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

Is the Iran deal about staving off the coming oil shock - By Nafeez Ahmed

The Iran nuclear deal signals a major shift in the geopolitics of the Middle East. Integral to the equation is oil, economics, terror – and US hegemony.

The Bush administration had initiated a long-term covert strategy to undermine Iranian influence in the Middle East and Central Asia, combined with overt pressure through diplomatic initiatives and economic sanctions.

Under Obama, this strategy accelerated, largely in concert with other Gulf powers like Saudi Arabia, Qatar and the UAE, who have long sought to roll-back Iranian influence.

Yet even as the strategy accelerated, unlike its predecessors which openly declared their warmongering hostility to Iran, the Obama administration had used the pressure to forge an unprecedented deal with the country.

Averting regional war

The reasons for the shift are, of course, pragmatic. For years, US intelligence agencies have told the White House that there is simply no evidence Iran is trying to build a nuclear bomb.

And the International Atomic Energy Agency (IAEA) has repeatedly certified that uranium is not being enriched to levels necessary for weaponisation, nor is it being diverted to a secret weapons programme.

Meanwhile, senior US military officials have long warned that the sort of US-Iran military confrontation which frothing neoconservatives have been pining for would likely fail and destabilise the entire region.

What about an Israel-Iran confrontation? A classified Pentagon war simulation held in 2012 found that an Israeli attack on Iran would also lead to a wider regional war.

Unlike the neocons, for the military pragmatists in successive US administrations, war with Iran could never be a preferred option.

The added bonus is that Iran might notch down its involvement in Iraq and Syria.

Earlier this year, the US assured its allies at the Camp David summit that under the nuclear deal, Iran’s growing geopolitical influence in the region would be curtailed. Simultaneously, the US gave Saudi Arabia, Qatar, the UAE and others the green light to accelerate support to the Islamist militants of their choice in Syria.

George Friedman, founder and CEO of private US intelligence firm Stratfor – which operates closely with the Pentagon and State Department – forecasted the US-Iran détente four years ago.

His prescient assessment of its strategic rationale is worth noting. Friedman explained that by reaching “a temporary understanding with Iran,” the US would give itself room to withdraw while playing off Iran against the Sunni regimes, limiting Iran’s “direct controls” in the region, “while putting the Saudis, among others, at an enormous disadvantage”.

“This strategy would confront the reality of Iranian power and try to shape it,” wrote Friedman.

Ultimately, though, the US is betting on the rise of Turkey – hence the latter’s pivotal role in the new anti-IS rebel training strategy, despite Turkey’s military and financial sponsorship of IS. More

 

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Global threat to food supply as water wells dry up, warns top environment expert

Lester Brown says grain harvests are already shrinking as US, India and China come close to 'peak water'

Iraq facing water shortages

Wells are drying up and underwater tables falling so fast in the Middle East and parts of India, China and the US that food supplies are seriously threatened, one of the world's leading resource analysts has warned.

In a major new essay Lester Brown, head of the Earth Policy Institute in Washington, claims that 18 countries, together containing half the world's people, are now overpumping their underground watertables to the point – known as "peak water" – where they are not replenishing and where harvests are getting smaller each year.

The situation is most serious in the Middle East. According to Brown: "Among the countries whose water supply has peaked and begun to decline are Saudi Arabia, Syria, Iraq and Yemen. By 2016 Saudi Arabia projects it will be importing some 15m tonnes of wheat, rice, corn and barley to feed its population of 30 million people. It is the first country to publicly project how aquifer depletion will shrink its grain harvest.

"The world is seeing the collision between population growth and water supply at the regional level. For the first time in history, grain production is dropping in a geographic region with nothing in sight to arrest the decline. Because of the failure of governments in the region to mesh population and water policies, each day now brings 10,000 more people to feed and less irrigation water with which to feed them."

Brown warns that Syria's grain production peaked in 2002 and since then has dropped 30%; Iraq has dropped its grain production 33% since 2004; and production in Iran dropped 10% between 2007 and 2012 as its irrigation wells started to go dry.

"Iran is already in deep trouble. It is feeling the effects of shrinking water supplies from overpumping. Yemen is fast becoming a hydrological basket case. Grain production has fallen there by half over the last 35 years. By 2015 irrigated fields will be a rarity and the country will be importing virtually all of its grain."

There is also concern about falling water tables in China, India and the US, the world's three largest food-producing countries. "In India, 175 million people are being fed with grain produced by overpumping, in China 130 million. In the United States the irrigated area is shrinking in leading farm states with rapid population growth, such as California and Texas, as aquifers are depleted and irrigation water is diverted to cities."

Falling water tables are already adversely affecting harvest prospects in China, which rivals the US as the world's largest grain producer, says Brown. "The water table under the North China Plain, an area that produces more than half of the country's wheat and a third of its maize is falling fast. Overpumping has largely depleted the shallow aquifer, forcing well drillers to turn to the region's deep aquifer, which is not replenishable."

The situation in India may be even worse, given that well drillers are now using modified oil-drilling technology to reach water half a mile or more deep. "The harvest has been expanding rapidly in recent years, but only because of massive overpumping from the water table. The margin between food consumption and survival is precarious in India, whose population is growing by 18 million per year and where irrigation depends almost entirely on underground water. Farmers have drilled some 21m irrigation wells and are pumping vast amounts of underground water, and water tables are declining at an accelerating rate in Punjab, Haryana, Rajasthan, Gujarat and Tamil Nadu."

In the US, farmers are overpumping in the Western Great Plains, including in several leading grain-producing states such as Texas, Oklahoma, Kansas and Nebraska. Irrigated agriculture has thrived in these states, but the water is drawn from the Ogallala aquifer, a huge underground water body that stretches from Nebraska southwards to the Texas Panhandle. "It is, unfortunately, a fossil aquifer, one that does not recharge. Once it is depleted, the wells go dry and farmers either go back to dryland farming or abandon farming altogether, depending on local conditions," says Brown.

"In Texas, located on the shallow end of the aquifer, the irrigated area peaked in 1975 and has dropped 37% since then. In Oklahoma irrigation peaked in 1982 and has dropped by 25%. In Kansas the peak did not come until 2009, but during the three years since then it has dropped precipitously, falling nearly 30%. Nebraska saw its irrigated area peak in 2007. Since then its grain harvest has shrunk by 15%."

Brown warned that many other countries may be on the verge of declining harvests. "With less water for irrigation, Mexico may be on the verge of a downturn in its grain harvest. Pakistan may also have reached peak water. If so, peak grain may not be far behind."