Author: admin

  • Gush in oil shares continues

    Exxon Mobil’s revenue rose 12 percent to $99 billion, marking the first time in history that a U.S. company exceeded $1 billion a day. Sales swelled as crude-oil prices surged to an all-time high on demand gains and supply disruptions in Nigeria and the Gulf of Mexico.

    “Earnings have just been spectacular,” said Barry James, who manages $1.7 billion, including 54,500 Exxon Mobil shares, at James Investment Research in Xenia, Ohio. “Cash flow is going gangbusters.”

    Record Quarter

    The second quarter is shaping up as the richest three months ever for the world’s six largest publicly traded oil companies. BP Plc, Europe’s biggest producer, on July 25 said net income rose 30 percent to $7.27 billion. ConocoPhillips, the third-largest U.S. oil company, yesterday said its profit jumped 65 percent to a record $5.19 billion.

    Based on results from the four companies that have reported earnings for the period and average analyst estimates for the two that haven’t — France’s Total SA and Chevron Corp. of the U.S. — the biggest producers netted almost $40 billion in the quarter, up about 35 percent from a year earlier.

    BP and ConocoPhillips, like Exxon Mobil and Shell, exceeded analyst expectations for their earnings.

    Oil futures in the U.S., which burns a quarter of the world’s petroleum, averaged $70.72 a barrel during the second quarter, 33 percent higher than a year earlier. Prices touched a record $78.40 a barrel on July 14 and have more than tripled since the end of 2001.

    The average U.S. margin on processing crude oil into gasoline and diesel widened 41 percent to almost $16 a barrel, based on futures prices. That topped the record average, set in the third quarter of 2005, when hurricanes lashed Gulf Coast refineries and wrecked wells, ports and pipelines.

    Gasoline Rises

    Prices for refined fuels rose as demand increased and some companies idled processing plants for maintenance and repairs.

    U.S. retail gasoline prices rose 30 percent from a year earlier to a second-quarter average of $2.849 a gallon, according to the Energy Department in Washington. Diesel climbed 26 percent to $2.845 a gallon.

    Natural-gas futures traded 4.4 percent lower than a year earlier, at an average of $6.646 per million British thermal units. Warmer-than-normal temperatures in much of the U.S. curbed demand for the heating fuel.

    Exxon Mobil took greater advantage of the price gains by increasing production 6.2 percent from a year earlier to the equivalent of 4.16 million barrels of oil a day. BP and Shell had second-quarter production declines of 2.5 percent and 7.7 percent, respectively.

    Apache, Petro-Canada

    Shares of Exxon Mobil rose 86 cents, or 1.3 percent, to $67.46 at 10:27 a.m. in New York Stock Exchange composite trading. Shell’s London-traded “A” shares rose 2.2 percent to 1,913 pence ($35.66).

    Smaller producers also reported profit gains today. Houston-based Apache Corp., the second-biggest independent producer in the Gulf of Mexico, said its profit rose 23 percent to $723.6 million, or $2.17 a share.

    Petro-Canada, the third-largest Canadian producer, posted a 37 percent gain in net income to C$472 million ($416.3 million), or 92 cents a share.

    Earnings more than doubled at Canada’s Talisman Energy Inc. to a record C$686 million, or 61 cents a share.

  • Shoalhaven pipeline to save environment

    Pipeline needed: There is consensus that it would devastate the ecology of these waterways to increase their use as drains. The preference of experts and environmentalists is likely to be a pipeline three metres in diameter and 20 kilometres long, through the Southern Highlands to Avon Dam. From Avon the water can be sent to Prospect Reservoir in Sydney.

    Hydro a side-benefit: Such a tunnel could move 1500 million litres a day and generate hydro-electricity to offset up to 60 per cent of pumping costs and greenhouse emissions.

    Increased flexibility: Ian Tanner, General Manager, Bulk Water, with the Sydney Catchment Authority said the proposed changes were not a response to the drought. “This proposal will assist in addressing unknown variables such as climate change,” he said. “The scientists are saying we are going to have more extreme events. This does add flexibility.”

    Creek is "drowning": Since 2003, Doodles Folly Creek in the Southern Highlands has been drowning, despite the drought. For three years the torrent has roared with the sound of Sydney’s dams being topped up from the Shoalhaven.

    An open drain: Using three pumping stations and a series of tunnels, water is now lifted from Tallowa Dam to the top of the Southern Highlands escarpment near Fitzroy Falls. From there, gravity takes over. When the Sydney Catchment Authority wants to fill the Upper Nepean Dam it simply releases the Tallowa water into Doudles Folly Creek. The stream becomes virtually a drain, and has carried hundreds of billions of litres towards the Nepean Dam in the past few years.

    Wingecarribee also at risk: When Warragamba Dam is low, Wingecarribee River near Moss Vale is commandeered for use as a water expressway. This harms ecosystems and would not be ecologically sustainable if pumping was more frequent and involved greater volumes, Mr Tanner said.

    Prolonged flows would cause long-term damage: A discussion paper on the problem says: “There would be longer-term impacts on plants and animals as a result of prolonged flows. Wetland areas would be flooded for longer periods, with the potential for long-term damage. Animals can be flushed away and habitats modified, making recolonisation difficult. Plant and animal pests such as carp are favoured by constant flows.”

    Platypus threat: It adds that platypus burrows could be lost and vegetation swept away, making it harder for the monotremes to feed and breed in such fast-flowing streams.

    The Sydney Morning Herald, 26/8/2006, p. 11

  • Oil industry predicts falling prices

     

    OPEC predicts less oil demand: The Organisation of Petroleum Exporting Countries earlier this month said demand this year would rise just 1.3 million barrels a day, 80,000 barrels less than expected two months ago. Analysts are predicting crude oil prices of about $US50 a barrel rather than today’s $US70.

    US analyst predicts 25pc production surge by 2015: The catalyst for the new forecasts was a prediction by the respected US analyst Cambridge Energy Research Associates chairman Daniel Yergin, author of oil industry history The Prize, that oil and natural gas production capacity should surge 25 per cent to 110 million barrels a day by 2015.

    Saudi minister forsees potential for price plummet: Saudi Arabia’s oil minister Ali al-Naimi warned earlier this month that oil price hikes and global oil demand could soon disappear, saying prices could easily "plummet" in the near future if an economic crisis drives industrialised nations to find other sources of energy.

    Analyst survey finds expectation of drop in 2008: A survey of analysts by Reuters indicated oil prices were expected to fall significantly in 2008 as years of sky-high crude prices sapped global demand and production expanded.

    The Australian, 29/8/2006, p.7

  • In the suburbs with no car

    Carolyn rides the bus. Anyone who has lived in a suburb without footpaths, local shops and an intermittent bus service will sympathise. As an experiment in life after oil depletion, an American family living in the suburb of Normal, it’s true, lived for one month without a car. Read their report on Grist Mill .

    An extraordinary account of just how addicted we are to oil.

    Original article on Grist  

    Carolyn rides the bus.

    Photos: Christine Gardner

     

  • Chad expels oil firms

    Their departure would leave the US oil giant ExxonMobil and the Chadian government to tap the resources together  "while waiting to find a solution with the two other partners”, Mr Deby said in a speech to government and political leaders.

    In a bid to increase Chad’s own share of its oil revenue, Mr Deby on Wednesday told his government to renegotiate the contract it signed in 1988 with the US-Malaysian consortium.

    A source in the oil ministry said the state would use the Chad Hydrocarbons Company to try to enter the consortium.

    Today, Mr Deby said three ministers involved in the deal would cease work and go before judicial authorities"`to answer for their acts”. He did not name the ministers and no further details were available.

    Oil has been flowing since 2003 in the Doba basin in southern Chad. In 2004 Chad, which produces less than 200,000 barrels of oil a day, saw its gross domestic product leap 40 per cent after oil production began.

  • Today’s ‘Islamic Fascists’ Were Yesterday’s Friends

    This simplistic view of the new geopolitical landscape is deeply problematic. It overlooks the key role that the West played in nurturing radical Islamist groups, precisely as a means of isolating and undermining secular movements that were judged by Western governments to be too uppity or dangerous. Over the past 80 years and more – from Egypt to Afghanistan to Palestine – powerful governments in the West and their allies in the Middle East helped to create radical Islamic sects as a bulwark against secular nationalist parties or pan-Arabism. They gave the nod to, and in some instances funded and armed, Islamist movements that might challenge the claims of local anti-colonial, liberationist, or communistic outfits.

    In other words, there is a deep and bitter irony in the West’s current claims to be standing up to evil religious sects in the name of universal values. It was precisely the West’s earlier disregard for secularism and democracy in the Middle East, its elevation of its own powerful interests over the needs and desires of local populations, which helped to give rise to a layer of apparently "evil" radical Islamism. What we have today is not a World War between a principled West and psychotic groups from "over there," but rather the messy residue of decades of Western meddling in the Middle East.

    Duplicitous Western support for Islamist movements has a long and dishonorable history. In the early and middle 20th century, both British and U.S. intelligence supported the Egyptian Muslim Brotherhood, the group from which so many of today’s radical Islamic sects – including Hamas and even al-Qaeda – have sprung. Indeed, in the 1920s, the British, then the colonial rulers of Egypt, helped to set up the Muslim Brotherhood as a means of keeping Egyptian nationalism and anti-colonialism in check. The immediate precursor to the Muslim Brotherhood was an organization called the Society of Propaganda and Guidance, which was funded and backed by British colonialists. In return, the Society provided Islamist backing to British rule in Egypt. It published a journal called The Lighthouse, which attacked Egyptian nationalists – who wanted British forces out of Egypt – as "atheists and infidels." Under British patronage, the Society set up the Institute of Propaganda and Guidance, which brought Islamists from across the Muslim world to Egypt so they could be trained in political agitation, and then take such anti-anti-colonialism back to their own homelands.

    One graduate of the Institute of Propaganda and Guidance was Hassan al-Banna, who founded the Muslim Brotherhood in 1928. According to Robert Dreyfuss, in his informative book Devil’s Game: How the United States Helped Unleash Fundamentalist Islam, the original Muslim Brotherhood was an "unabashed British intelligence front." The mosque that served as the first headquarters of the Brotherhood – in Ismailia, Egypt – was built by the (British) Suez Canal Company. With Britain’s knowledge, and tacit approval, in the 1930s and ’40s the Brotherhood both challenged anti-colonial parties within Egypt and also spread to other parts of the Near and Middle East, setting up branches in Transjordan, Syria, Lebanon, and Palestine.

    Following the coming to power of the anti-colonialist and pan-Arabist Gamal Abdel Nasser in 1954, elements in the West continued to look upon the Muslim Brotherhood as a weapon against secular nationalism and communism. The British government of the time encouraged the Brotherhood to challenge Nasser, and in 1954 there was open conflict between the Brotherhood’s and Nasser’s forces. Many hundreds were killed, and eventually the Brotherhood fled, taking refuge in Saudi Arabia, Jordan, and other states in the Anglo-American camp. The U.S.-friendly regime in Saudi Arabia, in particular, provided sanctuary and financial backing to Brotherhood members during Nasser’s crackdown on the group.

    Initially the U.S., in its interventionist policies of the postwar period, adopted the British model of supporting radical Islamists in order to undermine popular secular governments or communist-influenced outfits in the Near and Middle East. This included supporting the Brotherhood against Nasser. In his book Sleeping With the Devil, former CIA officer Robert Baer said there was a "dirty little secret" in Washington in the early 1950s:

    "The White House looked on the Brothers as a silent ally, a secret weapon against – what else? – communism. The covert action started in the 1950s with the Dulles brothers – Allen at the CIA and John Foster at the State Department – when they approved Saudi Arabia’s funding of Egypt’s Brothers against Nasser. As far as Washington was concerned, Nasser was a communist."

    Baer said that the "logic of the Cold War" meant that the U.S. was willing to support radical Islamists even if they carried out activities such as assassinations or political agitation designed to foment conflict. As Baer argues, "If Allah agreed to fight on our side, fine. If Allah decided that political assassination was permissible, that was fine too, as long as no one talked about it in polite company." (There was, of course, a subsequent divergence between British and American policy on Nasser. During the Suez crisis of 1956, President Dwight Eisenhower put a stop to the British-French-Israeli invasion of Suez and backed Nasser’s regime, temporarily at least.)

    The Muslim Brotherhood and its various branches across the Middle East – which shared the aim of replacing secular democracy with Islamic government – also gave rise to violent splinter groups. Hamas, which today is discussed by Bush and his supporters as a great danger to peace in Israel-Palestine, if not the entire world, is a local wing of the Brotherhood, formed in the mid-1980s from various Brotherhood-affiliated charities that had gained a foothold in Palestinian territories. Al-Qaeda itself has been influenced primarily by the thinking of Sayyid Qutb (1906-1966), a radical member of the Brotherhood. Osama bin Laden’s deputy, Ayman al-Zawahiri, an Egyptian, was first radicalized by the Muslim Brotherhood; he joined the group when he was 14 years old, before moving on to the more radical Islamic Jihad group in 1979 and subsequently fighting against the Soviets in Afghanistan.

    Indeed, during the Afghan-Soviet war from 1979 to 1992, American and British intelligence once again supported radical Islamists against, in this instance, secularist and communist forces. Where the Cold War began with America and Britain supporting the Muslim Brotherhood and other radical Islamists against popular secular movements, it ended with America and Britain arming, financing, and propagandizing on behalf of radical Islamists fighting the Soviet Union’s last stand in Afghanistan before its collapse in the early 1990s.

    Throughout the 1980s, the CIA and the British intelligence organization MI5 arranged for the arming and training of thousands of mujahedeen in Afghanistan. American and British elements, together with Saudi Arabia and the Pakistani intelligence service ISI, ensured that the mujahedeen had everything they needed to wage war against the Soviets. As Phil Gasper has argued,

    "The CIA became the grand coordinator: purchasing or arranging the manufacture of Soviet-style weapons from Egypt, China, Poland, Israel, and elsewhere, or supplying their own; arranging for military training by Americans, Egyptians, Chinese and Iranians; hitting up Middle-Eastern countries for donations, notably Saudi Arabia, which gave many hundreds of millions of dollars in aid each year, totaling probably more than a billion; pressuring and bribing Pakistan – with whom recent American relations had been very poor – to rent out its country as a military staging area and sanctuary; putting the Pakistan Director of Military Operations, Brigadier Mian Mohammad Afzal, onto the CIA payroll to ensure Pakistani cooperation."

    Two beneficiaries of such widespread American support for the mujahedeen’s war against the Soviets were bin Laden and Zawahiri, currently al-Qaeda’s number 1 and number 2. Both traveled to Afghanistan and Pakistan in the 1980s to assist with the anti-Soviet war effort. It should be noted that America and Britain did not only fund and arm the mujahedeen; they also provided backing to mosques, madrassa schools, and propagandistic publications and radio stations that put the case for political Islam over communism or secularism. Indeed, Khalid Sheikh Mohammed – who would go on to devise the 9/11 attacks – was involved in a madrassa school that was funded by Saudi and U.S. money. Once again, Western forces were not only opportunistically supporting their enemy’s enemy – they were also fueling the idea that radical Islamism was preferable to "evil" communism and even to secular government.

    We could argue that al-Qaeda, both intellectually and practically, is a product of Western meddling in Middle Eastern affairs. It takes its inspiration from the Muslim Brotherhood, that group supported by both American and British intelligence in the early and middle 20th century, and it was forged in the heat of the Afghan-Soviet war, that conflict largely facilitated by U.S., British, and Saudi funds and arms. In terms of both its political origins and its early and formative fighting experiences, al-Qaeda owes a great deal to Western interventionism.

    Even Hamas is, in some ways, the product of a desire by the West and its allies to use radical Islamism as a counterweight to popular secular movements. It was formed, in 1987, from various charities with links to the Muslim Brotherhood. These charities had been allowed by Israel itself to gain strength and influence in Palestinian territories in order to, as one account puts it, "counter the influence of the secular Palestinian resistance movements." Sheikh Ahmed Yassin, the spiritual leader of Hamas, who was killed by an Israeli air strike in 2004, formed the military outfit in 1987 as the armed wing of his group the Islamic Association. This organization had been licensed by Israel 10 years earlier, in the 1970s. In that period, Israeli officials gave the nod to, and even indirectly funded, the setting-up of Islamic societies in the West Bank and Gaza that might weaken and isolate Yasser Arafat’s Palestine Liberation Organization. Martha Kessler, a senior analyst for the CIA, has said: "[W]e saw Israel cultivate Islam as a counterweight to Palestinian nationalism." The very Islamic groups "cultivated" by Israel in the 1970s went on to become Hamas in the 1980s.

    In funding Islamists against secularists, Israel was following in a long tradition started by the British and Americans. As one former senior CIA official has put it, Israel’s tolerance, even support, of Islamic groups that would later become Hamas "was a direct attempt to divide and dilute support for a strong, secular PLO by using a competing religious alternative." There is no evidence that Israel ever supported Hezbollah, but their interests have coincided over the past two decades or more, since the founding of Hezbollah in Lebanon by Iranian elements in 1982.

    As Strategic Forecasting Inc., or Stratfor, has argued, "Hezbollah represented a militant, non-secular alternative to [Arafat’s] Nassertie Fatah, Popular Front for the Liberation of Palestine, and other groups that took their bearing from Pan-Arabism rather than Islam…. [Hezbollah] made a powerful claim that the Palestinian movement had no future while it remained fundamentally secular." Israel and Hezbollah are, of course, arch-rivals; Hezbollah was formed with the explicit aim of expelling Israel from Lebanon by any means necessary. However, in the early 1980s both Israel and Hezbollah had a shared aim of weakening the more powerful and popular secularist Palestinian movements.

    Over the past 80 years, Western governments and their allies have supported radical Islamist groups. However, this was not merely opportunism, a bad case of "my enemy’s enemy is my friend." As part of this process, Western governments seriously denigrated popular secular and democratic movements. Indeed, from the founding of the Muslim Brotherhood in the 1920s to Israel’s role in the forging of Hamas in the 1980s, the explicit aim of Western support for radical Islamism was to isolate, weaken, and ultimately destroy popular political movements that very often were based on Western ideas of democracy and progress. Thus, many of these radical Islamist groups – the Muslim Brotherhood, Hamas, al-Qaeda, Hezbollah – have a built-in suspicion of and hostility toward secular democracy.

    What we are faced with today is not a new World War being waged by any kind of powerful Islamist conspiracy. Instead, as secular and nationalist politics has fallen apart in the post-Cold War period, we are left with fairly small, radical Islamist sects – in other words, with those very groups that were forged as a bulwark against secular democratic politics in the first place.
     
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    http://www.antiwar.com/orig/oneill.php?articleid=9615