Yesterday, reading this article from Politico, I thought it odd that a person known to be a GOP operative from a number of years had helped to put Yanukovych into place. Then it seemed even odder that the same man had gone to help McCain’s election campaign although he apparently left that to a business partner. Then, I got to thinking about why this one little lake, peninsula and Black Sea base was so important to everyone.
After looking it up, there are exploration contracts waiting to be signed that were put off between Nov 2013 and now – which are, in fact, yet to be signed. It represents a huge payoff.
The agreement, which was expected to be signed by the end of November, targets the offshore Skifske gas field that is expected to produce between 8 billion cubic meters and 10 billion cu m of gas annually.
Then I discovered one more thing of interest, but don’t know why it is –
At the helm of the new energy diplomacy effort is Carlos Pascual, a former American ambassador to Ukraine, who leads the State Department’s Bureau of Energy Resources. The 85-person bureau was created in late 2011 by Hillary Rodham Clinton, the secretary of state at the time, for the purpose of channeling the domestic energy boom into a geopolitical tool to advance American interests around the world.
It would be obvious knowing all this – all players in this scenario are using people’s passions to destabilize Ukraine in order to get access for their own harvesting of these resources. But, with these resources of gas, Ukraine could actually harvest it themselves and serve their own needs, both for domestic consumption and for economic return. They would likely have to reach out for the help of both Russia and EU to do it but without this current uprising of passions, could be in a position to harvest these resources themselves without having them taken out from under them and do so with powerful equal relationships of neighboring powers.
Both sides have been at fault in making this mess, trying to get their own way – both East and West. Ukraine with its people serving no purpose to those who are swaying them, will be left to live with one another. The oil and gas will be harvested by those in larger business groups with little reward being returned to Ukraine for it in comparison to its market value, because that is how they work. And, right now – Russia and the West will fight over the Crimean Peninsula because of that oil beneath it, under the nearby Black Sea and under the little hole of a lake / sea blocked in by Crimea.
“I’m really mad. I’m finding dead turtles, birds, giant fish and other animals all over the beach. No one comes by to clean them up right away and people come down here and let their kids play next to them. And the water looks like chicken broth.
””It’s so sad,” says Mississippi coastal resident Laurel Lockamy who found a dead sea turtle over the weekend wrapped in orange tape, ready for retrieval.Turtles are just the latest sea life deaths to get federal attention.
So far this year, at least 134 dolphins have been found stranded along the Gulf coast, about four times the average number. Nearly half of the dolphins were newborns or juveniles. Earlier this year NOAA issued an Unusual Mortality Event for dolphins, which triggers a federal investigation into the deaths.
First the people counting the affected wildlife only considered a small number of key indicator species, rather than tallying all of them found. And, then the reports coming in like this one which indicates there is not really any reasonably coordinated manner to add in the multitude of marine animal deaths that have been occurring along the entire Gulf of Mexico corridor. And, on top of that, there will be thirty more years of studying made from those deaths before anyone at the EPA or in any of these states will say they can be in any way attributable to the oil industry spill and Deepwater Horizon spill or the toxic chemical dispersant COREXIT used immediately during and after the spill at the insistence of BP.
And, worst of all – when I noticed what Qaddafi incorporated was demanding and getting from the oil industry concerning the oil harvesting in Libya, compared to what the US and any of the states along the Gulf Coast of the US receive – it is just wrong, way wrong. The oil companies paid a billion dollar sign on bonus to Libya (Qaddafi) and only get to receive 12% of the profits from the oil while Libya and the Qaddafi family through the Libya Investment Authority would get the rest. And, the oil companies had to pay for the equipment, engineering, harvesting, retrieval and drilling (and transport facilities / shipping and pipelines) for that oil at their own expense and not Libya’s. We’re doing it completely backasswards to that. And, then getting screwed, I might add – every time there is something that goes wrong and we have to pay for it. We also get higher prices on gasoline, diesel and jet fuel every time there is a whisper of something that might go wrong in all of it. And, we’re subsidizing their industry at every level of it.
It was our USGS that examined and studied the shale oil deposits for the oil industry, and the deep-sea offshore reserves, the onshore oil reserves, the Alaska oil reserves, the Minnesota oil reserves, and most of those around the world for them too – at our expense. Along with other tax breaks, incentives, industry subsidies, refinery and shipping subsidies, odd little engineering subsidies for these off-shore derricks and the subsea transport systems and robotics to get the oil off loaded, etc. , etc., etc., – we’ve been screwed.
And, it never ends even though their profits and returns are through the roof.
Maybe we just need to hire the Qaddafi family to get our oil companies to treat us right and get him and his bunch out of Libya where they can’t do anything but damage the people there. Maybe they need to be the ones getting the oilfield deals made for us – or someone doing it in the manner that they have – among our states and US government agencies involved with it.
There is a 25 percent chance the pump price will exceed $4 a gallon from June through August, the agency said, compared with a 10 percent probability gasoline could fall below $3 during the same period.
My Note –
I think they need to review their math skills at the agency where they made this projection. It is wrong.
The price of gasoline is already at or over $4.00 a gallon in Chicago, it has been reported. And, it is over $4 a gallon in California, Denver and probably anywhere Spring Break destinations are used to having a captive audience.
Summer will be even more so. My guess is that the price of gasoline will go up substantially higher than that because the traders and speculators driving the prices per barrel are already trying to figure out how to offload what they’ve purchased and make a bigger profit from it. They likely figure this is one of those once in a lifetime deals where they can really make a killing. That would be my guess. It will stagger through the economy faster than the contracts that will get delivered because that is how it has done in the past (2008, 1970’s) as companies try to get ahead of the upswing in costs to have a buffer.
On a personal note, as I have noticed in the stores when I stopped buying cereal – it the boxes that cost nearly $5 already get any skinnier – we can use them as postage stamps instead. I don’t know how they get away with it. Many foods now look like something from a child’s play kitchen set with little in it at all. That is going to be even more so as the commodities prices have been driving upwards by the traders on the exchanges and now add the increased price of oil, gasoline, shipping and increased cargo charges to them. It is not going to work.
The law of supply and demand would naturally bring these prices down or the quantities up because there cannot possibly be as many people buying these things at these prices for the amount of product offered. But, the free market doesn’t exist in America in that sense. It is unnaturally supported in the manner middlemen including the commodities traders are driving the prices. The losses can be written off and it doesn’t yield any incentive to meet the market demand where it is and price competitively to it at the real value.
Oh well. If we had a better deal on the oil that is being pulled out of the ground in America, like Libya’s foul leaders got from the oil industries – we wouldn’t even be having this problem.
They only give away 12% of the profits and charge a “sign-on” bonus over a billion dollars each to the oil companies (and they are glad to get it.) Damn ridiculous while we are subsidizing the oil companies and begging them to do whatever they will to get our oil out of the ground so they can profit at our expense. Damn ridiculous.
From the article – everyone needs to read it in America, including my children and parents, aunts, uncles, friends, acquaintances and anyone reading this durn blog –
At least it explains why the price of oil is going up and why when it does go up for contracts that won’t be delivered for three – four months, that we still watch the little sign at the gas station go up three to four times a day upwards –
(and prices of everything else quickly accommodate that despite none of them having bought any gasoline or jet fuel at those prices yet.)
A couple bits of this article (from the link above) –
Power plants, gas stations, fuel distributors, and oil companies across the globe paid close attention to this rarefied casino, watching carefully for any price changes that would determine how much they would pay for fuel and what they’d charge their customers, the ordinary consumer. Newspapers and television networks trumpeted Nymex’s prices as the holy gospel, beaming them throughout the continents for all to follow—banks, hedge funds, Wall street investors, even the top-producing oil nations of Saudi Arabia, Iran, Russia, and Norway.
D’Agostino: No. OPEC only sets the oil supply. . . . The price of oil is actually set in New York. . . .
O’Reilly: Is there a guy who says $125 a barrel?
D’Agostino: No. There’s a huge market. It’s filled with hedgers. It’s filled with speculators. It’s filled with moms and dads, average Americans. It’s a big market that sets the price.
O’Reilly: somebody has to put the $125 on the barrel. Who does it?
(an excerpt from the Bill O’Reilly show included in the text, the first paragraph is from the author of the article and book that serves as its basis) – well worth reading the whole thing, my note.
Brent crude, the main European contract, was down 46 cents to $111.68 a barrel.
The benchmark U.S. oil contract, West Texas Intermediate, for April delivery was up 13 cents to $98.01 a barrel.
My Note –
But, the prices based on “higher fuel costs” are up for things from pump prices to airline tickets – none of which have purchased any oil at these prices yet now at the slightly higher prices where they were three days ago. Figures.
I thought the population of Libyan nationals was listed at 6.5 million – not 4 million as Qaddafi’s son Saif claims. And, he seems pretty secure in the fact that he, his father Qaddafi, other family members and regime heads are sitting in a place protected by 2 and half million people. Maybe someone needs to evacuate those people and leave them unprotected except by their military secret police and mercenaries – then they can sort it out themselves.
Note that the above site has Christine Amanpour’s interview video clip plus the full transcript from it.
The U.N. resolution, obtained by the Los Angeles Times, lists the names, dates and places of birth of dozens of Kadafi’s closest associates and relatives, lending some insight into who is controlling the foundering regime.
Aside from condemning the violence in Libya and referring actions of the Kadafi regime to the International Criminal Court, the resolution “decides that all Member States shall take the necessary measures to prevent the entry into or transit through their territories of individuals listed in Annex I of this resolution.”
Kadafi said Sunday that the Libyan people supported him and that the sanctions were “null and void,” even as rebels closed in on Tripoli.
“The U.N. is not allowed to meddle in the internal affairs of other countries, unless a country is attacking another state,” Kadafi said in an interview with a Serbian news station.
You know, the IDEX and other arms bazaars could be contacted to bar any future entrance by the Qaddafi regime members, their representatives and illegitimate “ruling” Qaddafi family members. They only sell and allow entry to those legal representatives of governments whose goals are not to use those arms and equipment in brutality of their unarmed citizens – right?
Yeah, right. However – they don’t want the liability either. So, they could be very helpful.
Here is one other note of importance probably –
Saif al-Islam Gaddafi used Monitor Group to carry out a survey and interviews with the leaders of non-governmental organisations to provide the empirical data for his thesis at the London School of Economics.
Senior advisers at Monitor Group include Sir Richard Dearlove, who was recruited in 2005, the year after he retired as head of MI6. Sir Richard was well known to the Libyans because Colonel Gaddafi had chosen British intelligence as the go-between when he decided to surrender his country’s nuclear programme.
The company also employs Sir Mark Allen, another former MI6 agent and a senior adviser to BP. Sir Mark lobbied Jack Straw just before the Justice Secretary abandoned efforts to exclude the Lockerbie bomber from a prisoner transfer deal. (etc.)
Mugabe is a long time friend of al-Saadi’s father who has been ruling the North African country for the past four decades. There has been speculation in the past that the two leaders share business interests. In 2002, Mugabe’s wife Grace reportedly sold a mansion in one of Harare’s plush suburbs to Gaddafi for an estimated $5 million.
Human rights advocates have sounded the alarm about Libyan security forces’ assaults on migrant workers and waves of killings targeting protesters. In recent days, Libyans and foreigners inside the country have learned to distinguish army soldiers in green berets from more ruthless members of paramilitary groups with red berets.
In Sabratha, several witnesses said, the red-bereted militiamen opened fire randomly on entrances to homes in districts where there was unrest, just to keep people from joining protests.
Another witness, Abdallah Hakim, a manager at a Benghazi state-owned textile works, said the men had been lowered into the minuscule cell through a trap door, which was then sealed and covered with earth.
”The men said they had been in the cell for about four days before we found them. It was a miracle only three men had died,” Hakim said.
Libyan officials say Western and Arab media have grossly exaggerated the extent of the unrest and presented a one-sided view of the security forces’ actions.
But multiple, corroborated accounts by independent sources and witnesses unconnected to one another paint a picture of security forces run amok, waging a campaign of retribution against their own people and foreign nationals (“whose nations may have inspired Libyans to revolt.” – my note – I don’t know why it has this last clause in the sentence – makes no sense.)
Human Rights Watch, a New York-based advocacy group that has dispatched a two-member team to the Tunisian border to collect witness accounts, reported Saturday that security forces stormed into the homes of some migrant workers, accusing them of being responsible for the anti-government unrest sweeping across Libya.
Discussions on forming a transitional government are reportedly underway.
Mustafa Abdel-Jalil – who resigned as justice minister in protest against the excessive use of force against demonstrators – said a body comprising military and civilian figures would prepare for elections within three months, Libya’s privately-owned Quryna newspaper reported. (etc.)
On Saturday, one of Col Gaddafi’s sons, Saif al-Islam, insisted that normal life was continuing in three-quarters of Libya. By contrast, anti-Gaddafi forces say they control 80% of the country.
Each side’s claims are difficult to confirm but it is known that the opposition controls Benghazi, Libya’s second city, while Col Gaddafi still controls the capital Tripoli, home to two million of the country’s 6.5 million population.
euronews-en Saturday, February 26, 2011 10:09:00 AM CET
Saif al-Islam al-Gaddafi said: “Soon you will discover that what you have heard in Libya was just a big joke. A very big joke. Here in Libya we were laughing about those reports about hundreds and thousands of casualties, bombing Tripoli and Benghazi and Zawiya or whatever, about mercenaries,”
The son of Libyan leader Muammar Gaddafi, Saif al-Islam Gaddafi has claimed his father has not used any force against civilians, in a television interview with ABC America. As world leaders’ condemnation of the Libyan ruler continues to grow, …
La société ALAMIA, la Compagnie Internationale de l’Organisation des Foires et Conférences, organisent en collaboration avec la Coopération Nationale de Pétrole sous l’égide de la Coopération Générale des Foires, la Compagnie de l’Electricité Générale, la Société d’Investissement pour la Publicité et la Promotion et l’Institut de l’Energie Atomique, la Foire Internationale Petro-Libye et de l’Energie qui se tiendra du 7 au 10 mars 2011.
5th North African Mediterranean Petroleum and Geosciences Conference & Exhibition – Libya, March 28-30, 2011
( . . . )
This conference and exhibition could not have been more perfectly timed and placed. Being held as the Oil & Gas Industry is being pressed to find solutions to the energy demand and the location of Libya provides the best possible central location were ideas and expectations of North Africa, Europe, Middle and Far East and America (North, South, East and West) can be freely and fruitfully brought to bear on the challenges ahead.
This is why Libya 2011 is an ideal meeting place for experts and senior executives from national and international companies, as well as research centers and universities, to exchange their ideas and experience.
Important information due to current situation: Due to the current situation in Libya, EAGE is carefully monitoring the developments for the event Libya 2011, 5th North African Mediterranean Petroleum and Geosciences Conference & Exhibition which is scheduled in Tripoli for 28-30 March 2011. EAGE is in close contact with local and international parties to determine the way forward. Please review the EAGE news page regularly for the latest updates.
Jump to Oil and gas: Occidental is the largest producer of natural gas and second-largest … The company has its only operation in North Africa in Libya. … Liwa won eight out of 15 exploration spots on the EPSA-4 auction, …
from bloomberg – 2005
Libya’s Second Oil Auction Lures Exxon, BP, Dozens of Producers
By Maher Chmaytelli – October 2, 2005 06:24 EDT
Oct. 2 (Bloomberg) — Exxon Mobil Corp., BP Plc and Chevron Corp. are among at least 49 companies that registered to bid today for exploration rights in Libya, as the north African country steps up efforts to develop Africa’s largest crude-oil reserves.
National Oil Corp., Libya’s state-owned energy company, issued badges today for representatives of 49 companies to attend the country’s second auction since oil was discovered in 1959, at 5 p.m. local time in Tripoli. Libya will offer permits to search for oil and gas in 26 onshore and offshore plots covering about 100,000 square kilometers (38,600 square miles), nearly the size of Cuba. (etc.)
About 60 companies bid in the first auction, offering Libya’s government 61.1 to 89.2 percent of any production and paying $133 million in signing bonuses.
Libya, a country slightly larger than Alaska, has proven crude-oil reserves of 39 billion barrels, equivalent to more than five years of U.S. consumption. Libyan Energy Secretary Fathi Ben Shatwan told Bloomberg on Sept. 19 that potential reserves may top 100 billion barrels as only 30 percent of the territory is covered by agreements with oil companies.
Washington Post – Leila Fadel – 18 minutes ago (02-28-11)
Radio Free Libya operates in the same building from which Moammar Gaddafi’s regime broadcast official messages. It has been on the air since Feb. 21, when rebels took control of the coastal city. (Leila Fadel) By Leila Fadel IN BENGHAZI, …
Libyan leader Muammar Gaddafi has dismissed new United Nation sanctions against him and says a small group of rebels protesting against his rule are surrounded and will be defeated. In a telephone interview with Serbian television, he said the UN …
ALTHOUGH his own cause must surely now be lost, Muammar Gaddafi continues to lash out against the Libyan people. Tragically, his instructions to “fight to the death” and to “cleanse Libya house by house” are still being followed by a coterie of armed supporters.
(Secretary of State) Clinton didn’t specify which Libyan leaders Washington contacted, but said the U.S. was willing to provide relief to Libyans facing food and medical shortages.
Also from this article – along with the fact that oil is now being sent out by the anti-Qaddafi rebels – from the Eastern areas of Libya –
Foreign journalists invited to Tripoli were taken to a pro-government rally Sunday afternoon, where cars roared around central streets flying green streamers and green flags, signaling support of Col. Gadhafi. Ahead of the rally, police officers were seen handing out the streamers.
An oil tanker was expected to depart the port of Tobruk in the northeast corner of Libya sometime Sunday night carrying 700,000 barrels of oil, said Hassan Bulifa, a member of the management committee of Arabian Gulf Oil Co., Libya’s largest oil producer and the only oil company based in the country’s opposition-controlled eastern territory. (etc.)
A possible standoff shapes up as protesters with tanks and antiaircraft guns mass in Zawiya, the city just west of Tripoli that Moammar Kadafi’s forces have surrounded with armor and military checkpoints. Libyan anti-government protesters chant slogans …
This sort of arrangement bore fruit for the boys from Calgary, turning Libya into one of Petro-Canada’s most important non-Canadian bases of operation. But to get it, they had to pay the Libyan government – and thus, rather directly, the Gadhafi family – a startling sum.
According to U.S. State Department reports obtained from the so-called Cablegate leaks, Petro-Canada paid the Libyan autocrats a $1-billion “signing bonus” straight off the bat, then invested $3.5-billion in the redevelopment of many of Libya’s existing oil fields. In exchange, the Canadians got a 12-per-cent share of oil revenues produced from their slice of the field, for 30 years. As the U.S. ambassador to Tripoli wrote in a 2008 cable, Petro-Canada “swallowed hard and signed up.” (etc.)
Russian Prime Minister Vladimir Putin has arrived in Brussels to participate in the European Commission-Russia meeting and hold talks with the EU leadership.
The Russian delegation is comprised of senior Russian government officials, including Russian Foreign Minister Sergei Lavrov, Finance Minister Alexei Kudrin, Economic Development Minister Elvira Nabiullina and Energy Minister Sergei Shmatko.