Empire Files: The Tyranny of Big Oil

This is another excellent video from the Empire Files. In this edition, the presenter, Abby Martin, discusses the power and corruption at the heart of the industry, from the emergence of the first oil monopoly under the Rockefellers, to the effect control of the market, the economy and US and global politics by a few firms, such as Standard Oil, Chevron, Mobil and, of course, BP. These firms have reaped massive profits, and are able to act with impunity to trash the environment, and destroy lives and livelihoods by buying the loyalty of politicians in both the Republican and Democrat parties. Through their influence in the media and in academia, they suppress or distort climate science to allow the continuing massive destruction of Earth’s fragile ecosystem through oil spills, global warming and the effects of fracking.

Martin begins by describing how oil wealth is at the very heart of US imperialism. Saudi Arabia, Azerbaijan and Qatar have all been set up as ‘oil monarchies’ founded on its power. She describes how John D. Rockefeller climbed to his position as the world’s first oil billionaire through strong arm tactics used against the other oil firms. Rockefeller was the owner and founder of Standard Oil. He made a deal with the railway companies, which he used to force the other companies in the nascent oil companies to sell up to him. When this didn’t work, he bought their pipelines, and then used his power there to force them to give in. Eventually, Standard Oil owned 90% of all US refineries, and had a workforce of about 150,000 men. Rockefeller was, unsurprisingly, bitterly anti-union, and so they had no union representation. And since him the power of the oil tycoons subverts democracy in the US and imperils the Earth.

Martin then interviews Antonia Juhasz, the author of the book, The Tyranny of Oil, written during the final years of the Bush administration about the massive political, human rights’ and economic abuses of the oil industry. She states that Obama is not as tied to the oil industry as Bush was, but nevertheless he was not confronting the industry’s power. She then moved on to discuss the rise of deep drilling in oil rigs off the coast of the Gulf of Mexico. The age of easy oil, where all you had to do was stick a pipe into the ground and out it would come is over. Most of the world’s oil is already claimed, and that which isn’t, is difficult to get to. As a result, oil drilling went further out into the ocean and deeper. And the results were blow-outs and spills. Such as the BP blowout in 2012. This resulted in the deaths of a million birds. To disperse the oil, 2 million gallons of a chemical were used which made it 42% more toxic. It also caused the deaths of eleven men. During the investigation it became clear that BP actually had no plans what to do in the eventuality of a spill. They simply counted on learning it ‘on the fly’. And the result was the world’s largest offshore oil spill to date. Juhasz states that she herself saw some of the resulting ecological devastation from a submarine. All the local wildlife that could get out of the area, did. The animals and plants that couldn’t, in her words, ‘were nuked’. There’s nothing down there except a tarry blanket of oil that will be there forever.

Martin also has as another of her speakers the left-wing journalist, Greg Palast. He reveals that BP had a spill 17 months previously in the Caspian Sea. This was covered up by the company itself, the Azerbaijani government – which he terms the Islamic Republic of Azerbaijan, because it’s so completely owned by BP – and also the American government’s State Department under Condoleeza Rice. Why the American government? Because the spill was partly due to BP using an American quick-drying cement. Despite this, the US Defense Department doubled their contracts with BP.

The Gulf Coast blow-out cost BP $17 billion in fines. This is a staggering amount of money, but not nearly as much as the company should have been fined. The Bush administration passed a number of extremely strict environmental laws. If these had been properly applied, then BP would have been hit with a fine of $200 billion. This would have made it difficult for the company to continue operating. As it was, the company said that the fine they eventually got was ‘manageable’.

The programme also discusses the immense political power the oil industry has through the banking lobby, and the power of the big corporations over the Senate. In the early part of last century, pressure from the Progressive Party and mass protests and agitation caused the US government to pass the anti-trust laws and break up Standard Oil, not least because they also wanted to destroy the unions. This was fragmented into 34 separate companies. These, however, are beginning to coagulate and reform back into a single giant trust as they merge and buy each other out. BP was a prime example of this. The company only got into America because it bought a US company, Arco. By the time Standard Oil had been broken up in 1911, Rockefeller was the world’s first billionaire. At that time the world’s oil industry was owned by only three dynasties – the Rockefellers, the Rothschilds and the Dutch royal family.

This dependence on oil and the power of the oil industry has shaped the structure of American cities. The oil industry has done everything it can to destroy public transport systems. In 1949 the system of streetcars in one US city was destroyed through illegal action taken jointly by General Motors and the oil industry. The legislation passed to protect the environment contains massive exemptions for the oil industry. The corruption goes deep into government. Three of every four lobbyist for dirty energy used to work for the US government. 430 + congressmen have ties to the oil industry. And the industry has already given $35 million to political candidates for 2016. Dick Cheney was part of the industry, duly drafting legislation in its favour. Condoleeza Rice sat on the board of Chevron. And under Obama America has become the world’s top producer of oil and gas.

The programme then moves on to fracking, and the disastrous effects this has had on North Dakota. This state has been overnight transformed into an oil-producing environment. It contrasts with the other areas, where the industry has been around longer and so people have had time to get used to it and organise resistance. The state’s beautiful countryside of rolling hillsides and buttes, including a Native American reservation, are now disrupted by flaring, in which natural gas is burnt off. In neighbouring Oklahoma there have been 600 earthquakes in a single year due to the dumping of the waste water produced by fracking.

As for politics and the oil industry, the programme states that the oil industry now is the American political process. It’s not as bad under Obama as it was under Bush. Then big oil was the American government. The power of the oil industry is still there, but it’s now more subtle. Palast describes how every Republican candidate in the US elections is frantically in favour of the Excel pipeline, to the point where one of them even said that ‘you have to love it.’ This is directly due to the Koch brothers. The Koch brother bought a big refinery on the coast. However, there are laws that prevent them from using Texan oil. So they have to import ‘heavy’ oil from elsewhere. This is either Venezuela, where they’ll have to try to remove opposite by ousting Chavez or Madura, or to import it from Canada. This is the Excel pipeline, from which the Koch brothers will each get an extra $1 billion a year. Just as the Republicans are connected to the oil companies, so the Democrats have their links to BP. Obama has approved drilling in the Arctic. Palast describes how he was at one of the communities that may be affect, Qoqtovik, where he was told by one of the local Inuit that if drilling started, ‘it was over for them as a people there’. And if there is a spill in the arctic, it’ll go under the ice cap all the way to Norway.

Martin and her guests also discuss why it is Americans are so ignorant about climate change. The problem is that the oil industry buys up America’s academics. Palast states that almost every biologist in America is on BP’s payroll through grants from the Lawrence Livermore laboratory, which were donated by BP. And what happened to biology has also happened to climate science. The oil industry will also exaggerate the importance and status of dissenting scientists through the press. One flagrant example of this was when NPR, which Palast calls National Petroleum Radio, stated that the oil spill in the Gulf would be eaten by ‘oil-eating’ bacteria. This piece of disinformation came courtesy of a $1/2 billion grant to Lawrence Livermore by BP. The press, however, never informed its readers that the release and the science was paid for by that company. America no longer has an investigative press. They simply state that some people say this, while other have an opposite opinion.

Another example of corporate control over academia was in the case of Von Heerden, a meteorologist at Louisiana’s Hurricane Center. One month before Hurricane Katrina hit, Von Heerden warned that New Orleans could be under water due to the oil industry’s destruction of the neighbouring mangrove swamps for 100 miles. And 30 days later, New Orleans was under water. Instead of celebrating this man for his warning and efforts to save the city, the state closed down the Hurricane Centre and replace it with a Wetlands Centre. This was due to the state receiving a massive cheque from the oil companies, who specified that they would also choose the staff to be employed in the new Centre.

And globally the environmental damage from the oil industry is devastating, to the point where the future of the planet is in grave danger. The UN in 2015 stated for the very worst effects of climate change to be avoided, three-quarters of the world’s fossil fuels need to stay in the ground. Yet in the US alone there have been 20,000 oil spills a year. In the Niger Delta they have had to put up with the consequences of the devastation equivalent to an Exxon-Mobil spill every year for the past fifty years, due to untouchable oil corporations. In 2013, 1.15 million gallons of oil was spilled due to derailed trains. The preferred mode of transport for the oil industry nevertheless remains road. From 2008 to 2012 550 workers in the oil industry were killed in industrial accidents. This is a deathrate eight times higher than the other industries. And yet the world’s use of oil is completely unnecessary. Stanford University developed a plan to transfer America entirely to renewable energy, state by state, by 2050. The cost of the Iraq War alone could have financed the world’s transition to renewables. However, the power of the oil industry will only be destroyed when the power of the American Empire is also destroyed.

Empire Files: Saudi Arabia’s History of Thuggery

Yesterday I put up a number of posts criticising and attacking Saudi Arabia and its brutal use of the death penalty, following the complaint of the Saudi Foreign Minister, al-Jubair, that the kingdom had an image problem because of it, and moaning that people should respect their use of the death penalty ‘Because it’s the law’. This is another, very informative, and grimly fascinating video discussing Saudi Arabia’s long history of repression, violence and brutality from its very foundation. The video’s from Empire Files, which is another news agency specialising in criticising and documenting the corruption and political oppression committed by the American Empire.

Presented by Abby Martin, the video begins with shots of the western great and good meeting and praising various Saudi royals, mentioning the country’s election to the UN Human Rights Council. It then goes on to discuss the Saudi use of public executions. Among the crimes liable to the death penalty are atheism and adultery. 43% of all executions are for non-violent drug offences. It also discusses the execution of Ali al-Nimr, a democracy protester, by crucifixion and beheading. These cases are judged in secret courts, and other punishments include amputation and whipping.

The programme also goes on to examine the almost complete absence of rights for women in Saudi Arabia. Despite having been given the right to vote, women in Saudi Arabia require the permission of male relatives or guardians to go to school, work or even receive medical treatment. They may also be punished for their own sexual assault. The video cites a rape case, where the victim received more lashes than her attackers. Women constitute only 17% of the Saudi work force. 77% of female graduates are unemployed.

The kingdom has also been actively clamping down and suppressing protesters and activists campaigning for democracy. Many of these have been arrested and tried in secret courts. The punishments include execution, or transferral to re-education centres. The attacks on democracy campaigners escalated after 9/11. Before hundreds were being arrested. Now it’s thousands. Furthermore, no civil rights organisations are allowed in the country.

The programme then moves on to describe the history of the kingdom. It’s an absolute monarchy, ruled by a single dynasty. The current king’s personal wealth is estimated at $18 billion. Despite the obscene wealth of its rulers, 20% of its population live in abject poverty, with a youth unemployment rate of 30%.

Thirty per cent of the country’s population is composed of migrant workers, who are virtually slaves due to the system of kafala, sponsorship, through which they are imported. The programme describes their exploitation, with 15 – 20 hour working days, maltreatment, confiscation of passports on arrival, and adverts for runaway labourers and domestic workers, similar to those for de jure slaves in the American West.

Martin then talks to the Saudi dissident, Ali al-Ahmed, the head of the Gulf Institute. Al-Ahmed states that part of the problem is that the country’s vast wealth is confined to the king, his relatives and cronies. The present king can in no way be described as a great reformer. He imprisoned his four daughters for 14 years, and to this day no-one knows what happened to them. The king is an absolute monarch. The Saudi parliament is only partially elected. It is also partly appointed, and wields no power. As for the judicial system, al-Ahmed describes it as medieval and tribal. It deliberately excludes women, blacks, ordinary people and the Shi’a. It is similar to ISIS. And the bond between Saudi Arabia, America and the West is money. Bill Clinton and George Bush have both visited Saudi Arabia, probably secretly looking for Saudi sponsorship for their election campaigns. Al-Ahmed states that this should be investigated by the FBI. It appears to be a case of the Saudis trying to buy off prospective American presidents in the aftermath of 9/11.

The kingdom itself was founded after 20 years of warfare and campaigning by Ibn Saud, who declared himself king in 1925. Ibn Saud was aided in his rise to power by a religious militia. These later revolted, and so Ibn Saud had them massacred. The conquest of what is now Saudi Arabia was complete by 1932. Ibn Saud tried, and failed, to conquer and incorporate what is now Yemen.

The Saudi family struck oil after World War I, and invited the Americans in to exploit it. The Americans were only too pleased, after having been shut out of the rest of the oilfields of the Middle East by the triumphant European colonial powers. The American oil company, Chevron, staked its claim to the Saudi oilfields in 1933. This resulted in the formation of Arab-American Oil – Aramco. Despite the name, Aramco was 100 per cent owned by the Americans. It is the property of four American oil companies, including Chevron and Mobil. These oil companies paid a small proportion of their profits to the Saudi royal family as royalties.

Italian bombing during the Second World War severely disrupted oil supplies. In 1943 President Roosevelt declared that the defence of the Saudi oilfields was a national priority. Two years later, in 1945, Roosevelt signed a treaty with the Saudis giving them American protection in exchange for oil. This was the start of the network of American army and naval based in the country. In 1953 15,000 or so oil workers went on strike, demanding a union. The monarchy responded by assassinating the leaders and promulgating a royal decree banning working class organisations. In 1962 a left-wing revolution broke out in Yemen. Saudi Arabia, Jordan and the UK responded by supporting the royalist counterrevolution.

The relationship between Saudi Arabia and the West has not gone untroubled, however. There was a rift following the foundation of Israel. In response to Israeli victories during the Arab-Israeli wars, the Saudis launched their oil embargo, sparking the energy crisis of the 1970s. This did not, however, bother Nixon and Kissinger very much. If the worst came to the worst, they planned on bombing the kingdom in order to secure the vital supplies of oil. In the event, they didn’t need to take such drastic action. The Saudis were alarmed by the spread of Communism. So Nixon and Kissinger convinced the Saudis, along with the UAE, Qatar and Bahrein to back their war on Communism and specifically the conflict in Vietnam.

In the 1980s Saudi Arabia was the major backer of the Mujahideen. In 1979 there was a religious uprising in imitation of the Islamic Revolution in Iran. It was suppressed, and the 60 leaders executed. Saudi Shi’a were also attacked for celebrating a Shi’a religious festival. Following the killing of a student, there were mass demonstrations by the Shi’a, women’s organisations, the Communist party and the religious community. In retaliation, the Saudis deployed 20,000 soldiers, strafing the Shi’a communities with helicopter gunships. And Ronald Reagan pledged his support in suppressing any revolution. Saudi Arabia was, of course, the major American base in 1990 for the Gulf War.

The Saudis’ response to the Arab Spring was, predictably, also harsh. The regime issued a ban on all journalism that dared to question or criticise the monarchy, and the internet was subject to even heavier censorship. Saudi troops helped to crush the Arab Spring in neighbouring Bahrein. Despite this, people are still fighting and dying for their right to freedom in the east of Saudi Arabia. There was another uprising in 2013 following the shooting of another young person. Saudi Arabia has also responded to the threat by making massive purchases of arms. It is the biggest customer for American weapons, having bought $5.5 billion of them c. 2012. The kingdom is also a major financier of al-Qaeda and ISIS. This was admitted by Hillary Clinton in documents revealed by Wikileaks. They are estimated to have given $100 billion to terrorists.

They also had strong links to the 9/11 hijackers. 28 pages of the official inquiry into 9/11 remain classified, but the leader of the inquiry has stated that the material points to Saudi Arabia as a major funder. Nevertheless, the current crisis in the Middle East has alarmed them so much, that the Saudis have held secret meetings with Israel. The Saudis have also been active trying to suppress the rebellion in Yemen. So far, half of those killed have been civilians. Saudi arms have levelled the ancient and historic city of Sanaa, and there are cases where civilians and rescue workers have been attacked and killed.

This is a brutal, authoritarian and cruel absolute monarchy, responsible for the savage suppression of human rights and democracy throughout the Middle East. It is scandalous that the West continues to support this murderous regime, although not surprising given the vast profits from and the dependence of the West on Saudi oil, while western arms manufacturers make money from selling to them.