Tag Archives: oil

Business/Economics, International, Opinion, U.S.

European leaders Lie, this is about controling Libya’s oil, begining of WW3

Recently the European Union’s ambassador to the U.S. said Europe’s infatuation with the crisis in Libya was not about the oil. Lier!

Some European countries, like Austria, Ireland and Italy, get most of their oil from Libya.  Oil companies from France, Italy and Spain are involved in oil field operations in Libya.

The flow of oil to Europe was greatly reduced thanks to the violence involving so called peaceful protesters in Libya.  After all, why would Gaddafi destroy his main source of income?

Gaddafi has long suspected that the militant, yet somehow, peacefull protesters were supplied by Europe (that has been proven to be correct, Libyan rebels and arms dealers admitted to it).  Feeling betrayed by Europe Gaddafi announced, on March 14, that he was making new oil deals with China, India and Russia (and possibly Germany). Notice that those are the countries that abstained from voting on UNSCR 1973.

Then, just three days later, on March 17, the UN passes UNSCR 1973.  Wow, that was fast!

China and India have evacuated thousand of workers from Libya.

The Europeans have been losing out to the Chinese for several years now. In 2007 Libya hired Chinese companies to build an oil pipeline.  In 2009 the Europeans scared off the Chinese from making a huge oil deal with Libya.  Then in 2010 Libya announced a deal that would see 6 million barrels per month going to China.  In February 2011, China began evacuating some 20,000-30,000 oil field workers after they were attacked by peaceful protesters!  A Chinese Foreign Ministry spokesman said that some Chinese companies “…had their local camp sites raided by gangsters….”

There is eveidence that many people in eastern Libya resented the Chinese oil workers, and actually viewed it as an invasion. Is it possible that European interests took advantage of the growing anti-asian sentiments?

It is clear by statements from Chinese oil workers that they were specifically targeted.  “Chinese companies in Libya are in a state of emergency, our projects are being raided and communications are down.” -online posting

When you look at the who’s who of those involved in Libyan oil production, and who wants Libya’s oil, it starts to look like this is a battle between East and West; Europe vs China.  Could this be the shot that starts World War 3?

Business/Economics, International, U.S.

Get ready for Oil prices to Jump, Economist say it could destroy Economy

Already, oil trading in Europe has seen oil prices jump $2.00 per barrel since Friday.

It is due to the attacks on Libya.

In a CNNMoney survey  16 out 23 leading economists say rising oil prices are the number one threat to any economic recovery.

Interestingly The Federal Reserve showed little concern over rising oil/fuel prices during its March 15 meeting.

Business/Economics, Fukushima

General Motors continues to get hit by Japan disaster

As a result of the ongoing disaster in Japan, General Motors suspended all nonessential spending and global travel, a GM spokesman announced.

In addition, GM will suspend production in Spain, and cancel two shifts in Germany.

Even a small supplier of products that are fed to a bigger supplier that feeds the automaker’s assembly plants can delay or halt vehicle production.

Think of the “always a bigger fish” example, but in reverse.  If there are no little fish to eat, what can the bigger fish do?

International, Opinion, U.S.

Oil Speculators are War Mongers. Was UN Resolution pushed because of crashing oil prices?

When Japan got hit by the massive quake/tsunami, and then the nuclear power plant disaster, world oil prices dropped.  By a lot.

Prior to the Japan event, on March 10th, Brent crude oil closed at $115.60 per barrel. U.S. light sweet crude closed at $104.25.  Oil prices had been going up, and the “Libyan crisis” was blamed. “…mainly fueled by regime-toppling instability in the Middle East and North Africa.” -CNN/Money

March 11th, the Japan event and immediately oil prices began falling.  Brent crude fell to $113.67, U.S. crude $101.16.  By March 15th Brent crude had fallen to $108.52, U.S. crude $97.18.

From March 10th to March 15th Brent crude prices dropped by $7.10,  U.S. crude dropped by $7.07.

Then, suddenly, the United Nations announced it had passed a resolution authorizing any military action necessary to get rid of Gaddafi (an historic resolution by the way, it’s NOT a no fly zone).  This seemed to come out of no where.  What happened to oil prices?  Immediately oil price shot up: March 16th Brent crude closed at $110.62, U.S. crude $97.98.  March 17th: Brent crude $114.90, U.S. crude $101.42.    “The Middle East unrest outweighed concerns about radiation from a Japanese nuclear plant…” -Bloomberg

Another evidence of war mongering by speculators is that oil prices fell when Gaddafi announced a ceasefire.  March 18th (ceasefire announced) Brent crude closed $113.90, U.S. crude $101.07.

I speculate that British Brent crude prices are more sensitive because the British, along with the French, have a big stake in gaining control of Libya’s eastern oil fields.  After all, who got the biggest oil contract in Iraq? BP (British Petroleum).

International

Libya warned about ceasefire AND attacked by France at the same time

War monger Sarkozy said “If there is not an immediate cease-fire and withdrawal of the forces that have been attacking civilian populations in the last few weeks, our countries will have recourse to military means.”

French President Sarkozy made the statement around 17:30 (5:30pm) Libyan time, yet, while he was demanding a ceasefire French aircraft were already in Libyan airspace attacking Libyan aircraft.  Shortly after Sarkozy made the statement regarding ceasefire he admitted they were already attacking Libya:  “As of now, our aircraft are preventing planes from attacking the town. Our French aircraft are ready to intervene against tanks.”

Earlier in the day rebels apparently shot down a Libyan Su-24 (might have been a single engined MiG-23) attack aircraft.  The Sukhoi Su-24 is made in Russia (as is the MiG-23).  Also, there is video of rebels armed with the latest brand new short range anti aircraft missiles, it is not possible they “captured” them from Gaddafi’s forces.  Some rebels are wearing brand new U.S. BDU (Battle Dress Uniform, no longer used by U.S. forces) style desert camo uniforms.  To me it is clear that this “revolution” in Libya was planned by outside, non-Libyan parties.

President Obama told the U.S. Congress that the military operations against Libya would days, not weeks or months. He better be right. Don’t forget, his predecessor (Bush Jr) made similar comments about Iraq.

International

Russia says attacking Libya will validate WMDs for extremists

Alexei Arbatov, the head of the International Security Center of the Institute of World Economy and International Relations of the Russian Academy of Sciences, said attacking Libya will prove that obtaining WMDs is necessary to keep from being attacked by the West.

“An attack against Libya would be a gift for all violators of the Non-Proliferation Treaty. If Libya becomes an object of a military operation, it will lead some countries to believe that no one would think of threatening Gaddhafi with a military operation now if he had not voluntarily given up his nuclear program several years ago.”

In order to receive financing from western countries, and gain favor from western governments,  Gaddafi revealed his WMD program and allowed international inspection and dismantlement of that program.  That’s why President Bush Jr removed Gaddafi from the terrorist list.  Now the West is about to attack him.

Arbatov says “This will lead Iran, Syria, and some other countries violating the non-proliferation regime to make a new powerful step towards obtaining nuclear weapons.”

International

Iran may act to stop Sunni Arab invasion of Shia Bahrain

“The Saudi’s should know for a fact that Tehran will use all the power and potentials at its disposal to halt the oppression of the people of Bahrain.”said Iranian lawmaker Hossein Naqavi.

Majority Sunni Arab countries invaded majority Shia Arab Bahrain, in order to protect the Sunni rulers there from the Shia revolution.  Iran and Bahrain are majority Shia Muslim countries.

Iran has asked the UN to take action.  The United Nations, pushed by France, U.K. & U.S.,  has authorized military force against Libya, supposedly to protect the revolutionaries there.

A Bahraini women, who is Sunni, is supporting the Shia rebels; “The government is making this a sectarian issue. I see the way my [Shia] friends are treated and I came here to show solidarity.”

The headquarters of the U.S. 5th Fleet is in Bahrain.

International

Libya agrees to ceasefire, U.K. & France preping for military action

Libyan Foreign Minister Moussa Koussa announced that Libya will accept a ceasefire with rebels.

Libyan officials believe the UN Security Council resolution allows the Libyan government to use force in order to protect civilians.

France and United Kingdom say they are preparing for military action. Spain and Norway announced they are prepared to join the enforcement of a no fly zone.

President Obama will make an announcement this afternoon.  It is expect that two Arab nations will be named as taking part in the no fly zone operation, Qatar is expected to be one of those countries.

The United States, United  Kingdom, France are members of the UN Security Council, and voted for the no fly zone.  China, Russia, Germany, India and Brazil are also members, but abstained, they will not help with the no fly zone.

Business/Economics, Fukushima, Opinion

Japan Disaster start of Global Great Depression

For a third day, the DOW fell big, along with other U.S. stock markets.  Stock markets around the world being affected. This is because Japan has become the “parts” supplier to the global economy.  Auto parts to electronic chips are made in Japan.  This production has come to a virtual stand still.  One analyst said that if this situation lasts a few weeks (best case) consumers can expect noticeable increases in prices.

It must be remembered that the Great Depression, that hit the United States in the 1930s, was not solely caused by the investment/finance crash of ’29.  What put the U.S. into a Great Depression was the loss of its main industry at the time; agriculture. Because of the quake, tsunami, and now nuclear disaster, Japan has essentially lost its main industries.

Until the Second World War, agriculture was the biggest industry in the U.S.  Most Americans worked in farming, or agriculture related jobs.  The industry was hit by a disaster that was a combination of Mother Earth, and man made.  The plain states, and mid west, had been dealing with a major drought, and,   farming techniques destroyed the top soil.  This is where the term “Dust Bowl” came from.

The result was that hundreds of thousands of Americans lost their jobs and their homes, just from the collapse of the agriculture industry. Combined with the losses of the finance/investment industries (which affected manufacturing) this created the Great Depression.

The World is already in a major financial crisis, bigger than what hit the world prior to the Great Depression in the U.S. (other countries, like Germany had already experience a depression). Now we have the natural/man made disasters that could push the World into a Great Depression.

Never before have the economies of the World been so tied together.  We have a dominoes situation. Japan, being a major parts supplier, could be the dominoe that starts the fall.

Business/Economics, International

French Government Cracks Down, Because they want to go on Holiday

On the day the French Senate is to vote on a controversial retirement plan, French police have been ordered to crack down on protesters.  The first plan of attack for the police; get the oil refineries running again.

French gendarmes stand next to the entrance of the Grandpuits oil refinery southeast of Paris October 22, 2010 as striking workers continue to block the refinery. Police took over the Total installation, the CGT union said on Friday, in an attempt to end a blockade by workers striking over a planned reform of the pensions system. Police were expected to bring in workers who are not on strike later in the day. REUTERS/Benoit Tessier (FRANCE - Tags: POLITICS ENERGY EMPLOYMENT BUSINESS CIVIL UNREST)

The French government issued a ‘requisition’ order, which means they believe the strikes threaten public order.  A recent poll shows that 69% of the French support the strikes, but, when asked specifically about the shut down of the oil refineries the support drops to 52%.   It looks like the French government’s crackdown is actually motivated by upcoming November holidays.  Prime Minister Francois Fillon’s office issued this statement; “At a time when many French people wish to travel for the November 1 holiday weekend, it is in everyone’s interest to make all necessary efforts to return the situation to normal, which will take several more days.”

ATTENTION EDITORS : FRENCH LAW REQUIRES THAT THE FACES OF MINORS ARE MASKED IN PUBLICATIONS WITHIN FRANCE A high school student holds a sign as students French police during a demonstration over pension reform at Place Bellecour in Lyon October 21, 2010. France faced another day of strikes and confrontation on its streets on Thursday as the government grappled to restore fuel supply with senators just a few days away from voting on pension reform. The sign reads, Police everywhere, justice nowhere . REUTERS/Robert Pratta (FRANCE - Tags: POLITICS EMPLOYMENT BUSINESS CIVIL UNREST EDUCATION)

French high school and university students continued to protest.  Trash collectors joined the strikes as well.

The delay on the Senate vote is because 250 amendments, to the retirement bill, are being argued over.