Showing posts with label Big Oil. Show all posts
Showing posts with label Big Oil. Show all posts

Tuesday, March 04, 2008

Tempers Flare in South America

Bush Surrogate Stirs the Pot

When you think about it, this item's appearance on the news was just a matter of time. From the BBC:
Colombia Calls for Chavez Charges

Colombian President Alvaro Uribe says he will ask the International Criminal Court to bring genocide charges against President Hugo Chavez of Venezuela.

He accused Mr Chavez of sponsoring and financing Colombian Farc rebels. Venezuela denies the charge.

Colombian officials say a laptop found during a raid on a Farc camp held files indicating Venezuela gave Farc $300m.

Colombian forces entered Ecuador to raid the camp, provoking furious protests and a diplomatic crisis.
Since this story hasn't exactly been at the top of the headlines, let's look at a bit of background information. First, the fact that Colombia, "entered Ecuador to raid the camp, provoking furious protests and a diplomatic crisis."

A similar incident occurred in Dec., 2004 when Rodrigo Granda Escobar, a Colombian rebel/Farc diplomat was allegedly "arrested" in the town of Cúcuta near the Venezuelan border. I say allegedly and arrested is in quotes because, as it turned out, Señor Granda was actually abducted in Caracas Venezuela with the help of Venezuelan and American officials. And as it turned out, he was abducted by bounty hunters paid by the Columbians. This led to quite a diplomatic crisis between the two countries. Venezuela recalled their ambassador from Bogota and suspended all diplomatic and trade links in January, 2005. The tensions were eventually resolved through the intervention Cuba's Fidel Castro and the leaders of Peru and Brazil, but at one point, according to Chavez, there was a risk of war between the two countries.

Before I go further, let me acknowledge the BBC's news website for their related links feature that allowed me to put together the preceding paragraph. It was really, really useful.

The raid that resulted in the supposed laptop capture also resulted in the death of Farc leader Raúl Reyes, who it appears had taken over Señor Granda's role as their ambassador to friendly governments. As in the case of Señor Granda, Colombian forces ignored the sovereignty of a neighboring country to get their man.
Venezuela and Ecuador have broken off ties with Colombia and moved troops to the Colombian border.

Saturday's incursion by Colombian forces into Ecuador saw the killing of senior Farc commander Raul Reyes, and 16 others.

Colombian Vice-President Francisco Santos, speaking earlier at a disarmament conference in Geneva, said evidence of plans to make a dirty bomb - a bomb using radioactive material - was also found on the computer.
Once again, I am indebted to the BBC for this profile of Señor Uribe, from which comes this excerpt:
The president also faces the challenge of completing the demobilisation of the estimated 30,000 paramilitary fighters.

Human rights groups say the government has been too lenient with the paramilitaries, many of whom received an amnesty despite committing abuses, including massacres, forced displacements and disappearances.

Mr Uribe is President Bush's staunchest ally in Latin America and Washington will be closely following the efforts to stamp out the huge illegal drugs trade, which has so far produced very mixed results.

Colombia is still the world's main producer of cocaine despite the government's attempts to eradicate drug crops, boosted by more than $3bn in aid from the US through Plan Colombia.
Compare that to this 2006 profile of Hugo Chavez from TIME magazine, surprising in its frank criticism of George Bush:
The rise of Venezuela's left-wing President, Hugo Chavez, is a lesson in what can happen when the U.S. disses an entire continent. After 9/11, when most Latin American nations refused to endorse the U.S. invasion of Iraq, President Bush testily turned his back on the region—but not before he was widely accused of backing a failed 2002 coup against Chavez, Bush's loudest critic south of the border. Washington denies the charge, but the perception of U.S. bullying won Chavez international sympathy.
Clearly another 'heckuva job' by Bu$hCo™ in foreign relations. Most of South America fears and hates the USA.

Okay, enough with the background. Let's move on to all the red flags and alarms that should go off in reading all this information. In bullet form,
Alvaro Irube:
  • Is a staunch ally of the Bush administration
  • Has received $3BILLION in aid from Bu$hCo™ to fight the war on drugs
  • is apparently using that money instead to fight Farc
  • has a large paramilitary force who are literally getting away with murder
  • has intruded on the sovereignty of two neighboring countries
  • has already been caught lying regarding Farc and Venezuela
  • has brought two of his neighbors to the brink of war
  • is accusing Chavez and Venezuela of trying to make a dirty bomb
Hugo Chavez:
  • Has been demonized by the US as a Marxist
  • Has been the victim of at least one attempt by the US to oust him from power
  • Holds common cause with Farc in his desire to see a more equitable distribution of wealth in South America
  • Is sitting on the Western Hemisphere's largest oil reserves
A year ago pResident Bush refused to speak Hugo Chavez's name on a tour of South America. This year it looks like he's using his surrogate to create a reason for the US to go to war with Venezuela. Such a war would make the Dick Cheneys of the world very happy indeed. I can see it putting the price of oil above $200/bbl overnight.

The truly frightening thing is, for such a plan to work Bush will have to still be in office well past January of next year. I can't imagine how he would arrange that, but it's not as if he hasn't meticulously put the tools in place. Just sayin'.

~~~~~~~~~~~~~~~~~

Hugo Chavez should watch his back, because the aggressive interpretation of the Monroe Doctrine preferred by Republican administrations has led to, among other things, the ouster of Guatemala's Jacobo Arbenz in the '50s and the assassination of Chile's Salvador Allende during the Nixon administration.

Maybe Alvaro Irube should be watching his back too. If he's not worried about the way the US turned on Saddam Hussein, a monster of their own creation, he should at least be familiar with another story from much closer to home. See the resume of Manuel Noriega, the most famous graduate of the School of the Americas
UPDATE: This video from Reuters explains how Colombia's incursion into Ecuador has dashed hopes for a negotiated release of 12 FARC hostages, including French-Colombian Ingrid Betancourt.


I also have this to post, hat-tip to Ellie in comments:
From Venezuelanalysis.com:
In surveying US press coverage of the recent tensions between Colombia, Ecuador, and Venezuela one might come to the conclusion that Colombia has become the victim of the wrath of its' evil next door neighbor, Hugo Chavez. Once again, the media spin machine has been turned against Venezuela, bypassing a contextual analysis of the situation for a simplistic story line. With headlines such as, "Chavez Picks a New Fight" (Business Week March 4, 2008) the story perpetuates the US government's claims that Venezuela is a destabilizing force in the region while ignoring the alarming actions perpetrated by the Colombian government.
[...]
A quick review of responses from other countries would in fact show that the US government's assessment is deeply flawed and out of step with international opinion. President of Chile, Michelle Bachelet, proclaimed, "A situation of this nature undoubtedly warrants an explanation from Colombia to the people of Ecuador, the President of Ecuador and the rest of the region". The governments of Paraguay, Peru, and Argentina have all released similar statements of disapproval with Colombia's actions.

Meanwhile, French Foreign Minister Bernard Kouchner expressed despair at the killing of his government's primary contact in negotiating the release of former Colombian presidential candidate Ingrid Betancourt, who also holds French nationality. Referring to the killing of FARC second-in-command Raul Reyes, he asserted, "It is bad news that the man we were talking to, with whom we had contacts, has been killed."

Information Clearing House has MORE.

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Sunday, February 10, 2008

Exxon Mobil Practicing Economic Terrorism

British Court Freezes Venezuelan Assets

The Toronto Star printed this AP story yesterday that illustrates the kind of economic imperialism that has become the hallmark of the big multinational corporations.
CARACAS–Venezuela's top oil official accused Exxon Mobil Corp. yesterday of "judicial terrorism," but said court orders won by the oil major do not amount to confiscation of $12 billion (U.S.) in assets.

Exxon Mobil has gone after the assets of the state oil company, Petroleos de Venezuela SA, in U.S., British and Dutch courts as it challenges the nationalization of a multi-billion-dollar oil project by President Hugo Chavez's government.

A British court last month issued an injunction "freezing" as much as $12 billion in assets.

But Oil Minister Rafael Ramirez said: "They don't have any asset frozen. They only have frozen $300 million" in cash through a U.S. court in New York. As for the case in Britain, PDVSA doesn't have "any assets in that jurisdiction that even come close to those sums" of $12 billion, Ramirez said.

He called it a "transitory measure" while PDVSA, the state company, presents its case in New York and London. Exxon Mobil is also seeking international arbitration, which Venezuela has agreed to.

But Ramirez, who is PDVSA's president, said Exxon Mobil "hasn't respected the terms of the arbitration" and its claims in the nationalization dispute "don't even come close to half the sum of $12 billion claimed by them."
[...]
He accused the Texas-based oil major of employing "judicial terrorism" and trying to generate "financial nervousness" around PDVSA.

Court documents show Exxon Mobil has secured an "order of attachment" on about $300 million in cash held by PDVSA. A hearing to confirm the order is set for Feb. 13 in New York. In a Jan. 24 "freezing injunction," a British court said PDVSA "must not remove from England or Wales any of its assets ... up to the value of $12 billion."
There's just a couple of comments I'd like to make about this. One is the acceptance of the idea that if white people live over a resource by dint of their having stolen the land from red people, they have control of that resource. As in say, Texas or Alberta. This principle is not to be extended to brown people, who never own or control a resource even if they've been living over it for millenia. As in say, Iraq.

The other thing is that it's pretty obvious that the big multinationals are getting way too powerful. While we usually associate the term economic imperialism with nation states, it's becoming increasingly clear that the practice has passed into the hands of unelected and unaccountable capitalists. And they're not exactly being coy about it. In fact, Canada's largest oil company is called Imperial Oil. I'd call that pretty blatant.

What is more disturbing is the clear indication that they are now using the court systems and even the military resources of powerful nations like the USA and Britain to impose their will on a world that hasn't the wherewithal to oppose them. And sadly, I don't see that trend reversing itself in the foreseeable future.

UPDATE: (h/t Green Libertarian) This story from xinhua.net (Chinese news service) helps show Exxon's motivation for these actions against the people of Venezuela.
The Exxon-Venezuela dispute has aroused markets concerns that world oil supply may be destabilized.

Prices of light sweet crude for March delivery rose 4 percent, its biggest gains in two months, to settle at 91.77 dollars per barrel at New York Mercantile Exchange on Friday.

In London, Brent North Sea crude for March delivery also saw an up of 3.43 dollars and settled at 91.94 dollars.
That should drive the cost of filling your tank up considerably, and with it Exxon's profit margin.

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Wednesday, January 16, 2008

Drop a Dime

Stop Dick Cheney Before He Kills Again!


We interrupt our regularly scheduled unruliness to bring you this important Public Service Announcement. Today is National Call-In Day, and we ask you to contact your congressman in support of Congressman Robert Wexler's efforts to impeach Vice President Dick "Darth" Cheney. More from After Downing Street.org.
Congressman Robert Wexler is organizing his colleagues to ask House Judiciary Committee Chairman John Conyers to begin Cheney impeachment hearings. Wexler is asking his fellow Judiciary Committee Members to co-sign a letter to Conyers. We support Wexler in this, and we are also asking congress members not on the committee to send their own letters to Conyers. Please Email your Congress Member here: http://www.democrats.com/peoplesemailnetwork/125

Then please call the Capitol Hill Switchboard: (202) 224-3121. They can tell you who your Congress Member is if you don't know, and they can connect you to their office. Ask your representative to urge Chairman Conyers to begin impeachment hearings against Dick Cheney. This is especially important if your representative is a member of the Judiciary Committee. Once you've sent your Email and made your phone call, please urge everyone you know to do the same. If you have further time to help advance impeachment, please call and Email the media.
We remind our visitors that Cheney is an unprincipled psychopath, and possibly responsible for more deaths than anyone since Pol Pot. He is motivated by an unbridled greed and will spill untold amounts of human blood in his quest to increase the value of his substantial portfolio in oil stock. Should you encounter Cheney, do not approach him, and definitely DON'T contact authorities unless you want to end up in a secret prison in Eastern Europe. If you can get close enough to tell him to go f#@k himself, good on ya'. It's not easy to do,
but not impossible.


Please take the time to make this call. The Vice President cannot, repeat CANNOT be allowed to complete the Dick cheney evolutionary cycle. If he ever emerges from his current pupal stage, he will be unstoppable.

And yeah, I know that it's been a long time since a pay phone (if you can find such a thing anymore in the era of the cell phone) only cost a dime. 'Drop a Dime' is just a figure of speech. We now return to our regularly scheduled unruliness.

h/t Ellie from comments.

Cross-posted to Ice Station Tango. Roll to the Pole, and chill out with the penguins.

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Monday, November 05, 2007

Smoke and Mirrors on Petroleum Prices

Newspapers and online media outlets are full of breathless observations about crude oil prices and their effect on what we pay at the pump.
"The national average price for gasoline rose about 16 cents over the last two weeks..."

- San Francisco Chronicle
"If the uptrend continues, market watchers say this could be the week that oil manages to punch through the symbolic level and eclipse the inflation-adjusted record of $101.70 reached in April 1980."

- Wall Street Journal
But you know what? All these dire pronouncements are meaningless. The plain fact is that the price of gasoline right now has nothing to do with the price of crude. Are you paying $3.80 a gallon for gas? No? I didn't think so, and neither is anybody else...not anywhere in the nation! Despite the fact that, with crude at $100/barrel, $3.80 is the break even point for refiners...the BREAK EVEN POINT! Forget about profits.

Consider: Approximately half of the 42 gallons of crude in a standard barrel are refined into gasoline. So...$50 for 21 gallons or $2.38/gallon is the cost of the crude. Add to that the average of $1.40/gallon that comprises the cost of refining, transporting, and marketing gasoline (which includes $.40 in state and federal taxes). Hell the highest prices in the US are right here in Babylon by the Bay, and we're only seeing $3.28 for regular.

What's it all about then? Simple... Last spring--as the summertime petroleum consumption bonanza ramped up, crude hovered in the $70s, and gas prices topped out just above $4.00 a gallon--Big Oil raked in the profits. And now they can afford to subsidize our purchases--sell gasoline at a loss for a bit--because what they must ensure, in fact what they are desperate to ensure, is that we keep on consuming oil just as fast as we can. In other words, this is massive market manipulation.

So forget about opportunistic politicians who whine about price gouging. Complaining about gouging, with respect to a finite resource the remaining supply of which is already known, is absurd. What politicians should be talking about is the fact that Big Oil is selling at a loss in order to encourage demand. Or, to put this on a more personal level, we are all being manipulated through price fixing into consuming more petroleum than we probably should.

Think about that the next time you're at the pump.

More on the subject at Ice Station Tango.

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