Libya Turmoil Hits Oil, Restrains Equities
REUTERS: Oil prices charged to a fresh 2-1/2 year high on Monday as traders eyed increasing violence in major producer Libya, feeding fears about rising inflation and restraining gains in equities.

Global stocks were slightly higher with emerging markets down and European shares flat. U.S. markets were closed for a national holiday.

Protests broke out in the Libyan capital Tripoli for the first time following days of unrest in the city of Benghazi and some army units defected to the opposition in what has become one of the bloodiest revolts to convulse the Arab world.

Financial markets are particularly sensitive to the violence in Libya because it exports around 1.1 million barrels per day of crude.

Brent oil was up $1.90 a barrel at $104.44 having earlier risen to a new high of $104.60. >>> Jeremy Gaunt, European Investment Correspondent, London | Monday, February 21, 2011

REUTERS: Swiss franc, Treasuries gain on Mideast tensions: The safe-haven Swiss franc and U.S. government bonds rallied on Thursday, while crude oil prices rose as unrest in the Middle East and tensions between Israel and Iran escalated. >>> Wanfeng Zhou, New York | Thursday, February 17, 2011

BP Oil Spill: The British Backlash Has Begun
THE TELEGRAPH: Could the US backlash against BP extend to other British companies, asks Tom Leonard

Protest outside of the Washington DC headquarters of BP. Photograph: The Telegraph
When the US Interior Secretary Ken Salazar promised to keep “the boot on the neck of British Petroleum” over its giant Gulf of Mexico oil spill, the Republican Rand Paul rounded on the White House for being “really un-American” in attacking business.

If so, almost everyone is guilty of un-American activities, as the US has declared open season on the British oil giant. Just 50 yards up the street from The Daily Telegraph’s Manhattan office, the local BP petrol station had its sign daubed in paint the colour of drilling mud last week when 200 protesters turned up. “BP – a bunch of ----ing murderers!” said the message on a protester’s T-shirt. The chant was better: “BP, your heart is black, you can have your oil back.”

There have been similar protests at BP outlets across America and a call for a boycott which appears to have been roundly ignored. The demonstrations may be primarily anti-corporate and anti-oil but occasionally nationality of the corporation slips out. In New Orleans, a demonstrator stood on a Union flag. “We are all at the mercy of BP, a British-owned company,” wailed a Louisiana seaplane company boss in a letter to her senator after she was barred from taking US journalists to a possibly oily beach.

Notwithstanding the irony of a situation in which Americans are accusing a European corporation of putting “profits before people”, it is difficult to recall a more vicious backlash against a company here. The question of whether BP would have received so much vitriol if the initials had stood for, say, Boston Petroleum, has concerned those who worry about the implications for US-UK relations.

Although there is no sign of such a backlash at present, British officials in the US are concerned that if BP continues to fail to plug the leak or if it faces criminal charges, then other British businesses could suffer. >>> Tom Leonard | Saturday, June 05, 2010

New Fears Over Spread of Gulf Oil Spill

Fate of Swiss Expatriates in Libya Was Ominous for al-Megrahi Case
TIMES ONLINE: British and other Western expatriates living in Libya were warned in April that they faced serious repercussions if the Lockerbie bomber died in his Scottish prison.

“Word went out that there could be reprisals . . . . We were told not to go into the centre of Tripoli,” said one of the thousands of Westerners who are helping to develop Libya’s oil and gas fields. “Everybody went ‘eek!’. It’s so unpredictable here. You don’t know what’s going to happen. It could be something or it could be nothing.”

The expats were not told what the reprisals might be were Abdul Baset Ali al-Megrahi to die in Scotland, but the tale of a Swiss citizen called Max Goeldi may be instructive. Mr Goeldi has spent much of the past year holed up in Switzerland’s largely deserted embassy, unable to leave Libya and too frightened to set foot on the streets of Tripoli.

A visit yesterday by The Times to the high-walled embassy in a quiet residential street in the Libyan capital was interrupted at the door when two unsmiling men in a white car pulled up and asked our translator what we were doing. He fled. The men drove off when the embassy’s sole diplomat opened the gate, but the latter politely refused requests to see Mr Goeldi.

Mr Goeldi’s story — and that of the Swiss in Libya in general — demonstrates what the regime of Colonel Muammar Gaddafi can do if angered by countries that covet its oil, gas and lucrative development contracts. >>> Martin Fletcher in Tripoli | Tuesday, August 25, 2009

Russia Warns of War within a Decade over Arctic Oil and Gas Riches
Photo credit: TimesOnline
TIMESONLINE: Russia raised the prospect of war in the Arctic yesterday as nations struggle for control of the world’s dwindling energy reserves.

The country’s new national security strategy identified the intensifying battle for ownership of vast untapped oil and gas fields around its borders as a source of potential military conflict within a decade.

“The presence and potential escalation of armed conflicts near Russia’s national borders, pending border agreements between Russia and several neighbouring nations, are the major threats to Russia’s interests and border security,” stated the document, which analysed security threats up to 2020.

“In a competition for resources it cannot be ruled out that military force could be used to resolve emerging problems that would destroy the balance of forces near the borders of Russia and her allies.”

The Kremlin has insisted that it is not “militarising the Arctic” but its warnings of armed conflict suggest that it is willing to defend its interests by force if necessary as global warming makes exploitation of the region’s energy riches more feasible.

The United States, Norway, Canada and Denmark are challenging Russia’s claim to a section of the Arctic shelf, the size of Western Europe, which is believed to contain billions of tonnes of oil and gas. >>> Tony Halpin in Moscow | Thursday, May 14, 2009

TIMESONLINE:
The very cold war >>>

NZZ Online: Neue Sicherheitsdoktrin Russlands: Die USA und die Nato als potenzielle Bedrohungen

Nach einem zähen Entstehungsprozess hat der russische Präsident Medwedew eine neue Sicherheitsdoktrin in Kraft gesetzt. Die nationale Sicherheit wird darin sehr weit gefasst. Besonders die USA und die Nato erscheinen als potenzielle Bedrohung.

Russland hat in diesen Tagen sicherheitspolitisch mit den neunziger Jahren abgeschlossen. Präsident Medwedew setzte am Dienstagabend mit seiner Unterschrift die Strategie über nationale Sicherheit bis 2020 in Kraft, nachdem deren Fertigstellung mehrmals ins Stocken geraten war.

Das Dokument, das auf der Internetseite des russischen Sicherheitsrates eingesehen werden kann, beginnt mit dem Satz, Russland habe die Folgen der systembedingten politischen und sozioökonomischen Krise des ausgehenden 20. Jahrhunderts überwunden. Die Wendung steht für das neue Selbstbewusstsein und die Abkehr von der in der heutigen politischen Elite mit Niedergang und aussenpolitischer Demütigung gleichgesetzten Ära Präsident Jelzins. Aus jener Zeit stammte die nun abgelöste bisherige Sicherheitskonzeption.

Das Grundlagenpapier, um das anscheinend hart gerungen worden war, versteht nationale Sicherheit in einem sehr umfassenden Sinn und leitet diese wesentlich von ökonomischen und sozialen Verhältnissen im Land ab. Die Ausrichtung auf das Jahr 2020 entspricht der vor einem Jahr vorgestellten «Strategie 2020», die einen Schwerpunkt auf wirtschaftliche, gesellschaftliche und infrastrukturelle Entwicklungen legt. >>> mac. Moskau | Mittwoch, 13. Mai 2009

Watch 60 Minutes: Saudi Arabia – Aramco
Part 1 >>>
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Yemen 'Faces Crisis as Oil Ends'
BBC: Yemen is facing an economic and political crisis as the country's oil resources near exhaustion, a report by a London-based think-tank says.

The Royal Institute for International Affairs warns that instability there could expand a zone of lawlessness from northern Kenya to Saudi Arabia.

It describes Yemen's democracy as "fragile" and points to armed conflicts with Islamists and tribal insurgents.

One diplomat says that the country's prospects get worse every month.

The World Bank predicts that Yemen's oil and gas revenues will plummet over the next two years and fall to zero by 2017 as supplies run out.

Given that they provide around 90% of the country's exports, this could be catastrophic.

An unnamed energy expert is quoted in the report as saying that this points to economic collapse within four of five years time. >>> By Martin Plaut, BBC News | November 20, 2008

The Dawning of a New Dark Age (Paperback & Hardback) – Free delivery >>>

‘King Faisal Stood Firm on Oil Embargo’
Photo of Prince Turki Al-Faisal courtesy of Arab News
ARAB NEWS: RIYADH — The United States threatened to use force against Saudi Arabia in 1973 after King Faisal, along with other Arab leaders, imposed an oil embargo on countries that supported Israel during the October War, Prince Turki Al-Faisal, former intelligence chief and ambassador to Washington, said in an interview with Asharq Al-Awsat yesterday.

In the interview, that appeared ahead of a scientific seminar on King Faisal to be opened by Riyadh Gov. Prince Salman on Tuesday, Prince Turki shed light on important events that took place during his father’s rule.

Prince Turki, who was an adviser at the Royal Court in 1973 when King Faisal took the oil-embargo decision, said the king was not shaken by the US threat and stood firm.

He added that the oil embargo was instrumental in encouraging the US to find a quick and just solution to the Arab-Israeli conflict. “King Faisal and other Arab leaders were forced to take the decision as a result of America’s unprecedented support for Israel during the war,” the prince said.

He added that American officials talked about the possibility of attacking Saudi oil fields, something that was leaked in US newspapers. Some of these statements came from the then US State Secretary Henry Kissinger.

Prince Turki said King Faisal, who was in Jeddah at the time, received a telegram from Kissinger warning that if the Kingdom did not lift the embargo, the US would take all measures to protect its interests.

“The message was not specific about the measures they were going to take, but it appeared that they would use force. A CIA representative gave me the unsigned message, telling me it was from Kissinger... I went to the king and conveyed its contents. He received the message, read it and said: ‘Kheir insha Allah (Good, God willing).’

“It was very clear that it had come from the American government... The king was very relaxed, cheerful, humorous and was in good spirits despite the threat... This reflected his high quality and determination. He was giving the message that the Kingdom would not bow down to a threat, as a result of a decision it had taken with other Arab countries. It was a great reply,” said Prince Turki. ‘King Faisal Stood Firm on Oil Embargo’ >>> By Badr Alkhorayef | May 4, 2008

The Dawning of a New Dark Age (Paperback – USA)
The Dawning of a New Dark Age (Hardcover – USA)

The $100 Oil Barrel
THE GUARDIAN: As the price of crude oil sets records almost daily, the British government remains stunningly complacent. With the $100 barrel a real and constant threat, the prime minister's website blithely proclaims "the world's oil and gas resources are sufficient to sustain economic growth for the foreseeable future". Officials refuse to define what is meant by "foreseeable", but it is clear they suffer from extreme myopia, or worse.

All the evidence suggests we are rapidly approaching "peak oil", the point when global production goes into terminal decline for geological reasons. The industry consensus is that world output, excluding that from the Opec producers, will peak in about 2010. It is also widely agreed that Opec has grossly exaggerated the size of its reserves, meaning that global output must also peak soon. Since oil provides 95% of all transport energy, as well as vital inputs to modern agriculture, this is likely to provoke a crisis.

Oil executives have traditionally avoided talk of geological constraints - no doubt mindful of the value of their share options - but now even they admit the industry is in difficulty. A growing number believe output will never exceed 100m barrels per day, compared with 86m today. At present rates of growth, demand will hit that ceiling within about a decade. $100 oil: the terrible truth: Nearing the price barrier is a pointer to the peak of output, and the crisis the powerful want to ignore By David Strahan

Mark Alexander