Posts Tagged ‘Pipelines’

Counterpunch on Washington’s Fear of a Russia-EU Superstate

March 23, 2017

There’s a very interesting article in today’s Counterpunch by Mike Whitney, which suggests that the current demonization of Russia and its president, Vladimir Putin in the American media and the build up of troops and military installations on Russia’s borders – in Poland and Romania, for example – is to prevent Russia joining the EU. It begins with a speech by Putin, from February 2012, in which Putin declared that Russia was an inalienable part of greater Europe, its people think of themselves as Europeans, and that is why Russia is moving to create a greater economic space, a ‘union of Europe’, stretching from the Atlantic to the Pacific. The carefully orchestrated ‘Orange Revolution’ in Ukraine, which saw the pro-Russian president ousted in favour of the current, pro-Western government, which includes unreconstructed Nazis, is part of Washington’s programme to prevent the emergence of this massive superstate.

The article revisits the Mackinder doctrine. This was the thesis, put forward by a geographer in the early 20th century, that the crux for global power is control of the Eurasian landmass. Mackinder believed that the powers that ruled it would become the dominant global power, while those on the Atlantic fringe of the landmass, such as Britain, would be doomed to decline. He notes that Russia is rich in supplies of oil and natural gas, which it can easily supply through the construction of projected pipelines, to Europe.

Whitney states that the Americans are also concerned at the way the Chinese are also increasing their economic connections across Eurasian through the construction of roads and railways allowing the rapid and efficient transhipment of their consumer goods. Hence the construction and reinforcement of American military bases in South Korea and in the Far East. The Americans hope to block China’s economic growth by dominating the sea lanes militarily.

Whitney also argues that the Russians and Chinese are emerging as the new, global economic powers against America because they are actually better at capitalism than the Americans are. They are building new infrastructure – roads, railways and pipelines, to allow them to exploit the markets in central Asia and Europe, while the Americans can only try to compete with them through threatening them with military force. Hence the continuation of the conflict in Syria with as a proxy war against Russia.

Whitney also makes the point that blocking the emergence of a single free trade block in Eurasia is vital for the survival of the American economy. The moment such a free trade zone stopped using the dollar it would knock one of the key financial supports out of the American economy, causing markets to collapse, the dollar to slump and the economy to fall into depression.


This is very interesting, as it shows just how far current international tensions with Putin’s Russia are caused by America’s fears of a resurgent Russia and China, and its own looming economic irrelevance. The use of the dollar as the international currency is absolutely critical in this. One of the reasons why Colonel Gadaffy was overthrown was because the ‘mad dog of the Middle East’ wanted to create an Arab economic bloc like the EU, which would use the dinar rather than the dollar as its international currency. America’s economy is propped up to a very large degree through the use of the dollar as the international currency of the petrochemical industry. Once that goes, the American economy, and its status as the world’s only superpower, goes up. Hence the Americans determination to have him overthrown, even if that meant the collapse of Libya as a functioning state and the replacement of its secular welfare state by a hardline theocratic regime.

There’s a considerable amount wrong with the EU, but it also has enormous economic, legal and political benefits. In the 19th century, British companies played a large part in Russia’s industrialisation. Before the Revolution, one of the main Russian cities was called Yusovska, a name derived from ‘Hughes’, the surname of the British industrialist, who had set up a company there. By voting to leave the EU, we may also have missed the opportunity to benefit from closer economic contacts with Russia and China. Or rather, England has. Scotland voted to remain, and this may well begin the break-up of the United Kingdom. In which case, Scotland may well be in an economically stronger position than England. We English may well have consigned ourselves to increasing irrelevance and decline on the global stage, just to satisfy the xenophobic wishes of the Tory right.


Empire Files: The Tyranny of Big Oil

January 19, 2016

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.