control of oil

Sri Lanka to Lima: ripples from Ukraine storm

Sri Lanka's President Gotabaya Rajapaksa declared a nationwide state of emergency April 2, as angry protests over fuel shortages and power cuts erupted in the capital Colombo. When police repression failed to quell the protests, Rajapaksa sought to appease demands for his resignation with a purge of his cabinet. The emergency order was lifted April 5—the same day Peru's President Pedro Castillo imposed a curfew in Lima and its port of Callao in response to an eruption of protests over dramatic fuel price hikes. As street clashes broke out in the cities, farmers outraged at a jump in fertilizer costs blocked highways at several points around the country—including Ica, where a toll-booth was set on fire. The world has seen an oil price surge to $100 a barrel in the wake of Russia's invasion of Ukraine. (The Hindu, PTI, NYTJurist, Al Jazeera, DW, BBC News, AFP, El Popular)

Ukraine war portends new oil shock

Long-depressed oil prices are suddenly soaring in response to the Russian invasion of Ukraine, with impacts already being felt globally. Kazakhstan, recently wracked by internal instability, is facing economic crisis as its crude exports are threatened. Most of these exports pass through a pipeline linking Kazakhstan's western oil-fields to Russia's Black Sea terminal at Novorossiysk. That terminal, owned by the Caspian Pipeline Consortium (CPC), lies within 250 kilometers of the Ukrainian port of Mariupol, now besieged by Russian forces. This proximity is sufficient for tankers loading at the Novorossiysk terminal to incur a "war risk insurance premium." According to S&P Global Platts, the premium has been high enough to deter buyers since the Russian invasion of Ukraine was launched late last month.

Peru: police pop presidential palace in petro-corruption probe

On Feb. 14, special anti-corruption prosecutors backed up by National Police troops raided 15 properties around Peru's capital Lima—including the presidential palace. The raids came as part of Megaoperation Resplandor 2022, an investigation into alleged irregularities in tenders for the purchase of biodiesel between parastatal PetroPerú and the private firm Heaven Petroleum Operators. Also raided were the homes of PetroPerú director Hugo Ángel Cháves Arévalo, HPO manager Samir Abudayeh, and prominent entrepreneur Karelim López. (TeleSur, CNN, InfoBae, Biofuel Digest, El Linea) The administration of President Pedro Castillo, a populist political outsider who was elected last year, has been wracked by repeated crises and scandals since he took office in July.

Control of oil behind Mexico-Spain tensions

Mexico's President Andrés Manuel López Obrador on Feb. 9 called for a "pause" in relations with Spain, in a speech that explicitly invoked the legacy of colonialism going back to the Conquest. But the speech was clearly aimed principally at Spanish oil company Repsol, which had been favored during the presidential term of Felipe Calderón. Specifically, López Obrador questioned the granting of gas contracts in the Burgos Basin, in Mexico's northeast. He charged that Repsol operated the fields less productively than the state company Pemex had. "In the end, less gas was extracted than Pemex extracted" before the contracts, he charged.

US judge invalidates massive offshore oil sale

A judge on the US District Court for the District of Columbia on Jan. 27 invalidated an oil and gas lease sale in the Gulf of Mexico, finding that the Biden administration failed to properly account for the auction's environmental impact. In 2017, the Outer Continental Shelf Oil & Gas Leasing Program issued a five-year plan which proposed 10 region-wide lease sales. One of those was Lease Sale 257, for 80.8 million acres of Gulf waters, the largest offshore oil and gas lease sale in United States history.

Podcast: against 'normalcy' II

In Episode 106 of the CounterVortex podcast, Bill Weinberg continues his rant against the ubiquitous propaganda that normalizes the oppressive and dystopian pre-pandemic normality—or, as it is now incorrectly rendered, "normalcy" (sic). The opportunity for a crash conversion from fossil fuels that was posed by 2020's pandemic-induced economic paralysis is now being squandered. As fossil-fuel prices soar, the Biden administration is continuing a Trump-era policy to aggressively open public lands to coal mining, refusing to return to an Obama-era moratorium on new leases. US greenhouse gas emissions dramatically bounced back in 2021, which was one of the five hottest years on record. A record was made for highest temperature ever recorded in the Southern Hemisphere. (The Northern Hemisphere record was reached in 2020.) The global mean sea level is rapidly rising, and will keep rising for centuries even if the Paris Agreement goals are met, as seems less likely each day. And all this as hospitals remain overwhelmed coast to coast, and the National Guard is being mobilized to keep them functioning. Listen on SoundCloud or via Patreon.

Podcast: against 'normalcy'

In Episode 105 of the CounterVortex podcast, Bill Weinberg rants against the ubiquitous propaganda that normalizes the oppressive and dystopian pre-pandemic normality. Amid the relentless COVID-19 denialism, even mainstream voices are calling for a return to "normalcy" (sic)—which is not even a word. The opportunity for a crash conversion from fossil fuels that was posed by 2020's pandemic-induced economic paralysis, when already depressed oil prices actually went negative, is now being squandered. President Biden just released oil from the Strategic Reserves to control soaring prices. Simultaneously, the administration is moving ahead with the largest offshore oil and gas lease sale in US history. While during the 2020 lockdown. the usually smog-obscured Himalayas became visible from northern India for first time in decades, Delhi is now choked with emergency levels of toxic smog. While during the 2020 lockdown, the total US death rate actually dropped because people were staying off the roads, US traffic deaths are now soaring. New York's new Mayor Eric Adams wants to stake the city's economic future to the cryptocurrency industry, even as China is cracking down on Bitcoin "mining" (sic) because of its "extremely harmful" carbon footprint. And even amid all the empty hand-wringing about climate change, airlines are flying thousands of empty "ghost flights" in order to keep their slots at congested airports. The much-vaunted "return to normalcy" must be urgently resisted. As Bruce Cockburn observed long ago, the trouble with normal is it always gets worse. Listen on SoundCloud or via Patreon.

Anti-war protests in northeast Colombia

Rural communities in Colombia's northeastern Arauca department held anti-war protests amid inter-factional guerilla violence that has been terrorizing the region. Demanding attention from the government and international human rights organizations, some 1,200 marched in the hamlet of Puerto Jordan on Jan. 4, and another 500 in nearby Botalón, both in Tame municipality. Mayerly Briceño, an organizer of the protests in Tame, told El Espectador: "The state has no presence here, absolutely none; they only come here to protect the oil companies, to safeguard the petroleum. This is not about them coming to militarize... More zones are leaving behind fear and taking to the streets to demand peace. It is the only thing we can do as a people, to demand that peace comes to our territory." 

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