pemex employees and 22 private contractors. The pipeline serves wells in northern Mexico's Burgos basin, which have been repeatedly attacked for pilfering by criminal gangs such as Los Zetas. Last month, Pemex said the amount of petroleum products stolen in the first half of this year is up 18% compared to 2011, totalling more than 1.8 million barrels. But the company denied that criminal activity was linked to the Reynosa blast. (Brownsville Herald, Sept. 19; OilPrice, Aug. 21)

The prospect of an actual shooting war between China and Japan got a little realer this week as both sides raised the stakes in the showdown over the barren East China Sea chain known as the Diaoyu Islands to the Chinese and as the Senkaku Islands to the Japanese. Over the weekend, angry anti-Japan protests spread to 85 cities across China. In Beijing, protesters besieged the Japanese embassy, hurling rocks, eggs and bottles. Police fired tear gas and used water cannon on thousands of protesters occupying a street in Shenzhen, Guangdong province. Protesters broke into a Panasonic plant and several other Japanese-run factories as well as a Toyota dealership in Qingdao, Shandong province, ransacking and torching. In Shanghai, hundreds of military police were brought in to break up protesters outside the Japanese consulate, who chanted: ''Down with Japan devils, boycott Japanese goods, give back Diaoyu!'' (China Digital Times, SMH, Kyodo, Sept. 17)

Venezuela's state oil company PDVSA has confirmed an oil spill reported by Curaçao authorities on August 17 at the autonomous Dutch territory's Isle refinery, which is operated by the Venezuelan parastatal. PDVSA said Aug. 30 that is has been working with local authorities  to contain the spill. But local environmental organizations charge that PDVSA responded late to the emergency. Peter van Leeuwen, chair of Clean Environment on Curaçao (SMOC), asserted that neither PDVSA nor the territory's government had contingency plans in place for such a disaster, and stated that the island's Jan Kok nature preserve, a critical flamingo habitat, has been impacted. "This is probably the biggest disaster in Curaçao," he said. "The whole area of Jan Kok is black. The birds are black. The crabs are black. The plants are black. Everything is draped in oil." (El Universal, Caracas, Aug. 30; AP, Aug. 27)

A massive gas leak explosion at Venezuela's sprawling Amuay refinery on Aug. 25 killed 48 people and badly damaged 1,600 homes—the worst industrial disaster in the country's history, and the worst refinery accident anywhere on Earth in over a decade. The refinery on the Paraguana Peninsula (see map) is South America's largest and one of the world's largest, run by the state oil company PDVSA. Hundreds of residents of the poor Alí Primera and La Pastora districts near the facility have been left homeless. As the inferno blazed for four days, prompting an exodus from the stricken districts, gangs of looters descended, breaking into the still-standing homes to carry away refrigerators and TV sets. Opposition critics charge that PDVSA failed to carry out maintenance work or improve safety standards following a string of accidents and unplanned outages at the refinery in recent years.

The US  Department of Defense announced Aug. 29 that the Chief Prosecutor for Military Commissions has filed terrorism charges against a Saudi Guantánamo Bay prisoner accused of plotting with al-Qaeda to blow up oil tankers near Yemen. The detainee, Ahmed al Darbi, has been accused of six offenses under the Military Commissions Act of 2009, including conspiracy, aiding and abetting attacks on civilians, and aiding and abetting terrorism based on his former work as a weapons instructor, contact with Osama bin Laden, and support of bombing civilian oil tankers. According to the statement released by the Pentagon:

We don't doubt that Big Oil has its money on the Republicans and Mitt Romney when push comes to shove. But we noted back in 2008 that the reigning petro-oligarchs were deftly playing both sides in the presidential race. The nature of the game is that no matter who gets in, the petro-oligarchs win. But a part of the game is that Romney gets to bait Obama as a Green Stalin for suggesting that some remnants of federal oversight over the oil industry be retained—which only causes Obama to capitulate yet further. In terms of actual policy on oil and energy, the difference between the two parties has been narrowing almost from the moment Obama took office, until today it is vanishingly small. From AP, Aug. 23:

British Petroleum (BP) announced Aug. 24 that it expects to move ahead next year with deep-sea drilling work off the coast of Libya—resuming its $2 billion exploration program halted by the revolution against Moammar Qaddafi's regime last year. The oil major, which in May lifted a freeze on its activities in the North African country, will shortly resume preliminary work on the project, with drilling itself set to start some time in 2013. BP is currently choosing contractors for underwater geological surveying, a tender invitation posted on the Libyan National Oil Company website indicates. Under the deal signed with the Qaddafi government in 2007, BP will explore in the Sirt basin, more than ten times the size of its deep-water blocks off Angola. Under the 2007 contract, BP acquired 31,000 square kilometers of three-dimensional seismic data both offshore and onshore, with explorations in the Ghadames basin of Libya's western desert. (MarketWatch, Aug. 24)