Translated to English (PDF): German Federal Defense Forces’ study on Peak Oil and its implications (economic and geopolitical shifts and instability)
December 3, 2012 Leave a comment
Financial markets, monetary policy, geopolitics, precious metals, frauds, news and other delusions
November 30, 2012 Leave a comment
Certainly the folks at Gazprom are having a good snicker, reveling in the mockery that has been made of what should have been a landmark Ukraine-Spain gas deal that would have loosened Russia’s gas grip on Kiev.
Everyone wondered how Russia would respond to Ukraine’s attempt at gas independence. But this is what happens when you mess with Gazprom.
It was a horrible moment for Ukraine on Monday—all the more horrible because the whole event was televised—when the historical $1.1 billion deal it was about to sign with Spain’s Gas Natural Fenosa turned out to be fake.
Why was the deal historical? It would have secured $1.1 billion in investment for the construction of Ukraine’s first liquid natural gas (LNG) terminal on the Black Sea and a pipeline connecting the country’s vast gas network to the terminal.
More to the point, this would enable Ukraine to import by tanker up to 10 billion cubic meters of European gas at a price 20% cheaper than Gazprom. Even more to the point, it would be a major first step toward reducing Ukraine’s dependence on Russia.
Related Article: Europe Hot for Algerian Shale Gas
The deal was that investors had apparently signed agreements through a newly formed consortium for the construction of the $1.1 billion LNG terminal.
Here’s how the ill-fated signing ceremony went down:
While Ukrainian Prime Minister Mykola Azarov and Energy Minister Yuriy Boyko were cutting the ribbon on the construction of the terminal in a live televised ceremony, the country’s investment chief, Vladislav Kaskiv, was attending the official investment signing ceremony elsewhere, also via live video feed. This is where walls caved in very suddenly.
Signing on behalf of Fenosa was one Jordi Sarda Bonvehi. At the 11th hour, Fenosa let it be known that they have no idea who Bonvehi is and that he certainly does not represent the company in any way. Fenosa apparently had no idea it was signing a landmark agreement with Ukraine.
October 17, 2012 Leave a comment
US export to Iran jumps by third
Despite increased sanctions against Iran this year, US exports to the Islamic Republic have increased by about a third, bringing earnings nearly $50 million higher in the first eight months of this year than in all of 2011.
The US Census Bureau found that from January through August, exports to Iran totaled $199.5 million, an increase of about one third from last year’s $150.8 during the same period. Most of the exports came from the sale of wheat and other grains, which were valued at $89.2 million and comprised 45 percent of all US exports to Iran, Reuters reports.
Dairy products and medical equipment have also continued to enter Iran, with sales of milk products more than doubling since last year. The sale of such goods is permitted with a Treasury Department export license.
But had the US stopped exporting wheat to Iran, exports would have declined overall.
American companies have also complained that it is difficult for them to get paid for their sales, since many of Iran’s largest banks have been blacklisted by the US for involvement in terrorism or the country’s nuclear program. Some Americans, especially religiously affiliated or non-profit groups, have argued that banking sanctions could prevent humanitarian trade.
October 13, 2012 Leave a comment
The case is being heard at the Hague Civil Court in the Netherlands, with four villagers and the environmentalist group Friends of the Earth calling attention to the case.
Villagers say oil spills, dating back to 2005, from Shell’s pipelines have ruined fish ponds and farmlands in the Niger Delta, making it difficult for them to provide for their families.
“If you are drinking water you are drinking crude, if you are eating fish, you are eating crude, if you are breathing, you are breathing crude,” one of the farmers, Eric Dooh, said.
August 12, 2012 Leave a comment
(Reuters) – Asia’s major crude buyers are finding ways around tough U.S. and EU sanctions to maintain imports from Iran, suggesting that, for now, the worst may be over for the OPEC producer that is losing more than $100 million a day in oil export revenues.
China, India, Japan and South Korea buy most of the one million barrels per day of crude Iran is able to export despite financial, shipping and insurance sanctions aimed at curbing funds for its controversial nuclear program.
After a lull in imports in the middle of the year caused by Asian refineries reducing purchases as sanctions kicked in, analysts expect shipments to rise in August and September.
But on average, imports are likely to remain steady until the end of the year, unless the United States and the European Union come up with fresh sanctions to curb Iran’s earnings.
“The drop in Iranian oil exports has leveled out over the past couple months at roughly 1 million barrels per day below 2011 levels,” said Trevor Houser, a partner at the New York-based Rhodium Group and a former State Department adviser.
July 27, 2012 Leave a comment
Royal Dutch Shell Plc (RDSA), operator of Nigeria’s largest oil fields, agreed to invest about $4 billion with its partners in two oil and gas projects in the country.
The Shell Petroleum Development Co. of Nigeria, which Shell operates as a venture with Eni SpA (ENI), Total SA (FP) and the government, will develop the Forcados-Yokri project and the Southern Swamp associated gas gathering project, the company said today in a statement. The projects are expected to pump 100,000 barrels and 85,000 barrels of oil equivalent a day at peak, respectively.
Southern Swamp will “collect gas, reduce flaring, while there is associated oil production and it will produce gas for domestic use for power,” Chief Financial Officer Simon Henry told reporters today in London. Both of the projects “are very strategic” for Nigeria. The Forcados-Yokri fields are located in shallow waters in the west of the country.
Shell, based in The Hague, last month said it planned to invest about $3.5 billion in a natural-gas project in Imo state in the southeast. It is working on 17 gas projects in Nigeria, set to cost a total of $6 billion, according to the company.
July 19, 2012 Leave a comment
Is the petrodollar dead? Well, not yet, but the nails are being hammered into the coffin even as you read this. For decades, most of the nations of the world have used the U.S. dollar to buy oil and to trade with each other. In essence, the U.S. dollar has been acting as a true global currency. Virtually every country on the face of the earth has needed big piles of U.S. dollars for international trade. This has ensured a huge demand for U.S. dollars and U.S. government debt. This demand for dollars has kept prices and interest rates low, and it has given the U.S. government an incredible amount of power and leverage around the globe. Right now, U.S. dollars make up more than 60 percent of all foreign currency reserves in the world. But times are changing. Over the past couple of years there has been a whole bunch of international agreements that have made the U.S. dollar less important in international trade. The mainstream media in the United States has been strangely quiet about all of these agreements, but the truth is that they are setting the stage for a fundamental shift in the way that trade is conducted around the globe. When the petrodollar dies, it is going to have an absolutely devastating impact on the U.S. economy. Sadly, most Americans are totally clueless regarding what is about to happen to the dollar.
One of the reasons the Federal Reserve has been able to get away with flooding the financial system with U.S. dollars is because the rest of the world has been soaking a lot of those dollars up. The rest of the world has needed giant piles of dollars to trade with, but what is going to happen when they don’t need dollars anymore?
Could we see a tsunami of inflation as demand for the dollar plummets like a rock?
The power of the U.S. dollar has been one of the few things holding up our economy. Once that leg gets kicked out from under us we are going to be in a whole lot of trouble.
The following are 11 international agreements that are nails in the coffin of the petrodollar….
#1 China And Russia
China and Russia have decided to start using their own currencies when trading with each other. The following is from aChina Daily article about this important agreement….
China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.
Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.
“About trade settlement, we have decided to use our own currencies,” Putin said at a joint news conference with Wen in St. Petersburg.
The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.