Geopolitics

Gravy for U.S. Energy Producers

"In response to evident repudiation of a 'democratically elected' government (long story there…), the well-fed Egyptian military guys answered the call by removing the clerical fascists who were and are, by most metrics, utterly incompetent to govern. Here’s a look at just how this 'Middle East Effect' has played out. Each time the market heads lower toward the $85 threshold, a Middle East event spurs prices higher. I won’t get into conspiracy theory in this write-up, but OPEC has all the incentive in the world to keep the threat of volatility alive and well. After all, the $10-20 bump in prices since mid-April is nothing but money in the bank for OPEC producers." Continue reading →

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Will Saudi Arabia Allow the U.S. Oil Boom?

"It’s important to remember that the Saudis not only have the largest proved reserves of oil, it’s also the largest repository—by far—of low-cost oil reserves. Much of Canada’s oil sands and US tight oil requires $75 per barrel or more to be economically viable. Saudi Arabia also needs $75 per barrel, but that’s to support its current domestic budget. The Kingdom’s lifting costs are somewhere around $5 at last report. So Saudi Arabia could easily flood the market, as it did in the early ‘80s, if it lost too much market share, dropping oil prices to $50 or less, and US drilling and production would collapse." Continue reading →

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Iran and Iraq, BFF (Best Friends Forever)?

"Why did Iraq invade Iran in 1980? A major reason was the fact that Iraq's majority is Shiite. Let's not forget that the majority of Iran's citizens associate themselves with the Shi'a branch of Islam. Remember Saddam Hussein? Well he was a Sunni, and the Sunnis were in control in Iraq. Saddam Hussein and the Iraqi military were backed by the US, Britain, and other Western countries. Saddam invaded Iran to establish Iraq as the dominant Gulf state, and to also suppress the Shi'a majority from revolting in Iraq. Now the government of Iraq is ruled by Shiites. The government of Iran is also Shi'a dominated, with the majority of the population being Shiite." Continue reading →

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Eric Margolis: Japan Must Face Up To China

"The 1960 US-Japan Security Treaty laid the foundation of relations between Washington and Tokyo. [...] The key to the treaty was the establishment of permanent US air, land, and sea bases in Japan. They remain, half a century later. Japan thus became a giant US aircraft carrier from which it dominates highly strategic North Asia. In exchange, Japanese industry was given open access to the US market, thus laying the base of Japan’s economic upsurge of the 1960’s. South Korea enjoyed a similar deal. This cozy arrangement is now being challenged by the rapid rise of China’s military and economic power." Continue reading →

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Eric Margolis: The Road To Nowhere – Kerry Mideast Journey

"Israel’s economy is doing very well, thanks in part to billions in US economic and military aid, privileged access to the US market, and exports of arms and electronics. Israel’s high tech and medical industries are among the world’s leaders. New gas and oil finds between Israel and Cyprus may make Israel an energy exporter within a decade. The United States has eliminated any possible Arab military challenge to Israel’s absolute military domination of the Mideast by destroying Iraq as a functioning state and then fueling Syria’s civil war. Egypt, once Israel’s leading foe, has been bought off by American money." Continue reading →

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Floating Nuclear Power: Inside Russia’s Reactors at Sea

"The U.S. and Russian navies have long used nuclear-powered submarines, aircraft carriers, and icebreakers. But a new kind of nuclear power is coming. Russia's Akademik Lomonosov, currently under construction, will be a floating power plant with two 35-megawatt generators designed to supply power to hard-to-reach Arctic communities straight from the ship. After years of delay, the Rosatom State Nuclear Energy Corporation says it plans to build this first ship by 2016 and to ramp up to four to six in the near future to power up remote cities and industrial areas cut off from the regular power grid." Continue reading →

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Kerry vows to put the screws to Venezuela over Snowden

"US Secretary of State John Kerry has reportedly promised his Venezuelan counterpart to close NATO airspace to the country’s flights and stop crucial oil product deliveries if Caracas grants asylum to NSA leaker Edward Snowden. Kerry reportedly threatened to ground any Venezuelan aircraft in America’s or any NATO country’s airspace if there is the slightest suspicion that Snowden is using the flight to get to Caracas. Kerry also reportedly promised to intensify the ongoing process of revoking US entry visas to Venezuelan officials and businessmen associated with the deceased President Hugo Chavez." Continue reading →

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India to settle oil trade dues with Iran in rupees

"India will settle all oil trade including USD 1.53 billion in dues with Iran entirely in rupees after the US-engineered illegal sanctions against Tehran blocked all other payment routes. In June, India along with China, Malaysia, South Korea, Singapore, South Africa, Sri Lanka, Turkey, and Taiwan won a 180-day waiver from the US sanctions against Iran's energy sector. Indian Ambassador to Iran D. P. Srivastava said on Wednesday that New Delhi is determined to continue cooperation with Tehran despite the illegal US-engineered sanctions against the Islamic Republic." Continue reading →

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Fracking ban halts first shale gas project in Spain

"Spain’s richest shale gas reserves have been determined to exist in the northern region of Cantabria, but back in April the local Cantabrian government implemented the country’s first fracking ban, worried that such activities may pollute the local sources of drinking water. The Spanish fossil fuel trade group, Aciep, has made claims that Spain boasts enough prospective natural gas resources to meet the country’s domestic demand for more than 70 years. The Spanish government has worked to reduce barriers to energy for any international oil and gas companies trying to develop shale gas in the country." Continue reading →

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