According to declassified data Russia holds 17 billion tons of oil and 48 billion cubic meters of gas. Moscow believes revealing the extent of the vast reserves will lead to a surge of investment in the extraction and production of hydrocarbons.
The country’s recoverable oil reserves in the C1 category (proven reserves) totals 17.8 billion tons; category C2 (preliminary estimated reserves) is 10.2 billion tons, according to data collected on January 1, 2012.
Meanwhile, gas reserves were equally bountiful at 48.8 trillion cubic meters C1 category; gas stores of the C2 category is estimated at 19.6 trillion cubic meters.
The Minister of Natural Resources of the Russian Federation Sergey Donskoy said the resource potential for these kinds of mineral resources remains one of the most significant in the world. “I am convinced that the opening of this data will give a powerful impetus to investment in reproduction and production of hydrocarbons,” he said. He also added that Russia’s potential for the mineral resources is one of the most significant in the world.
Russia’s available hydrocarbon potential will be able to provide the nation’s growing economy for 30 years, according to expert estimates put out by the Russian Ministry of Natural Resources and the Federal State Commission on Mineral Reserves.
Meanwhile, increased exploration of mineral resources consistently exceed the level of production, the minister said, noting that last year 49 oil fields were discovered.
Last week, Prime Minister Dmitry Medvedev signed a government decree that removed the lid of secrecy on oil reserve data.
Earlier, President Putin, explained the necessary level of cooperation that exists between the domestic fuel and energy sector and foreign investors, called the former level of secrecy “an obvious anachronism.”
Putin also called on the development and approval of a new classification of Russian oil and gas reserves as close as possible to international standards.
Before the release of the official data Russia was placed second in the world by gas reserves after Iran, with 32.9 trillion cubic meters, and eighth by crude oil reserves, after Venezuela, Saudi Arabia, Canada, Iran, Iraq, Kuwait and UAE, with 11.8 trillion cubic meters of oil.
July 13, 2013
Posted by aletho |
Economics, Malthusian Ideology, Phony Scarcity | Gas, Natural resources, Oil, Oil reserves, Russia, Russian economy |
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In a historic decision this May, Guatemala’s Supreme Court of Justice sentenced former dictator General Ríos Montt to 80 years in prison for the genocidal massacres of indigenous people in the 1980s. Many Guatemalans hoped that the judicial process against the top criminals of the country’s “dirty war” would finally bring justice—but ten days after the decision, the Constitutional Court reversed the judgment.
While the Guatemalan people protest this violation of the rule of law, the processes of genocide initiated 30 years ago by Ríos Montt’s massacres continue today by other means.
In the last decade, the expansion of oil palm plantations and sugarcane production for ethanol in northern Guatemala has displaced hundreds of Maya-Q´eqchi´ peasant families, increasing poverty, hunger, unemployment and landlessness in the region, according to a new Food First report by Alberto Alfonso-Fradejas, “Sons and Daughters of the Earth: Indigenous Communities and Land Grabs in Guatemala.”
There is a major contradiction here: at the same time that the former General Ríos Montt is convicted for genocide, the Guatemalan government allows the oligarchy, allied with extractive industries, to displace entire populations without concern for the human cost. In many cases, these land grabs result in the murder and imprisonment of rural people who resist the assault.
Genocide against the indigenous peasant population in Guatemala no longer has the face of a military dictatorship supported by the United States. Now it is the corporations, the oligarchy and the World Bank who push peasants off their lands.
In today’s Guatemala, land and resource control is increasingly in the hands of a small oligarchy of powerful families allied with agri-food companies. At the center of this power are fourteen families who control the country’s sugarcane-producing companies (AZAZGUA); five companies controlling the national production of ethanol; eight families that control the production of palm oil (GREPALMA); and members of the Coordinating Committee of Agricultural, Commercial, Industrial, and Financial Associations (CACIF).
Together these powerbrokers are accumulating land and wealth with the support of investment from international institutions such as the World Bank, the Inter-American Development Bank (IDB) and the Central American Bank for Economic Integration (BCIE). The convergence of multiple global crises—finance, energy, food and environment—has directed corporate investment into land-based resources such as agrofuels, minerals, pasture and food. The situation in Guatemala is extremely violent, part of a global trend where agrarian, financial and industrial interests are grabbing control of peasant lands and resources.
Can land grabs be considered genocide? In many ways, land grabbing is a new form of genocide. Ricardo Falla’s study “What Do You Mean There Was No Genocide?” analyzes the definition of genocide and its characteristics. According to Falla, of the five acts that define genocide, two were most prominent in Guatemala: “the massacre of the members of a group,” and “the intentional subjection of a group to living conditions which will lead to their total or partial physical destruction.”
The first genocide was against the Ixil peoples during the reign of Ríos Montt. The second genocide is enacted today through the privation of the Q´eqchi´ peoples’ means of survival through land grabs. Hundreds of families have been displaced. They do not have land on which to produce food or live, and they are denied their cultural and community identity. These conditions undermine their ability to survive, and lead to their displacement, and in many cases death.
The historic genocide trial this May came about through the peoples’ long struggle to defend their rights. The Ríos Montt conviction is a condemnation of impunity. The oligarchy did everything possible to impede the trial while continuing to displace the indigenous peasant population with the support of international investment and a legal system that favors land grabbing to the detriment of the people.
On May 20, the Constitutional Court overturned the conviction, with two of the five judges opposing the decision. Pablo de Greiff, UN Special Rapporteur for the Promotion of Truth, Justice, Reparation and Guarantees of Non-Recurrence stated, “No legal decision is inconsequential, even if it is revoked.” The Inter-American Court of Justice issued a statement criticizing the verdict for violating international obligations assumed by the state and preventing the people from seeking justice. Multiple organizations and authorities have spoken out against the court’s decision, arguing that it overstepped its bounds, violated legal provisions, and endorsed the corrupt mechanisms upon which impunity is built in Guatemala. The decision bolsters evidence that Guatemala’s top court lacks political independence and is tied to the country’s economic and ruling elite.
On May 24, thousands of people demonstrated and delivered a letter with more than a thousand signatures to the Court demanding that the decision be reversed. In Argentina, Chile, Honduras, Mexico, Nicaragua and Peru, thousands more marched in solidarity to the Guatemala embassy demanding justice.
If we fail to judge and condemn the massacres committed thirty years ago, what hope is there for the Mayan Q’eqchi’, Xinka, Mam, Kaqchikel and other indigenous peoples currently being displaced and massacred by extractive corporations with the support of the state and international institutions? The people continue to courageously resist and defend their lives, lands and identities. How shall we express our solidarity?
Leonor Hurtado is a fellow at Food First/Institute for Food and Development Policy. A native of Guatemala, she has spent decades defending human rights and indigenous rights, and supporting indigenous resistance to the expansion of extractive industries.
Photo: Caracol Producciones
June 13, 2013
Posted by aletho |
Economics, Ethnic Cleansing, Racism, Zionism, Malthusian Ideology, Phony Scarcity, Timeless or most popular | Biofuel, Efraín Ríos Montt, Guatemala, Human rights, Inter-American Development Bank, Ixil, Kaqchikel, Latin America, Mam, Palm oil, Q’eqchi’, Rios Montt, United States, Xinka |
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Russian shale oil reserves are estimated at 75 billion barrels, which puts the country on top of the global standings, followed by the US and China.
According to the report by the US Energy Information Administration (EIA), the estimated American shale gas resources equal 58 billion barrels, with third-place China having 32 billion barrels.
But it’s the Chinese, who hold the leadership in shale gas reserves, with 1,115 trillion cubic feet. 802 trillion cubic feet puts Argentina in second, with Algeria not far behind on 707 trillion cubic feet.
The US is fourth when it comes to shale gas (665 trillion cubic feet), while Russia is ninth with 285 trillion cubic feet.
The EIA’s report indicates that the worldwide resources of oil and gas from shale formations are greater than was previously thought.
The global shale oil resources are estimated at 345 billion barrels and shale gas – at 7,299 trillion cubic feet, which is a 10 per cent increase in comparison with the 2011 data.
According to EIA’s administrator, Adam Sieminski, the report shows “a significant potential for international shale oil and shale gas.”
The increase in estimates is explained by more countries joining the efforts to search for deposits, following the ‘Shale Revolution’ in the US.
“As shale oil and shale gas production has grown in the United States to become 30 percent of oil and 40 percent of natural gas total production, interest in the oil and natural gas resource potential of shale formations outside the United States has grown,” Adam Sieminski explained in a statement.
Also on Wednesday, British oil giants BP have Russia’s natural gas reserves estimate at 32.9 trillion cubic meters from 44.6 trillion in last year.
According to the company’s benchmark Statistical Review of World Energy, it’s Iran, who climbed to the top of the global standings, with the proven reserves of 33.6 trillion cubic meters.
BP said that this year they decided to adjust its estimates for the former Soviet Union states, including Russia, where data on reserves remains classified.
“Traditionally countries of the former Soviet Union had different criteria than used elsewhere. So we used a conversion factor to convert that from those countries where we don’t get direct data,” Christof Ruhl, BP’s chief economist, is cited as saying by Reuters. “In some countries, reserves are still a state secret, so we have to rely on these data.”
But Russia remains a much larger gas producer than Iran as the international sanctions prevent the Islamic Republic from exploiting its natural resources in full.
The estimate of gas reserves in the US where the energy industry has been transformed by shale oil and gas, due to lower prices and reduced drilling.
The American gas reserves ended 2012 at 8.5 trillion cubic meters, down 0.3 trillion from indications of 2011.
BP cut proven global gas reserves by nearly 21 trillion cubic meters from 208.4 trillion cubic last year to 187.3 trillion cubic meters as of end of 2012.
June 13, 2013
Posted by aletho |
Economics, Malthusian Ideology, Phony Scarcity | Argentina, China, Natural resources, Oil, Russia, Shale gas, Shale oil, United States, USA |
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African agriculture is in need of support and investment. Many initiatives are flowing from the North, including the G8’s “New Alliance for Food Security and Nutrition in Africa” and the Alliance for a Green Revolution in Africa (AGRA). These initiatives are framed in terms of the African Union’s Comprehensive African Agricultural Development Programme (CAADP). This gives them a cover of legitimacy.
But what is driving these investments, and who is set to benefit from them?
The current wave of investment emerges on the back of the gathering global crisis with financial, economic, food, energy and ecological dimensions. Africa is seen as underperforming and in control of valuable resources that capital seeks for profitable purposes. The World Bank and others tell us Africa has an abundance of available fertile land, and that Africa’s production structure is inefficient, based as it is on many small farms producing mainly for themselves and their neighbourhoods (i).
Africa is seen as a possible new frontier to make profits, with an eye on land, food and biofuels in particular. The recent investment wave must be understood in the context of consolidation of a global food regime (ii) dominated by large corporations in input supply (seed and agrochemicals) especially, but also increasingly in processing, storage, trading and distribution.
G8 and AGRA: a new wave of colonialism
Opening markets and creating space for multinationals to secure profits lie at the heart of the G8 and AGRA interventions. Both initiatives are built on the basis of public-private partnerships (PPPs) with the large multinational seed, fertiliser and agrochemical companies setting the agenda, and states and institutions (like the G8, World Bank and others) and philanthropic institutions (like AGRA and others) establishing the institutional and infrastructural mechanisms to realise this agenda.
Multinational corporations like Yara, Monsanto, Syngenta, Cargill and many others want secure markets for their products in Africa. In the first place, security means protection of their private ownership of knowledge in the form of intellectual property (IP) protection. Across Africa, so-called ‘harmonisation’ of laws and policies are underway to align African laws and systems with the interests of these multinationals.
Harmonisation of trade laws means opening borders across the continent to free trade. But this is a skewed free trade, one that favours the ‘formal sector’ of goods and services that have gone through approval and registration processes. Farmers and other producers of goods and services who cannot afford to enter the official approval system are marginalised and trading of their products is rendered illegal.
Private ownership of knowledge and material resources (for example, seed and genetic materials) means the flow of royalties out of Africa into the hands of multinational corporations. In some countries where laws protecting the interests of corporations are well established – for example in South Africa – multinationals have entirely occupied domestic seed and agrochemical sectors with profits flowing out of the country. The same is happening for agricultural services, trade, manufacturing and even selling of food.
The private companies are not acting on their own. They are using investment-friendly government policies and plans to advance their agenda.
CAADP and regional investment policies: facilitating ‘orderly’ processes of colonialism
There are many well-meaning organisations and individuals who view CAADP as an African-based investment plan. But Africa is not isolated from the world. CAADP emerged at the height of neo-liberalism globally in the early 2000s. African governments were mired in the consequences of decades of structural adjustment that saw the net outflow of financial and other resources from Africa to the rest of the world. The New Economic Partnership for Africa’s Development (NEPAD) was an initiative by selected African governments to integrate Africa into global flows of capital. The expectation was that profit-generating investment, and creating the conditions for protection of this investment, were Africa’s chance to catch up with the rest.
African governments, desperate for some financial relief, are willing to make whatever changes are necessary to bring capital into their countries. The multinationals are setting the terms: harmonisation, free trade and protection of private IP or no investment. It is therefore of little use calling for CAADP to be placed at the centre of investment plans. CAADP itself is a compromised instrument, calling for the very policies and programmes favoured by the multinationals.
Food security and corporate-driven investment in Africa
Harmonisation, free trade and the creation of institutions and infrastructure to facilitate multinational penetration into Africa are presented as the answer to food insecurity on the continent. Multinational corporations, African states, states outside Africa, philanthropic institutions, multilateral institutions such as the World Bank and even some non-government organisations are all part of this agenda. Surely so many organisations and people cannot be wrong?
The logic is that of the Green Revolution: introduce yield- and sales-enhancing technologies and systems, provide credit for producers to access these technologies, and anticipate increasing returns from sales to cover the increasing cost of inputs. Expand access to markets globally and regionally to absorb increased production.
This model can benefit some, as Green Revolutions in Asia and to a lesser extent in Latin America have shown. However, it also has negative social and ecological side effects. Green Revolution technologies benefit relatively few farmers, often at the expense of the majority. These technologies produce concentration of land ownership, increasing economies of scale (production has to be at a large scale to get into and stay in markets), and a declining number of food producing households in a context of limited other livelihood options.
Ecological concerns about Green Revolution technologies are rising to the top of the global agenda, especially loss of biodiversity when commercial hybrids and GM seed dominate (especially maize as a staple crop in Africa, and the introduction of soya as the basis of biofuels and commercial intercropping approaches), soil degradation and water pollution caused by excessive use of manufactured chemicals in synthetic fertilisers, and water shortages caused by wasteful water use in irrigation.
The Green Revolution produces uneven benefits, favouring farmers with financial resources of their own, with access to more land, and with some formal education. The majority of resource poor farmers are excluded from public support for agriculture, with infrastructure and institutional frameworks designed for the minority to benefit.
Currently African food security rests fundamentally on small-scale and localised production. The majority of the African population continue to rely on agriculture as an important, if not the main, source of income and livelihoods. In most sub-Saharan African countries, agriculture is the primary economic activity for between 50% and 90% of the population (iii). Even though there is growing urbanisation, the majority will continue to rely on agriculture for their livelihoods for decades to come. The rural population continues to grow in absolute terms even while the urban population grows as a proportion of the total population.
We know that all of these people will not benefit from these new investments. Seen as more inefficient than those producers who are in a position to adopt the new technologies, many will be forced out of agriculture to become passive consumers. Instead of building the broad base of producers, G8 and AGRA investments, supported by African government policies and resources, will narrow the base of producers.
The practical results of the recent surge in investment in African agriculture expose the empty rhetoric of African food security. Blatant land grabs are well known across the continent. Mega projects such as the ProSavanna project in northern Mozambique are displacing farmers from their lands and imposing large-scale production structures for export. Favourable investment terms (for example tax free zones and laws on repatriation of profits) undermine even the questionable benefits increased foreign exchange brings. Meanwhile actual farmers are separated from the land and the only realistic option for a livelihood. African governments and their investment ‘partners’ enable and implement these projects.
Alternatives
First and foremost, differentiated strategies are required, so that local and informal markets, proven low-input and ecologically sustainable agricultural techniques including intercropping, on-farm compost production, mixed farming systems (livestock, crops and trees), on-farm biofuel production and use, and intermediate processing and storage technologies are recognised and vigorously supported. The emphasis here is on individual and household food security first, with trade arising from surpluses beyond this. The International Assessment of Agricultural Knowledge, Science and Technology for Development (IAASTD) provides detailed and scientifically sound proposals in this regard.
Open access technologies are an essential principle, especially seed, where all recent technological advances are based on 10,000 years of collective experimentation and sharing. No-one and no corporations should be allowed to privatise the results of ongoing research. Companies can sell their new varieties, but once sold, they re-enter the common pool that anyone should be able to use and improve on at will.
Green Revolution technological development leads to an ever-increasing gap between conception and execution, that is between the knowledge that goes into producing a new seed variety and those who use the seed. An alternative, based on open source technologies, is a far closer working relationship between decentralised technicians and producers to define the research and development agenda (what traits are farmers looking for in specific locations, what crops are priorities for further development etc). Plant breeders are still able to make profits by selling new varieties to those who want to buy fresh seed, especially commercial farmers. But if farmers choose to reuse and adapt seed once they have bought it, that must be their right.
Notes
i World Bank 2009 “Awakening Africa’s sleeping giant: Prospects for commercial agriculture in Africa’s Guinea Savannah zone and beyond”, World Bank Agriculture and Rural Development Unit, Africa Regional Office
ii McMichael, P. 2009 “A food regime genealogy”, Journal of Peasant Studies, 36: 1, pp.139-169
iii World Bank, “World Databank”, http://databank.worldbank.org/data/home.aspx
June 5, 2013
Posted by aletho |
Economics, Environmentalism, Malthusian Ideology, Phony Scarcity, Supremacism, Social Darwinism, Timeless or most popular | Africa, Alliance for a Green Revolution in Africa, Green Revolution, Monsanto, Sub-Saharan Africa, World Bank |
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Sometimes, as an observer of the news, one comes across a particular opinion column that is so brazen, so audacious, that one must stare at the headline for thirty seconds or so, simply to make sure it’s not a hallucination. Such was my experience this morning when I saw that Fred Hiatt wrote a column for The Washington Post titled “Will Xi Jinping’s ‘Chinese dream’ include the rule of law?” Irony is officially dead.
Hiatt, for those who don’t know, is the editorial page editor at the Post, and someone who lives and breathes for war. Not in the sense that he has ever volunteered to go fight in one, of course. That’s for Other People to do. Hiatt prefers to fight the good fight from his comfortable D.C. office. There’s much more money and prestige in doing it that way.
One must stipulate that, while he loves war with all of his heart, Hiatt, like all serious, sophisticated, reasonable Beltway intellectuals, has at times seemed fairly torn on the far more perplexing issue of torture. Whether or not to flagrantly violate domestic and international law and disregard the most basic conceptions of human morality by torturing other people – this always represented a profound moral quandary for the intellectual class. Hiatt did eventually make his thoughts on this matter clear, though, by hiring an absolute lunatic by the name of Marc Thiessen to grace the pages of his newspaper’s prestigious opinion section; Thiessen mostly used his space to explain why torture is so awesome and underrated.
We do know, beyond a reasonable doubt, that Fred Hiatt does not believe in the rule of law. In enthusiastically supporting the attack on Iraq, which, as a war of aggression, constituted the “supreme international crime,” Hiatt forever forfeited any right to even talk about the rule of law. One doesn’t get to cheer-lead, fanatically, for the most colossal international crime in a generation, and maintain any credibility on “the rule of law.” This cannot really be debated, unless one also wants to argue in favor of consulting Bill Clinton on marital fidelity, or O.J. Simpson on domestic tranquility.
Hiatt, though, is evidently very concerned about the future of the rule of law. Not in the United States, naturally, but, rather, in China. In his new column, Hiatt worries that China, under Xi, might continue its heinous “bullying” in the international arena and its regular flouting of international norms. Fred Hiatt just hates when countries do this. He encourages President Obama – the man who refuses to investigate and prosecute the torturers and killers of the Bush administration on the astonishing grounds that it’s preferable to Look Forward, Not Backward – to lecture the Chinese on appreciating the rule of law and respecting human rights. Hiatt sternly warns the Chinese that they risk losing the “trust” of the United States if they don’t cease their unconscionable imprisonment of peaceful activists and their disregard for due process. He writes this as peaceful American activist Bradley Manning, after sitting in a cage for more than two years, is now going on trial for the offense of telling people about his country’s war crimes, and as more than 100 prisoners of the United States continue to wage a hunger streak to protest their lack of due process. Hiatt has apparently, through some sort of mental process, airbrushed both stories from his brain, despite the fact that both are currently receiving an astounding amount of international attention.
This column represents one of the most exquisite examples of Orwell’s “doublethink” in recent memory.
June 4, 2013
Posted by aletho |
Deception, Malthusian Ideology, Phony Scarcity, Progressive Hypocrite, Timeless or most popular, War Crimes | Fred Hiatt, Marc Thiessen, United States, Washington Post |
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After years of failed attempts to start developing one of the world’s largest gas fields, Gazprom might delay the Shtokman project for decades. The shale revolution in the US – the project’s key export market – is undermining its profitability.
Development of the Shtokman gas condensate field in the Barents sea will most likely be postponed “for future generations,” Vedomosti daily quotes Andrey Kruglov, Gazprom deputy chairman. This week Russia’s gas monopoly is due to discuss the future of the world’s biggest gas deposits, where an estimated 3.9 trillion cubic metres of gas is held.
Experts say there’s no point in developing the field right now, as the project is difficult and costly and may fail to find sufficient demand.
US shale gas has definitely “undermined Shtokman that was oriented on the US market,” says Tatyana Mitrova, the head of Russia’s oil and gas development department at the Energy Research Institute of the Russian Academy of Sciences. “The deposit is difficult…the problem is that there’s really no other market left for Shtokman, after it became irrelevant for the US,” agrees Michael Korchyomkin, a director at East European Gas Analysis.
Having been developed at the beginning of this century, the production of shale gas in the US has significantly moved on. In 2010, shale gas represented more than 20% of the country’s gas production, according to the International Energy Agency (IEA). The agency also said that by 2035 around 40% of the world’s gas might be unconventional, and shale gas will by far be the greatest part of it.
“Gazprom has been trying to start developing the project for about 10 years. They planned to liquefy part of the extracted gas and deliver that to the US, and transport another part to Europe through a pipeline. The trans-Baltic Nord Stream pipeline was being built for that project,” Kruglov explained. Initially it was planned to start extracting gas from the Shtokman field this year. Its income and expense pro forma is estimated at $30 billion.
The South Kirinskoe deposit on the shelf of the Sea of Okhotks may become the alternative to the Shtokman field, according to Kruglov. It “has almost the same stock as the Shtokman has and is located much closer to the Asian Pacific markets.”
The Kirinskoe deposit is 28 km from the shore at a depth of 90 metres. Shtokman is 550 km away from the shore, at a depth of about 330 metres.
Vedomosti sources told the paper there were plans to develop the South Kirinskoe deposit earlier than Shtokman. It should become the base for a Gazprom LNG plant in Vladivostok, that is due to begin operating in 2018.
However, Grigory Birg, a co-director at Investcafe, remained skeptical, saying the new project will require huge investment and may face the same fate as the Shtokman project.
June 3, 2013
Posted by aletho |
Malthusian Ideology, Phony Scarcity | Gazprom, Nord Stream, Russia, Shtokman field |
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The good news is that the cellulosic ethanol industry—turning trees and woody plants into liquid fuels—has yet to take off. And without an endless stream of taxpayer handouts to develop this polluting and environmentally destructive energy source, it probably never will.
Under the guise of taking action on climate change, the US Environmental Protection Agency (EPA) launched the Renewable Fuel Standard (RFS) under the Energy Policy Act of 2005, expanding it under the Energy Independence and Security Act (EISA) of 2007.
According to Institute for Energy Research, the RFS “mandates the production of ethanol to the level of 36 billion gallons by 2022, where 15 billion gallons is to be corn-based and the remainder is to come from advanced forms of biofuels, including cellulosic ethanol.
“The advanced biofuel contribution starts at 0.6 billion gallons in 2009 increasing to 1.35 billion gallons in 2011, 2.0 billion gallons in 2012 and eventually to 21.0 billion gallons in 2022.”
At first, the advanced biofuels component was set at an optimistic 0.6 billion gallons by 2009, 1.35 billion by 2011, 2.0 billion by 2012, and an obscene 21.0 billion by 2022. Yet the industry’s repeated botched attempts to break down wood cellulose into a usable fuel combined with overwhelming investor uncertainty—in the wake of corn ethanol’s recent fall from grace—meant refiners weren’t able to get their hands on anywhere near the EPA’s desired amount.
“Because cellulosic ethanol was not yet commercial, EPA issued changes to the original act that requires four separate standards including 1.0 billion gallons of biomass-based diesel by 2012 and 16 billion gallons of cellulosic biofuels by 2022.”
The requirement for motor fuel from cellulose was initially set at 250 million gallons by 2011 and 500 million by 2012. When that proved impossible, the EPA lowered the bar to 6.6 million gallons by 2011 and 8.65 million by 2012.
When big biofuels still couldn’t make the cut in 2011, the EPA fined refiners $6.8 million. Yet in January 2013, the DC District Court of Appeals struck down the mandate, ruling that it was unfair of the EPA to put refiners in an “impossible position” by punishing them for not buying and blending biofuels that didn’t exist. The EPA repaid the fines.
Wally Tyner, agricultural economist at Purdue University, claims in a Science Insider article that the court decision doesn’t entirely gut the RFS. Tyner concludes that if more cellulosic ethanol comes online in the future, the EPA will then be able to issue their beloved “blending mandates.”
Which won’t happen anytime soon. In 2012 the entire US biofuels industry brewed up only 20,069 gallons of cellulosic ethanol, according to Climatewire.
But the elusive nature of the magic tree gas hasn’t stopped some of the more enterprising bio-profiteers from cashing in. Rodney Hailey, owner of Maryland-based Clean Green Fuel, LCC, sold $9 million in “renewable fuel credits” for biofuels his company never even produced. In February 2013, a US District Court Judge sentenced Hailey to twelve years in the slammer for his sins.
Florida, Georgia, and Oregon have been the site of the industry’s latest casualties. Even the heaping fortunes of fossil fuels giant British Petroleum (BP) weren’t enough to make a go of a $350 million forest-to-fuels facility in Highlands County, Florida—which went belly up in 2012.
A $37 million federal grant and $235 million loan guarantee couldn’t prevent major financial difficulties that ultimately forced ZeaChem, a cellulosic ethanol company in Boardman, Oregon to “scale back plant operations…and let go a number of our valued employees” in March 2013. Only a few weeks before, the company had produced its first and only batch of ethanol. While ZeaChem insists they’re not throwing in the paper towel yet, a recent Oregonian article suggests otherwise.
Perhaps the highest profile bio-failure to date—dubbed the “Solyndra of biofuels” by some—is the shuttering of Range Fuels’ wood-to-ethanol factory in Treutlen County, Georgia. The corporation broke ground in 2007 with promises to produce 100 million gallons of ethanol, seducing the US Department of Energy (DOE) to fork over a $76 million grant. As one of his final acts as president, George W. Bush also doled out an $80 million loan guarantee. The facility was completed in 2010—after having absorbed $46.3 million of the DOE grant and $42 million of the loan—when Range Fuels jumped ship and sold the facility in 2011 for a mere $5.1 million—without having brewed up a single tank of gasoline.
Range Fuels and the company that snatched it up for pennies on the taxpayer subsidized dollar, LanzaTech, are financed by investment company Khosla Ventures. “Billionaire Vinod Khosla, who is known for investing in so-called black swan ideas and innovation that could disrupt markets, also sits on the LanzaTech board,” according to Smart Planet.
Despite the industry’s repeated losses right out of the gate, investors like Khosla keep betting on the same horse. In a fit of either desperation or supreme optimism, Khosla is also backing a Columbus, Mississippi cellulosic ethanol factory that produced its first shipment in March 2013, with plans to build another plant in Natchez, Mississippi later this year.
More ominously, Khosla invested through Mascoma Corporation in a proposal to build a cellulosic ethanol biorefinery in Kinross, Michigan, in the state’s Upper Peninsula. When Mascoma struggled to find sufficient funding, Valero—the largest US refiner of traditional gasoline and the company that would process the dirty tar sands oil at the end of the yet-to-be-constructed Keystone pipeline in Texas—dropped $50 million into the project while agreeing to purchase up to 40 million gallons of the stuff.
Even with Khosla’s millions, in March 2013 Mascoma withdrew its registration for a $100 million initial public offering (IPO)—when a company goes from private to publicly trading on the stock market—blaming “market conditions.” Now the facility is being solely managed by Valero and its disturbingly long track record of Clean Air Act violations.
Pat Egan, area resident and former owner and publisher of the local daily newspaper, is fearful that with Valero acting as sugar daddy the Kinross facility stands a fairly good chance of creating a “commercial and viable product.” Add to this a $26 million grant from the feds, $80 million from DOE and $26 million from the state of Michigan, the facility is certainly a contender.
Before jumping ship, Mascoma conjured up a process called consolidated bioprocessing (CBP) to “develop genetically-modified yeasts and other microorganisms to reduce costs and improve yields in the production of renewable fuels and chemicals.” It’s evident that commercial scale cellulosic biofuels can’t happen without the equally controversial—if not more so—practice of genetic engineering.
Perhaps the unholiest of marriages between the biofuels and genetic manipulation industries involves ArborGen, the progenitor of genetically modified freeze-tolerant eucalyptus trees to convert into paper pulp and biofuels. The US Department of Agriculture is accepting public comments until April 29 in its consideration whether or not to allow the Franken-company to sell hundreds of millions of the experimental life form across Texas, Florida, Alabama, Louisiana, Mississippi, South Carolina, and Georgia.
In order for the Kinross project to work, according to Egan, the facility has to cut all its wood within a 150 mile radius. If you look at a map and draw a circle around the facility, Egan points out that one-third of it is water, including Lake Superior and Lake Michigan, and one-third of it is Canada. Egan believes a significant portion of the grant and development money will migrate north to Canada.
The facility would require a “phenomenal” amount of wood—1.1 million green tons per year to produce 20 million gallons, according to Egan. In comparison, a 50 megawatt biomass power incinerator burns about 500,000 green tons per year. The wood for Kinross would come primarily from pulpwood or whole trees in Michigan and Ontario, sixty to seventy cordwood trucks a day, said Egan.
Upper Peninsula-based Longyear Forestry, a partner in the project, is slated to be providing many of the trees to chip and convert into ethanol and has provided the land to site the facility. 56% of the wood would come from private land owners and the rest from public land, cutting down wild forests and monocrop tree plantations alike, including willow and aspen, explained Egan.
The Michigan Department of Natural Resources is “already changing their ten year forest plan to create more fast growing use of land,” said Egan. Two national forests, the Hiawatha National Forest and the Superior National Forest are within 150 miles. “All the state and federal sustainable cuts would still offer less than half of the wood supply the project may need.”
A Michigan State University Department of Forestry study acknowledged a limited woodshed in the region, admitting that already “wood-fired electric power plants consume large quantities of wood throughout Michigan and in the Kinross supply region.”
The Kinross biorefinery would provide about fifty to sixty five jobs, said Egan. Yet those numbers don’t include the loss of jobs from businesses competing for the same wood source—that don’t have the taxpayer subsidies to pay top dollar—such as fiberboard.
Not long ago, Pat thought the “bottom” use of wood was for electricity, but now believes “this ethanol thing can be even worse on per job basis.” He points to an area paper mill that employs 1,100. “All of a sudden the paper industry is looking like the good old days,” he said, worried that the refinery’s commandeering of local wood could knock the mill out of business. It’s a perfect example of the government “picking winners and losers.”
Egan refers to the potential biomass boom as the “third big cut”—the first cut being the initial land clearing by settlers in the 1800’s and the second cut taking place in the 20th century for lumber to build houses. Instead of trees growing to 80 to 120 years for high quality lumber, Egan warns that the biomass industry will only be waiting ten to twenty five years between cuts.
“People die” in refinery accidents, said Egan, including Valero’s refinery explosions in March 2012 in Memphis, Tennessee that killed one and injured two. It’s ironically cheaper to pay those fines—$63,000 in the case of Memphis—than make the preventative safety changes, said Egan. Though asked for an emergency plan, the developers have yet to deliver. The ethanol plant would be located within a few hundred yards of a Sioux Tribal Housing facility, with hundreds of residents living across the road. Down the road a couple miles are three state prisons with their captive population of thousands.
Egan is worried that, while so many other ethanol plants have gone bust, Kinross just might make it. He points to Mascoma’s experimental plant in Utica, New York where they claim to have “perfected” the process—burning through 25 million taxpayer dollars in the process. “As soon as they figure out non-food source ethanol and make it saleable and gasoline prices stay high,” warned Egan, they’ll be putting up “cookie cutter plants” all around the country.
So who would buy the ethanol? “If somebody can crack this nut and find the holy grail of commercial cellulosic biofuels, they have a ready made customer in the military,” said Egan. The US Department of Defense is aiming for 40% of their energy to come from biofuels by 2023. In 2012, the US Air Force tested its first ethanol in jets.
“Taking carbon traps, trees that grab carbon out of the air and grow and do so much more in terms of biodiversity,” Egan cautioned, “taking those down and releasing carbon is doing two horrible things.”
Kinross resident Larry Klein—who lives two miles from the proposed refinery site—is fighting the refinery in the courts, with the help of the Sierra Club of Michigan, suing through the NEPA process in regards to the Department of Energy’s $80 million grant. In November 2012, a judge threw out the case, which is now in appeals court in Cincinnati.
April 15, 2013
Posted by aletho |
Economics, Environmentalism, Malthusian Ideology, Phony Scarcity, Timeless or most popular | Biofuel, Biomass Monitor, Energy Policy Act of 2005, EPA, Ethanol, Josh Schlossberg, Renewable Fuel Standard, RFS, United States Environmental Protection Agency, ZeaChem |
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Ancestral land that for generations has served as home and livelihood for hundreds of thousands of indigenous people in Ethiopia is being leased out, on 99-year renewable contracts at nominal sums to foreign corporations. The land giveaway or agrarian reforms as the government would prefer to present them began in 2008 when the Ethiopian government, under the brutal suppressive Premiership of Meles Zenawi invited foreign countries/corporation to take up highly attractive deals and turn large areas of land over to industrial farming for the export of crops. India, China and Saudi Arabia were all courted and along with wealthy Ethiopians have eagerly grabbed large pieces of land at basement prices; rates vary from $1.10 to $6.05 per hectare (HA), comparable land in India would set you back $600 per ha.
A total of 3,619,509 ha, the Oakland Institute (OI), a US based think tank, estimate has been leased out. Land made available by the forced re-location of hundreds of thousands of indigenous people under the government’s universally condemned Villagization progamme, which aims to forcibly re-locate over 1.5 million people from their homes.
Indian corporations have taken the lion’s share, acquiring around 600,000 ha concentrated in Gambella and Afar, split between 10 investing companies. The term ‘investing’ implies benefits for Ethiopia, which is misleading; ‘profiteering’, or ‘exploiting’ sits closer to the truth of these land deals, as the OI make clear, “taking over land and natural resources from rural Ethiopians, is resulting in a massive destruction of livelihoods and making millions of locals [farmers and pastoralist communities] dependent on food handouts”. With small scale farmers being evicted from their land, prices of staples such as Teff, used by millions throughout Ethiopia to make Injera (bread), has rocketed in price, according to Ethiotribune 22/5/2012, increasing fourfold since 2008.
Corporate expansionism: small change big profits
In line with its ambitions of diversity and world food dominance – Karuturi Global, the world’s largest grower of roses, leads the Indian charge, leasing 311,700 ha in Gambella. Not satisfied with this, GRAIN (an international NGO, working to support small farmers) report Mr.Karuturi “wants to set up farming operations [throughout Eastern and Southern Africa] on more than 1 million [ha]” – too much never enough in corporate expansionism.
Almost a quarter of Gambella’s 25 million ha has been earmarked by the federal government for agricultural ‘development’. Karuturi, whose profits “rose 55.13% to Rs 1.21 crore [10 million] in the quarter ended June 2012”, took their chunk without even seeing it, paying only $1.10 per ha. For the Indian giant it is, John Vidal in ‘Land Grab Ethiopia (LGE)’ says, “the sale of the century”. ‘Green Gold’ is how Mr. Karuturi in GRAIN (‘Who’s Behind the Land Deals’), describes his 300,000 ha of Ethiopian soil, “for which he pays $46 per ha per year including water and labour and expects at least $660 [per ha] in profit per year”. (Ibid)
In addition to paddy, Indian farmers are being sub-contracted to grow maize, cereals, palm oil and sugarcane amongst others. All of which are destined for export, either to India or Europe, where companies farming in Ethiopia (and other Sub-Saharan African nations), benefit from lower import duties applied to developing countries, notwithstanding the fact that the land is leased to, and the crops produced and sold by, multi million-rupee rich companies.
Another major Indian company leasing land in Gambella is the decidedly green sounding BHO Bioproducts. Following the corporate rhetoric, BHO Chief Operating Officer Sunny Maker told Bloomberg in 2010 that, they have “plans to invest more than $120 million in rice and cotton production”, which, by 2017, should “generate about $135 million a year from sales divided equally between domestic [Indian] and international markets.” He added that the “incredibly rich fertile land”, will all be “cleared within the next three years”. Cleared yes, violently, indiscriminately and totally; villages, people, forests, woodland, all destroyed, burnt, relocated, displaced, desecrated. The governments promise to such prized investors is that the land is handed over stripped of everything and everyone. Dissent is not allowed and dealt with brutally should it occur, as Anuradha Mittal, Executive Director of OI makes clear. “The repression of social resistance to land investments is even stipulated in land lease contracts, [it is the] state’s obligation to ‘deliver and hand over the vacant possession of leased land free of impediments’ and to provide free security ‘against any riot, disturbance or any turbulent time.”
The ‘rich fertile land’, lovingly cultivated at the hands of the men and women who have farmed it for generations, is unlikely to be nurtured so carefully by Indian (or indeed Chinese or Saudi Arabian) corporations with their thirsty ‘GM seeds’ (Ibid). For as Oxfam in their detailed report ‘Land and Power’ diplomatically point out, “investors short time scales may tempt them into unsustainable cultivation, undermining agricultural production.”
The devolution of development
Land is a prime cut asset in the commercialization of everything, everywhere, and the “rich fertile land” in Ethiopia is cheap, even by Sub-Saharan African standards. Along with long-term leases, the government offers a neat bundle of carrots, including tax incentives and unrestricted export clauses, incentives that the OI state “deny African countries economic benefits” from land deals that the Ethiopian regime wraps up neatly in its complete disregard for the human rights of the indigenous people. Government indifference encouraging corporate irresponsibility – and they need little encouragement. Businesses hardly seem to be grabbing the land, so much as accepting it as a gift, parceled up and ready to be torn open.
In exchange for such attractive deals, the Ethiopian government has been extended, the OI reports “a $640 million line of credit… over five years to boost sugar production in the country’s Lower Omo region”. Not a philanthropic gesture, more a sales trap by India’s EXIM (export and import) Bank, who stipulate, “Ethiopia must import 75% of the value of the credit line in the form of Indian goods and services.”
The government-owned sugar plantations in the Lower Omo are themselves attracting a great deal of concern and criticism from human rights groups, who highlight the environmental and human damage being perpetrated. Government acts of violence and abuse, in the various land deal regions, are justified under the overused and misleading title of ‘development’; a term appropriated by the international monetary machine – the World Bank and International Monetary Fund (IMF) primarily – misunderstood and distorted by government development agencies, acting in line with foreign affairs policies by promoting national self interest and perverted by the corrupt ideologically-blinkered governments of developing nations. An undeveloped ideological trinity whose actions have drained the 21st century sacred cow and its stable mate ‘growth’ – dry of any true and relevant meaning. Far from supporting human and or social development the “unfair terms and near give-away prices [of land deals]… are hindering development…. Foreign corporations and the World Bank are pressuring African leaders to give them exemptions from taxes, import and export duties, and local labor laws – not to mention water and mineral rights that could be worth billions”, the OI confirm.
More concerned with sitting at the top table and cultivating the right international allies than with doing their constitutional duty and serving the needs of the people, the Ethiopian government is in danger of giving away, and for peanuts, it’s ‘rich and fertile’ land to overseas companies who have no interest in Ethiopia, it’s environment, its culture and even less in its people.
Increasing hunger
Hunger and poverty stalk the land of both Ethiopia and India. 12 – 15 million people survive on food aid in Ethiopia, which ranks at the bottom of the World Hunger Index at 76. India, with the highest rate of malnourished children in the world, where 25% (around 270 million) of the world’s hungry live, despite the fact that, according to the World Food Programme (WFP), “the country grows enough food for its people”, comes in 65th of the hungriest nations, below Niger and the Sudan – neither of which, to my knowledge, boast 61 billionaires and 200,000 dollar millionaires unlike India. And whereas “most countries have made consistent progress in reducing hunger, India has seen hunger rise over the last decade compared with the late 1990s.”(Ibid) This so-called economic miracle nation refuses to feed it’s own people.
Food insecurity, the WFP makes clear is caused not by lack of produce, but by an unwillingness to share the Earths bounty equitably. The states in India with the greatest numbers suffering from hunger and malnutrition, as per WFP records, “include Madhya Pradesh, Chhattisgarh, Bihar, Jharkhand, Orissa, Rajasthan and Uttar Pradesh”; these are the states where the poorest (Adivasi – indigenous and Dalit) people in the country and quite possibly in the World happen to live. The poor are dying of hunger not because India cannot feeed everyone, as the United Nations report on regional cooperation makes crystal clear, “the root cause of hunger across the sub-region and the world today is not a lack of food. It is the economic and social distribution of that food which leaves populations undernourished and hungry.”
Men women and children living in dire poverty starve to death, in India, Ethiopia and throughout the world. They starve and die for want of the food that is rotting in warehouses, food served up to rats or destroyed by the Indian government, because it is cheaper to burn it than to distribute it to those in need. As Graziano da Silva, Director-General of the Food and Agriculture Organisation of the United Nations (26/01/13) said, “globally, a third of all food produced is wasted, and… if one could avoid this waste it would be possible to feed all the hungry people [in the world] and have food to spare.” Food to spare!Such is the inhumane ethos that underpins market fundamentalism, that allows men women and children, young and old to starve – simply because the do not have the financial means to feed themselves. Shame on governments Indian and the rest, that allow such inhumane injustice to prevail, as a wise teacher said, “throughout the world there are men, women and little children who have not even the essentials to stay alive; they crowd the cities of many of the poorest countries in the world… My brothers, how can you watch these people die before your eyes and call yourselves men”.
The commercialization of the countryside in India and Ethiopia, which is displacing large numbers of small-scale farmers and concentrating crop production in the hands of multi-nationals, is intensifying existing levels of hunger. Substantive agricultural reform and real development would see the army of skilled small scale producers, with generations of local knowledge and love of the land, supported with the needed capital and technology, given access to markets that corporations bring. Such an agrarian revolution, ethically founded, environmentally healthy and socially sustained, would build long-term food security and feed the hungry.
Soft targets easy profits
India as the WFP makes clear, has no domestic need for food produced by the overseas industrial farms that are causing such far-reaching damage, to the hundreds of thousands of displaced people of Ethiopia as well as the natural environment. The movement in Ethiopia mirrors what is taking place to a much greater degree in India. The government has shifted all support away from Indian farmers and is supporting the transfer of land from the rural poor to large companies – wealthy government benefactors, causing the displacement of millions (60 million to date, according to Arundhati Roy) of indigenous people.
Corporations are targeting countries with “poor governance”, Oxfam 7/02/2013 makes clear, that “allow investors to secure land quickly and cheaply…. [They] “Seem to be cherry picking countries with weak rules and regulations”. Needy nations like hungry people make easy targets for multi-national men, whose pockets governments are desperate to nestle inside. The driving force behind such destructive land developments, undertaken by corporations obsessed by an insatiable desire for growth and world leading economic development, is, as Oxfam suggests, profit and profit alone.
Graham Peebles is director of the Create Trust. He can be reached at: graham@thecreatetrust.org
March 8, 2013
Posted by aletho |
Corruption, Economics, Ethnic Cleansing, Racism, Zionism, Malthusian Ideology, Phony Scarcity, Timeless or most popular | Ethiopia, Gambella, IMF, India, International Monetary Fund, Karuturi, Saudi Arabia, World Bank |
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China National Petroleum Corporation, the country’s state-run oil major, is looking for its first stake in the US, as the three largest Chinese oil companies together plan to spend $40 billion to access US crude riches.
The announcement came on Wednesday from Jiang Jiemin, the chairman of china’s biggest oil company during the National People’s Congress in Beijing, Bloomberg reports. “We are currently studying [investing in US oil], ” Jiang Jiemin said.
Last month CNPC’s domestic competitor China Petrochemical Corporation agreed to buy a stake in an Oklahoma oil field from Chesapeake Energy for $1.02 billion.
A trend is unfolding for Chinese oil companies to use government loans to buy stakes in the US energy fields.
“Stake participation by Chinese companies in US oil fields would be welcomed,” a London-based analyst for Global Energy & Natural Resources at Eurasia Group, Will Pearson told Bloomberg. “Full buyouts will continue to be scrutinized and opposed.”
China already owns many entire oil and gas fields across Canada and Latin America, Africa and Australia. However the US is not rushing to sell off their fields, especially in the regions where military or other technology can be accessed for fear of intellectual property theft, Pearson said. In September 2012 President Obama barred a Chinese-owned company from building wind farms near a US Navy base in Oregon as a national security risk.
“The Chinese want to gain experience in shale gas, oil sands and deep water so they can redeploy the best US practices and technologies” back in China says Mirae Asset Securities Ltd. analyst Gordon Kwan.
China has already invested a record $1.52 billion purchasing stakes in oil and natural gas fields in the US this year, Bloomberg reports. China National Petroleum alone plans to double overseas production to 200 million tonnes a year by 2015.
March 8, 2013
Posted by aletho |
Economics, Malthusian Ideology, Phony Scarcity | China, China National Petroleum Corporation, China Petrochemical Corporation |
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Here we go again. A sudden surge in the price of gasoline and heating oil is followed by reported expressions of frustrated despair by hard-pressed consumers in the midst of silence from the oil companies and abdication of responsibility by the elected and appointed officials of federal and state governments.
The price of gasoline is up by about 50 cents in the past month, according to AAA, making the average gallon go for close to $4 per gallon in many parts of the country. Prices are even higher in California. AAA says that this “is the most expensive we’ve seen gasoline in the dead of winter.”
Every penny increase in the annual price of gasoline takes over $1.6 billion dollars from the pockets of American consumers (Source). That doesn’t even count the higher prices for heating oil homeowners are paying.
There was a time when even a few cents increase in the price of gasoline or natural gas would provoke Congressional investigations, actions by state Attorneys General, and condemnations of the producer countries, the OPEC cartel and Big Oil from presidents and the heads of antitrust divisions of the Justice Department or the Federal Trade Commission. That is, until smooth, smiling Ronald Reagan came to Washington, D.C. with his mantra that “government is not the solution; government is the problem.”
Well, now the multi-layered petroleum cartel has become institutionalized, having “gotten government off its back” and they’ve put the New York Mercantile Exchange speculators at the gaming tables.
There seems to be an adequate supply of crude oil in this recessionary global economy. What could be the cause of this latest price spike? The news media offer a spectrum of possible factors – restrictions on exports of Iranian oil imposed by western governments, instability in Syria and elsewhere in the volatile Middle East, oil hungry China, oil speculators on Wall Street and reduced refinery capacity in the U.S.
Each price surge in recent decades seems to have different principal causes. This time it seems to have been precipitated by surging prices of crude – easily manipulated – and in the U.S. the permanent or temporary shutdown for repairs, of too many refineries.
Believe it or not, the U.S. is now a net refined petroleum importer because of the continuing refusal by the industry to rebuild or expand refinery capacity on the very sites where many refineries have been shut down, often in favor of offshore, cheaper installations.
Whenever supply and demand for refined oil products is tight, all it takes is for one or two refineries to suspend operations, other than for repairs, and the prices surge all over the country.
This happened in January to a refinery in California, due to a fire, and more prominently the closure of a key refinery in Port Reading, New Jersey, owned by the Hess company. Five dollars a gallon gas “is a real possibility,” John Kilduff, partner at Again Capital, told Yahoo! Finance, adding “this is partly being driven by the lost refinery capacity of about one million barrels per day…that’s a lot.” (The U.S. consumes about 19 million barrels a day of refined petroleum products.)
So what can our so-called representatives in Washington do about a gouge that has angered almost all conservative and liberal consumers? Well, the Democratically-controlled Senate can start by holding investigatory hearings. The President can speak out more forcefully and indicate he may release some of the government’s crude oil reserves to increase supply.
He can order his Justice Department to at the very least subpoena pertinent oil industry information for starters.
Mr. Obama can forcefully back up Gary Gensler, his appointed, savvy Chairman of the Commodity Futures Trading Commission, who has been trying to rein in excessive speculation that drives up prices and punishes the motoring public.
In 2011 CFTC data showed that massive inflows of speculative money drove up prices. At that time, even Goldman Sachs analyst, David Greely, claimed Wall Street speculation in the futures market was driving up oil prices. Earlier, Rex Tillerson, the head of ExxonMobil, estimated that speculation was responsible for a more than $40 per barrel price increase when oil was just over $100 per barrel. Over the last month crude oil has ranged in price from $93-$120 per barrel.
Admiral Hyman Rickover who, more than 40 years ago, wisely said that there should always be government-owned shipyards to provide a yardstick by which to restrain the high prices and cost overruns being charged by private ship buildings manufacturing the Navy’s ships. That means, in this oil price context, that the government should own and operate some refineries for the armed forces. Any excess capacity could loosen the market with gasoline and heating oil when the corporate interests maneuver tight supplies for which they get immediately rewarded with cold cash.
Were Obama to direct some of his bully pulpit heat on those members of Congress who are marinated in oil, he might find more support from Capitol Hill for all these initiatives.
So call the switchboard at the White House comment line (202-456-1111) and tell the president that you are fed up and determined to drive less, carpool and walk more where possible, but that he, the president, must be more aggressive in taking on the staggeringly profitable and tax-favored big oil companies.
March 1, 2013
Posted by aletho |
Corruption, Economics, Malthusian Ideology, Phony Scarcity | Commodity Futures Trading Commission, ExxonMobil, New York Mercantile Exchange, OPEC, Rex Tillerson |
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Iran has discovered 14 billion barrels of crude oil reserves during the first three quarters of the current Persian calendar year (started March 20, 2012), an Iranian deputy oil minister says.
In a Monday interview, Mohsen Khojasteh-Mehr noted that during the previous Iranian year (ended March 19, 2012), the country discovered 20 billion barrels of crude oil.
“A total of 14 billion barrels of crude oil reserves has been also discovered in the first nine months of the current year,” he added.
The official pointed to Iran’s 300-percent progress in discovery of oil and natural gas resources and noted that the oil ministry is currently ahead of its discovery plans.
“Even in the absence of new discoveries, Iran will be capable of producing oil for the next 140 years,” Khojasteh-Mehr pointed out.
Iran holds the world’s third-largest proven oil reserves and the second-largest natural gas reserves.
The country’s total in-place oil reserves have been estimated at more than 560 billion barrels, with about 140 billion barrels of recoverable oil. Moreover, heavy and extra-heavy varieties of crude oil account for roughly 70-100 billion barrels of the total reserves.
January 21, 2013
Posted by aletho |
Economics, Malthusian Ideology, Phony Scarcity | discovery, Iran, Oil reserves, Petroleum, Press TV |
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Powerful firms like Goldman Sachs have made hundreds of millions of dollars in food future trades. Critics accuse them of profiting off starvation and market manipulation, while traders claim their profits are due to increasing consumption in China.
World food prices tracked by the UN Food and Agriculture Organization (FAO) have more than doubled in the past 10 years. The FAO’s Food Price Index, which baskets prices for five prime food commodities, peaked in 2008 and 2011, each time rising more than 50 percent from the previous year. The latest price spike was one of the key factors that triggered the series of uprisings in the Arab world resulting in the fall of several governments.
The year 2013 may see another price hike, following the worst draught in the US in 50 years and poor harvests in Russia and Ukraine. The UN has warned that the world may be approaching a major hunger crisis.
At the same time, the industry is bringing millions in profits to those who rushed to invest in food. Goldman Sachs made an estimated $400 million in 2012 from investing its clients’ money in a range of “soft commodities,” from wheat and maize to coffee and sugar, according to an analysis by the World Development Movement (WDM).
“While nearly a billion people go hungry, Goldman Sachs bankers are feeding their own bonuses by betting on the price of food. Financial speculation is fueling food price spikes and Goldman Sachs is the No, 1 culprit,” Christine Haigh of the WDM told the British newspaper The Independent.
The London-based organization – along with similar NGOs like Foodwatch, Oxfam, or Weed (World Economy, Ecology and Development) – have for years blamed financiers for inflating food prices, or for at least making the market dangerously volatile.
They argue that the amount of speculative money is too big in proportion to the physical inventories of the commodities. Deregulation in the late 1990s allowed financial institutions to bet on food prices, resulting in some $200 billion being poured into the market.
For example, hedge fund Armajaro virtually single-handedly sent the global price of cocoa to a 33-year high in July 2010 by buying around 15 percent of global cocoa stocks.
The overall effect of speculation on food prices is an issue of dispute. Influential analysts, such as US economist Paul Krugman, have argued that speculation is a marginal factor compared to rising demand from developing countries, as well as the expanding production of corn and maize for biofuels at the expense of foodstuffs.
Diagram from “The Food Crisis: Predictive validation of a quantitative model of food prics including speculators and ethanol conversion” By Marco Lagi,
A study by the New England Complex Systems Institute last year showed that the Food Price Index should only change if ethanol production had an impact. The study estimated that a 2008 ethanol price hike was largely due to speculation, while a 2011 spike was significantly fueled by investors.
Many financiers dismiss the accusations, and say they will continue bidding against food prices. On Saturday, Deutsche Bank Co-Chief Executive Juergen Fitsche told the Global Forum for Food and Agriculture that Germany’s biggest lender “will continue to offer financial instruments linked to agricultural products.”
“Agricultural futures markets bring numerous advantages to farmers and the food industry,” he said.
Others seem to be yielding to pressure. Last year, several German banks, including the second-largest Commerzbank, ceased to speculate on basic food prices for moral reasons.
January 21, 2013
Posted by aletho |
Economics, Malthusian Ideology, Phony Scarcity, Supremacism, Social Darwinism | 2007–2008 world food price crisis, Deutsche Bank, Goldman Sachs, World economy |
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