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DrumBeat: February 8, 2008
Posted by Leanan on February 8, 2008 - 9:48am
Topic: Miscellaneous
Energy: The $22 trillion question
NEW YORK (CNNMoney.com) -- How safe are our oil supplies? Where will the new supplies come from? Have high oil prices killed the economy? Are speculative investors responsible for the price runup?These are all central - an contentious - questions in the world of oil. And they're all up for debate as leading members of the oil and energy industry gather in Houston, Texas for Cambridge Energy Research Associates' (CERA) annual energy conference.
Venezuela oil minister denies $12 billion in assets frozen
CARACAS, Venezuela (AP) - Venezuela's oil minister denied today that the state oil company has had $12 billion in assets frozen by court orders obtained by Exxon Mobil.Rafael Ramirez tells reporters that the courts have frozen just $300 million in cash. He calls that a "transitory measure" while state oil company Petroleos de Venezuela presents its case in New York and London.
Tribes honor Venezuelan-owned company for heating help
RAPID CITY, S.D. (AP) - American Indians are again receiving heating help from the CITGO oil company that's owned by Venezuela.Several tribes honored the people involved yesterday in Rapid City, including CITGO's CEO and the head of Citizens Energy Corp., which sends oil profits to charitable programs.
Back in 1991, before Al Gore first shouted that the Earth was in the balance, the Danish Meteorological Institute released a study using data that went back centuries that showed that global temperatures closely tracked solar cycles.To many, those data were convincing. Now, Canadian scientists are seeking additional funding for more and better "eyes" with which to observe our sun, which has a bigger impact on Earth's climate than all the tailpipes and smokestacks on our planet combined.
And they're worried about global cooling, not warming.
Richard Heinberg: Proportionality
There is a strange clause in the North American Free Trade Agreement (NAFTA) that applies to only one country—Canada. The clause states that Canada must continue to supply the same proportion of its oil and gas resources to the US in future years as it does now. That’s rather a good deal for the US: it formalizes Canada’s status as a resource satellite of its imperial hub to the south.From a Canadian perspective there are some problems with the arrangement, though. First is the fact that Canada’s production of natural gas and conventional oil is declining. Second is that Canada uses lots of oil and gas domestically: 70 percent of Canadians heat their homes with gas, and Canadians drive cars more and further than just about anyone else. The problem is likely to come first with natural gas; as production declines, there will come a point when there isn’t enough to fill domestic needs and continue to export (roughly 60 percent of Canada’s gas now goes to the US).
That point is not decades in the future, it is fairly imminent.
Spying against oil-rich Norway returns to Cold War levels after lull, intelligence chief says
OSLO, Norway: International espionage against oil- and technology-rich Norway is now back at Cold War levels, after spying dwindled following the 1991 collapse of the Soviet Union, police intelligence said Friday.NATO-member Norway is a major exporter of oil and natural gas and shares land and sea borders in the Arctic with Russia. That includes vast disputed areas claimed by both countries in the Barents Sea, which has massive fish stocks and is seen as a potentially rich area for petroleum production.
Canada, Brazil lead oil output growth in Americas
CALGARY, Alberta (Reuters) - Booming investment in Canada's oil sands and rising Brazilian crude production should more than make up for declines elsewhere in the Americas -- good news for the United States as it tries to reduce its reliance on Middle East imports, a Reuters survey showed.
North Sea Brent Crude-Oil Daily Shipments to Fall 15% in March
(Bloomberg) -- Daily shipments of North Sea Brent crude, part of the price benchmark for almost two-thirds of the world's oil, will fall by about 15 percent in March.Tankers are set to load 157,346 barrels a day of Brent crude in March, down from 184,552 barrels a day scheduled for February, according to the loading program of field operator Royal Dutch Shell Plc, Europe's largest oil company.
Correa: Ecuador Govt Doesn't Plan on Taking Back All Concessions
President Rafael Correa said Thursday that his government doesn't plan on taking back all of the concessions that had been awarded in the mining, oil and hydroelectric sectors.Several groups have pressured the Correa government to do so.
"The position of some sectors who are requesting the total reversion of the oil, mining and hydroelectric concessions is an absurdity. The country needs to develop those sectors," Correa told journalists.
Iran Starts Second Atomic Power Plant: Report
Iran has started building a second atomic power plant in an oil-rich region near the border with Iraq, Iran's Ambassador to Russia was quoted as saying on Friday by Itar-Tass news agency.Gholamreza Ansari said construction had started at Darkhovin in south-western Khuzestan province. Iran has said it would construct a 360 megawatt plant at the site.
Papua New Guinea: Chaos in ESP over fuel
All police operations in East Sepik province have been thrown into chaos as the ongoing fuel shortage finally stalled the entire police operations in the province this week.The problem had sparked a verbal confrontation between the public and police outside the Wewak police station after police could not move the detainees at the police lock-up to the district court houses for their cases yesterday morning.
Tennessee: Sheriff’s fuel crisis focus of Finance panel discussion
After discussing four options for addressing the fuel crisis in his letter, Sheriff Gobble said, “I will not willingly implement any of these so-called ‘options,’ nor will I voluntarily reduce the current level of services provided the citizens of Bradley County. As always you will vote as you will, but I recommend tapping the General Fund and benefits line items to properly fund all county departments during this gasoline shortage.”The sheriff has requested a transfer from the county’s fund balance of $195,000 for fuel and an additional $30,000 for vehicle maintenance. These line items have been exhausted in his 2007-2008 budget with more than four months remaining.
Oil & Gas Expert Launches Facebook/My Space for Energy Industry
A Houston oil and gas communications expert hopes to help solve the talent crisis in the energy industry with the beta launch today of www.energypeopleconnect.com, a social media website she believes is a first in the industry.
Polysilicon Plant Costs On the Rise
Norwegian Renewable Energy Corp. said this week that the expected cost of its polysilicon plant in Moses Lake, Wash., has shot up nearly 20 percent from the $660 million previously expected.The "mechanical completion" of the plant also will be delayed by approximately two months, with commercial production scheduled to begin at the end of this year, according to REC Silicon – a branch of REC -- and its contractor for the project, Fluor Corp. REC blamed the setbacks on tight market conditions that "have pushed the world's equipment vendor and fabrication show capacity to the limit" and delayed equipment deliveries.
Mexico oil production decline to increase in 2010
LOS ANGELES, Feb. 7 -- Mexico will face difficulties in producing crude oil over the coming 2 years, according to a media report, which claims that Cantarell and Ku-Maloob-Zaap (KMZ) fields will decline simultaneously in 2010."As we move toward that scenario," said El Financero newspaper, "Cantarell's decline became more pronounced in 2007, when it stopped producing an average of 304,000 b/d. It declined by 234,000 b/d in 2006 and 101,000 b/d in 2005, the paper reported.
According to the paper, that reduction contributed to a drop of 174,000 b/d in the country's total production in 2007, compared with a decline of 78,000 b/d in 2006 and 50,000 b/d in 2005.
The law of supply and demand suggests that prices will rise as access to any good thing in life becomes scarce. One of these products just happens be oil, a finite resource. As Michael T. Klare explains, "Petroleum is, of course, a finite substance, and geologists have long warned of its ultimate disappearance. The extraction of oil, like that of other nonrenewable resources, will follow a parabolic curve over time…
Russian military base in Tajikistan to remain functioning
DUSHANBE. February 8. KAZINFORM. Russian Military Base No. 201 on the territory of Tajikistan will continue to function in any emergency situations, Colonel Viktor Kindeyev, acting commander of the base, told journalists on Friday."The combat preparedness of the Russian military base will not be affected, even if the authorities have to cut us off from electricity supply. The base is connected to the power transmission line, which is turned off only in exceptional situations," he said.
Nigeria: New Policy to Make Gas Cheaper
As part of his panacea to the nation's energy crisis, President Umaru Musa Yar'adua has approved a new National Gas Pricing Policy aimed at ensuring short and long term gas availability at affordable prices, for the domestic and industrial sectors.Under the new policy, Nigeria's gas will be supplied at the lowest commercially sustainable prices to the strategic domestic sector which provides electricity for residential and light commercial users.
South Africa: Car Companies Aim to Curb Electricity Use
CAREFUL planning and cutting back on electricity consumption by motor manufacturing companies will probably avert an energy crisis in the industry, but unscheduled power cuts remain a threat.
US-Russia nuclear deal upstages Iran
Tehran is not the only capital that must worry if the two heavyweights of the nuclear order begin hobnobbing. Many countries - such as India and South Africa - would also be affected by any redrawing of the nuclear fuel trade regime. But it is Iran which is in the firing line.
Workhorse trucks are dens of luxury at Chicago Auto Show
While 2008 by some measures in the car industry is about being green and smaller vehicles, the lust for big and brawny is still on display.With 4-door crew cab pickups in demand, more people are using trucks as their primary vehicles, and Accavitti said they demand the same features they're used to in their cars and SUVs.
"You used to just see trucks at work sites or the rodeo, and seldom saw them at Smith & Wollensky for dinner," he said. "Now, it's socially acceptable to take them to the country club, and they want to know where are the leather seats, where's the navigation system?"
Farms and oil wells and mines, oh my
As unnerving as the markets' latest roller-coaster ride has been for investors, commodities remain a good bet for respectable gains in a portfolio, experts say. From corn and wheat to oil, iron ore, coal and precious metals, prices are likely to be driven higher by worldwide supply shortages and growing demand.
Nimbyism Jibe Fuels Wood-Plant Battle
A North Yorkshire village has found itself on the front line of the drive to make wood a fuel of the future.The residents of Wombleton, near Helmsley, would prefer it to stay just like it is.
But Land Energy, the company which wants a big plant making wood pellets on Wombleton's doorstep, is going back into battle for the project - four months after withdrawing its first planning application because Ryedale Council officers supported the villagers' objections.
Wild Biofuels Stories Circulate on Internet
The biofuels market for all alternative bioufels is just a hoax. It's propped up the government and will lead the country down the wrong path, ending up in an energy crisis, in the long run. Therefore the recently enacted Energy Bill is also a sham that does disservice to the country.Was that written or said by a politician? Maybe a scholar or a leading scientist? No, instead it came off an Internet search for facts about how soy biodiesel use is growing and catching on across the country.
Deffeyes: The Second Great Depression
Yesterday, I was pumped up to vote in the California primary. When I moved to California to enjoy my grandchildren, I filled out a voter registration form. They must have tossed the forms in the wastebasket, because I was not registered to vote here yesterday.Here's my revenge on the system: We are now entering the Second Great Depression. The name isn't original with me – I picked it up off the Internet – but it seems to fit the situation. My interpretation is that world oil production will diminish faster than we can bring on alternatives.
Physical scarcity of hydrocarbons is not an issue, despite Jeremiahs who forecast a point in time at which the maximum global petroleum production rate is reached, after which the rate of production enters its terminal decline. The 'peak oil' theory should not stick: new reserves are being discovered around the world on a regular basis. The bringing on stream this week of Iran's vast Azadegan field -- estimated to have some 26 billion barrels of oil -- and expansive, still largely untouched provinces in Russia, such as Yamal and East Siberia, show that the Earth is far from running on empty.
The Peak Oil Crisis: The Future of Our Cars – Part 3
Last week’s column explored the options for powering vehicles when supplies of imported petroleum and products start to decline. At present it appears that biofuels, natural gas, and electricity are the only alternatives that will be available in large deliverable, quantities in the next ten or 20 years. While biofuels are already in widespread use, it is becoming obvious that turning food crops into fuel is bad policy. Fuels from non-edible plants may provide a significant share of our fuel someday, but that day is still someway off. Many think it will be years and certainly well into the time of oil depletion, before cellulosic ethanol becomes commercially viable on a large scale. Not only does the technology and economics still need to be worked out, but also massive amounts of infrastructure would have to be built.This leaves us with natural gas and electricity as the only realistic options to power our cars and trucks for the immediate future.
Corporate cafeterias go the green, healthy route
Forget about greasy hamburgers and french fries. Major employers such as Cisco Systems (CSCO), Dow Chemical (DOW) and others are overhauling cafeteria fare in a new effort to introduce healthier foods and programs that slash environmental waste.
Less driving means less demand for gas, lower prices
WASHINGTON — High prices and a slowing economy are leading consumers to significantly cut back on their driving, a development that could limit the pain at the pump this spring and summer.U.S. drivers pumped 1% fewer gallons of gasoline on average during the four weeks through Feb. 1 compared with the same period a year ago, according to the Energy Information Administration, the statistical arm of the Energy Department.
That was the second-consecutive week of year-over-year drops. During the last 10 years, weekly gasoline demand has risen 1.6% on average.
"It's prices and the economy," EIA senior oil market analyst Douglas MacIntyre says. "We've had several months of $3 or so gasoline. People are probably thinking it's more lasting than a price spike. (And) the slowing down of the economy means people are buying less, going to the store less … people are just changing their driving patterns."
Oil Production: Will the Peak Hold?
It's any one's guess if the old high will stand or not. And, of course, there are questions about the accuracy of EIA's numbers. In fact, there's skepticism that any database attempting to consolidate such an unwieldy beast as the world's oil production into one number. Nonetheless, everyone will be watching the updates, eager to declare victory for their side. All the more so considering how close last October's total was to the May 2005 apex. As we wrote this article, EIA's monthly production figures run through October 2007. The November report is coming soon.
Talk of 'peak oil' prompts land rush
Tom Petrie, the oft-quoted energy analyst who sold his eponymous energy firm Petrie Parkman to Merrill Lynch i& Co. in 2006, said while the industry faces a challenging period given the country's "economic funk," he doesn't think oil will slip much lower than $70 to $80 per barrel, versus some doomsayers' prediction of $50 to $60. He just got back from the Middle East and said while the ability of OPEC to set oil prices is limited, Saudi Arabia wants the floor to be no lower than $60.Petrie also lends credence to the notion that world oil production has peaked, which would keep oil prices aloft. One proof: Even Middle Eastern countries are talking about investing in renewable energy, including biofuels, solar and wind.
Oil firms ordered to Niger Delta
Nigeria's government has ordered all oil firms that fled the Niger Delta in the wake of militant attacks to return to the area or cease operations.
Synthetic fertilizer prices are spiking upwards all over the world, inflicting economic pain on farmers everywhere. Another sign of the peak oil apocalypse? The industrial production of nitrogen -- a key synthetic fertilizer ingredient -- is extraordinarily energy intensive. So when energy prices rise, so do fertilizer prices. And if you buy the thesis that without manmade fertilizer the world will be physically incapable of supporting a population of nine billion, then you start to get very nervous.
Coal outperforms energy rivals, earning title of other black gold
SAN FRANCISCO (MarketWatch) -- Coal, whose price surge has already outrun those of crude oil and natural gas, is generating an even louder buzz as a rash of bad weather has reduced its production globally.Citigroup earlier this week raised its forecast for thermal coal, saying it now expects prices for the benchmark product to double this year as blizzards in China, power outages in South Africa, and floods in Queensland cut into global output. Meanwhile, demand for coal keeps rising as the world's electricity use expands.
Exxon wins $12b freeze on Venezuela assets
NEW YORK - Exxon Mobil Corp. has secured court orders to freeze more than $12 billion in worldwide assets of Venezuela's state-owned oil company, as it prepares to dispute the nationalization of a multi-billion dollar oil project.The move limits Petroleos de Venezuela's room to maneuver as it fends off challenges from major Western oil companies over President Hugo Chavez's 2007 decision to nationalize four heavy oil projects in the Orinoco Basin, one of the richest oil deposits in the world.
Venezuela sovereign bonds slump on $12 bln asset freeze
NEW YORK (MarketWatch) -- Venezuela's sovereign bonds slumped Thursday after U.S. and U.K. courts froze more than $12 billion in worldwide assets of the country's state-owned oil company, Petroleos de Venezuela SA, or PdVSA.Venezuela's risk premium on JPMorgan's Emerging Markets Bond Index Global Diversified was flat at 544 basis points over Treasurys, and returns were negative 1.93%. Earlier, returns were a negative 0.37%.
Protection sought for Pacific walrus
ANCHORAGE, Alaska - A conservation group asked the government Thursday to protect Pacific walruses from the effects global warming and energy development could have on the species' northern habitat.
Bolivia seeks aid to battle floods
LA PAZ, Bolivia - Bolivia's foreign minister said Thursday that the world has an obligation to send aid to flood-ravaged areas of Bolivia, linking a disaster that has killed 49 people to global climate change.As Bolivia faces a second straight year of devastating floods, David Choquehuanca argued that developed nations who produce most of the world's greenhouse gases are morally obligated to pitch in when the negative effects of climate change strike poorer countries.
Converting land for biofuel worsens global warming: study
WASHINGTON (AFP) - Clearing raw land to produce biofuels actually contributes to global warming by emitting large amounts of greenhouse gases into the atmosphere, researchers have warned.Carbon dioxide (CO2) emissions from new croplands carved into rainforests, savannas, wetlands or grasslands would easily surpass the overall amount of CO2 emissions reduced through the use of biofuels, according to a report in the February 8 edition of Science.
I had an interesting conversation this morning related to inflation and biofuels. I had pointed people to the article that Stuart did about arbitrage between food and fuel (which had more to do with corn ethanol), and one person replied:
I asked for a link - they said that they didn't have one, but then added:
Interesting article in today's NY Times:
Studies Deem Biofuels a Greenhouse Threat
http://www.nytimes.com/2008/02/08/science/earth/08wbiofuels.html
Its also in the Toronto Star today
http://www.thestar.com/sciencetech/article/301676
Don't overlook the Sciam:
http://www.sciam.com/article.cfm?id=biofuels-bad-for-people-and-climate
Concerns about global warming will determine the energy future of the world. If global warming as a result of human created CO2 is a concern than biofuels look good. They do decrease the food supply but we've got to save the earth so we might as well kill a few people by starving them to death instead of having many more killed in a global climate catastrophe. If human created CO2 is not the source of global warming then biofuels are an awful solution to the problem of fossil fuel depletion because they deplete top soil and decrease the food supply. In this case Coal and Gas to Liquids and Microwaving oil shale In-Situ are much better options for our energy future.
Exxon wins $12b freeze on Venezuela assets
Chavez's troubles have only just begun. It's been a rough few months for him, but I suspect it's going to worse.
Talk about biting the hand that feeds you. If the US doesn't want to play nice with Venezuela, I'm sure they can find someone else to buy their oil. Happy year of the rat.
WAKE UP EVERYBODY!!! This is more western media misrepresentation of the truth. The actual order reads:
"until the return date or further order from the court," PDVSA "must not remove from England or Wales any of its assets which are in England or Wales up to the value of $12 billion (8.3 billion euros)."
How much in assets do you think Venezuela has in England or Wales?
Answer: Squat.
The ruling is against Venezualan Oil Company PDVSA, not Venezuela as a whole and is only until the next court date.
The credit rating agency Fitch Ratings said the British court order would "have a minimum impact on the company's day-to-day operations, as well as its near-term credit quality and financial flexibility." The agency noted that most of PDVSA's assets are located in Venezuela and the United States, where the company has refineries.
This is non-news turned into a disinformation attack by western media against Venezuela. What's new.
http://biz.yahoo.com/ap/080208/venezuela_exxon.html?.v=1
How much in assets do you think Venezuela has in England or Wales?
Answer: Squat.
Actually they do have assets there, and said so. What they said is they don't have close to $12 billion there.
But I do agree with this statement from the article:
But Ramirez, who is PDVSA's president, ... said Exxon Mobil's claims in the Venezuela nationalization dispute "don't even come close to half the sum of $12 billion claimed by them."
COP has more at stake than XOM does.
I think Hugo might have a few more tricks up his collectivist sleeve...and exxon is soo popular...
True enough, but I don't think the US is immune. During the 2002 'coup' attempt oil production was nearly stopped, and this could happen again. I am sure Chavez can find lots of countries willing to lend him money to tide him over any lean times. He will have oil to sell another day.
I cannot also stop wondering if the current admin will ever cease trying to start another war somewhere. I guess they really think our lifestyle is non-negotiable no matter how many die.
A global corporation starting a resource war. This is the right hand of the US making a move, and the left hand pays no attention.
Of course, a majority of the American people will support this, and then will also support the invasion when Venezuela stops supplying us with crude oil.
I'm not sure anyone would support a war with Venezuela if they stopped sending us crude oil. I wouldn't support it, and I'm pretty hawkish politically. Does anyone here on TOD support war with Venezuela if they stopped exporting oil to us?
A few months ago, one of the talking heads on Fox News (employed by Fox full time) equated a decision by Venezuela to cutoff oil exports to the US to the use of a weapon of mass destruction against the US.
The ignorant blather that is spewed forth like so much bile from the mouths of those at Faux News is disgusting. It's a shame that there are some good shows on the Fox TV channel that I enjoy, however I do not watch them on the TV, but instead on my computer. I'd love to boycott Fox broadcasting in its entirity.
The Japanese undoubtedly went to war against the US because of the oil embargo. Why Did Japan Attack Us?
I guess history could repeat itself in unexpected ways. I mean, they ousted Chavez in a coup - why not try it again in a more direct way?
I saw this and thought the same, it will only get worse.
Who's land and country is this? Venezuela should have the say on what goes on in there country, and
not some court in another land, that money in holding belongs to Venezuela it was traded for oil.
My question is did Venezuela pay out for cancelling the oil companies contracts?
If Venezuela shut down production pending the courts, I feel this could drive there customers into a rush buying oil from other countries in a rush.
So my question is how long can the World get by with out Venezuela oil? a week, a month, a year.
Can another country or countries to makeup for Venezuela loss production, on the fly too?
After reading TOD this week the UK could go from a exporter to become an importer, plus Russia, and Mexico look to be in decline and most likely soon to have export issues?
A good power play for Chavez, but could Venezuela hold out.
Would Chavez turn the pumps off? I guess no.
My question is did Venezuela pay out for cancelling the oil companies contracts?
No, they didn't. That's why XOM made the move. They decided to play hardball. Some companies did accept the new terms, but XOM and COP were kicked out when they refused to renegotiate the contracts that had been signed and give up the investments they had made. So far, they have received no compensation, and COP I know has written off $4.5 billion as a result.
Would Chavez turn the pumps off? I guess no.
He can't afford to. His oil production is down, prices have fallen some, but he has been spending money as fast as it has come in. This move by XOM makes it more difficult for him to operate. Now, the oil fields and refineries are in bad need of investment, and he doesn't have the funds to do it. That's why just a few days ago PDVSA suggested that they were ready to cut some deals to bring private investment back in.
I expect Chavez to soon start arguing that a fair price for OPEC oil is $150 or $200.
Thanks for the info Robert
True if the pumps were shut off it would shut down Venezuela and then Chavez lose power.
Here another one, did Venezuela just sign new contracts with places like China? could there be enough demand there to drop America (Citgo stations). Sure it puts better profits for the US oil companies and more business, but could they keep up with the demand.
So it appears the real extent of the temporary court ordered action applies to $300 million in cash. We will see what the court makes of Venezuela's case, presumably in the near future.
http://www.kxan.com/Global/story.asp?S=7843281&nav=menu73_2_2
"I expect Chavez to soon start arguing that a fair price for OPEC oil is $150 or $200."
I imagine that Chavez might soon take up the argument of Matt Simmons on price, since like Simmons he recognizes that peak oil is upon us and since he surely realizes that his country's oil is worth more than a few nickels per cup.
As for spending like crazy, I think this might apply to Venezuela if their public spending on health and education and military offence begins to approach that of the US (ppp adjusted and with the same lousy outcomes as US spending).
It's amazing to me how some are rankled by the refusal of some countries to be forever deferential to the Imperium. Oh well, you can always take comfort in Canada's butt kissing Prime Minister.
Typical media over-excitement. Turns out it's not 12 billion, it's "up to 12 billion." Big difference.
Well, $12 billion is well more than the projects were probably worth. I had seen some estimates that they were worth $20 billion, but COP had the biggest investments there and they wrote off $4.5 billion.
So it appears the real extent of the temporary court ordered action applies to $300 million in cash. We will see what the court makes of Venezuela's case, presumably in the near future.
No, that's how much was frozen in the U.S. alone. Money was also frozen in other countries.
It's amazing to me how some are rankled by the refusal of some countries to be forever deferential to the Imperium.
That's not what rankles me. What rankles me is that I am a shareholder and an employee of one of the companies whose assets were seized. We were invited in by the government, signed contracts, and invested billions in assets on the ground. When oil prices went up, Chavez decided to tear up the contracts and seize the assets. That's no different than the U.S. government seizing his Citgo refineries in the U.S. Or the U.S. seizing a Toyota manufacturing plant, or the assets of any other foreign company operating on U.S. soil. Contracts were signed in good faith, and we conducted ourselves there in a responsible manner. And because I am a shareholder, I feel like Chavez stole from me, personally. And I think that's a good reason for being rankled.
In all honesty, I don't give a rip whether he decides to sell any more oil to the U.S., or whether he ever invites oil companies back in to do business. I just want him to fairly compensate for that which he stole - which up to now he has refused to do.
If indeed the Venezuelan government's actions amount to theft by some definition agreed to by the courts of some countries, then I certainly hope they get away with it. It seems increasingly obvious to me that the prevailing property rights regime is nothing more than a way to perpetuate a massive intergenerational robbery (of the earth's fossil fuel endowment as well as of a relatively stable climate, among other things), not to mention the ongoing theft of opportunity from billions of our human co-inhabitants of this globe, including the poor of Venezuela. I see no reason from a moral viewpoint to defend this regime.
The best thing that can come of the actions of the Venezuelan government would be slowdown in the depletion of the hydrocarbon resource within their jurisdiction, though this might just be a fortunate unintended consequence of their actions.
RR -- here is a real challenge for you.
I know it rankles when I feel ripped off -- and I feel that way at times, but that's a whole 'nother story.
I wonder if you are aware of the work of activist Antonia Juhasz? An interview with her is available online here:
http://www.southsidepride.com/2008/02/articles/Activist-busts-W.html
She has written two books:
"The Bush Agenda: Invading the World, One Economy At A Time"
and:
"the Tyranny of Oil: The World's Most Powerful Industry and What We Must Do To Stop It"
Here is an excerpt:
"SSP: You talk about Iraq as being only a step in a larger plan for corporate domination in the Middle East. Is the push to sign up Arab states in the US/Middle East Free Trade Area (MEFTA) the cornerstone of that plan?
Juhasz: This is a really bold way of trying to extend U.S. influence in the Middle East. The Bush administration has used the Iraq war to convince nations across the Middle East to adopt its free trade agenda. The coalition includes among its 120 members, Chevron, ExxonMobil, Bechtel and Halliburton—companies intimately connected to the Bush administration that have already been big winners in Iraq. A unique negotiating strategy has been implemented for the MEFTA. Rather than negotiate with all of the nations as a bloc, the U.S.
negotiates one-on-one with each country, meaning that every nation—some half the size of one state in the U.S.—must deal with the most dominant nation in the world. If successful, the MEFTA would be concluded by 2013 with 20 signed countries."
RR -- maybe you see mostly the technical side of the oil business, but do you not see that there are dimensions to the oil business that are absolutely about ecological and economic rape? How can this be changed, if not by people simply wresting resources back and trying to develop them with a different agenda than "next quarter's profits"!?!?!?
If indeed the Venezuelan government's actions amount to theft by some definition agreed to by the courts of some countries, then I certainly hope they get away with it.
Likewise, if you are an Anglo living in North America, and your house is broken into and all of your stuff stolen, you deserved it because of the "massive intergenerational robbery" of your ancestors, and I certainly hope they get away with it. You wouldn't actually bring charges in that case, would you?
RR -- should the USA fairly compensate the Native Americans for a trail of broken treaties, broken promises, and genocide?
Should the USA -- and the US oil industry we are foisting upon Iraq pay fair compensation to the victims of starvation, rape, torture, false imprisonment, loss of loved ones, loss of homes and businesses, and for those millions of Iraqis reduced to refugee status?
How much compensation is owed by big oil companies for knowingly raping the planet, for continuing to push the energy equivalent of crack-cocaine with full knowledge that we are turning the planet into hostile Hell?
Compare "Big Oil" to "Big Tobacco." We all know that Big Tobacco used the same methods of denial and poisoning the well of public information in order to keep making money on cigarettes. Big Oil has done the same.
Now that we've inflicted fatal wounds to our environment, Big Oil attempts to Greenwash itself with token programs that are little more than PR lies on top of all the previous lies.
In addition, Big Oil has for decades raped Native peoples in Nigeria, Iraq and countless other places to get at the oil.. What is the tab for that?
Do you think that most people in the world are still ready to be used up and discarded on the human scrapheap? More folks in far away places are aware that "Big Oil" wants them to give up their future -- including that of their children -- for a "mess of pottage" in the present.
What if we paid these people a premium for access to oil that doubled or tripled the cost of each barrel? Would that not slow consumption, allow these countries to develop, and spur research on alternative energy sources? But it would also take the "plunder value" right out of Big Oil's various share prices.
Big Oil very intentionally operates in a criminal fashion around the world, does it not? Big Oil makes money by propping up violent, psychopathic dictators, does it not? (Remember the Saudis, Saddam Hussein, the Shah of Iran....)
So what does the USA owe (compared to Chavez) and how can we pay? What do Big Oil companies owe around the world and how can it pay?
Chavez' crimes against Big Oil -- very expensive. USA and Big Oil's crimes against humanity -- incalculable....?
RR -- should the USA fairly compensate the Native Americans for a trail of broken treaties, broken promises, and genocide?
I am part Native American. Do you have a proposal? Are you offering up your land to me? What exactly is your offer?
Should the USA -- and the US oil industry...
Which companies are you referring to? The US oil industry is not an entity, and I don't know of a single oil company who was on record as supporting the invasion in Iraq.
The rest of your rant is more just "Big Oil" this and that. You paint with a broad brush. But you use oil, do you not? What is your responsibility for demanding the product that you blame for all of these ills? And how can you live with yourself, given your contribution?
My point is not "How do you live with yourself?" or "How do I live with myself?" Good questions, though!
See my post below. I am asking for change. Radical change, yes.
Perhaps the Big Oil companies are pristine in your view? What about Columbia, Nigeria, Iran, and Iraq....?
Surely you are aware of some of the issues related to the rapacious character of the oil business as relates to planet and poor people around the globe?
Over the past months, there have been numerous reports alluded to on TOD as well as other places -- eg, Energy Bulletin -- chronicling the impacts of oil industry in Nigeria, Columbia, and other places.
We are all in this together, but we need to wrest control of oil from corporatism and somehow husband the resource while at the same time making sure that folks who live where the resources are do not get the gift of a Saddam Hussein, a Shah of Iran, a Musharraf, a Suharto -- all monster dictators who had lovely relationships with the USA and/or Big Business, especially Big Oil.
I urge you to look at the work of Antonia Juhasz before concluding that "Big Oil" is fictional or perhaps real but benign.
We all use oil. We are all in it together. But that does not mean that there is nothing we can do or say to reduce the crimes underway.
Or does it? Maybe our complicity makes change to a more positive way of doing things impossible? Or at least difficult.
Perhaps the Big Oil companies are pristine in your view? What about Columbia, Nigeria, Iran, and Iraq....?
Again with the broad brush. Stop looking at Big Oil as an entity. Shell is not responsible for the Exxon Valdez. Chevron isn't responsible for the Texas City explosion. Various oil companies bear responsibility for their own actions. But when you ask "What about Iraq?" - what is your question? Which companies do you think wanted us to go into Iraq? I know for a fact that mine didn't. And I know that my company conducted itself in a responsible manner in Venezuela, and employed a lot of Venezuelans with good-paying jobs. Those employees were sorry to see us go, because Chavez cut their pay in half when we left, and fired a lot of them.
Again, think back to the question of the land. There was a point to that question. I can paint with a broad brush as well. If you are an non-native American, you are responsible for taking the land from some of my ancestors. Or is the situation as black and white as that? Are all Americans equally responsible? Is the recently arrived Russian immigrant responsible? How about the descendents of the slaves? But you ignore those kinds of things when you say "Big Oil did this, they got what they deserved."
Years ago, I was talking to a friend of ours. An oil company had leased her father's land, and they had found oil (her father received the proceeds from about 20% of the production and paid none of the costs). She said that she wished that they could just get rid of the oil company, and produce the oil wells themselves. I asked her how long her father had owned the land. She said about 20 years or so. I suggested that the previous owner might want to cancel the sales contract and take his land back, now that there was oil production.
As Robert knows, there are two ways to allocate scare resources--via contracts and market forces or via the use of force. Take your pick, but remember that once you seize the property, there might be someone else behind you with a bigger force.
Having said all of that, is the US in Iraq because of oil? IMO, yes. Does anyone really disagree at this point? I think that the problem the Neocons are having is that their reach is exceeding their grasp.