A Take-No-Prisoners World of Oil

It’s evident that we’re still on a planet where oil rules. The question increasingly is: What exactly does it rule over? After all, every barrel of oil that’s burned contributes to a fast-approaching future in which the weather grows hotter and more extreme, droughts and wildfires spread, sea levels rise precipitously, ice continues to melt away in the globe's coldest reaches, and... well, you know that story well enough by now. In the meantime, Planet Earth has a glut of oil on hand and that, it turns out, doesn’t mean -- not for the major oil companies nor even for the major oil states -- that the good times are getting ready to roll.

Of all the powers struggling with that oil glut and the plunging energy prices that have gone with it, none may be more worth watching than Saudi Arabia. While exporting its own extremists and its extreme brand of Islam from Afghanistan to Syria, and lending a decades-long hand to the destabilization of the Greater Middle East, that kingdom has itself been a paragon of stability. Nothing, however, lasts forever, and so keeping an eye on the Saudis is a must. That’s especially so since the latest version of the royal family has also made what might be called the American mistake (with the backing of the Obama administration, no less) and for the first time plunged the Saudi military directly into a typically unwinnable if brutal war in neighboring Yemen.

Combine the destabilizing and blowback effects of wars that won’t end, including the Syrian one, and of oil prices that refuse to rise significantly and, despite the kingdom’s copious money reserves, you have a formula for potential domestic unrest. Already the royals are cutting their domestic subsidies to their own population, pulling billions of dollars in aid out of Lebanon, and exploring a possible $10 billion bank loan.

As TomDispatch’s invaluable energy expert Michael Klare suggests today, when oil prices began plummeting in 2015, the Saudis launched an “oil war of attrition,” imagining that others would be devastated by it (as OPEC partners Nigeria and Venezuela already have been) but that the royals themselves would emerge triumphant.

Should the unimaginable happen, however, and should the kingdom itself begin to come unglued in a Greater Middle East that is increasingly the definition of chaos -- watch out. Tom

Energy Wars of Attrition
The Irony of Oil Abundance
By Michael T. Klare

Three and a half years ago, the International Energy Agency (IEA) triggered headlines around the world by predicting that the United States would overtake Saudi Arabia to become the world’s leading oil producer by 2020 and, together with Canada, would become a net exporter of oil around 2030. Overnight, a new strain of American energy triumphalism appeared and experts began speaking of “Saudi America,” a reinvigorated U.S.A. animated by copious streams of oil and natural gas, much of it obtained through the then-pioneering technique of hydro-fracking. “This is a real energy revolution,” the Wall Street Journal crowed in an editorial heralding the IEA pronouncement.

The most immediate effect of this “revolution,” its boosters proclaimed, would be to banish any likelihood of a “peak” in world oil production and subsequent petroleum scarcity. The peak oil theorists, who flourished in the early years of the twenty-first century, warned that global output was likely to reach its maximum attainable level in the near future, possibly as early as 2012, and then commence an irreversible decline as the major reserves of energy were tapped dry. The proponents of this outlook did not, however, foresee the coming of hydro-fracking and the exploitation of previously inaccessible reserves of oil and natural gas in underground shale formations. More

© Climate War Room

Lester Brown on Global Depletion themes

Lester recently spoke to Chris Martenson of Peak Prosperity. In this podcast Chris and Lester discuss the global depletion themes that concern Lester most greatly, including population growth, water usage, limits to food production, and climate changes. In many of these areas, the picture painted by the data is alarming. Our future choices are quickly being limited to WHEN these constraints will limit our way of life, not IF. Take a listen!

Arctic Council: John Kerry steps into Arctic diplomacy

Three and half a months into his tenure as US secretary of state, John Kerry is grappling with war in Syria, tensions on the Korean peninsula and other crises. But on Tuesday, he takes a short break to dive into an issue in which he has long been interested - climate change.

John Kerry

Mr Kerry arrived in Stockholm and headed to Kiruna, Sweden's northernmost city, in the province of Lapland, for a meeting of the Arctic Council.

The council, founded in 1996, brings together eight nations with land above the Arctic Circle - Canada, Denmark, Finland, Iceland, Norway, Russia, Sweden and the US.

Mr Kerry, who held one of the first US Senate hearings on climate change as early as 1988 with then-Senator Al Gore, is hoping to put the spotlight on the issue of climate change again, after efforts to make concrete progress faltered during President Barack Obama's first term.

Despite a multitude of international crises, Mr Kerry insisted on attending the meeting of the once-obscure council.

Climate change has countries as far away as India also paying attention to the Arctic - and seeking observer status in the council. Melting polar ice is making mineral and oil resources easier to exploit, setting off a scramble for access. The US Geological Survey estimated in 2008 that some 22% of the world's undiscovered oil and natural gas deposits were located above the Arctic Circle.

The warming climate also opens shipping routes that were once mostly inaccessible. The northern sea route would cut the distance between Shanghai and Europe by several thousands of miles, saving time and money.

China is courting Nordic countries, signing a trade agreement with Iceland and several commercial agreements with Denmark.

Greenland, a self-governing part of Denmark, is considering awarding mine exploration licenses to companies this year for a $2bn (£1.3bn) project north-east of the capital Nuuk.

One of those companies is London Mining, which would join a Chinese mining company in the project that could supply China with 15 million tonnes of iron ore a year.

China is one of 14 countries that have applied for observer status in the council, along with Japan, South Korea, India and others. Several European countries such as France and the Netherlands are already observers.

Observers do not participate in the decision-making process. But the Arctic's growing geopolitical significance allows countries with even a toehold in the small club - like China - to be closer to the action.

The council will consider the new applications during the Kiruna meeting and possibly come to a decision, which requires consensus. Canada and Russia are opposed, while the Nordic countries are in favour. More

 

Noam Chomsky: Are We on the Verge of Total Self-Destruction?

What is the future likely to bring? A reasonable stance might be to try to look at the human species from the outside. So imagine that you’re an extraterrestrial observer who is trying to figure out what’s happening here or, for that matter, imagine you’re an historian 100 years from now -- assuming there are any historians 100 years from now, which is not obvious -- and you’re looking back at what’s happening today.

You’d see something quite remarkable.

For the first time in the history of the human species, we have clearly developed the capacity to destroy ourselves. That’s been true since 1945. It’s now being finally recognized that there are more long-term processes like environmental destruction leading in the same direction, maybe not to total destruction, but at least to the destruction of the capacity for a decent existence.

And there are other dangers like pandemics, which have to do with globalization and interaction. So there are processes underway and institutions right in place, like nuclear weapons systems, which could lead to a serious blow to, or maybe the termination of, an organized existence.

How to Destroy a Planet Without Really Trying

The question is: What are people doing about it? None of this is a secret. It’s all perfectly open. In fact, you have to make an effort not to see it.

There have been a range of reactions. There are those who are trying hard to do something about these threats, and others who are acting to escalate them. If you look at who they are, this future historian or extraterrestrial observer would see something strange indeed. Trying to mitigate or overcome these threats are the least developed societies, the indigenous populations, or the remnants of them, tribal societies and first nations in Canada. They’re not talking about nuclear war but environmental disaster, and they’re really trying to do something about it.

In fact, all over the world -- Australia, India, South America -- there are battles going on, sometimes wars. In India, it’s a major war over direct environmental destruction, with tribal societies trying to resist resource extraction operations that are extremely harmful locally, but also in their general consequences. In societies where indigenous populations have an influence, many are taking a strong stand. The strongest of any country with regard to global warming is in Bolivia, which has an indigenous majority and constitutional requirements that protect the “rights of nature.”

Ecuador, which also has a large indigenous population, is the only oil exporter I know of where the government is seeking aid to help keep that oil in the ground, instead of producing and exporting it -- and the ground is where it ought to be.

Venezuelan President Hugo Chavez, who died recently and was the object of mockery, insult, and hatred throughout the Western world, attended a session of the U.N. General Assembly a few years ago where he elicited all sorts of ridicule for calling George W. Bush a devil. He also gave a speech there that was quite interesting. Of course, Venezuela is a major oil producer. Oil is practically their whole gross domestic product. In that speech, he warned of the dangers of the overuse of fossil fuels and urged producer and consumer countries to get together and try to work out ways to reduce fossil fuel use. That was pretty amazing on the part of an oil producer. You know, he was part Indian, of indigenous background. Unlike the funny things he did, this aspect of his actions at the U.N. was never even reported. More