control of oil

Protests over fuel price hikes shake Mauritius

The African island nation of Mauritius exploded into angry protests April 22, with residents of poor Kreol communities erecting roadblocks and fighting the police. The island had seen days of peaceful demonstrations over a sudden and drastic increase of petrol and gas prices, centered on the town of Camp-Levieux. Things turned violent after the arrest of "Darren," a young protest leader, on charges of "participation in illegal demonstrations." The police headquarters where he was being held was besieged, and protests spread quickly to other towns across the island. Police deployed anti-riot units and armored vehicles against youth hurling stones and Molotov cocktails. Things calmed the following day when Darren was released on bail. But it remains to be seen if the increasingly debt-burdened government can strike a deal with the newly mobilized popular movement. (Jurist)

Pipeline plans threatened by Af-Pak border clashes

Afghanistan authorities say some 60 civilians, including five children, were killed as Pakistan launched air-strikes across the border on Khost and Kunar provinces April 15 and 16. The strikes, carried out by both missiles and warplanes, follow a series of attacks by the Tehreek-e-Taliban Pakistan (TTP) in Pakistan's borderlands, including an April 14 ambush on a military convoy in North Waziristan district in the volatile Khyber Pakhtunkhwa province.

Ukraine war windfall for US fracking industry

US President Joe Biden and European Commission president Ursula von der Leyen on March 25 announced a joint Task Force to reduce Europe's dependence on Russian hydrocarbons and "strengthen European energy security as President Putin wages his war of choice against Ukraine." The press release states: "The United States will work with international partners and strive to ensure additional LNG volumes for the EU market of at least 15 bcm [billion cubic meters] in 2022, with expected increases going forward." This means liquified natural gas from the US fracking industry.

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.

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