industryterm:oil shipment

  • Tom Stevenson reviews ‘AngloArabia’ by David Wearing · LRB 9 May 2019
    https://www.lrb.co.uk/v41/n09/tom-stevenson/what-are-we-there-for

    It is a cliché that the United States and Britain are obsessed with Middle East oil, but the reason for the obsession is often misdiagnosed. Anglo-American interest in the enormous hydrocarbon reserves of the Persian Gulf does not derive from a need to fuel Western consumption . [...] Anglo-American involvement in the Middle East has always been principally about the strategic advantage gained from controlling Persian Gulf hydrocarbons, not Western oil needs. [...]

    Other parts of the world – the US, Russia, Canada – have large deposits of crude oil, and current estimates suggest Venezuela has more proven reserves than Saudi Arabia. But Gulf oil lies close to the surface, where it is easy to get at by drilling; it is cheap to extract, and is unusually ‘light’ and ‘sweet’ (industry terms for high purity and richness). It is also located near the middle of the Eurasian landmass, yet outside the territory of any global power. Western Middle East policy, as explained by Jimmy Carter’s national security adviser, Zbigniew Brzezinski, was to control the Gulf and stop any Soviet influence over ‘that vital energy resource upon which the economic and political stability both of Western Europe and of Japan depend’, or else the ‘geopolitical balance of power would be tipped’. In a piece for the Atlantic a few months after 9/11, Benjamin Schwarz and Christopher Layne explained that Washington ‘assumes responsibility for stabilising the region’ because China, Japan and Europe will be dependent on its resources for the foreseeable future: ‘America wants to discourage those powers from developing the means to protect that resource for themselves.’ Much of US power is built on the back of the most profitable protection #racket in modern history.

    [...]

    It is difficult to overstate the role of the Gulf in the way the world is currently run. In recent years, under both Obama and Trump, there has been talk of plans for a US withdrawal from the Middle East and a ‘#pivot’ to Asia. If there are indeed such plans, it would suggest that recent US administrations are ignorant of the way the system over which they preside works.

    The Arab Gulf states have proved well-suited to their status as US client states, in part because their populations are small and their subjugated working class comes from Egypt and South Asia. [...] There are occasional disagreements between Gulf rulers and their Western counterparts over oil prices, but they never become serious. [...] The extreme conservatism of the Gulf monarchies, in which there is in principle no consultation with the citizenry, means that the use of oil sales to prop up Western economies – rather than to finance, say, domestic development – is met with little objection. Wearing describes the modern relationship between Western governments and the Gulf monarchs as ‘asymmetric interdependence’, which makes clear that both get plenty from the bargain. Since the West installed the monarchs, and its behaviour is essentially extractive, I see no reason to avoid describing the continued Anglo-American domination of the Gulf as #colonial.

    Saudi Arabia and the other five members of the Gulf Co-operation Council are collectively the world’s largest buyer of military equipment by a big margin. [...]. The deals are highly profitable for Western arms companies (Middle East governments account for around half of all British arms sales), but the charge that Western governments are in thrall to the arms companies is based on a misconception. Arms sales are useful principally as a way of bonding the Gulf monarchies to the Anglo-American military. Proprietary systems – from fighter jets to tanks and surveillance equipment – ensure lasting dependence, because training, maintenance and spare parts can be supplied only by the source country. Western governments are at least as keen on these deals as the arms industry, and much keener than the Gulf states themselves. While speaking publicly of the importance of fiscal responsibility, the US, Britain and France have competed with each other to bribe Gulf officials into signing unnecessary arms deals.

    Control of the Gulf also yields less obvious benefits. [...] in 1974, the US Treasury secretary, William Simon, secretly travelled to Saudi Arabia to secure an agreement that remains to this day the foundation of the dollar’s global dominance. As David Spiro has documented in The Hidden Hand of American Hegemony (1999), the US made its guarantees of Saudi and Arab Gulf security conditional on the use of oil sales to shore up the #dollar. Under Simon’s deal, Saudi Arabia agreed to buy massive tranches of US Treasury bonds in secret off-market transactions. In addition, the US compelled Saudi Arabia and the other Opec countries to set oil prices in dollars, and for many years Gulf oil shipments could be paid for only in dollars. A de facto oil standard replaced gold, assuring the dollar’s value and pre-eminence.

    For the people of the region, the effects of a century of AngloArabia have been less satisfactory. Since the start of the war in Yemen in 2015 some 75,000 people have been killed, not counting those who have died of disease or starvation. In that time Britain has supplied arms worth nearly £5 billion to the Saudi coalition fighting the Yemeni Houthis. The British army has supplied and maintained aircraft throughout the campaign; British and American military personnel are stationed in the command rooms in Riyadh; British special forces have trained Saudi soldiers fighting inside Yemen; and Saudi pilots continue to be trained at RAF Valley on Anglesey. The US is even more deeply involved: the US air force has provided mid-air refuelling for Saudi and Emirati aircraft – at no cost, it emerged in November. Britain and the US have also funnelled weapons via the UAE to militias in Yemen. If the Western powers wished, they could stop the conflict overnight by ending their involvement. Instead the British government has committed to the Saudi position. As foreign secretary, Philip Hammond pledged that Britain would continue to ‘support the Saudis in every practical way short of engaging in combat’. This is not only complicity but direct participation in a war that is as much the West’s as it is Saudi Arabia’s.

    The Gulf monarchies are family dictatorships kept in power by external design, and it shows. [...] The main threat to Western interests is internal: a rising reminiscent of Iran’s in 1979. To forestall such an event, Britain equips and trains the Saudi police force, has military advisers permanently attached to the internal Saudi security forces, and operates a strategic communications programme for the Saudi National Guard (called Sangcom). [...]

    As Wearing argues, ‘Britain could choose to swap its support for Washington’s global hegemony for a more neutral and peaceful position.’ It would be more difficult for the US to extricate itself. Contrary to much of the commentary in Washington, the strategic importance of the Middle East is increasing, not decreasing. The US may now be exporting hydrocarbons again, thanks to state-subsidised shale, but this has no effect on the leverage it gains from control of the Gulf. And impending climate catastrophe shows no sign of weaning any nation from fossil fuels , least of all the developing East Asian states. US planners seem confused about their own intentions in the Middle East. In 2017, the National Intelligence Council described the sense of neglect felt by the Gulf monarchies when they heard talk of the phantasmagorical Asia pivot. The report’s authors were profoundly negative about the region’s future, predicting ‘large-scale violence, civil wars, authority vacuums and humanitarian crises persisting for many years’. The causes, in the authors’ view, were ‘entrenched elites’ and ‘low oil prices’. They didn’t mention that maintenance of both these things is US policy.

    #etats-unis #arabie_saoudite #pétrole #moyen_orient #contrôle

  • Oman’s Port Strategy – LobeLog
    https://lobelog.com/omans-port-strategy

    Within the Arabian Peninsula, Duqm and Salalah have much potential to further shape geopolitical relations amid strategic shifts in the regional balance of power. Any major investments by Saudi Arabia and the United Arab Emirates (UAE) in Duqm (and other Omani projects) should be watched closely for their effect on intra-Gulf politics. Some analysts contend that both countries are attempting to restrict the Sultanate’s geopolitical maneuverability as Muscat and Tehran try to maintain cooperative relations. As Riyadh and Abu Dhabi may use their petro-dollars to influence Oman’s future position in an increasingly polarized Gulf, they could use investments in Omani infrastructure projects as another way to gain leverage. Likewise, Oman’s trade infrastructure proved highly useful to Qatar last year when Doha needed alternatives to Jebel Ali as a logistics hub linking the emirate to the global economy.

    It goes without saying that Iran itself is a key factor in this equation. If tensions in the Strait of Hormuz escalate, Duqm and Salalah would need to prepare for any trade-related ramifications. The Omani government must stay vigilant and aware of any escalations of friction amid increasingly harsh rhetoric from Washington and Tehran that threaten to unleash an armed conflict in or near the strait. Yet the ports’ advantageous geographic locations could help Gulf states continue to sell their oil and gas in the event of such a crisis, as shipments via Duqm and Salalah will not need to travel through the strait. Whereas Saudi Arabia has its Red Sea coast and the UAE has one Emirate (Fujairah) outside the strait, which would enable these two states to continue exporting oil in the event of the strait’s closure, Bahrain, Kuwait, and Qatar are fully dependent on that artery for their hydrocarbon exports. As Amer No’man Ashour, chief analyst and economist at CNBC Arabia, explains:

    We all know that more than 30 per cent of oil shipments pass through the Strait of Hormuz and with this shift via the Port of Fujairah and the Duqm port, the GCC countries will ensure that their oil shipments are safe, and this will decrease the risk and the cost of insurance on ships… Al-Duqm Port is one of the best ever solutions to the oil issue… It is 800 kilometres away from UAE borders. We know that the UAE has had a partial solution via Fujairah with a capacity of 1.1 million barrels per day, but the production of the UAE is almost 3 million barrels per day. Most of Kuwait, Qatari and Saudi oil is produced in the eastern parts of the Gulf area and this new Omani port will be very suitable for exporting oil to the world.

    #oman #grand_jeu

  • Pétrole : en suspendant ses exportations, Ryad mise sur une intervention internationale - Libération
    http://www.liberation.fr/futurs/2018/07/26/petrole-en-suspendant-ses-exportations-ryad-mise-sur-une-intervention-int

    En suspendant les exportations de brut par le détroit stratégique de Bab el-Mandeb après une attaque de rebelles yéménites, l’Arabie saoudite espère susciter une intervention internationale dans le conflit oublié du Yémen, estiment des analystes.

    La décision du premier exportateur mondial de pétrole est tombée mercredi à la suite d’une attaque qui a visé en mer Rouge deux supertankers transportant 4 millions de barils, selon Ryad, et un bâtiment de guerre saoudien, selon les rebelles Houthis.

    on aurait donc 2 VLCC et un navire militaire

  • Saudi Arabia suspends oil exports through Red Sea lane after Houthi attack | Reuters
    https://uk.reuters.com/article/uk-yemen-security/houthis-target-saudi-warship-off-yemen-coast-al-masirah-tv-idUKKBN1KF0WN

    Top oil exporter Saudi Arabia said on Thursday it was “temporarily halting” all oil shipments through the strategic Red Sea shipping lane of #Bab_al-Mandeb after an attack on two big oil tankers by Yemen’s Iran-aligned Houthi movement.

    Saudi Energy Minister Khalid al-Falih said in a statement sent by his ministry that the Houthis had attacked two Saudi Very Large Crude Carriers (VLCCs) in the Red Sea on Wednesday morning, one of which sustained minimal damage.

    Saudi Arabia is temporarily halting all oil shipments through Bab al-Mandeb Strait immediately until the situation becomes clearer and the maritime transit through Bab al-Mandeb is safe,” the statement said.

    #Bab_el_Mandeb

    • Les deux pétroliers, non identifiés, appartiennent à Bahri, la filiale Maritime de Saudi Aramco.
      http://www.bahri.sa/Images/logo.aspx?width=423&height=129&ext=.png

      Saudi Arabia suspends oil exports through Bab al-Mandeb | Yemen News | Al Jazeera
      https://www.aljazeera.com/news/2018/07/saudi-arabia-suspends-oil-exports-bab-el-mandeb-180725215417388.html

      A statement by the coalition said one tanker was attacked west of Yemen’s Hodeidah port but did not name the vessel or describe how it was hit.

      The Saudi oil tanker was subjected to slight damage due to the attack by the Houthi militia,” the statement said. “Thankfully the attack failed due to immediate intervention of the coalition’s fleet.

      A statement from Saudi Aramco said “two Very Large Crude Carriers [VLCCs], each with a two million barrels capacity ... were attacked by terrorist Houthi militia this morning in the Red Sea. One of the ships sustained minimal damage. No injuries nor oil spill have been reported”.

    • هل هُناك عَلاقة بين هُجوم الحوثيين على نَاقِلَة نِفط سُعوديّة في البَحر الأحمر وتَهديد إيران بإغلاق مَضيق هرمز؟ ولماذا تتزايَد تسريبات الإمارات حَول نواياها بسَحبِ قُوّاتِها مِن اليَمن هَذهِ الأيّام؟ وكيف نُفَسِّر الصَّمت السُّعوديّ تُجاهَها؟ | رأي اليوم
      https://www.raialyoum.com/index.php/%d9%87%d9%84-%d9%87%d9%86%d8%a7%d9%83-%d8%b9%d9%84%d8%a7%d9%82%d8%a9-%d8%

      Edito ABA dans Rai al-yom : "Y a-t-il un lien entre l’assaut des Houthis contre le pétrolier saoudien en mer Rouge et les menaces iraniennes de fermer le détroit d’Hormuz ? Pourquoi voit-on se multiplier les rumeurs à propos d’un retrait des forces émiriennes au Yémen ? Pourquoi ce silence saoudien sur ce sujet ?

    • D’après Mujtahidd, il ne s’agit pas d’un pétrolier mais bel et bien d’un bâtiment de guerre....

      السفينة التي ضربت قرب باب المندب كانت بارجة حربية سعودية لكن ابن سلمان تحاشى أن يعترف أن الحوثيين لديهم قدرة على تدمير سفنه الحربية فزعم أنها ناقلة نفط الأحمق لم يدرك أن الاعتراف بعجز كامل عن حماية باب المندب بعد ثلاث سنوات من الحرب أخطر من الاعتراف بضرب بارجة حربية

    • UAE Calls Houthi Attack on Oil Shipments Totally Irresponsible - The New York Times
      https://www.nytimes.com/reuters/2018/07/26/world/26reuters-yemen-security-emirates.html

      An attack on Wednesday by Yemen’s Iran-aligned Houthi rebels on two oil tankers in the Red Sea was totally irresponsible, United Arab Emirates Minister of State for Foreign Affairs Anwar Gargash said.

      This is a totally irresponsible act,” he told an audience in London on Thursday. “The effect of it actually is much wider than the region.

      He added: “I think this is another example of why the Houthi takeover of the Yemeni government in Sanaa should end.

      Saudi Arabia and arch-foe Iran have been locked in a three-year proxy war in Yemen, which lies on one side of the Bab al-Mandeb strait at the southern mouth of the sea, one of the most important trade routes for oil tankers heading from the Middle East to Europe.

      The UAE is part of a Saudi-led coalition of Arab states fighting to gain control of the Houthi-controlled main port of Hodeidah.

      The only way forward is to get Hodeidah,” Gargash said. “What we are planning to do is give diplomacy every possible chance to secure that.

      #yapuka … l’offensive « finale » sur Hodeida démarrée le 13 juin est « en pause » pour laisser sa chance à la diplomatie depuis le 1er juillet.

    • Saudi Arabia resumes oil exports through Red Sea lane | Reuters
      https://www.reuters.com/article/us-yemen-security/saudi-arabia-to-resume-oil-exports-through-red-sea-lane-idUSKBN1KP0B7

      Top oil exporter Saudi Arabia said on Saturday it has resumed all oil shipments through the strategic Red Sea shipping lane of Bab al-Mandeb.

      Saudi Arabia halted temporarily oil shipments through the lane on July 25 after attacks on two oil tankers by Yemen’s Iran-aligned Houthi movement.

      A statement by the Energy Ministry said shipments had resumed on Saturday.

      The decision to resume oil shipment through the strait of Bab al-Mandeb was made after the leadership of the coalition has taken necessary measures to protect the coalition states’ ships,” Energy Minister Khalid al-Falih said in the ministry statement.

  • Saudi oil shipments to Egypt halted indefinitely, Egyptian officials say
    http://www.reuters.com/article/us-egypt-saudi-oil-idUSKBN1320RQ

    The move comes as a source in Molla’s delegation said late on Sunday evening that he would visit Iran, Saudi Arabia’s main political rival, to try to strike new oil deals.

    Egypt’s oil minister makes rare trip to Iran for oil talks after Saudi suspension
    http://www.reuters.com/article/us-egypt-iran-oil-idUSKBN131125

  • Struggling to Starve ISIS of Oil Revenue, U.S. Seeks Assistance From Turkey - NYTimes.com
    http://www.nytimes.com/2014/09/14/world/middleeast/struggling-to-starve-isis-of-oil-revenue-us-seeks-assistance-from-turkey.ht

    1) plutôt que de détruire systématiquement les camions contenant le #pétrole de l’#ISIS destiné à la #Turquie, les #Etats-Unis préfèrent demander très poliment à cette dernière de ne plus acheter ledit pétrole (achat qui permet une grosse partie du soi-disant « autofinancement » que l’on entend partout.)

    2) il est « très difficile » au Département du trésor d’établir des #sanctions contre les membres de l’"élite turque" qui achètent ce pétrole, contrairement à ce qui est fait contre des Iraniens.

    Western intelligence officials say they can track the ISIS oil shipments as they move across Iraq and into Turkey’s southern border regions. Despite extensive discussions inside the Pentagon, American forces have so far not attacked the tanker trucks , though a senior administration official said Friday “that remains an option.”

    (...)

    “Turkey in many ways is a wild card in this coalition equation,” said Juan Zarate, a senior adviser at the Center for Strategic and International Studies and author of “Treasury’s War: The Unleashing of a New Era of Financial Warfare.” “It’s a great disappointment: There is a real danger that the effort to degrade and destroy ISIS is at risk. You have a major NATO ally, and it is not clear they are willing and able to cut off flows of funds, fighters and support to ISIS.”

    Turkey declined to sign a communiqué on Thursday in Saudi Arabia that committed Persian Gulf states in the region to counter ISIS, even limited to the extent each nation considered “appropriate.” Turkish officials told their American counterparts that with 49 Turkish diplomats being held as hostages in Iraq, they could not risk taking a public stance against the terror group.

    Still, administration officials say they believe Turkey could substantially disrupt the cash flow to ISIS if it tried.

    “Like any sort of black market smuggling operation, if you devote the resources and the effort to attack it, you are unlikely to eradicate it, but you are likely to put a very significant dent in it,” a senior administration official said on Saturday.

    A second senior official said that Mr. Obama’s national security team had spoken several times with Mr. Erdogan and other top Turkish officials in the past two weeks about what they can do to help counter ISIS, and that ISIS’ financing was part of those discussions. “Stopping the flow of foreign fighters, border security and dismantling ISIL funding networks are also key aspects of our strategy, and we will continue to work closely with Turkey and our other partners in the region on these efforts in the days ahead,” the official said, using a different acronym to describe the militant organization.

    At the core of the talks are the dozen or so oil fields and refineries in Iraq and Syria on territory the group has controlled. The output has provided a steady stream of financing, which experts place at $1 million to $2 million a day — a pittance in terms of the global oil market, but a huge windfall for a terror group.

    “Oil is a huge part of the financing equation” that empowers ISIS, said James Phillips, the senior fellow for Middle Eastern Affairs at the Heritage Foundation, a Washington-based research center.

    The territory ISIS controls in Iraq alone is currently producing anywhere from 25,000 to 40,000 barrels of oil a day, which can fetch a minimum of $1.2 million on the black market, according to Luay al-Khatteeb, a visiting foreign policy fellow at the Brookings Doha Center, who also directs the Iraq Energy Institute. Some estimates have placed the daily income ISIS derives from oil sales at $2 million, though American officials are skeptical it is that high.

    “The key gateway through that black market is the southern corridor of Turkey,” Mr. Khatteeb said. “ Turkey is becoming part of this black economy ” that funds ISIS.

    But targeting the smuggling network has proved a major challenge, and so far the Turkish authorities have been unwilling to cooperate.

    They’ve been turning a blind eye to it, because they benefit from the lower price of smuggled black-market oil ,” Mr. Phillips said, “and I’m sure there are substantial numbers of Turks that are also profiting from this, maybe even government officials.”.

    The supply chain of routes, individuals, families and organizations that allow the oil to flow are well-established, some dating back decades, to when President Saddam Hussein of Iraq smuggled oil during the United Nations’ oil-for-food program. “Those borders have never been sealed, and they never will be sealed,” Mr. Phillips said.

    For the Obama administration, getting at ISIS’ oil revenue is far more complex than, say, its crackdown on Iran. That has been the administration’s most successful use of sanctions, and officials credit the effects on Iran’s economy, along with American sabotage of its nuclear facilities, for Iran’s reluctant decision to negotiate on the future of its nuclear enrichment program.

    But Iran used fairly conventional means of reaching oil markets, and not one of its techniques applies to ISIS’ black-market sales, which take place mostly through networks of smugglers.

    The long-term American plan appears focused on persuading Turkey to crack down on the smuggling networks — some of which, one Western diplomat noted, “ benefit a powerful Turkish elite ” — and aiming at the refiners who would ultimately have to turn the crude oil into petrochemical products. But gathering the intelligence is a slow process, analysts say.

    “It’s hard to use any of the suite of tools that are available to the U.S. Treasury Department to sanction people in this case,” said Patrick B. Johnston, a RAND Corporation researcher who is working on a top-to-bottom study of ISIS’ financing and organization. “Getting a grip on who the right financial targets would be at the Treasury Department would be difficult.”

    That is equally true of the other major source of ISIS money — its extortion activities in the areas it controls, said Mr. Johnston, who is examining declassified documents that detail the group’s funding streams. ISIS demands anywhere from 10 percent to 20 percent of revenue from businesses in its territories and operates other “mafia-style” rackets that yield as much as $1 million a day.

  • #Saudi_Arabia to gift $3 billion worth of #fuel to #Egypt government
    http://english.al-akhbar.com/content/saudi-arabia-gift-3-billion-worth-fuel-egypt-government

    Saudi fuel donations to Egypt from last month through August will be worth more than $3 billion, a top Egyptian energy official said, as part of a financial lifeline from the Gulf helping to ease the country’s energy crisis. Tarek el-Molla, head of state-run Egyptian General Petroleum Corp (EGPC), said Egypt had received an oil shipment from Saudi Arabia “at a value of between $650 and $700 million” in April and would keep getting the same amount monthly through August. read more

    #Top_News

  • U.S. Issues Safety Alert for Oil Trains - NYTimes.com
    http://www.nytimes.com/2014/05/08/business/us-orders-railroads-to-disclose-oil-shipments.html

    Calling the movement of crude oil by rail an “imminent hazard” to the public, the federal Department of Transportation said on Wednesday that railroads would be required to notify local emergency responders whenever oil shipments traveled through their states.

    The emergency order follows a spate of accidents that have raised concerns about the safety of the trains that carry increasing amounts of crude oil from the #Bakken region of North Dakota across the United States.

    It said railroads with trains that carry more than one million gallons of Bakken crude, the equivalent of about 35 tank cars, must provide state emergency commissions with detailed information about their shipments within the 30 days of the emergency order. Typically, oil trains carry 100 cars or more.

    The requirement includes disclosing the number of trains each week, the specific routes the trains will travel and which counties they will cross.

    Until now, railroads were under no obligation to disclose any of that information and provided it only under strict conditions if it was requested.
    (…)
    The announcements come a week after an oil train derailed in Lynchburg, Va., spilling 30,000 gallons into the James River, erupting into flames and forcing the evacuation of 350 people.

    It was the latest in a series of accidents that have caught industry regulators as well as railroads off guard. Last year an oil train exploded in #Lac-Mégantic, Quebec, killing 47 people.

    The announcement on Wednesday included regulators’ starkest language yet about the dangers of crude oil transport; the regulators have been accused by lawmakers and safety advocates of being slow-footed.

    The number of accidents, the order said, “is startling, and the quantity of petroleum crude oil spilled as a result of those accidents is voluminous” in comparison with past accidents.