The next war in Libya is the one for its oil | Terry Macalister. The Libyan conflict has been a war about oil if not "for" oil. The country's economy is almost totally dependent on hydrocarbons and a key objective for the transitional government will be to get the wells up and running again as soon as possible. The British and French, meanwhile, are worried about future energy supplies. They are already pushing and shoving over who should get what of the energy proceeds before the political dust has even settled in Tripoli (just as BP and Shell are once again sitting pretty in Iraq following western military intervention there). The UK government has been working hand in glove with parts of the oil industry to bring about regime change in Libya. Certainly the French blew the gaff on Thursday. The British have not been so public about their expectations but we know that BP has already held talks with the new opposition leaders and are preparing to re-enter the country.
And the prospects look good. What happened in Iraq is instructive. Fukushima Amplifies Japanese Energy Import Dependence. One Year After Fukushima, Japan Faces Shortages of Energy, Trust. The tsunami that knocked out critical back-up cooling power at the Fukushima Daiichi nuclear power plant on March 11, 2011, is still, in a sense, rolling over Japan's energy system. Only two of the nation's 54 nuclear power plants are still in operation, and by the end of next month, those will be shut down, too, extinguishing the source that provided one-third of the electricity for the world's third-largest national economy before the Tohoku earthquake. One by one, local government officials have used the power they have under Japanese law to halt nuclear generation, by refusing to sign off on restart of any reactor after its routine maintenance shutdown. Until and unless the national government can convince prefecture officials of the safety of atomic energy in the earthquake- and tsunami-prone country, Japan faces a severe electricity shortfall that will manifest itself when hot, humid summer weather ratchets up demand for power.
After the Deluge (Related:"Japan's Nuclear Refugees") Venezuela, Oil and Chavez: a Tangled Tale. Venezuela is ultimately what is known as a 'petro-state'. Oil revenues account for 94 percent of export earnings, 50 percent of budget revenues, and 30 percent of GDP. But since 2001, overall oil production has fallen by roughly one-quarter,while since 1997; oil exports have dropped by almost 50 percent. It is no coincidence that these declines coincide with Hugo Chavez becoming President in 1998. Venezuela nationalized its oil industry in 1976, creating the state-run company Petroleos de Venezuela (PDVSA). Upon taking office, Chavez immediately increased state control of the oil industry even more, in order to gain more control of itscoffers.
In 2002,nearly a half of PDVSA workers went on strike to pressure Chavez to call early elections. Despite his authoritarian tendencies, Chavez is still idolized by many in Venezuela for having greatly improved the standard of living for his people, giving them access to healthcare and education. This means less government revenues. 8 Long Term Economic and Environmental Effects of the Gulf Oil Spill. As oil continues to pour into the Gulf of Mexico at a staggering rate, many are now starting to realize that the pain from this oil spill will be felt not just for months or years - but for decades.
At least 4.2 million gallons of oil (and some estimates put the total at far higher than that) are already in the Gulf of Mexico causing untold damage to the ecologically fragile Louisiana coast. The oil has already made contact with the Chandeleur Islands off of the coast of Louisiana, and over the next few days more areas are expected to see oil come ashore. But just because this disaster is unfolding in slow-motion does not mean that this is not going to be a complete and utter tragedy for the Gulf Coast region. In fact, many of those living along the Gulf Coast now fear that this oil spill is going to do far more damage to the region than Hurricane Katrina did.
It certainly doesn't help that those attempting to stop the leak don't really seem to know what they are doing. "Top Hat"? By. Katrina and Oil Prices. Hurricane Katrina caused severe damage to U.S.refinery and production capacity in the Gulf of Mexico. Oil prices briefly spiked to above $70 per barrel before dropping after President Bush decided to release 30 million gallons from the country’s Strategic Petroleum Reserve (SPR). With demand already high and supplies stretched—the world currently consumes 85 million barrels of oil a day, only 1 million short of total global pumping capacity—the crisis caused by Katrina couldn’t have come at a worse time.
Richard Karp, spokesman for the American Petroleum Institute (API), talks about Katrina’s impact. He was interviewed by Esther Pan, cfr.org staff writer, on September 6, 2005. What will be Katrina’s impact on worldwide oil output and prices? First, obviously, Katrina had a major impact on the U.S. industry infrastructure. Between the refinery capacity and production capacity lost, what’s more significant? Both are equally significant in different ways.
So not terrible. Where does it go? 'Grave fears' for energy industry in North Africa - Africa. The British energy giant is Algeria's largest investor in a country that is the third-largest supplier of gas to the EU. BP, already a major investor in Libya, had been granted new gas licences in the country days before Islamic terrorists took over the In Amenas gas plant near the Algerian/Libyan border. With Bob Dudley, BP's chief executive, warning last night that there remained "grave fears" for some of his workers, senior industry insiders said there would have to be careful consideration of security and protection from al-Qa'ida in the Islamic Maghreb (AQIM) before BP further expanded in the region. A source said: "The Algerians are very security conscious, and they have to be. They have a massive problem, as does Libya, as does Morocco. This is a serious issue.
"But BP will want to look at this again, as security is the key aspect. It is unlikely that BP will scale back operations in Algeria, but the source said that expansion across the region would need to be reconsidered. EU threatens Russia with sanctions amid market turmoil. Across the Atlantic, the Dow Jones index opened as much as 250.46 points lower, a drop of around 1.5pc, before rallying to trade around 150 points down.
“While the direct economic significance of the Ukraine is clearly small, recent events have given the markets the potential for another sovereign default and the scope for a sharp increase in geopolitical risk,” said Alastair George, investment strategist at Edison Investment Research, adding that “this crisis may be only at its early stages”. Russia’s leading indices, the Micex and RTS, plunged 11pc and 12pc respectively to lose $58bn (£35bn) in value - more than the cost of the Sochi Winter Olympics – with the 8.6pc fall in the share price of state-backed oil group Rosneft taking its toll on BP. The British oil giant owns 19.75pc of Rosneft, and saw its stake lose more than $1bn of value.
“The rouble’s weakening will have considerable inflationary consequences,” he was quoted as saying. “There will not be a collapse.” Attack at Algeria's In Amenas Gas Plant Heralds New Risks for Energy Development. The siege by Islamic militants at a remote Sahara desert natural gas plant in Algeria this week signaled heightened dangers in the region for international oil companies, at a time when they have been expanding operations in Africa as one of the world's last energy frontiers. (See related story: "Pictures: Four New Offshore Drilling Frontiers. ") As BP, Norway's Statoil, Italy's Eni, and other companies evacuated personnel from Algeria, it was not immediately clear how widely the peril would spread in the wake of the hostage-taking at the sprawling In Amenas gas complex near the Libyan border.
Map by National Geographic Algeria, the fourth-largest crude oil producer on the continent and a major exporter of natural gas and refined fuels, may not have been viewed as the most hospitable climate for foreign energy companies, but that was due to unfavorable financial terms, bureaucracy, and corruption. "A Hot Place to Drill" This story is part of a special series that explores energy issues.
Ukraine crisis: Kiev faces halt of Russian gas supplies. 16 June 2014Last updated at 04:14 ET The two sides have been in talks after Russia withdrew a deal to subsidise gas exports to Ukraine Russia's state-owned gas giant Gazprom says Ukraine has to pay upfront for its gas supplies, after Kiev failed to settle its huge debt. Gazprom had warned it would cut supplies if Ukraine failed to pay $1.95bn (£1.15bn) - out of $4.5bn it says it is owed - by 06:00 GMT.
There is no confirmation supplies have been ended. The Russian firm said it would continue to supply gas to Europe. Russia-Ukraine ties remain tense since Moscow annexed Crimea in February. Kiev accuses Moscow of supporting separatists in the east of the country. 'Slim chances' "Today, from 10:00 Moscow time, Gazprom, according to the existing contract, moved Naftogaz [Ukraine's state-owned company] to prepayment for gas supplies," Gazprom said in a statement. "From today, the Ukrainian company will receive Russian natural gas only in the amounts it has paid for. " "We reached no agreement. What does Iraq's crisis mean for oil? 13 June 2014Last updated at 12:57 ET The Iraqi army has struggled to contain insurgency in the north of the country Islamist militants in Iraq have seized two new towns and threaten to move on Baghdad, leading to a sense of fear in the oil market. The UN says hundreds have been killed as the Sunni-led Islamists advanced into Diyala province in the east - near Iran and close to the capital - having seized Mosul and Tikrit to the north.
Led by the Islamic State in Iraq and the Levant (ISIS), the insurgents have threatened to push to regions further south dominated by Iraq's Shia Muslim majority, whom they regard as "infidels". We take a look at why this is leading to higher oil prices. Where is the fighting? Much of the fighting and seized territories are in the north of the country, while about 70% of the production is in the south, says David Horgan, chief executive of Petrel Resources, an oil company that's been in Iraq since 1999.
"It's difficult to get people and capital committed to Iraq. " Iraq crisis: Battle grips vital Baiji oil refinery. 18 June 2014Last updated at 11:28 ET LIVE: BBC News special programme on the crisis in Iraq The Iraqi military says it has driven off Islamist-led militants attacking the country's biggest oil refinery amid reports it had been overrun. The army said 40 attackers had been killed, a claim which could not be verified independently. But an official source told Reuters the rebels had seized 75% of the Baiji refinery north of Baghdad. PM Nouri Maliki has urged Iraqis to unite against the militants in a televised speech. Government forces are battling to push back ISIS (Islamic State in Iraq and the Levant) and its Sunni Muslim allies in Diyala and Salahuddin provinces, after the militants overran the second city, Mosul, last week.
US President Barack Obama is due to discuss the Iraq crisis with senior Congress members on Wednesday. Senate leader Harry Reid, a Democrat, said he did not "support in any way" getting American troops involved in the Iraqi "civil war". In other developments: 'A setback' Somali piracy 'threatens global oil supplies' 10 February 2011Last updated at 00:12 The Irene SL was attacked about 400 miles (650km) south-east of Muscat A tanker owners' group has urged governments to do more to combat piracy in the Indian Ocean, saying hijackings could disrupt global oil supplies.
It said Somali pirates were now using at least 20 seized vessels as mother ships to launch attacks in the region. The warning follows the latest hijacking by of a supertanker carrying some $200m (£125m) worth of crude oil off the coast of Oman. The Irene SL was on its way from the Gulf to the US when it was attacked. Joe Angelo, the head of the International Association of Independent Tanker Owners (Intertanko), said that the Greek-flagged tanker's cargo represented approximately 20% of one day's US crude oil imports. "The piracy situation is now spinning out of control into the entire Indian Ocean," Mr Angelo told Reuters. Intertanko represents the owners of much of the world's tanker fleet. 25-member crew.
Struggle for Iraq: In maps. Islamic State (IS) militants made some major territorial gains in south-western Syria in 2015 - but they lost several key towns in Iraq, as well as parts of Syria's northern border with Turkey. The rapid advance by the groups militant fighters threw the region into chaos in 2014 and led to the launch of air strikes on IS targets in Iraq by a coalition of countries headed by the US in August 2014 and in Syria a month later.
The jihadist group, which has fighters from across the world, announced the establishment of a "caliphate" - an Islamic state - stretching from Aleppo in Syria to the province of Diyala in Iraq. See where IS have made territorial gains and losses, Jan-Dec 2015 December 2015 January 2015 Russia began carrying out air strikes in Syria in September 2015 after a request for help from Syrian President Bashar al-Assad, who has clung on to power despite more than four years of civil war. How many strikes have been carried out? What is Russia's endgame in Syria? Battlegrounds.