Truth Out reports: Fracking opponents in southern Ohio won a victory last week when the United States Forest Service (USFS) withdrew more than 3,000 acres of public lands from a federal oil and gas lease sale scheduled for December 7, 2012. The USFS announced that it needed more time to review the potential effects of fracking after receiving petitions and letters from local leaders who used the old-fashioned method of collecting signatures to catch the attention of government officials.
The fracking industry, on the other hand, has spent $747 million dollars in the past decade to lobby Congress and support politicians in states like Ohio, Michigan and New York as part of a campaign to keep fracking unregulated, according to a recent Common Cause report.
Fracking is short for horizontal hydraulic fracturing, and Ohio is the next ground zero for the rapidly expanding natural-gas drilling method, which has enraged environmentalists and provoked controversy across the country. Fracking involves injecting millions of gallons of water and chemicals – some of them toxic – into deep underground wells to break up rock and release natural gas.
Common Cause reports that fracking companies spent $2.8 million in political contributions to Ohio parties and candidates since 2001. Republican Gov. John Kasich tops the list and has received $213,519 in campaign contributions from the industry.
Additional analysis of campaign records by Truthout reveals that wealthy executives of companies connected to the natural gas industry, including billionaires William “Bill” Koch and David Koch of Koch brothers fame, funneled an additional $127,268 in personal donations through a political action committee (PAC) to support Kasich’s election in 2010.
Earlier this year, Kasich signed a law passed by Ohio’s Republican-controlled legislature allowing drilling companies to frack in state parks, a big signal to the industry that Ohio is open for business.
Category Archives: fossil fuels
Petroleum junkies of the world, unite!
Craig Collins writes: It took me years to realize that our supercharged lifestyle depends on a vanishing supply of fossil fuels and cannot possibly be reproduced on a global scale. If the people of China lived like Americans, there would be more cars in China than there are in the entire world today. Their cars would need all of the oil the world produces plus fifteen million extra barrels a day. China would consume two-thirds of the world’s grain harvest, burn more coal than the entire world uses today and use twice as much paper. And this is just China. The Earth simply does not have enough land, water and hydrocarbons for everyone to live the high-energy lifestyle of Americans. In fact, America’s coveted lifestyle is running on empty and on the verge of going bust, like the boomtowns that became ghost towns after the gold rush panned out.
Throughout the 20th century, the world was preoccupied with modernity, progress, science and technology, yet no one was crediting the amazing energy source that made it all possible. Even today, we routinely underestimate and overlook the unique characteristics that have made fossil fuels the energy source that has utterly transformed human life on this planet.
Fossil fuels are the most concentrated, versatile, inexpensive energy source ever discovered. Energy is the capacity to do work and we have harnessed fossil fuels to do unbelievable amounts of it. There are about 23,000 human labor hours (12.5 years at 40 hours per week) in every barrel of oil and humans use about 85 million barrels of oil every day. Just one gallon of gas can do as much work as 350 to 500 hours of hard human labor. How much would you expect to be paid for 350 to 500 hours of hard work? At $15 an hour, your labor would be worth between $5,250 and $7,500 dollars. Now compare that with how much you spend for a gallon of gas.
Modern industry and agriculture would be impossible without fossil fuels. According to Michael Pollan, it takes about ten calories of fossil energy to produce and transport each calorie of supermarket food we eat. In the United States, food typically travels between 1,500 and 2,500 miles from farm to plate. Supermarkets and fast food chains survive on a life support system of cheap fossil fuels. Agricultural machinery, irrigation systems, petrochemical pesticides and fertilizers, huge centralized feedlots, slaughterhouses, food processors and refrigerated storage all rely on hydrocarbons – as do the trucks, ships, trains and planes that move food around the world.
Bill McKibben, Keystone XL, and Barack Obama
Jane Mayer writes: Last spring, months before Wall Street was Occupied, civil disobedience of the kind sweeping the Arab world was hard to imagine happening here. But at Middlebury College, in Vermont, Bill McKibben, a scholar-in-residence, was leading a class discussion about Taylor Branch’s trilogy on Martin Luther King, Jr., and he began to wonder if the tactics that had won the civil-rights battle could work in this country again. McKibben, who is an author and an environmental activist (and a former New Yorker staff writer), had been alarmed by a conversation he had had about the proposed Keystone XL oil pipeline with James Hansen, the head of NASA’s Goddard Institute for Space Studies, and one of the country’s foremost climate scientists. If the pipeline was built, it would hasten the extraction of exceptionally dirty crude oil, using huge amounts of water and heat, from the tar sands of Alberta, Canada, which would then be piped across the United States, where it would be refined and burned as fuel, releasing a vast new volume of greenhouse gas into the atmosphere. “What would the effect be on the climate?” McKibben asked. Hansen replied, “Essentially, it’s game over for the planet.”
It seemed a moment when, literally, a line had to be drawn in the sand. Crossing it, environmentalists believed, meant entering a more perilous phase of “extreme energy.” The tar sands’ oil deposits may be a treasure trove second in value only to Saudi Arabia’s, and the pipeline, as McKibben saw it, posed a powerful test of America’s resolve to develop cleaner sources of energy, as Barack Obama had promised to do in the 2008 campaign.
But TransCanada, the Canadian company proposing the project, was already two years into the process of applying for the necessary U.S. permit. The decision, which was expected by the end of this year, would ultimately be made by Obama, but, because the pipeline would cross an international border, the State Department had the lead role in evaluating the project, and Secretary of State Hillary Clinton had already indicated that she was “inclined” to approve it. Both TransCanada and the Laborers’ International Union of North America touted the construction jobs that the pipeline would create and the national-security bonus that it would confer by replacing Middle Eastern oil with Canadian.
The lineup promoting TransCanada’s interests was a textbook study in modern, bipartisan corporate influence peddling. Lobbyists ranged from the arch-conservative Grover Norquist’s Americans for Tax Reform to TransCanada’s in-house lobbyist Paul Elliott, who worked on both Hillary and Bill Clinton’s Presidential campaigns. President Clinton’s former Ambassador to Canada, Gordon Giffin, a major contributor to Hillary Clinton’s Presidential and Senate campaigns, was on TransCanada’s payroll, too. (Giffin says that he has never spoken to Secretary Clinton about the pipeline.) Most of the big oil companies also had a stake in the project. In a recent National Journal poll of “energy insiders,” opinion was virtually unanimous that the project would be approved.
Al Jazeera interviews Iran’s oil minister
How the 99 percent beat Keystone XL
Jamie Henn writes: On Thursday afternoon, President Obama announced that the State Department will be sending plans for TransCanada’s controversial Keystone XL pipeline back to the drawing board. Most analysts think the 12- to 18-month delay will cause enough cost overruns and missed contracts that TransCanada will have to scrap the project altogether.
Keystone XL was going to be another fuse to the largest carbon bomb in North America: the Canadian tar sands. The tar sands are the dirtiest fuel on the face of the planet, and our top climate scientist says fully exploiting them could be “essentially game over” for the climate. We haven’t defused the bomb yet, but fighting Keystone has taught us a lot about how to dismantle it.
This fight started in indigenous communities in Canada and quickly spread down the pipeline route to ranchers in Nebraska and farmers in Texas. National environmental groups picked up the beat a while back. But it was the bravery of 1,253 people that transformed Keystone XL from a regional fight into the most important environmental question facing President Obama before the 2012 election.
For two weeks this August, one person after another was led away from the White House in handcuffs protesting Keystone XL. The sit-in united a uniquely diverse movement, from consummate D.C. insiders to indigenous leaders to Tea Party supporters. I was arrested on the second Wednesday with an architect from Philadelphia, a lawyer from National Resources Defense Council, and Darryl Hannah.
From those 1,253 people, the movement quickly spread. Protests met President Obama at nearly every public campaign stop. Groups of 50 to 100 people started visiting Obama for America offices to say, “We’re not going to donate or volunteer for your campaign until President Obama lives up to the promises he made in 2008, stands up to Big Oil, and kills this pipeline.” Hundreds of people were arrested in Ottawa to turn up the heat on the Canadian government. And this Sunday, more than 12,000 people surrounded the White House in a Keystone XL protest.
Here comes the sun
Paul Krugman writes: These days, mention solar power and you’ll probably hear cries of “Solyndra!” Republicans have tried to make the failed solar panel company both a symbol of government waste — although claims of a major scandal are nonsense — and a stick with which to beat renewable energy.
But Solyndra’s failure was actually caused by technological success: the price of solar panels is dropping fast, and Solyndra couldn’t keep up with the competition. In fact, progress in solar panels has been so dramatic and sustained that, as a blog post at Scientific American put it, “there’s now frequent talk of a ‘Moore’s law’ in solar energy,” with prices adjusted for inflation falling around 7 percent a year.
This has already led to rapid growth in solar installations, but even more change may be just around the corner. If the downward trend continues — and if anything it seems to be accelerating — we’re just a few years from the point at which electricity from solar panels becomes cheaper than electricity generated by burning coal.
And if we priced coal-fired power right, taking into account the huge health and other costs it imposes, it’s likely that we would already have passed that tipping point.
But will our political system delay the energy transformation now within reach?
Let’s face it: a large part of our political class, including essentially the entire G.O.P., is deeply invested in an energy sector dominated by fossil fuels, and actively hostile to alternatives. This political class will do everything it can to ensure subsidies for the extraction and use of fossil fuels, directly with taxpayers’ money and indirectly by letting the industry off the hook for environmental costs, while ridiculing technologies like solar.
So what you need to know is that nothing you hear from these people is true. Fracking is not a dream come true; solar is now cost-effective. Here comes the sun, if we’re willing to let it in.
Obama’s gift to the Koch brothers and curse to the planet
Jamie Henn, Co-founder and Communications Director of 350.org, writes: Here’s a unique political strategy for you: in the lead up to a crucial election, as anti-corporate sentiment is sweeping the nation, consider giving a huge handout to a major corporation that happens to be your biggest political enemy and is already spending hundreds of millions to defeat you and your agenda.
If that seems too crazy to believe, welcome to the Obama 2012 campaign.
Right now, President Obama is faced with the most crucial environmental decisions he is going to face before the 2012 election: whether or not to approve the permit for the controversial Keystone XL pipeline, a 1,700 mile fuse to the largest carbon bomb on the continent, the Canadian tar sands.
The Keystone XL isn’t just an XL environmental disaster — the nation’s top climate scientists say that fully exploiting the tar sands could mean “essentially game over” for the climate — it also happens to be an XL sized handout to Big Oil and, you guessed it, the Brothers Koch. You want fries with that?
Earlier this year, when Representative Henry Waxman (D-Calif.) attempted to investigate whether or not the Koch Brothers stood to gain from the pipeline, the chairman of the House Committee on Energy and Commerce, Fred Upton (R-Mich.) called the idea an “outrageous accusation” and “blatant political sideshow.” Is it even necessary to mention that reports show Koch and its employees gave $279,500 to 22 of the energy committee’s 31 Republicans and $32,000 to five Democrats?
As you might expect, Upton was completely wrong. Reporters at InsideClimateNews and elsewhere proved that the Koch’s stand to make a fortune with the construction of the pipeline. The brothers already control close to 25 percent of the tar sands crude that is imported into the United State and own mining companies, oil terminals, and refineries all along the pipeline route. You can bet that the champagne will be flowing in Koch HQ when toxic tar sands crude starts moving down the pipe.
Which brings us back to Obama. It’s not too late for the president to intervene and stop the Koch Brothers from pocketing another profit at the expense of the American people. Because it crosses an international border, in order for the Keystone XL pipeline to be built the Obama administration must grant it a “presidential permit” that states that the construction project is in the national interest of the United States.
President Obama can deny the permit, right now, and shut down this flow of cash to the Kochs. In doing so, he’ll show that our national interest isn’t always determined by the 1%, in this case a few big oil companies and the Koch Brothers, but by the 99% of us who have to pay the price for their greed.
Denying the permit will also send a jolt of electricity through President Obama’s base, the millions of us who went out and volunteered and donated to the campaign because we believed in a candidate who said that it was time to “end the tyranny of oil.” In fact, this November 6, thousands of us former believers will be descending on Washington, DC to surround the White House with people carrying placards with the President’s own words in an attempt to resuscitate the 2008 Obama who seemed capable of standing up to folks like the Kochs. You can join here.
I can’t say that I’m privy to what the Obama 2012 campaign will advise the president to do when it comes to the pipeline. But if I was sitting in Chicago watching the Koch Brothers assembled their army of lobbyists across the nation, I’d be thinking that XL handout wasn’t such a good idea.
The Keystone XL pipeline network of corruption revealed through an investigation by DeSmogBlog, Oil Change International, The Other 98% and Friends of the Earth (click on the image below to view the complete network):
Saudi oil exports under threat from within
Reuters reports: The world may have to live on a lot less Saudi Arabian crude towards the end of this decade as rampant internal demand eats into oil exports and the kingdom’s alternative energy plans may prove too little too late.
The top crude exporter is already burning more than 10 percent of its output in power plants on hot summer days. Meanwhile huge fuel subsidies, which have helped sedate Saudi social unrest throughout the Arab Spring, are exacerbating a demand boom that is lapping up the world’s largest oil reserves.
Faced with ever increasing quantities of its biggest export earner being consumed at home, Riyadh is banking on a massive nuclear plant building programme to drastically reduce oil use from around 2020, with solar power bridging the gap.
But that may not be quick enough to avert a supply crunch by the end of the decade for a world economy still hooked on abundant Saudi crude.
“Domestic consumption has been growing very fast as a result of rapid demographics, steady economic growth and heavy subsidies, with the latter leading to excess demand,” said Ali Aissaooui, head of economic research at Arab Petroleum Investments Corporation in Saudi Arabia.
“With the ongoing turmoil in parts of the region, social demands are featuring prominently on top of governments’ policy agenda. In this context phasing out subsidies to rein in excess demand growth has become extremely tricky,” he told Reuters.
“Excess demand could affect the capacity of some countries, such as Saudi Arabia, to maintain the spare capacity needed to provide flexibility to the global oil market.”
Thanks to huge subsidies, which the International Energy Agency (IEA) warned last week encourage waste, Saudi energy demand has been growing much faster than its non-oil economy in the last few years, while the rest of the world has become more efficient in its energy use.
According to analysts at Riyadh-based Jadwa Investment, oil demand in the kingdom rose by 22 percent between 2007 and 2010, out pacing the Chinese oil demand growth rate despite China’s economy expanding almost three times faster.
Wall Street is occupying our planet
Bill McKibben speaking at Occupy Wall Street at Washington Square Park on Saturday: Today in the New York Times there was a story that made it completely clear why we have to be here. They uncovered the fact that the company building that tar sands pipeline was allowed to choose another company to conduct the environmental impact statement, and the company that they chose was a company was a company that did lots and lots of work for them. So, in other words, the whole thing was rigged top to bottom and that’s why the environmental impact statement said that this pipeline would cause no trouble, unlike the scientists who said if we build this pipeline it’s “game over” for the climate. We can’t let this pipeline get built.
On November 6, one year before the election, we’re going to be in DC with a huge circle of people around the White House and they’re going to be carrying signs with quotations from Barack Obama from the 2008 campaign. He said, “It’s time to end the tyranny of oil.” He said, “I will have the most transparent government in history.” We have to go to DC to find out where they have locked that guy up. We have to free Obama, because there is some sort of stunt double there now. So on November 6, I hope we can move, just for a day, Occupy Wall Street down to the White House and get them in the fight against corporate power.
The reason that it’s so great that we’re occupying Wall Street is because Wall Street has been occupying the atmosphere. That’s why we can never do anything about global warming. Exxon gets in the way. Goldman Sachs gets in the way. The whole fossil fuel industry gets in the way. The sky does not belong to Exxon. They cannot keep using it as a sewer into which to dump their carbon. If they do, we’ve got no future and nobody else on this planet has a future.
I spend a lot of time in countries around the world organizing demonstrations and rallies in solidarity. In the last three years at 350.org, we’ve had 15,000 rallies in every country except North Korea. Everywhere around the world, poor people and black people and brown people and Asian people and young people are standing up. Most of those places, don’t produce that much carbon. They need us to act with them and for them, because the problem is 20 blocks south of here. That’s where the Empire lives and we’ve got to figure out how to tame it and make it work for this planet or not work at all.
Thank you guys very much.
Shell accused of fuelling violence in Nigeria by paying rival militant gangs
The Guardian reports: Shell has fuelled armed conflict in Nigeria by paying hundreds of thousands of dollars to feuding militant groups, according to an investigation by the oil industry watchdog Platform, and a coalition of non-government organisations.
The oil giant is implicated in a decade of human rights abuses in the Niger delta, the study says, claiming that its routine payments exacerbated local violence, in one case leading to the deaths of 60 people and the destruction of an entire town.
Platform’s investigation, which includes testimony from Shell’s own managers, also alleges that government forces hired by Shell perpetrated atrocities against local civilians, including unlawful killings and systematic torture.
Shell disputes the report, defending its human rights record and questioning the accuracy of the evidence, but has pledged to study the recommendations.
In Counting the Cost: Corporations and Human Rights in the Niger Delta [PDF], Platform says that it has seen testimony and contracts that implicate Shell in the regular awarding of lucrative contracts to militants. In one case last year, Shell is said to have transferred more than $159,000 (£102,000) to a group credibly linked to militia violence.
The U.S., oil and the Middle East uprisings
Oil firms bet on survival of Syria’s Assad
Reuters reports:
Oil companies in Europe are betting on the survival of President Bashar al-Assad in Syria, in sharp contrast to their support for Libya’s opposition six months ago, even while the European Union is expected to soon slap oil sanctions on Damascus.
Several tankers are sailing to Syria this week to either deliver fuel or pick up crude, which may suggest that oil companies believe the rebellion in Syria will fail to overthrow Assad’s government.
The same companies, including Swiss-based trader Vitol, made the opposite bet when it came to trade in Libya. They agreed to supply opponents of Muammar Gaddafi with fuel in the hope their support would be rewarded at the end of the war.
“What oil firms are currently doing does really look like they believe Assad will win, and they will have to deal with him again,” said a Western diplomatic source.
“The big difference that they all see with Libya is that in Syria you don’t even have a location where the opposition can get together like Benghazi,” he added.
Canada’s tar sands carbon bomb
The Tar Sands are the most environmentally devastating project on earth, involving extracting oil from a mix of clay and other materials, from underneath Canada’s Boreal forest. The refining process is complex and very energy intensive.
TransCanada, one of the largest companies involved in tar sands exploration, has proposed a 1,661 mile, 36-inch extension of the newly built Keystone Pipeline from Alberta, Canada to oil refineries of the United States. This would expand the capacity for refining oil produced from Alberta tar sands by approximately one million barrels per day.
Bill McKibben, Naomi Klein, James Hansen et al write:
As you know, the planet is steadily warming: 2010 was the warmest year on record, and we’ve seen the resulting chaos in almost every corner of the earth.
And as you also know, our democracy is increasingly controlled by special interests interested only in their short-term profit.
These two trends collide this summer in Washington, where the State Department and the White House have to decide whether to grant a certificate of ‘national interest’ to some of the biggest fossil fuel players on earth. These corporations want to build the so-called ‘Keystone XL Pipeline’ from Canada’s tar sands to Texas refineries.
To call this project a horror is serious understatement. The tar sands have wrecked huge parts of Alberta, disrupting ways of life in indigenous communities—First Nations communities in Canada, and tribes along the pipeline route in the U.S. have demanded the destruction cease. The pipeline crosses crucial areas like the Oglalla Aquifer where a spill would be disastrous—and though the pipeline companies insist they are using ‘state of the art’ technologies that should leak only once every 7 years, the precursor pipeline and its pumping stations have leaked a dozen times in the past year. These local impacts alone would be cause enough to block such a plan. But the Keystone Pipeline would also be a fifteen hundred mile fuse to the biggest carbon bomb on the continent, a way to make it easier and faster to trigger the final overheating of our planet, the one place to which we are all indigenous.
How much carbon lies in the recoverable tar sands of Alberta? A recent calculation from some of our foremost scientists puts the figure at about 200 parts per million. Even with the new pipeline they won’t be able to burn that much overnight—but each development like this makes it easier to get more oil out. As the climatologist Jim Hansen (one of the signatories to this letter) explained, if we have any chance of getting back to a stable climate “the principal requirement is that coal emissions must be phased out by 2030 and unconventional fossil fuels, such as tar sands, must be left in the ground.” In other words, he added, “if the tar sands are thrown into the mix it is essentially game over.” The Keystone pipeline is an essential part of the game.
WikiLeaks: Saudis often warned U.S. about oil speculators
Time for the United States to stop poisoning the Middle East
To assert that the United States has been poisoning the Middle East for decades might sound like too strong language to the ears of many Americans. Yet what kind of effect can we expect from the long-standing practice of supporting rulers who habitually torture their own people, other than a poisonous effect?
Much as we can celebrate the Egyptian revolution as an expression of the universal human desire for freedom, it is also the beginning of a process through which Egypt must detoxify itself.
The Obama administration still clings to the phrase orderly transition as though the process of change on which Egypt is just embarking might be as seamless as the changeless change which saw George W Bush’s departure from and Barack Obama’s arrival into the White House.
Real change is more disruptive. It can’t be stage-managed by Hosni Mubarak or his deputies.
Graham Fuller writes:
It had to come. Where, when, and how exactly one of many smoldering sparks in this agonized region might actually burst forth into the present conflagration was unknowable, but tension and anger was palpably rising over a long period.
Where all these uprisings across the region will go is still unknowable, but one thing is clear – the imperative to break the long and ugly pattern of harsh, incompetent, and corrupt rule that sucks optimism, hope, and creativity out of these societies and made them breeding grounds for radicalism.
What the people of the region demand is to be able to take control of their own lives and destinies. But that in turn depends on an end to the constant external intervention of the United States in the region.
In the near term, the prescription is stark – Washington must back off and leave these societies alone, ending the long political infantilization of Middle Eastern populations. We must end our incessant and obsessive efforts to intervene and micromanage the political life of foreign states based on a myopic vision of “American interests.”
Today the Middle East is the last redoubt in the world of regimes bought, maintained, and guided by Washington. Is it any wonder that this region is now the cauldron of numerous rebellions and anti-American expression?
And just why are we maintaining this damaging, hated quasi-imperial role in the Middle East? Is it for the oil? Yet what tin-pot dictator has ever refused us oil? Furthermore, we don’t even rely that much on Middle East oil – Saudi Arabia ranks only number three among our top five providers: Canada, Mexico, Saudi Arabia, Venezuela, and Nigeria.
Or is it perhaps all about Israel? Yet why should that state constitute the seeming touchstone of everything that we do in the region? After all, Israel is overwhelmingly the most powerful military state in the Middle East, acts at will in the Middle East under the protection of American veto, manipulates our own domestic politics in its favor, and is now run by the most inflexible and ultra-right-wing government in Israeli history, while soaking up more American foreign aid per capita than any other state. The US still backs Israel against the Palestinians in an Israeli occupation now into its fifth decade.
WikiLeaks reveals Shell’s grip on Nigerian state
The Guardian reports:
The oil giant Shell claimed it had inserted staff into all the main ministries of the Nigerian government, giving it access to politicians’ every move in the oil-rich Niger Delta, according to a leaked US diplomatic cable.
The company’s top executive in Nigeria told US diplomats that Shell had seconded employees to every relevant department and so knew “everything that was being done in those ministries”. She boasted that the Nigerian government had “forgotten” about the extent of Shell’s infiltration and was unaware of how much the company knew about its deliberations.
The cache of secret dispatches from Washington’s embassies in Africa also revealed that the Anglo-Dutch oil firm swapped intelligence with the US, in one case providing US diplomats with the names of Nigerian politicians it suspected of supporting militant activity, and requesting information from the US on whether the militants had acquired anti-aircraft missiles.
The Iraqi oil conundrum
At TomDispatch, Michael Schwartz writes:
How the mighty have fallen. Just a few years ago, an overconfident Bush administration expected to oust Iraqi dictator Saddam Hussein, pacify the country, install a compliant client government, privatize the economy, and establish Iraq as the political and military headquarters for a dominating U.S. presence in the Middle East. These successes were, in turn, expected to pave the way for ambitious goals, enshrined in the 2001 report of Vice President Dick Cheney’s secretive task force on energy. That report focused on exploiting Iraq’s monstrous, largely untapped energy reserves — more than any country other than Saudi Arabia and Iran — including the quadrupling of Iraq’s capacity to pump oil and the privatization of the production process.
The dream in those distant days was to strip OPEC — the cartel consisting of the planet’s main petroleum exporters — of the power to control the oil supply and its price on the world market. As a reward for vastly expanding Iraqi production and freeing its distribution from OPEC’s control, key figures in the Bush administration imagined that the U.S. could skim off a small proportion of that increased oil production to offset the projected $40 billion cost of the invasion and occupation of the country.
All in a year or two.
Almost seven years later, it will come as little surprise that things turned out to cost a bit more than expected in Iraq and didn’t work out exactly as imagined. Though the March 2003 invasion quickly ousted Saddam Hussein, the rest of the Bush administration’s ambitious agenda remains largely unfulfilled.
For the West, ‘Game over’ in Central Asia
For the West, ‘Game over’ in Central Asia
Last month, the West officially lost the new “Great Game.” The 20-year competition for natural resources and influence in Central Asia between the United States (supported by the European Union), Russia and China has, for now, come to an end, with the outcome in favor of the latter two. Western defeat was already becoming clear with the slow progress of the Nabucco pipeline and the strategic reorientation of some Central Asian republics toward Russia and China. Two recent events, however, confirmed it.
On Dec. 14, Chinese President Hu Jintao and the heads of state of Turkmenistan, Uzbekistan and Kazakhstan personally opened the valve of a new gas pipeline transporting Turkmen natural gas from the state-of-the-art processing facility of Samandepe to the city of Khorgoz, in China’s western province of Xinjiang. The pipeline, developed by the Chinese state-owned energy giant, CNPC, has a capacity of 40 billion cubic meters and traverses almost 1,250 miles through four countries.
Earlier in the month, on Dec. 3, the venture had received the blessings of Russian Prime Minister Vladimir Putin, who declared that Moscow was comfortable with the idea of Turkmen gas flowing eastwards to China. Putin’s words further underscored ongoing Sino-Russian energy cooperation, which has made significant advances and is shaping the new political economy of energy in Central Asia and elsewhere. In an accord signed on Oct. 13, the two countries set the basis for a long-term partnership based on joint explorations in Russia and third countries, as well as cheap loans from Chinese banks to the Russian energy sector, even if complex pricing issues remain unresolved. [continued…]