Peak Oil And
The 'Even Newer World Order'
Bush 'Energy Policy' Precipitates
New Global Anti-US Alliance
www.btinternet.com/~nlpwessex/Documents/Oilnewerworldorder.htm
As Great Hopes For Deep Water Oil
In Gulf Of Mexico Falter
White House Has Few Plans For Looming Oil Crisis |
Energy Update, May 2005
Forming
New Strategic Alliances

President Hugo
Chavez of Venezuela in 2004 with
President
Putin of Russia, above,
and President Hu Of China, below
US Secretary of State Condoleezza Rice
may be in Moscow, but she has Caracas on her mind. Ms. Rice, who arrived in Russia Tuesday
for talks with that country's leaders is concerned about some arms sales in Latin America, specifically Venezuela, reports Bloomberg
News. The Russian government played down US concerns by countering that any of its
proposed arms deals with Venezuela are in line with international agreements and
international law. Prior to Rice's trip, the US State Department issued its own
accusations saying that Venezuela's purchase of 100,000 Russian Kalashnikov rifles,
Brazilian helicopters and Spanish patrol boats, might find its way into the hands of
Colombian insurgents.
Chavez claims the ultimately unsuccessful April
2002 coup [against him] was backed by US interests. Believing he will face more such
coups, Chavez has expanded his relations with Russia, China, India and Iran, says India
Daily. The oil asset of Venezuela makes it vulnerable. But China, India and Russia have
interest in the same. [For Chavez] that may make some difference. The BRIC alliance
(Brazil, Russia, India and China) will oppose any invasion or external intervention in
Venezuela. It will be of interest to see how BRIC will defend its Venezuelan oil interests
in case of a similar crisis. Venezuela currently supplies the United States with over 15%
of its oil, making the South American nation its 4th largest supplier, after Saudi Arabia,
Canada, and Mexico.
Venezuela flexes oil muscle
Christian
Science Monitor, 20 April 2005

As oil resources become increasingly scarce
an emerging global alliance aims to outflank
American efforts to dominate world supplies
But Neither G7, G8, Nor G10 Have Credible Plans
To Pre-empt The Impact Of Peak Oil
"Central bankers will assess the growing
role of emerging nations such as China whose rapid growth has pushed oil prices to heights
threatening U.S. and European economies at their meetings here on Monday. Chinas
red-hot economy has become a major factor on global markets as it sucks in imports to
manufacture cheap exports. Its rapid growth drives up the price of oil and other
commodities....Central bankers from rich and developing nations gathering in this Swiss
border town said China, oil and slowdowns in Western countries are all on the agenda for
their bi-monthly Group of 10 meeting to evaluate the world outlook... 'As you expect, they will talk
about China, oil and the U.S. economy,' one central bank official said. Asian finance
ministers agreed in Istanbul last week that oil prices posed risks for their economies, a
view shared by Group of Seven rich nations at the global level. Retail demand is slumping
in Britain. In the euro zone, European Central Bank President Jean-Claude Trichet, who
chairs the G10
meeting has said growth risks are to the downside."
China, oil impact on global growth on G10 agenda
Reuters, 10
May 2005
"If a report
circulating among senior members of America's defense establishment is any guide, the
Sino-American war for future petroleum supplies has already begun. According to the
80-page study, Beijing has identified the United States as 'a paramount threat to its
energy security and economic stability' and is busily establishing a 'string of pearls' -
forward deployments of surveillance stations, naval facilities and airstrips-to safeguard
the petroleum-transport route from the Persian Gulf to the South China Sea. Once it
controls Asia's vital sea lanes, the report goes on, China may then move on some of the
world's key oil reserves-perhaps by replacing the United States as Saudi Arabia's patron
and protector, or by seizing a strategic oil pipeline in the Russian Far East. The
Chinese, the report says, 'equate energy security with physical possession or control of
energy supplies' and 'have a tendency to see securing their energy security as a zero-sum
game.' Nowhere is that more clear than in sub-Saharan Africa, where Chinese oil and
natural-gas companies have over the past several years inked deals with regimes such as
Sudan's.....'In Africa,' says Jamal Qureshi, an oil-markets expert at PFC Energy in Washington, 'you've got new players, with China
as a possible counterweight to the U.S. There could be elements of confrontation.... In
October Beijing agreed to buy up to $100 billion in Iranian petroleum and gas and to help
develop a major Iranian oilfield near the Iraqi border-evidence of an evolving
Sino-Iranian alliance that is featured in the Pentagon report. Earlier this year Beijing
signed a 25-year deal to develop natural-gas reserves in Iran-despite U.S.-led
sanctions-and it is increasingly active in the Gulf states..... Africa, though, remains
the new oil frontier for both China and the United States....... Once oil-independent,
China has over the last decade become increasingly reliant on imports, which now account
for 60 percent of its oil consumption, up from 6.4 percent in 1993.'.... While the United
States appears to have conceded Sudan to China, it is active elsewhere in Africa. U.S.
President George W. Bush has made a point of meeting with leaders of such countries as
Chad and Congo, which in the past barely registered on Washington's foreign-policy map....
Some analysts even suspect that the deliberate way in
which the United States lifted sanctions on Libya earlier this year was a move to
check China's growing influence in Africa. If China sees energy security as a zero-sum
game, so, it appears, does its American rival."
Yet Another Great Game
Newsweek, 20 December 2004
A new power configuration across the world is being silently
fashioned to counter, or at least limit, American supremacy
In the struggle for global dominance, oil is the central currency. Its indispensability for industry, agriculture, transport and military
capability, along with the near-certainty that oil production will peak around 2010-2015, is refashioning conventional power rivalries. A new regional and
superpower coalition of China, Russia, India and Brazil is emerging, and attracting the
close interest of major oil producers, such as Iran and Venezuela, as a counterweight to
American power
. It is oil, not ideas of freedom or democracy,
that will increasingly determine the direction of events
.. The rhetoric about
democracy may suit Bush's domestic audience. But the British government will make serious
errors over the next four years if it takes what he and other members of his
administration say at face value. |
"Latin America is becoming a rich destination for China in its
global quest for energy, with the Chinese quickly signing accords with Venezuela,
investing in largely untapped markets like Peru and exploring possibilities in Bolivia and
Colombia. China's sights are focused mostly on Venezuela, which ships more than 60 percent
of its crude oil to the United States. With the largest oil reserves outside the Middle
East, and a president who says that his country needs to diversify its energy business
beyond the United States, Venezuela has emerged as an obvious contender for Beijing's
attention. The Venezuelan leader, Hugo Chávez, accompanied by a delegation of 125
officials and businessmen, and Vice President Zeng Qinghong of China signed 19 cooperation
agreements in Caracas late in January...... Trade between the two countries could rise to
$3 billion this year from $1.2 billion, Mr. Chávez said, celebrating their links as a way
for Venezuela to break free of dependence on the American market. 'We have been producing and exporting oil for more than 100
years,' Mr. Chávez told Chinese businessmen in December. 'But these have been 100 years
of domination by the United States. Now we are free, and place this oil at the disposal of
the great Chinese fatherland.' China, though, is not
just interested in Venezuela. Much of Latin America has become crucial to China's need for
raw materials and markets, with trade at $32.85 billion in the first 10 months of 2004,
about 50 percent more than in 2003. Mining, analysts say, is among China's priorities,
whether it is oil in Venezuela, tin in Chile or gas in Bolivia. Chinese involvement in
Latin America is 'growing by leaps and bounds,' said Eduardo Gamarra, director of the
Latin America and Caribbean Center at Florida International University, adding, 'It's
driven by the need for privileged access to raw material and privileged access to
hydrocarbons.' "
China's Oil Diplomacy in Latin America
New
York Times, 1 March 2005
Gulf Of Mexico Is Latest Casualty In Growing Global Oil Crisis
"The world is about to face an energy crisis because the demand for
oil keeps growing even though production is already at its maximum, Venezuelan President
Hugo Chavez said yesterday. Chavez, whose country is the worlds fifth largest crude
oil exporter, said that all OPEC members were 'producing at full steam.' 'Theres a
worldwide energy crisis around the corner,' Chavez told reporters at the end of the first
Summit of South American-Arab Countries in Brazil. 'Especially because the US and other
developed countries, but more so the US, have built a way of life based on the wasteful
consumption of oil, which is non-renewable.' Representatives of eight of the 11 OPEC
members were present at the summit, which did not have energy on its official agenda. 'We
are producing at maximum capacity,' he said, adding that non-OPEC members such as Russia
and the US were doing the same."
World Facing Energy Crisis Say Oil Producers
Press Association, 12 May 2005
With Record Demand And Short Supply
Why Is There So Little Global Investment In New Oil Production Capacity?
"Investment in new capacity by oil-producing nations and energy
companies is too small to meet future growth in demand, the developed world's energy
watchdog warned on Tuesday. Claude Mandil, head of the International Energy Agency, said
even though energy prices were near record levels, the world was not
investing enough in oil and gas production, refining, power generation and
transmission."
IEA chief issues energy investment warning
Financial
Times, 4 May 2005
Is It Because Oil Companies With Highly
Sophisticated Modern Exploration Technology
Know There Is Little Conventional Oil Left To Find, But Are Under Pressure Not To Talk
About It?
"Andrew
Gould, chairman of Schlumberger, points out that 25 years ago only one-sixth of all
exploration wells drilled were successful; now the figure is two thirds. Over that period,
the success rate for development wells has gone from hit-or-miss to nearly 100%."
The bottomless beer mug
Economist,
30 April 2005
".... the number of major new oil fields discovered around the world fell to zero for the first time in 2003, despite an obvious increase in technological expertise."
Oil Discovery (past and projected) 1930-2050
Association for the Study
of Peak Oil, Newsletter May 2005
ASPO home page - click here
"Legendary Oklahoma energy magnate, T. Boone Pickens [who started Mesa
Petroleum with $2500 in 1956, growing it into one of the world's leading independent
oil and gas producers] will be 77 years old this month, and maybe because of that, he
feels free to speak what's on his mind; and he did to an audience of alternative fuel
advocates in Palm Springs today. Addressing the 11th National Clean Cities
conference, hosted by the former mayor of Palm Springs and introduced by former U.S.
Energy Secretary John Herrington (1984-1989), Boone, as his friends refer to him, was
candid in his views of wind energy, nuclear power, natural gas, and in particular
petroleum. [He said] '.... Global oil (production) is 84 million barrels (a day)..... 84
million barrels a day times 365 days is 30 billion barrels of oil a year that we're
depleting. All of the world's (oil) industry doesn't even come close to replacing 30
billion barrels of oil. We don't spend enough money to even give ourselves a chance to
replace 30 billion barrels. It may be because the prospects are not there. I rather
imagine that's what the answer is to that..... The majors, they talk about plenty of oil
and that they can produce more, but if you look at ExxonMobil, ChevronTexaco, BP (British
Petroleum), all the production (is) going down every year. They don't replace and they
don't add to production, but they say there's plenty of oil around..... Now why would they
say that? One of the chief economists with one of the major oil companies... I was at a
conference where he was... we were talking and I asked, why do they say that? And he said,
can you imagine what would happen if one of these major oil company's CEO's got up and
made a speech and he said, 'We're running out of oil'? I said there'd be panic and he
said, 'That's right. They're not going to make the statement. They're going to say there's
plenty of oil around'..".
Boone Pickens Warns of Petroleum Production Peak
EV World, 3 May 2005
Great
Deep Water Oil Hope Hits Trouble
In Gulf Of Mexico
"With all the continents (save
Antarctica) having been drilled to death over the past century, geologists believe that
there are few 'elephant' fields left to be discovered on land. Just about the only virgin
territory left is under the sea..... Oil majors are now betting that enormous amounts of
oil are trapped under the ocean off Brazil, West Africa and the Gulf of Mexico.... The
shallow waters teem with activity as oil rigs, supply vessels, drilling ships and the like
go about their business. The skies are full of helicopters ferrying crews and visitors to
and from the rigs. And hidden beneath the surface lies a lattice of pipelines that pump
the oil and gas ashore (see map above). Today, all of that activity peters out along a
line where the underwater contour sinks to below 1,500 feet. James Dupree, head of
deep-water production in the Gulf of Mexico for BP, predicts that, in a decade's time, a
similar map will show the infrastructure extending out to waters where the depth is more
than 5,000 feet. But turning that vision into reality is going to be one of the biggest
challenges the oil industry has ever faced."
Into deeper water
Economist,
6 December 2001
"Already, the industry is exploring
under water at depths that were unimaginable a decade or two ago. In the Gulf of Mexico
and elsewhere, oil rigs now float atop 3,000 metres (10,000 ft) of water. These marvels of
engineering are stuffed with the latest in robotics, electronics sensors and satellite
equipment. Using fancy 'multilateral' wells that twist and turn in all directions, they
can hit underwater pockets miles away from the rig."
The bottomless beer mug
Economist,
30 April 2005
"According to a
new study published on Sunday by state oil monopoly Petroleos Mexicanos, the potential for oil exploration in the Gulf of Mexico
has been greatly overestimated. Petroleos Mexicanos,
or Pemex, revealed that terrain in waters deeper than 3,000
meters in the Gulf of Mexico an area known as the Abyssal Plain were not suitable
for oil exploration. The statement represents a
serious setback for future drilling in the area,
and, according to petroleum analysts, jeopardizes any possible collaborations
with foreign investors. Guillermo Pérez Cruz, head of Pemex's Special Unit for Deep Water Oil Exploration, said the new report reduced previous oil estimates in the zone by 53
percent
. Pemex had
initially earmarked a possible 54 billion barrels of oil that could be drilled from the
area. With that figure now cut in half, Pérez Cruz says, exploration becomes economically unviable.
Pemex: Reserves overestimated
The
Herald (Mexico), 18 April 2005
BP's Production Falls From Peak At Time Of Record Demand
"Oil company BP's existing oil and gas
fields are posting production declines of about 3 per cent, Tony Hayward, the company's chief executive for
exploration and production, said on Wednesday. 'That piece of the portfolio as a whole is
declining around 3 per cent,' he told an energy conference. The company's key profit
centers, which exclude its stake in Russian TNK-BP and new output from Azerbaijan, are
expected to produce about 2 million barrels of oil equivalent per day in 2005 and are
showing different decline rates, he said. 'Alaska is mostly flat; the North Sea is
declining somewhere between 6 and 8 per cent; and our South America business is growing,
but taken as sub-segment of E&P, it's declining around 8 per cent,' he said. Energy
analysts have pointed to sharper decline rates at producing fields as a key reason for
rising oil prices, which hit record highs on the New York Mercantile Exchange on Monday.
Rising demand in Asia, particularly China and India, has soaked up excess production,
creating a tight supply-demand balance and driving up prices, analysts say. Some industry
participants have estimated that overall decline rates for existing producing fields could
be as high as 8 per cent......"
BP says oil fields declining
Reuters, 7
April 2005
"A senior executive at BP PLC
(BP) thinks world oil production will peak in the next decade, earlier than most other
forecasts, the Business reported Sunday. BP exploration consultant Francis Harper
estimated the amount of total usable oil reserves in the world are 2.4 trillion barrels,
and production would peak between 2010 and 2020, the report said. Harper said production
would drop off outside the Organization of Petroleum Exporting Countries first,
concentrating power in the producer group. That forecast would mean demand outstripping
supply much earlier than other forecasts by ExxonMobil Corp. (XOM) or Royal Dutch/Shell
Group (RD SC), the report said."
World Oil Output To Peak Next Decade - BP Exec
DOW JONES NEWSWIRES, November 7, 2004

http://www.newstatesman.com/Economy/200505090021
Now for an even newer world order |
Election: the future
- world views. Michael Meacher on oil and the rise of
China
|
"President
Bush is preparing a shift in US space policy that could pave the way for the deployment of
offensive and defensive weapons beyond the Earths atmosphere. It would overturn a 1996 directive signed by President Clinton, which drew the line at using satellites to support military operations,
arms control and non-proliferation pacts. Scott McClellan, Mr Bushs spokesman, said
that US space policy needed to be updated because in the past nine years there had been 'a
number of domestic and international developments that have changed the threats and
challenges facing our space capabilities'. In an
apparent reference to China, but without mentioning
it by name, Mr McClellan said: 'There are countries that have taken an interest in space.
And they have looked at technologies that could threaten our space systems. And so you
obviously need to take that into account when youre updating the policy.'.... The
Global Strike programme envisages a military spacecraft carrying precision-guided weapons
capable of striking halfway round the world in 45 minutes. Pentagon chiefs have told
Congress that it would offer US commanders 'an incredible capability', allowing them to
destroy centres or missile bases around the world. Another USAF programme is the 'Rods
from God', in which cylinders of tungsten, titanium or uranium would be launched from
space to strike ground targets at speeds of 7,200mph. Donald Rumsfeld, the US Defence
Secretary, promoted this new phase in space weapons in 2001 when a commission that he
headed recommended that the Pentagon 'ensure that the President will have the option to
deploy weapons in space'. Three years later the USAF believes that it has done the
planning necessary to move to the next stage. One of the most controversial acts of the
early Bush presidency has helped to clear the way. Under the 1972 Anti-Ballistic Missile
Treaty between the United States and the Soviet Union, Washington and Moscow agreed not to
place weapons in space. Mr Bush unilaterally withdrew
from the treaty to
allow the Pentagon to pursue the missile defence umbrella first championed by President
Reagan." |
Oil And The Selective Backing Of 'Democratic Revolution'
"The muted response of the
United States to the death toll in Uzbekistan demonstrates how not all former Soviet
republics are equal in the eyes of the White House. President Bush spent last week
championing the democratic freedoms secured in the Baltic states and Georgia and pushing
for further reforms on Russias doorstep but the rhetoric tails off when the
subject of human rights abuses in Uzbekistan crops up. Scott McClellan, Mr Bushs
spokesman, declined to take sides when asked about Uzbek troops opening fire on unarmed
civilians. 'The people of Uzbekistan want to see a more representative and democratic
government, but that should come through peaceful means, not through violence.' The State
Department was equally unwilling to speak against the iron-fisted regime of President
Karimov. Richard Boucher, a State Department spokesman, said: 'We believe that everywhere
people have the right to express their grievances, but that grievances should be pursued
through a peaceful process.' The tone is designed to avoid conflict with Mr Karimov .....
Uzbekistan opened its door in 2001 to a vast US military base without which the
assault on Afghanistan would have been much more complicated. In return for millions of
dollars of US aid, Mr Karimov has allowed the base to stay, giving the US a permanent
military foothold in Central Asia. There is also evidence that the US has allowed Mr
Karimovs feared security services to do its dirty work, flying stubborn high-level
detainees to Uzbekistan to be tortured. The US is
also interested in Uzbek oil and gas reserves."
Reticence is price for War on Terror
London Times,
16 May 2005
"Islam Karimov, President of
Uzbekistan, boils people alive. Why? For the same reason Saddam Hussein put his enemies in
a shredder: because, at the time, he could. When the West is your pal you are able, quite
literally, to get away with murder. And what murder! It is a surprise Karimov has time for
governing at all, once he has spent the morning formulating new ways to poach, grill,
tenderise, smoke and flambé his citizens to death. Boiling water, electrocution,
chlorine-filled gas masks, drowning, rape, shooting, savage beatings, Karimovs
Uzbekistan is the absolute market leader in torture right now. The CIA would not shop
anywhere else, which is why a mysterious Gulfstream 5 executive jet routinely delivers
terrorist subjects from Afghanistan there for interrogation and, perhaps, percolation.
Craig Murray, the former British Ambassador, drew attention to this last year, and the
noted socialist Tony Blair acted immediately. He sacked him. Mr Murrays warnings
echo louder than ever now, on the back of hundreds of corpses in the streets of
Andijan..... Live and dont learn would appear to be the moral to this story. Karimov
may be a vicious, murdering, malevolent despot, but he is our vicious, murdering,
malevolent despot so, like Saddam, he can boil, shred and gas away until we tire of uses
for him. Saddam was in the right place, sharing our hostility towards Iran at the right
time, and so we armed him to the teeth in the name of a cause. Karimov, a nasty member of
the regional Soviet hierarchy even before independence in 1991, stands beneath another
flag of convenience. He is frightened of Islam, rich in gas and oil, and within striking
distance of Afghanistan. An American airbase, which
Karimov allowed to be built at Khanabad, now protects the American-owned pipeline carrying
Central Asias black treasure through Afghanistan to the sea. Is it not strange that all our pals have the same thing in common? Just
as celebrities end up latching on to other celebrities, so
the West always finds itself hanging out with guys who are knee-deep in four-star..... We mould these little monsters such as Saddam, Karimov and General
Manuel Noriega and they do our dirty work until such a time when it is no longer
expedient, at which point we extract revenge and dress it up as a moral crusade; or
enduring freedom."
Ready, steady, cook up reasons for supporting the boiling butcher
London
Times, 17 May 2005
"....despite President Bushs
pledge to make the 'end of tyranny' the hallmark of his second term, US officials tip toed
around direct criticism of the regime of President Karimov, who has given the US a
priceless 'footprint' in Central Asia by allowing the Pentagon to open an airbase in his
country. Condoleezza Rice, the US Secretary of State, offered no direct censure of
Uzbekistan as she flew back to Washington after her surprise visit to Iraq."
Tensions mount in Central Asia as regime counters Uzbek revolt
London Times,
17 May 2005
"The bodies of
hundreds of pro-democracy protesters in Uzbekistan are scarcely cold, and already the
White House is looking for ways to dismiss them. The White House spokesman Scott McClellan
said those shot dead in the city of Andijan included 'Islamic terrorists' offering armed
resistance. They should, McClellan insists, seek democratic government 'through peaceful
means, not through violence'. But how? This is not Georgia, Ukraine or even Kyrgyzstan.
There, the opposition parties could fight elections. The results were fixed, but the
opportunity to propagate their message brought change. In Uzbek elections on December 26,
the opposition was not allowed to take part at all..... One of the uses of Uzbek torture
is to provide the CIA and MI6 with 'intelligence' material linking the Uzbek opposition
with Islamist terrorism and al-Qaida. The information is almost entirely bogus, and it was
my efforts to stop MI6 using it that led ultimately to my effective dismissal from the
Foreign Office. The information may be untrue, but it is valuable because it feeds into
the US agenda. Karimov is very much George Bush's man in central Asia. There is not a
senior member of the US administration who is not on record saying warm words about
Karimov. There is not a single word recorded by any of them calling for free elections in
Uzbekistan.... The airbase opened by the US at Khanabad is not essential to operations in
Afghanistan, its claimed raison d'être. It has a more crucial role as the easternmost of
Donald Rumsfeld's 'lily pads' - air bases surrounding the 'wider Middle East', by which the Pentagon means the belt of oil and gas fields
stretching from the Middle East through the Caucasus and central Asia. A key component of this strategic jigsaw fell into place this spring
when US firms were contracted to build a pipeline to bring central Asia's hydrocarbons out
through Afghanistan to the Arabian sea. That strategic interest explains the recent
signature of the US-Afghan strategic partnership agreement, as well as Bush's strong
support for Karimov. So the Uzbek people can keep on dying. They are not worth a lot of
cash, so who cares? I travelled to Andijan a year ago to meet the opposition leaders, and
kept in touch. I can give you a direct assurance that they are - or in many cases were -
in no sense Islamist militants. They died an unwanted embarrassment to US foreign policy.
We will doubtless hear some pious hypocrisies from Jack Straw. But when I was seeking
funding to support the proto-democrats, the Foreign Office turned me down flat. The US
will fund 'human rights' training in Uzbekistan but not help for the democratic
opposition, in contrast to its policy elsewhere in the former Soviet Union. When Jon
Purnell, the US ambassador, last year attended the opening of a human rights centre in the
Ferghana valley, he interrupted a local speaker criticising repression. Political points,
Purnell opined, were not allowed. The western news agenda has moved the dead of Andijan
from the 'democrat' to the 'terrorist' pile. Karimov remains in power. The White House
will be happy. That's enough for No 10."
Craig Murray, British Ambassador to Uzbekistan, 2002 - 2004
"The US, while citing democracy for
Uzbekistan as a long-term goal, acknowledges that the autocratic president, Islam Karimov,
has problems: democracy could result in an Islamist government that would almost certainly
not be favourable to the US.... Imran Waheed, spokesman for Hizb ut-Tahrir, said the
organisation was committed to change through non-violence. 'President Karimov makes Saddam
Hussein look like a choirboy, but he is in the arms of the west,' he said."
Scepticism greets Straw's reproof
Guardian, 16
May 2005
"Enron's export plan remains the most ambitious attempted so far by a foreign investor in
Uzbekistan: a deal signed in 1996 gave it the rights to explore
11 fields in the Surkhandariya and Bukhara region. The proposed project called for an
initial investment of $300 mn that would reach $1.3 bn over the next 20 years. The US
government funded a feasibility study for the project, coupled with a pledge of $400 mm
financing and insurance support. The aim was to see gas flowing through the existing
infrastructure to markets in Russia and elsewhere from the fields as early as 1998....
Like other Central Asian countries, double-landlocked Uzbekistan is keen to develop
alternative export routes to the Russian pipeline system.... Ambitions of linking into a
southern export pipeline crossing Turkmenistan, Uzbekistan, and Afghanistan to deliver gas to Pakistan have
vanished for the time being, now that project sponsor Unocal has put it on the back burner.... Uzbekistan signed an MoU with the countries involved to participate
in the project. But in August the Taliban consolidated its control over Afghanistan by
capturing key northern towns previously under the control of ethnic Uzbek leader Rashid
Dostum. Uzbekistan is extremely concerned at the growing strength of the Taliban and its
potential impact on stability in Uzbekistan, making any future co-operation on a pipeline
project which benefits the Taliban unlikely."
Uzbekistan has difficulties finding venues for
its gas
Alexander's Oil And Gas, Volume 3, issue #27-10-12-1998
"Much though I liked Oona King, whom he defeated, I am delighted that
Galloway and two other independents will enliven the new parliament.... Last week,
however, it was Galloways
performance in the US Senate that held our gaze. In the days since he harangued
Senator Colemans committee there has been a fresh outbreak of British snootiness
about the inferiority of the debating skills of US politicians. That underplays
Galloways achievement: we have not always felt so superior. I have seen MPs on
select committees bully their witnesses as, Walter Mitty-like, they dream of being the
young Richard Nixon on the house committee on un-American activities crushing Alger Hiss.
That reputations and lives have been destroyed before such committees did not faze
Galloway. Indeed it provided him with an opportunity to parody that catchphrase from the
Hiss era: 'Are you now or have you ever been a member of the Communist party?'...... The
committee foolishly gave Galloway a platform in Washington to berate the US for the
hypocrisy of its foreign policy. Gorgeous George might as well have been in Hollywood,
because the Americans enabled him to achieve superstar status, as demonstrated by the
adoring crowd that greeted him in Bethnal Green on his return. One of Galloways most
telling lines was that he had met Saddam only twice, as had Donald Rumsfeld, the difference being
that the US defence secretary had sought him out in order to sell arms. ..... Galloway
was on to a good point when arguing that another disgrace is Americas administration
of Iraq following the fall of Baghdad.... if we care so much about setting the Iraqi
people free, why do we refuse to keep any record of how many of those we have liberated
have been killed? As one who supported the war, I think it is right that we should be held
to account for what has happened on our watch. It is because the allies employ double
standards that a showman such as Galloway becomes a popular hero. As the cabaret was being
played out on Capitol Hill, the US administration was framing its first mealy-mouthed
comments on the slaughter of hundreds of civilians by government forces in Uzbekistan.
Condoleezza Rice managed eventually to call for political reform and the State Department
said it was deeply disturbed, but still its spokesman condemned the violent protesters who
had stormed government buildings. Maybe America believes President Islam Karimovs
claim that the trouble is caused by Muslim extremists. Craig Murray, Britains former
ambassador to the country, says that is a lie. The pressure, he says, comes not from
militants but from businessmen in Andijan who want capitalism and democracy. Murray has
described a regime that tortures and murders, sometimes by boiling victims alive. For his
pains he was sacked as ambassador. The American and British attitude to this former Soviet
republic contrasts sharply with their approach to Ukraine and Georgia. George Bush greeted
Viktor Yushchenko, the new Ukrainian leader, with these words: 'You are an inspiration to
all who love liberty . . . an example of democracy for people around the world.' In
Tbilisi Bushs rhetoric was still more grandiloquent: 'Georgia is today both
sovereign and free, a beacon of liberty for this region and the world.' He recalled that a
Georgian crowd had once pulled down Lenins statue. You sense that if the Uzbeks did
such a thing the State Department would condemn them for vandalising public art. The Uzbek
regime allows America to use the former Soviet airbase at Khanabad. The US is to build a pipeline across Uzbekistan and Afghanistan to
the Arabian Sea. The words 'Islamic militants' are
like a spell. Mumble those words and the Americans will forget that they love democracy
and freedom. Karimov intones the incantation and the US overlooks his barbarities.
President Vladimir Putin whispers it, too, to win Washingtons acquiescence for the
massacres in Chechnya. You could argue that is realpolitik: to chafe at it is naive. But
we have been here before. When Rumsfeld met Saddam he may or may not have tried to sell
him weapons, but he did see the Iraqi dictator as a bulwark against Iran, which was
exporting terror. The mayhem in Iraq today shows that we were right to regard Saddam as a
buttress against Islamic militancy. But it also demonstrates how foolish we are if we try
to base our foreign policy on alliances with monsters. Our support for Karimov is not only
morally repugnant but also strategically short-sighted. Bush has used speeches to set out
a narrative as beautiful and simple as any fairy tale. The countries that have lived under
the yoke of tyranny can look forward to freedom. Across the Muslim world torture will give
way to human rights and repression to democracy. He has explicitly repented past American
policy, saying that the US can no longer ignore despotic outrages committed by
governments, even if they are useful regional allies. However, American double standards
in Iraq and Uzbekistan make us less credulous and ruin the fairy tales simplicity.
Bushs beautiful story cannot survive the fierce critique of a Gorgeous George."
Michael Portilo, former Conservative British Minister of Defence
Gorgeous George batters Bushs beautiful fairy tale
Sunday Times
(London), 22 May 2005
"We now know that a blueprint for
the creation of a global Pax Americana was drawn up for Dick Cheney (now vice-president),
Donald Rumsfeld (defence secretary), Paul Wolfowitz (Rumsfeld's deputy), Jeb Bush (George
Bush's younger brother) and Lewis Libby (Cheney's chief of staff). The document, entitled
Rebuilding America's Defences, was written in September 2000 by the neoconservative think
tank, Project for the New American Century (PNAC). The plan shows Bush's cabinet intended
to take military control of the Gulf region whether or not Saddam Hussein was in power. It
says 'while the unresolved conflict with Iraq provides the immediate justification, the
need for a substantial American force presence in the Gulf transcends the issue of the
regime of Saddam Hussein.'... The evidence again is quite clear that plans for
military action against Afghanistan and Iraq were in hand well
before 9/11.... The
BBC reported that Niaz Niak, a former Pakistan foreign secretary, was told by senior
American officials at a meeting in Berlin in mid-July 2001 that 'military action against
Afghanistan would go ahead by the middle of October'. Until July 2001 the US government
saw the Taliban regime as a source of stability in Central Asia that would enable the
construction of hydrocarbon pipelines from the oil and gas fields in Turkmenistan,
Uzbekistan, Kazakhstan, through Afghanistan and Pakistan, to the Indian Ocean. But,
confronted with the Taliban's refusal to accept US conditions, the US representatives told
them 'either you accept our offer of a carpet of gold, or we bury you under a carpet of
bombs' .... The 9/11 attacks allowed the US to press the 'go' button for a strategy in
accordance with the PNAC agenda which it would otherwise have been politically impossible
to implement. The overriding motivation for this
political smokescreen is that the US and the UK are beginning to run out of secure
hydrocarbon energy supplies.... A report from the
commission on America's national interests in July 2000 noted that the most promising new
source of world supplies was the Caspian region, and this would relieve US dependence on
Saudi Arabia. To diversify supply routes from the Caspian, one pipeline would run westward
via Azerbaijan and Georgia to the Turkish port of Ceyhan. Another would extend
eastwards through Afghanistan and Pakistan and terminate near the Indian border. This would rescue Enron's beleaguered power plant at Dabhol on India's west coast, in which Enron had sunk $3bn investment and whose
economic survival was dependent on access to cheap gas... "
This war on terrorism is bogus
The Guardian, 6 September 2003
"Russia's security chief accused Britain
and America of using civic groups as a front for spies yesterday, and blamed similar
operations for fomenting recent uprisings in other former Soviet republics. Nikolai
Patrushev, the director of the KGB successor Federal Security Service (FSB), told
parliament that his agency had uncovered spies working for the British and US governments,
as well as for Saudi Arabia and Kuwait, operating under cover of non-governmental
organisations.....The FSB chief's comments, an unusually detailed reiteration of
suspicions often voiced, came days after the Russian president, Vladimir Putin, hosted
George Bush and other world leaders for the Victory Day celebrations in Moscow.The visit
of Mr Bush, who described the Soviet occupation of Europe as one of the great wrongs of
the 20th century, underlined growing mistrust of the west among Kremlin hardliners. During
his visit, Mr Bush made a point of meeting Kremlin critics and telling them they could
count on his support to build a civil society and democracy. The US has also been accused
of involvement with opposition movements in Ukraine, Georgia and Kyrgyzstan, three former
Soviet republics transformed by popular uprisings. In a broad reference to the supporting
role that Washington and EU member states played in the protest-led regime changes, Mr
Patrushev added: 'Our opponents are steadily and persistently trying to weaken Russian
influence in the commonwealth of independent states and the international arena as a
whole. The latest events in Georgia, Ukraine and Kyrgyzstan unambiguously confirm this.'
Mr Patrushev, a close Putin ally, also accused an American NGO of organising a meeting in
Slovakia last month at which further 'velvet revolutions were discussed'".
Russia says 'spies' work in foreign NGOs
Guardian, 13
May 2005
Georgia was always set to be an exhilarating, even giddy, stop for
Bush on this tour. Mikheil Saakashvili, the young pro-US President, is a model ally. He
was always going to give Bush a flattering welcome.... Above all, Bushs embrace of
Georgias 18-month-old Government, in Russias backyard, was a way of delivering
a ruder snub to President Putin than he could have done face to face in Moscow a day
earlier.... his language also showed the profound muddles that the pursuit of democracy
abroad has created in US foreign policy, behind the confident words. 'The world has
marvelled at the hopeful changes taking place from Baghdad to Beirut to Bishkek,' Bush
said, trying through alliteration to establish a similarity that is only partially
there......Freedom is advancing from the Black Sea to the Caspian to the Persian Gulf,' he
declared, counting his way through the 'Purple Revolution in Iraq', the 'Orange Revolution
in Ukraine', the 'Cedar Revolution in Lebanon', and the 'Rose Revolution' in Georgia, like
a tableau on a nursery school wall. But joining up the dots in this way ignores the
different causes of these upheavals and other, worsening threats in those
regions..... Bushs claim that freedom is advancing across the 'Caucasus, Central
Asia and the broader Middle East' is simply untrue. In Central Asia, the US faces some of
its toughest dilemmas: whether to back unpleasant regimes with no interest in freedom for
fear that the replacement might be worse. In Chechnya, which warranted a routine mention,
the conflict is turning from a local insurgency against Moscow to a bitter regional fight
and a magnet for Islamic terrorists."
Turning revolution into a nursery game
London Times,
11 May 2005
"President Putin has drawn a line in
the mountains of the North Caucasus beyond which Russia will not withdraw.... Mr Putin has
also added into this complex mix the spectre of international (by which he means Islamic) terrorism and an accusation that unnamed foreign countries want to break bits off Russia.... An oil
pipeline from Azerbaijan used to run through Chechnya, but it was by-passed after earlier
fighting and now goes through Dagestan. There is oil and gas
to be developed in the Caspian Sea and Russia wants a stable area through which to pass
supplies."
Chechnya: Why Putin is implacable
BBC Online, 6 September 2004
"While it would be a distortion of
history to claim that the struggle between Russia and Chechnya arises solely because of
the of the jockeying for control of the Chechen oil deposits, refineries as well as the
crucial pipeline which passes through Grozny,
there is no doubt that petroleum has played a central role in the dispute. Given the
potential of what seem to be vast untapped deposits in the Caspian Sea and the fact that
the best if not only pipeline route from the Caspian through Russia to the West runs
through Grozny,
the odds are that tensions between Russia and Chechnya will not soon disappear. That will
be the case even if constitutional matters dealing with regional rights and the integrity
of the Russian Republic can be resolved.... Much more important in today's world is the
fact that that Grozny
is at the hub of Russia's pipeline network from the Caucasus' and most important to the
vast deposits in the Caspian sea off Azarbajian........ If Russia's only
concern was the Chechan rebellion, Russia would not be so anxious about the development of
mineral reserves in the Caspian. However, in the aftermath of the breakup of the USSR, and
the emergence of a newly assertive 'independent' Azerbaijan, Russian oil policy has
suddenly taken on a new importance. This is due to the fact that there is a real
possibility that Russia may find itself looking on from the outside as Azerbaijan, not
Russia, becomes the recipient of billions of dollars worth of royalties from the sale of
Caspian oil. Given the growing likelihood of such a
development, the Caucasus, the Caspian Sea and the Chechan pipeline have suddenly become
matters of international power politics, not only in the Kremlin, but because of the
intense interest in the area by American oil companies, by the Washington White House.... It is easy to understand the Russian concerns. Oil from Caspian Sea
deposits were first developed in the days of the czars and expanded in the Soviet era. Why
should other governments now become the beneficiary of this initial work.... This
hardening of attitudes is part of the growing suspicion by the Russians of western
intentions. It is not just that oil companies from Russia's
former enemies have been gathering data and control over what was once the Soviet Union's
most valuable resources, but that their efforts seem to be part of a strategy to cut
Russia off completly from the Trans Caucasus. How else can the United
States support of Chechnya and 'The Confederation of Mountain Peoples' be explained.....
As if all this were not threatening enough, the United
States and its obedient oil companies have also begun to insist on the opening of a second
pipeline route from the Caspian Sea....The real reason the
American oil companies want to ship through Georgia they insist is to deprive the Russians
of the transit fees and insure that the Russians will lose monopoly control over the
pumping and shipping of Caspian Oil."
Marshall I. Goldman, Associate Director, Russian Research Center, Harvard
University
Petroleum, Pipelines and Paranoia in the Caucasus
International
Conference on 'International Law and the Chechen Republic', Cracow, Poland, Dec.1995
"Why would a group of
leading American neo-conservatives, dedicated to fighting Islamic terror, have climbed
into bed with Chechen rebels linked to al-Qaeda? The American Committee for Peace in
Chechnya (ACPC), which includes Pentagon supremo Richard Perle, says the conflict between
Russia and Chechnya is about Chechen nationalism, not terrorism. The ACPC savaged
Russia for the atrocities its forces have committed in the Caucuses, said President
Vladimir Putin was 'ridiculous', claimed Russia was more 'morally' to blame for the
bloodshed than Chechen separatists and played down links between al-Qaeda and the 'Chechen
resistance'. The ACPC's support for the Chechen cause seems bizarre, as many of its
members are among the most outspoken US policymakers who have made it clear that Islamist
terror must be wiped out. But the organisation has tried to broker peace talks between
Russia and Chechen separatists. The ACPC includes many leaders of the neo-conservative
think-tank, Project for the New American Century (PNAC), which advocates American
domination of the world.... ACPC executive director Glen Howard said the continuation of
the 'brutalising tactics' of Russian forces would only lead to 'the resistance employing
more brutal tactics' like the assault on School Number One in Beslan...... The nurturing
of Chechen fighters against Russia recalls America's support for the Mujahideen in
Afghanistan - an act that went on to spawn al-Qaeda and the Taliban.... Howard said
hardliners like Richard Perle were backing Chechnya as they 'understood what it feels like
to be under the Russian yolk'. Some critics believe the support for the Chechens may
be a cold war hangover or part of a policy to keep Russia weak through bloodletting in the
Caucuses.... According to Howard, due to the vast
energy resources in the Caucuses, the West, which is heavily dependent on foreign energy,
has strategic interests in the area to which it cannot afford to turn a blind eye."
US neo-cons: Kremlin is 'morally' to blame for the school massacre
Sunday Herald - 12 September 2004
Oil and the battle for Chechnya - Click here
"The Caucasus
is among the most vital regions of the world for the United States, said Commander of the
United States European Command James Jones..... At the hearings in the U.S. Senate
Committee on Armed Services on March 1 General Jones presented an analytical report on the
current and future military strategic interests of the United States in the world.
'Caucasus is increasingly important for our interests,' he said. This region is a key one
in the process of spreading democracy and market economy to the countries of Central and
Southeast Asia, Mr. Johns said. In the coming five years Caspian oil running across the
Caucasus may account for 25% of the world increase in oil production, he said. It has been
estimated by the U.S. military that the Caucasian oil and gas will ensure a
diversification of the energy sources for Europe, the general said, according to a RIA
Novosti report."
U.S. Commander-in-Chief in Europe: Caucasus is vital for U.S.
Pravda, 4 March
2005
"Washington's
support for Shevardnadze's overthrow certainly had nothing to do with its love of
democracy, which was not much in evidence when Azerbaijan, just east of Georgia and
another pipeline country, held even more outrageously rigged elections in October. For the
Bush administration, the goal is to freeze Russia out of the new oil bonanza in the
Caspian and Caucasus countries, all former Soviet fiefdoms, and Shevardnadze's crime was
to be too accommodating to the Russians. ... when Shevardnadze signed a deal last year
with the Russian gas giant Gazprom, Washington went ballistic. Bush's energy adviser
Steven Mann flew in to warn Shevardnadze not to go ahead with the deal, Mikhail
Saakashvili denounced it - and Shevardnadze signed it anyway. So no illusions
about America's motives for opposing him - but on the other hand, most Georgians really
did want to be rid of Shevardnadze."
The power to dismiss
Dawn (Pakistan), 12 January 2004
"The United
States has poured about $1.3 billion (£735 million) in aid into Georgia since the
collapse of the Soviet Union. The EU and individual EU states have contributed a similar
amount, and funds continue to flow in. In the past week alone, the US Embassy announced a
package worth $21 million to pay for heating bills, pensions and salaries during the harsh
winter that will challenge Mr Saakashvili's fledgeling government from its first days.
Washington's interests go far further than propping up the economy, however. A contingent
of US special forces is rebuilding Georgia's ramshackle army, while Richard Miles, the US
Ambassador, has become a constant presence at negotiations during the political upheaval
that followed the ousting of Mr Shevardnadze. The focus on Georgia is explained mainly by
the building of a pipeline to carry Caspian Sea oil from neighbouring Azerbaijan through
to the Turkish Mediterranean port of Ceyhan for export to Western clients. The pipeline,
which will run through Georgia and bypass Russia, has long been a favourite American idea.
Until now, Russia has been able to control most routes for exporting the Caspian's huge
energy resources. Although the pipeline, in which BP has a leading stake, is due to be
completed only in 2005, it has already transformed Georgia's place in the world. 'For us,
it's a matter of survival to have this pipeline,' Mr Saakashvili said."
Georgia turns its face to the West
London Times,
31 December 2003
"To Azerbaijani officials, a deal
with BP was tantamount to a deal with the British government; not only did visiting
British officials lobby relentlessly for the company, but for months Britain's diplomatic
mission to Azerbaijan had operated out of the BP offices."
A British 'Coup'
Washington
Post, 4 October 1998
"The Bush Administration put huge
effort yesterday into preaching two contradictory messages on democracy. On one side, we
had Colin Powell, the Secretary of State, in north Africa to champion the cause of
democracy and human rights. On the other, we had Donald Rumsfeld, the Secretary of
Defence, congratulating the President of Azerbaijan on his landslide October poll victory,
which even the State Department has said was tarnished by fraud, and which triggered
street riots. But the contradiction is not between Powell and Rumsfeld, notorious though
their different views of the world are. It lies at
the heart of the Administrations foreign policy:
does it always want to promote democracy, when that would produce a government hostile to
its interests? That is the question the US faces in Iraq, above all one it has
chosen so far to duck. First Rumsfeld, who stopped in Baku on his way from Brussels to
Kabul. The reason for the USs interest is no
mystery. Azerbaijans Caspian oilfields are an attraction as the US looks for
alternatives to the Gulf.... Rumsfeld emphasised the
closeness of those links yesterday: 'We have a military-to-military relationship, as well
as political and economic relationships. And certainly we intend to continue that
military-to-military relationship with the new administration here in this country.'
The problem is the nature of that administration. The
elections allowed Ilham Aliyev to succeed his father, Heider Aliyev, longtime leader of
the Soviet-era Communist Party, who returned to power in 1993 after a military coup.
Senior opposition figures are among 100 said still to be in jail after post-election
riots. So is Ilgar Ibrahimogul, imam of a mosque in the capital, and founder of
Azerbaijans Centre for Religious Freedom, together with Rauf Arifoglu, editor of the
biggest-circulation newspaper. The State Department has called for an investigation into
intimidation and ballot-rigging. In that light Rumsfelds remarks amount to a bald
statement of the bargain that the US will strike to pursue its strategic interest."
Bush's officers parade policy contradiction
London Times, 5
December 2003
"Yes, our man (Yushchenko) and our
system (democracy) won in Ukraine, and once again good triumphed over bad. Yet this
presentation, so characteristic of the Western media, misses the point about what the
struggle is really about. If the issue was fair elections, there would have been an equal
furore about the grossly rigged elections by which Ilham Aliyev assumed the presidency of
Azerbaijan in 2003 from his father, a ruthless KGB hardman in the former Soviet state. In
fact the West turned a blind eye, in order to maintain access to Azerbaijans oil
supplies after a $13 billion contract had been signed with BP in 1998. Equally, there
would have been uproar when the pro-Russian Shevardnadze was ousted as President of
Georgia in 2003 and the Wests favoured candidate won 96 per cent of the vote to
replace him. But nobody raised any complaint. If the issue was legitimate government, much
more attention would have been focused on Yushchenkos aides and the tenor of his
administration. His closest aide, Julia Timoshenko, known as Ukraines gas
princess, and now appointed Prime Minister, has been widely accused by both the
Russian and Ukrainian authorities of bribery and embezzlement. Another aide admits that
the key people in the Yushchenko team are from the same oligarchic mould as our
opponents. Economic interests, not political principle, pitted them against the
Yanukovich camp. Many fear that turning over state power to entrenched oligarchs like
these will make Yushchenkos government little different from its predecessor. What is really at stake is something quite different, almost
entirely unmentioned in the Western media. It is rather more prosaic than a people
power revolution. It is primarily a battle over oil transit routes from the second
largest remaining oil deposits in the world, and, more long term, a US attempt to pre-empt
Chinese designs on the key strategic space round the southern rim of the old Soviet Union. In May 2000 an oilfield containing 2050 billion barrels of oil was
discovered in the Caspian Sea off the Kazakhstan coast, probably the biggest hitherto
untapped reserve in the world. But, with major exploration only now getting under way,
early seismic studies suggest vast resources of hydrocarbons ranging from 70200
billion barrels of oil and some 250 trillion cubic feet of gas less than in the
Middle East but much more than in the US and Europe. The geopolitical problem, however,
centres on the fact that the Caspian Sea is landlocked, so that oil and gas have to be
transported by pipeline to a terminal on the open sea. One relatively short route runs
through Iran, but that is not acceptable to the US. Another plan, from the US oil company
Unocal, was to extend Turkmenistans existing route through Afghanistan and Pakistan
on to the Arabian Sea, and this was a consideration behind launching the war against
Afghanistan in 2001. A third alternative is a pipeline westwards from the Caspian port of
Baku through Georgia to the Turkish port of Ceyhan on the Mediterranean; but this has been
heavily opposed on grounds of environmental destruction. A fourth option is a pipeline
from Kazakh to the Black Sea, but this has the severe drawback of tanker congestion in the
Bosphorus. Against this background, Ukraines geographical location makes it an ideal
corridor for oil and natural gas from the Caspian region to Western markets. The most
suitable conduit is the OdessaBrody pipeline which was completed in 2001 and runs
north from Ukraines Black Sea port to the city of Brody, and is thence extended to
the refinery at Plotsk in Poland and a further link to the Baltic port of Gdansk. However,
this has been blocked hitherto by Moscows stubborn insistence on operating the
pipeline in the reverse direction, to move oil from Russia southwards to tankers in the
Black Sea for onward shipping to world markets. Moscow has also tried to drag Ukraine into
a customs or even an economic union in the framework of its so-called Integrated Economic
Zone. By depriving Ukraine of its European prospects and hence of its opportunity to
become more independent economically, the Kremlin has been trying to pull Kiev back into
Moscows orbit. What has been at stake in Ukraine is less a fight over democracy than
a struggle over the geopolitics of oil and military reach. If Ukraine is absorbed into the
Nato orbit, Russia will be deprived of access to its naval bases in the Crimea, and
Russian oil and gas exports will be squeezed by a new US straitjacket. But the
significance of the Ukrainian confrontation goes even wider. China remains the sole
long-term challenger to US hegemony, and while the Chinese economy has been expanding at a
phenomenal rate, its weakness continues to be its energy supply. Once oil-independent,
China has over the last decade become increasingly reliant on imports, which now account
for 60 per cent of its oil consumption, compared with only 6 per cent in 1993. Within the
next five years, according to Beijing, China will be importing 50 million tons of oil and
50 billion cubic metres of gas annually. Chinese petro-diplomacy already extends
worldwide, including Africa, and it is busily establishing surveillance stations, naval
facilities and airstrips to safeguard the oil route from the Gulf to the South China Sea.
But its main goal in escaping dependence on maritime oil supplies is access to Russian and
central Asian oil. Another facet, therefore, of intense US pressure on Ukraine is to
forestall any Chinese encroachment on this oil-strategic area in the soft underbelly of
the former Soviet Union. Ukraine is in reality a key flashpoint in the new Great Game
being played out by the US, not so much with Russia, still a declining force, but with
China, the emerging long-term threat."
One for oil and oil for one
The Spectator, 5 March 2005
Ukrainian Elections - Fight Over Pipelines - 10 Dec 2004
What Happens When G7 Countries Have No
Plan B
To Handle 'Peak Oil'
"I wish I could simply wave a magic
wand and lower gas prices tomorrow. But we must act now to address the fundamental
problem. Our supply of energy is not growing fast
enough to meet the demands of our growing economy..... Our dependence on foreign energy is like a foreign tax on the
American Dream - the tax our citizens pay every day in higher gas prices, higher cost to
heat and cool their homes - a tax on jobs. Worst of all, it's a tax increasing every
year."
George W. Bush 20 April 2005
Bush Urges Action 'Now' on Energy
Washington
Post, 21 April 2005
" .. in 1973.... the
Arab oil embargo temporarily left the U.S. unable to satisfy its voracious appetite for
oil. That created a deep sense of vulnerability a rare experience for the world's
most powerful country. Preventing the U.S. from ever being vulnerable like that again has
been a key objective of American strategic planners ever since. The 1973 embargo sparked a
new hawkishness in Washington. An article in the March, 1975, issue of Harper's, titled
'Seizing Arab Oil,' unabashedly outlined plans for a U.S. invasion to seize key Middle
East oilfields and prevent Arab countries from having such control over the modern world's
most vital commodity. The author, writing under a pseudonym, wasn't just any old
right-wing blowhard; it turned out to be Secretary of State Henry Kissinger. But seizing
Arab oilfields was too risky as long as the Soviet Union existed. The Soviet collapse in
1991 opened up new possibilities."
History Will Show U.S. Lusted after Oil
Toronto Star, 26 December 2005
"....we could have the perfect storm
if there were a revolution in Saudi Arabia and no one can really predict how bad it would
be, or would it spill over into the other Gulf countries... what I'm saying is I think we
should anticipate for it. If the United States keeps on its policy of, you know,
aggressive, pro-Israeli policy in the Middle East, it could affect Saudi Arabia in terms
of a revolution and we have to be prepared for the consequences... this sounds.... like a
hawk now, but you know, we have to be prepared. We, the West, have to take over those oil
fields if there's a serious Islamic revolution in the Gulf that affects all these
countries. ...... It's a world commodity, oil, and it has to be protected for our survival
..... Now whether, you know, whether it's seizing the oil fields or putting them under the
United Nations' control or accommodating Saudi Arabian public opinion.... I think [the war
in Iraq is] ultimately destabilising because we've essentially effaced a country in the
Middle East, which is Iraq."
Bob Baer, former CIA operative in the Middle East
Former CIA analyst comments on US/ Saudi relations
Australian
Broadcasting Corporation, 30 April 2003
"A briefing given last month to a top Pentagon advisory
board described Saudi Arabia as an enemy of the United States, and recommended that U.S.
officials give it an ultimatum to stop backing terrorism or face seizure of its oil fields
and its financial assets invested in the United States.... The briefing did not represent
the views of the board or official government policy, and in fact runs counter to the
present stance of the U.S. government that Saudi Arabia is a major ally in the region. Yet
it also represents a point of view that has growing currency within the Bush
administration -- especially on the staff of Vice President Cheney and in the Pentagon's
civilian leadership -- and among neoconservative writers and thinkers closely allied with
administration policymakers."
Briefing Depicted Saudis as Enemies
Washington
Post, 6 August 2002
"David O'Reilly, chairman and chief
executive of Chevron Texaco said there was a view among some sections of the public that
the [Iraqi] conflict was about nothing but oil and that was not a good enough reason to go
to war. But he said that the diversity and continuity of the world's energy supply were
vital strategic concerns "
Iraq is 'an excuse'
Daily Telegraph, 18 February 2003
"This International Energy Strategy is the product of cross-government work, particularly between the Foreign and Commonwealth Office, the Department of Trade and Industry and the Department for the Environment, Food and Rural Affairs. I'm glad to welcome Mike O'Brien back to the Foreign Office to launch it with me. The Government's Energy White Paper last year identified a dual energy challenge: to maintain Britain's access to secure and affordable energy supplies, while mitigating the effects of climate change.Both issues are vital to our prosperity and security. And both require not just domestic but international action. That is what this International Energy Strategy is about..... The second part of the energy challenge which this strategy addresses is the need for secure and affordable energy supplies. Our economy, our public services and our security rely on them.
For the United Kingdom, our growing need for energy over the next decades has to be seen in a changing context that of a probable fall in our own domestic production, as North Sea reserves are run down. We are likely to become net importers of gas by 2006 and of oil by 2010. By 2020, we will probably be importing three-quarters of our primary energy needs and we will need to adapt to that..... By 2020, around half of global oil demand will probably be met by countries with significant risk of internal instability and that will require more focus on policies which tackle the potential causes of conflict, and spread the benefits of energy wealth.... Energy is one of the eight international priorities which we identified in the FCO's Strategy last December. On this and on all of those priorities, we can only meet our objectives by working closely together, across government and outside. We are publishing this International Energy Strategy the first time that we have done so to help us to do that. I will be tasking our Ambassadors and High Commissioners in priority posts overseas to take personal charge of implementing this Strategy and delivering its objectives. We will be developing with them individual Country Action Plans on energy and climate change. And we will be enhancing our posts' capacity on energy issues and making better use of our network of energy attachés, with a particular focus on the large new consumers of energy such as China and India, and producers such as Russia."
Chavez with President Khatami Of Iran
"The presidents of two leading oil producing nations,
Venezuela and Iran, are due to meet to discuss closer economic co-operation. Hugo Chavez
and Mohammad Khatami are expected to sign a number of energy deals during President
Khatami's three-day visit to Caracas. Both countries have strained relations with
Washington.... Mr Khatami's visit will be his third to Venezuela. Mr Chavez visited his
Iranian counterpart in Tehran in November last year. Venezuela is one of the leading
suppliers of petroleum to the US, but recently it has been seeking alternative energy
partners such as Russia, China and India."
Chavez seeks Iran economic ties
BBC News, 10 March 2005
"For a United States increasingly
pointing at China as the next biggest challenge to Pax Americana, the Iran-China energy
cooperation cannot but be interpreted as an ominous sign of emerging new trends in an area
considered vital to US national interests..... Even short of joining forces formally, the
main outlines of a China-Russia-Iran axis can be discerned in their mutual threat
perception... For now, however, the quantum leap of China into the Middle East and Caspian
energy markets has become a fait accompli, no matter how disturbed its biggest trade
partner, the US, may be over its geopolitical ramifications"
China Rocks the Geopolitical Boat with Iran Oil Deal
Asia
Times, 2 December 2004
"President Hugo
Chavez said oil and gas deals he recently signed with the Chinese, part of a strategy to
reduce his country's reliance on US export markets, will boost trade with the Asian
country to nearly $3 billion next year. Speaking to reporters yesterday after his return
from a five-day visit to Beijing, Chavez said the trip brought 'great results' for
Venezuela. The agreements allow Chinese companies to explore for oil, set up refineries,
and produce natural gas in the South American country, officials said earlier. Chinese
companies intend to invest $350 million in 15 oil fields in eastern Venezuela and $60
million in natural gas projects, Chavez said yesterday. Venezuela will receive $250
million next year from China for fuel oil exports, Chavez said.China is eager to secure
new sources of energy for its booming economy, which is struggling with power shortages.
Venezuela wants to find new customers to reduce its reliance on the United States, its
number one market but also a critic of Chavez's government. Meanwhile, Chavez said
Venezuela will also buy a satellite from China. He didn't give details, but last week
Information Minister Andres Izarra told the state news agency Venpres that within a year
the satellite would be in orbit to fill Venezuela's communication needs and would give the
country 'full sovereignty' in telecommunications. He also said the Venezuelan government
will acquire Chinese radar to improve security along its borders. The South American
country already has announced measures to tighten control over its border with
Colombia."
Chavez predicts energy deals with
China to boost trade to $3b
Associated
Press, 28 December 2004
"Latin America is becoming a rich
destination for China in its global quest for energy, with the Chinese quickly signing
accords with Venezuela, investing in largely untapped markets like Peru and exploring
possibilities in Bolivia and Colombia. China's sights are focused mostly on Venezuela,
which ships more than 60 percent of its crude oil to the United States. With the largest
oil reserves outside the Middle East, and a president who says that his country needs to
diversify its energy business beyond the United States, Venezuela has emerged as an
obvious contender for Beijing's attention.The Venezuelan leader, Hugo Chávez, accompanied
by a delegation of 125 officials and businessmen, and Vice President Zeng Qinghong of
China signed 19 cooperation agreements in Caracas late in January. They included
long-range plans for Chinese stakes in oil and gas fields, most of them now considered
marginal but which could become valuable with big investments. Mr. Chávez has been
engaged in a war of words with the Bush administration since the White House gave tacit
support to a 2002 coup that briefly ousted him. Still, Venezuela is a major source for
American oil companies, one of four main providers of imported crude oil to the United
States, inexorably linking the two countries' interests......'The Chinese are entering
without political expectations or demands,' said Roger Tissot, an analyst who evaluates
political and economic risks in leading oil-producing countries for the PFC Energy Group in Washington. 'They just say, 'I'm coming
here to invest,' and they can invest billions of dollars. And obviously, as a country with
billions to invest, they are taken very seriously.' China's entry is worrisome to some
American energy officials, especially because the United States is becoming more dependent
on foreign oil at a time when foreign reserves remain tight. It was the limited supplies
that pushed a barrel of oil to $55 in October, driving up retail prices and hurting
economies. On Monday, crude oil for April delivery settled at $51.75 in New York, up 26
cents. The Senate Foreign Relations Committee, headed
by Richard G. Lugar, Republican of Indiana, recently asked the Government Accountability
Office to examine contingency plans should Venezuelan oil stop flowing. ...... To be sure, China, the world's second-largest consumer of oil,
has emerged as a leading competitor to the United States in its search for oil, gas and
minerals throughout the world - notably Central Asia, the Middle East and Africa. China
has accounted for 40 percent of global growth in oil demand in the last four years,
according to the Energy Department, and its consumption in 20 years is projected to rise
to 12.8 million barrels a day from 5.56 million barrels now. Most of that oil will need to
be imported. The United States now uses 20.4 million barrels a day, nearly 12 million of
it imported.Aggressively seeking out potential deals, China tries to out-muscle the big
international oil companies, always beholden to shareholders. Chinese companies, which
have substantial government help, can dispense government aid to secure deals, take
advantage of lower costs in China and draw on hefty credit lines from the government and
Chinese financial institutions.......Venezuela, with a view to exports to China, says it
is exploring plans to rebuild a Panamanian pipeline to pump crude oil to the Pacific,
where it would be loaded onto supertankers that are too big to use the Panama
Canal.Another proposal, with neighboring Colombia, would lead to the construction of a
pipeline across Colombia to carry Venezuelan hydrocarbons, which would then be shipped to
Asia from Colombia's Pacific ports.Mr. Chávez has promoted these plans in three visits to
China. In the most recent, in December, he unveiled a statue of Simón Bolívar in
Beijing. Trade between the two countries could rise to $3 billion this year from $1.2
billion, Mr. Chávez said, celebrating their links as a way for Venezuela to break free of
dependence on the American market. 'We have been
producing and exporting oil for more than 100 years,' Mr. Chávez told Chinese businessmen
in December. 'But these have been 100 years of domination by the United States. Now we are
free, and place this oil at the disposal of the great Chinese fatherland.' China, though, is not just interested in Venezuela. Much of Latin America
has become crucial to China's need for raw materials and markets, with trade at $32.85
billion in the first 10 months of 2004, about 50 percent more than in 2003. Mining,
analysts say, is among China's priorities, whether it is oil in Venezuela, tin in Chile or
gas in Bolivia. Chinese involvement in Latin America is 'growing by leaps and bounds,'
said Eduardo Gamarra, director of the Latin America and Caribbean Center at Florida
International University, adding, 'It's driven by the need for privileged access to raw
material and privileged access to hydrocarbons.' "
China's Oil Diplomacy in Latin America
New
York Times, 1 March 2005
"Since it became a net oil importer in
1993, China has traversed the globe in a frantic quest for oil to fuel its booming
economy. In some cases, its pursuit of oil has caused considerable irritation in
Washington especially due to China's decision to support rogue regimes, such as Iran and
Sudan, just because it depends on their oil. Now, China might be on the verge of causing
even greater vexation by setting its sights on a new oil domain: the Western Hemisphere. In recent months, Chinese state-owned oil companies have begun
seeking ambitious oil deals in Canada - the top
petroleum supplier to the U.S. - including the acquisition of Canadian energy companies.
Sinopec, one of China's largest state-owned energy companies, is interested in buying
stakes in the vast reserves of the Alberta oilsands. The Canadian giant Enbridge is
pushing ahead with a plan to build a $2.5-billion pipeline to transport oil from Alberta
to the coast of British Colombia from where it will be shipped across the Pacific to
China. Though it is not clear which of these deals will come to fruition, the possibility
of Chinese acquisition of portions of Canada's energy industry - which could lead to a
loss of up to a third of Canada's potential exports to the U.S. - should be a source of
concern in Washington.... Further, the implications of China's stepping into the Western
Hemisphere are political no less than economic. Many in Canada and Venezuela feel that the
U.S. has taken their oil for granted and therefore they see China as a provider of market
competition which could give them political leverage over Washington when it comes to
contentious issues.... Last March, China's deputy foreign minister, Wang Yi, admitted in a
lecture at Beijing University that Chinese foreign polices are 'at the service of China's
economic development.'"
In search of crude China goes to the Americas
Institute For The Analysis Of Global Security,
18 January 2005
"Canada's second-biggest pipeline
company, may build a line to carry imports of an oil additive to Alberta as part of a
C$2.5 billion ($2 billion) project to send Canadian crude oil to China.The conduit would
carry as much as 150,000 barrels a day of condensate, an ultra-light oil that's produced
with natural gas, from a British Columbia port, said Richard Bird, Enbridge's vice-
president responsible for the project. The condensate would dilute the tar-like heavy oil
pumped in Alberta to allow it to be transported by another new pipeline back to the West
Coast..... Production of heavy oil, which is trapped in sand in northeastern Alberta, has
begun to outpace output of condensate from Canadian gas wells. About 150,000 barrels of
condensate is produced daily in Canada.... About 80 percent of the oil produced from sands
in Canada requires dilution with condensates before they can be transported, Gobert said.
Demand for condensate is beginning to outstrip supply, as production at fields like Shell
Canada Ltd.'s Caroline field in Alberta declines, he said..... Calgary-based Enbridge in
April signed an agreement with PetroChina Co. to develop the Gateway project. "
Enbridge May Build Condensate Pipeline for Gateway Project
Bloomberg, 20 May 2005
"After Iraq it is oil rich Venezuela led by
Hugo Chavez that has become the center for confrontation between America and the Euro
Zone. Chavez is dead against America and Euro Zone needs him to keep the oil balance --
the power symbol in 2005. But this time the equation is a little different. A new regional
and super power coalition of India,
China, Russia and Brazil is making a huge difference. Russian President is in the zone to
pull Brazil in the coalition and influence on Chavez for mutual support......Venezuelan
President Hugo Chavez is leveraging his country's oil resources to build new geopolitical
relationships with key regional powers like Russia, China, India and Brazil..... According
to think tanks, it is not Iran but Venezuela will be the next epicenter of confrontation
for oil supremacy. But this time both Euro zone and America will face a real formidable
super power coalition -- the combined resources of India, China, Russia and Brazil."
After Iraq it is Venezuela
India Daily, 27 November 2004
"On November
10, Russia took the lead role in coalition with China, India and Brazil to challenge the
super-power supremacy of the US. Brazil and Venezuela are very open to the coalition
concept where these large countries support each other in terms of trade, economics,
international politics and defense. ..... Iran is about to join the coalition due to their
US$200 billion energy deal with China.... With the oil and gas deals between China and
Iran and Venezuela, these two countries have come under the protection of China".
The biggest mistake in the
history of American foreign policy
VHeadline.com, 30 December 2004
"...in Russia [Chavez] signed energy cooperation accords and agreements
to purchase military helicopters to secure Venezuela's borders, as well as 100,000 assault
rifles for the army..... He is urging that country, along with India, Iran, Russia and
Venezuela's South American neighbours, to forge new strategic alliances to act as a
counterweight to the United States, the world's only superpower."
Chávez Steps Up Efforts to Forge
International Alliances
Inter Press Service, 15 December 2004
"Mr Musharraf was adamant he would not
be persuaded by the US to drop plans to build a gas pipeline from Iran. This would cross
Pakistan and India and is seen as a cornerstone of a two-year-old peace process between
the two neighbours. Condoleezza Rice, US secretary of state, has warned the countries
against proceeding with the $4.5bn (3.5bn) pipeline, which State Department
officials say could expose energy-deficient India and Pakistan to US sanctions. Gen
Musharraf maintained he would take a decision by year-end that would be based solely on
Pakistan's national interest. Qatar and Turkmenistan could provide politically easier
substitutes for Iranian gas, but both face considerable logistical difficulties. He said:
'We are short of energy. We want gas immediately. Our
industry is suffering; investment coming to Pakistan is suffering, so Pakistan's interest
is to get gas fast. Iran is the fastest source.'"
Al-Qaeda's back has been broken, says Musharraf
Financial
Times, 16 May 2005
"Decades from now, historians will
likely calmly discuss the war currently raging in Iraq, and identify oil as one of the key
factors that led to it. They will point to the growing U.S. dependence on foreign oil, the
importance of oil in the rising competition between the U.S. and China, and the huge
untapped store of oil lying unprotected under the Iraqi sand. It will all probably seem
fairly obvious. Just don't expect to hear this sort of discussion now, however, when it
might actually make a difference. In fact, a year-and-a-half into the U.S. occupation of
Iraq, with the carnage over there spiralling ever more out of control, don't expect media
discussions of Iraq to stray much beyond the issue of 'fighting terrorism.' Indeed, while
ordinary people around the world apparently suspect Washington was motivated by oil, not
terrorism, there continues to be a strange unwillingness in the mainstream media to probe
such a possibility."
History Will Show U.S. Lusted after Oil
Toronto Star, 26 December 2005
"President Hugo Chavez has for the
first time admitted that Venezuela's oil industry is producing 100,000 barrels a day less
than planned. He said investigations into possible sabotage were under way. But he
also blamed the state oil company PDVSA.... Last week, Venezuela's Defence Minister Jorge
Luis Garcia Carneiro suggested the United States' Central Intelligence Agency might be
responsible for organising sabotage in the country's oil industry. President Chavez said
this possibility was being investigated, but specifically blamed management mistakes for
the failure to meet production targets."
Venezuelan oil output 'still low'
BBC Online, 5 May 2005
"If a
report circulating among senior members of America's defense establishment is any guide,
the Sino-American war for future petroleum supplies has already begun. According to the
80-page study, Beijing has identified the United States as 'a paramount threat to its
energy security and economic stability' and is busily establishing a 'string of pearls' -
forward deployments of surveillance stations, naval facilities and airstrips-to safeguard
the petroleum-transport route from the Persian Gulf to the South China Sea. Once it
controls Asia's vital sea lanes, the report goes on, China may then move on some of the
world's key oil reserves-perhaps by replacing the United States as Saudi Arabia's patron
and protector, or by seizing a strategic oil pipeline in the Russian Far East. The
Chinese, the report says, 'equate energy security with physical possession or control of
energy supplies' and 'have a tendency to see securing their energy security as a zero-sum
game.' Nowhere is that more clear than in sub-Saharan Africa, where Chinese oil and
natural-gas companies have over the past several years inked deals with regimes such as
Sudan's.....'In Africa,' says Jamal Qureshi, an oil-markets expert at PFC Energy in Washington, 'you've got new players, with China
as a possible counterweight to the U.S. There could be elements of confrontation.... In
October Beijing agreed to buy up to $100 billion in Iranian petroleum and gas and to help
develop a major Iranian oilfield near the Iraqi border-evidence of an evolving
Sino-Iranian alliance that is featured in the Pentagon report. Earlier this year Beijing
signed a 25-year deal to develop natural-gas reserves in Iran-despite U.S.-led
sanctions-and it is increasingly active in the Gulf states..... Africa, though, remains
the new oil frontier for both China and the United States....... Once oil-independent,
China has over the last decade become increasingly reliant on imports, which now account
for 60 percent of its oil consumption, up from 6.4 percent in 1993.'.... While the United
States appears to have conceded Sudan to China, it is active elsewhere in Africa. U.S.
President George W. Bush has made a point of meeting with leaders of such countries as
Chad and Congo, which in the past barely registered on Washington's foreign-policy map....
Some analysts even suspect that the deliberate way in
which the United States lifted sanctions on Libya earlier this year was a move to
check China's growing influence in Africa. If China sees energy security as a zero-sum
game, so, it appears, does its American rival."
Yet Another Great Game
Newsweek, 20 December 2004
Peak Oil Threatens Collapse Of International Order
Another key change of direction needed concerns the
handling of power. We display undue subservience to the US when the bottom line of our
foreign policy should be protecting British interests and UN legitimacy.
Michael Meacher,
former Blair Minister
We need power to the people, not to the autocratic
new Labour clique
London
Times, 12 May 2005
As Michael Meacher
wrote in the NS [New Statesman] last
week, the growth of US militarism is prompting the emergence of a new power bloc of China,
Russia, India and Brazil. The regimes governing the first two countries are hardly beacons
of moral authority. But that is beside the point: as one commentator has put it, America
itself is now so radioactive that nobody wants to stand beside it.
How Blair Backed A Loser
New Statesman, 16 May 2005
".... the implications of China's exploding thirst for crude oil are epic in scope... Based on our analysis of the intense economic, crude oil, and mili