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“The North-South conflict started when Chevron discovered oil in southern Sudan in 1978. The Khartoum government was Arab-dominated ..and, gerrymandered jurisdictional boundaries ... to exclude the oil reserves from southern jurisdiction. John Garang, leader of the rebel Sudan People’s Liberation Army (SPLA), declared oil pipelines, pumping stations, & well-heads ... to be targets of war.
“For a time, oil companies fled the conflict ...but, in 1990s began to return. Chinese & Indian companies were aggressive, doing their drilling behind perimeters of bermed earth ...guarded by troops, to protect against rebel attacks.
A Chinese pipeline to the Red Sea first brought Sudanese oil to international markets.
“The northern regime in Khartoum wanted to impose shariah, or, Islamic law, on the Christian & animist South ...but, Khartoum dropped this demand ... under terms of the Comprehensive Peace Treaty, signed Jan. 2004 ... a treaty brokered w/ help of the U.S. ...signed at the expense of Darfur in western Sudan, an oil rich desert, the size of France. The South was permitted to have it’s own civil law, including, rights for women. But, oil revenues would be divided between Khartoum ... & Sudan People’s Liberation Army, SPLA. Under a power-sharing agreement, SPLA commander John Garang would be installed as vice president of Sudan. Darfur, to the west, was left out of the treaty.
“In western Sudan, Darfur is more Muslim & less Christian than southern Sudan ...but, black African, & identifies by tribes such as the Fur … Darfur, means ‘land of the Fur’.
In Darfur the practice of Islam was not extreme enough to suit the Islamists who controlled Khartoum in northern Sudan, so Darfur villages were burned to clear the way for drilling & pipelines, the land seized from Black farmers being given to Arabs from neighboring Chad.
‘In north Sudan, oil revenues to Khartoum have been about 1 million dollars a day, exactly the amount which the government funnels into arms, helicopters & bombers from Russia, tanks from Poland & China, missiles from Iran.
Oil is fueling genocide in Darfur,’ Morse said. In 1997, ‘when President Clinton added Sudan to the list of states sponsoring terrorism, government officials in Khartoum explained away the slaughter in Darfur ... as being an ancient rivalry between nomadic herding tribes in the north & Black African farmers in the south,’ Morse said, they denied responsibility for the militias, & claimed, they couldn’t control them … but continued training, arming & paying the militias,
Khartoum playing down its Islamist ideology & support of Osama bin Laden while imposing Islamic fundamentalism in Sudan.
The Islamist regime manipulated ethnic, racial, & economic tensions as part of a strategic drive to commandeer the country’s oil wealth … claiming about two million lives, mostly in the south, many by starvation, when government forces prevented humanitarian agencies from access to camps, another four million Sudanese remained homeless.
In Darfur, terrorist tactics of the Arab-dominated government, burning, pillaging, castration, & rape, are carried out by Arab militias riding on camels & horses.
“Gabon, Angola & Nigeria began exploiting oil several decades ago & suffer from intense corruption. In Nigeria, as in Angola, an overvalued exchange rate destroyed the non-oil economy. Local revolts over control of oil revenues triggered sweeping military repression in the Niger delta. Oil & exploration companies like Halliburton wield political & sometimes military power.
“In Sudan, roads & bridges built by oil firms are used to attack otherwise remote villages. Canada’s largest oil company, Talisman, is in court for allegedly aiding Sudan government forces in blowing up a church & killing church leaders, in order to clear land for pipelines & drilling. Under public pressure in Canada, Talisman sold its holdings in Sudan. Lundin Oil AB, a Swedish company, withdrew under similar pressure from human rights groups.
‘As Chinese & Indian companies venture into countries like Sudan, where risk-aversive multinationals hesitate to enter, questions are raised in the industry if state-owned companies are accurately judging risks to their own investments, or if they are just more willing to gamble w/ taxpayers’ money than multinationals are willing to gamble w/ shareholders’ investments,’ Keith said.
“In Sudan, Chinese state-owned companies exploit oil in the thick of fighting. In Jun. 2005, following new seismographic exploration in Sudan & w/ the power-sharing peace treaty about to be implemented, Khartoum & SPLA signed a flurry of oil deals w/ Chinese, Indian, British, Malaysian, & other oil companies.
Secretary of State Colin Powell stated Sept. 2004, United States determined genocide was happening in Darfur, but Bush had no comment after he was re-elected, the Bush Administration lobbied in Congress against the Darfur Peace & Accountability Act.
That bill called for beefing up the African Union peacekeeping force & imposing new sanctions on Khartoum, including referring individual officials to the International Criminal Court. The White House undercut Congressional efforts to stop genocide, seeking closer relations w/ Khartoum on grounds the regime was ‘cooperating in the war on terror.’
“According to Morse, ‘Nowhere is the potential impact of renewed war more threatening than in camps of refugees, the 4 million Internally Displaced Persons driven from their homes during the North-South civil war & several hundred thousand encamped at fringes of Khartoum as squatters or crowded into sprawling ghetto neighborhoods.
Further west, in Darfur & Chad, 2.5 million IDPs live in precarious limbo in makeshift camps, shelters cobbled together from plastic & sticks, prevented by conscripted soldiers of Khartoum armies from returning to their villages, wholly dependent on outside aid.’
“‘A tangle of pipes & metallic towers rises over the shimmering, rock-strewn desert north of the Sudanese capital Khartoum.
The gleaming oil refinery is the jewel of Sudan’s oil boom, the mid-point of a 900-mile pipeline from southern oilfields to the Red Sea, projected to pump 500,000 barrels a day by the end of this year.
Inside refinery gates, Chinese engineers man distillation towers, Chinese cooks serve rice & noodles in the canteen, workers pedal between giant oil drums on bicycles imported from Beijing.
But, if the oil is African, the money & management are Chinese.
‘We like Sudan very much,’ said Zhao Yujun, 35, a manager w/ state-owned China National Petroleum Corp., which built the sprawling plant five years ago. ‘China needs energy for economic growth. There is oil in Africa. That is why we come here.’ China is prowling the globe in search of energy sources. Oil executives & diplomats have signed a flurry of deals, from Canada to Kazakhstan.
“‘The scramble triggered unease in Washington, where American conservatives worry about China’s growing economic muscle, but has sparked an unprecedented engagement w/ Africa. Chinese business is blazing a trail across the continent. Trade w/ China has almost tripled in five years. Railways in Angola, roads in Rwanda, a port in Gabon & a dam in Sudan have all been paid for w/ Chinese loans & built by Chinese contractors. Business w/ Nigeria & South Africa is booming.
The driving ingredient is oil. China’s flagship African project is in Sudan. Isolation from the west meant Khartoum barely pumped a barrel of crude a decade ago. Now, after intensive Chinese investment, it has the third largest oil business in sub-Saharan Africa.
And this year, China is expected to overtake United Kingdom as Africa’s third largest trading partner.
China shipped in thousands of workers to build the Heglig pipeline in record time, & a second pipeline is under construction. The Khartoum refinery, CNPC’s first outside China, opened in late 1999, just in time for the 10th anniversary of the coup that brought military leader Omar al Bashir to power. Sudan is expected to earn more than £1bn in oil revenues this year & its economy is one of the fastest growing in Africa.
Where western companies shy away because of corruption, conflict or the risk of losing their shirts, Chinese firms are plunging in. President Hu Jintao dispatched diplomats to dangle large, low-interest loans before impoverished countries w/ the sole stipulation that work is done by Chinese contractors.
African governments appreciate China’s tendency to keep its nose out of domestic affairs. In contrast w/the demands for transparency that accompany loans from international bodies such as the International Monetary Fund, Chinese help comes on a strictly ‘no questions asked’ basis.
Earlier this year, Angola’s president, Jose Eduardo dos Santos, who presides over a famously oil-rich but poverty-stricken country, received a £1.1bn line of credit from Beijing.
Beijing also came to the rescue of Zimbabwe’s embattled president, Robert Mugabe, presenting him with ornamental tiles for the roof of his palace and an honorary degree in recognition of his ‘remarkable contribution in the work of diplomacy and international relations.
But it’s not good for the people of the country,’ said Sarah Wykes of Global Witness, a UK-based lobby group.
‘If you’re a corrupt government that wants loans with no conditions, you will like the Chinese.
“‘Western hostility towards Sudan’s military regime paved the way for one of China’s sweetest deals in Africa.
In 1996, when the regime was an international pariah for sheltering Osama bin Laden and human rights abuses, CNPC bought shares in a government oil venture on highly favorable terms.
At the Khartoum refinery, Sudanese and Chinese co-workers communicate in a mix of Arabic, Chinese and English. In offices Chinese officials play with their mobile phones beside Muslim managers kneeling on prayer mats.
But in the city, Sudanese businessmen grumble that Chinese projects give little and take much. ‘They bring everything from China, labor, materials, the lot,’ said one prominent trader who asked not to be named. South Africans worry that cheap imports are swamping their textile industry,’ Walsh said.
‘China has deployed peacekeepers to UN missions in Liberia and Congo,’” Dave said. He continued, “An AP story, Daniel Balint-Kurti, Sept. 2005. ‘Buguma, capital of the ancient Kalabari kingdom in Nigeria, is vivid testimony to the downside of Africa’s oil. A gutted local government building stands by the central square near a smashed statue of the town’s founding king. Soldiers patrol the streets.
*****These are scars from a three-month occupation last year by a private militia whose members are accused of rapes and random killings,***** and dozens of villages in the oil-rich Niger River delta have seen similar violence. ‘We are in a state of emergency,’ said the head of Buguma’s Council of Chiefs, Mangibo Amachree, 62.
Soldiers are keeping the peace for now, and Amachree prays they will stay until the 2007 presidential election, which already is raising fears of more fighting. Often, oil money is a driving force in pushing long-standing political rivalries to the boiling point. Buguma’s unrest is at least partly over royalties that Amachree says are paid to King Theophilus Princewill by Shell, the major oil producer in Kalabari.
“‘Four rival militias have fought over who should be king and, therefore, get the royalties. In London,limited to $1,000 per project since 2003.
Shell spokesman Simon Buerk said the company has never paid royalties to local potentates, but ‘homage payments’ are allowed,
A Shell report said it spent $100,000 on such payments last year in Nigeria. President Olusegun Obasanjo also has angered Nigerians by approving fuel price increases to reflect high global oil prices, drawing strike threats from labor unions.
Most Nigerians see cheap fuel as the only benefit they had in a country that has no welfare system and where more than 70 percent of the people live on less than $1 a day. More than 20,000 protesters marched Wednesday in Lagos in a peaceful protest of price increases of as much as 40 percent on gas and diesel that were ordered by the government last month.
The development group Catholic Relief Services and a World Bank watchdog office said in a report on Chad, which began exporting oil last year, oil industry growth in repressive, corrupt and poor countries too often results in more repression and corruption. Equatorial Guinea, Africa’s fifth-largest oil producer, is known for human rights abuses and mismanagement, and its
oil wealth is thought to have attracted foreign coup plotters.
“‘Twenty-four European and African mercenaries were sentenced to lengthy prison terms last year for scheming to oust the tiny nation’s leader. In Nigeria, disputes over oil have caused bloodshed for years, a situation brought to the fore in 1995, when writer Ken Saro-Wiwa and eight other activists from his Ogoni tribe were executed under the brutal regime of then-dictator Gen. Sani Abacha.
They were hanged for the murder of four political rivals, but Saro-Wiwa's supporters say
he was really targeted because he led protests against environmental damage by Shell.
“‘The company is still negotiating its return to that area. Hundreds of people were killed in Rivers state last year in fighting between two ethnic Ijaw militias, one led by secessionist Moujahid Dokubo-Asari and the other by Ateke Tom, who describes himself as a vigilante leader. Conflict involving other militias continues near Buguma.
Soldiers were sent recently to the village of Bukuma after eight people were killed by a youth militia called D12, local residents said. School attendance has fallen by half in Buguma since fighting broke out in Feb. 2004. Fishermen’s catches are reduced because they no longer dare to venture far out into the delta’s rivers and creeks, where attacks have become common.
Ayachi Emesiobi hid in her home when militia fighters suspected of being allies came calling. Her mother, Monima Atiboba, opened the door. They ‘called her out and shot her,’ said Emesiobi, 29. ‘I heard it … one shot.’ When she went outside, her mother was dead. School shut down during last year’s three months of occupation, and girls were raped. Classes resumed after Dokubo-Asari’s Niger Delta People’s Volunteer Force and an allied local militia chased out invaders.
Three days later, the army ran off Dokubo-Asari’s fighters. In his hometown of Okrika, next to major oil city of Port Harcourt in Rivers state, Tom said reports of summary killings in Buguma by his group were ‘lies’. He denied having anything to do with Buguma’s three-month occupation, although he acknowledged participating in a brief raid there after Dokubo-Asari set up a camp,’ he said. ‘Any civilians killed were hit by stray bullets.’”
“‘When President Bush announced a radical redeployment of 70,000 active duty U.S. military personnel currently based in Western Europe and Asia in mid-August, he stressed this new agile military would be focused on combating terrorism and fostering global stability.
“‘What he didn’t mention is, newly dispersed Army, Marines, Navy and Air Force will also be busy protecting another key component of U.S. national security, energy resources.
The plan, which Pentagon has been explaining in dribs and drabs over the past year, is to rotate troops through a large number of bases scattered all over the world, with special attention given to ******the so-called ‘arc of instability’ running through the Caribbean rim, Africa, Central Asia, the Middle East, South Asia, North Korea and the Caucasus.******
The new formation includes boosting new regional hub bases and establishing minimally-staffed forward operating bases that might house a few dozen troops but could be quickly transformed into action-ready staging bases. Since 2001, new military bases have been established in Eastern Europe and Central Asia … including Bulgaria, *****Azerbaijan,***** Romania, Kyrgyzstan and Uzbekistan, allowing the U.S. to keep watch over the Islamic tinderbox of Central Asia and the strategically crucial Caspian Sea oil region, which will soon supply millions of barrels of oil to the U.S. and Western Europe markets.
Other bases in Afghanistan, Qatar, Saudi Arabia, Djibouti and Oman, not to mention the huge military garrison in Iraq, guarantee a strong and long-term presence in the Persian Gulf, while new pacts with Nigeria and other West African nations will ensure the U.S. military keeps a watchful eye on another important oil region, the Gulf of Guinea.
“‘Energy security has been a mainstay of U.S. foreign policy ever since Franklin Roosevelt pledged to provide military protection to Saudi Arabia in return for unfettered access to the Kingdom's oil. In 1980, the so-called ‘Carter Doctrine’ declared the U.S. intention to intervene militarily to counter any threat to Middle East security.
And in May 2001, Dick Cheney’s ‘National Energy Policy’ announced the Bush administration would ‘make energy security a priority of our trade and foreign policy’. The recent redeployment of military forces is one more reaffirmation in the post-Cold War global order, preserving access to energy resources is the prime strategic imperative.
The seeds of the latest twist in new energy protection policy were sown in 2002 whenowned by California company, Occidental.
Congress authorized 98 million dollars for U.S. troops and equipment to help the Colombian army protect oil pipelines
“‘The pipelines were regular targets of the FARC and ELN, two main leftist rebel groups in Colombia’s 40-year civil war. In spring 2003, as U.S. forces were invading Iraq, a far smaller group of 70 Green Berets flew into Colombia to secure Oxy’s pipeline. Funds were authorized under proviso of the administration’s war on terrorism, but the military training had more to do with the National Energy Policy. The Andean nations of Ecuador, Venezuela and Colombia contribute 20 percent of U.S. imported oil.
Colombia is 10th largest oil supplier for the U.S. & Bush administration has made increased imports from Andean nations an important part of its goal of lessening dependence on Middle East oil.
Colombia’s oil is easy to produce & output could be significantly increased were oil companies not targeted so often. The national government uses a good deal of its oil profits, 25 percent of the country’s annual revenues, to fight the rebels.
Pentagon is concerned w/other areas of the world identified by U.S. government as crucial to its energy future. ***Caspian Sea, especially waters of Azerbaijan, Kazakhstan & Turkmenistan, could prove one of the largest oil finds*** in the world after the Middle East.
In 2000, oil companies discovered the Kashagan field off the coast of Kazakhstan, the single largest oil find in 40 years. By end of the decade, Kazakhstan is destined to be world’s fifth largest oil producer. U.S. has invested heavily in the Caspian region.
U.S. companies have put billions of dollars into oil & gas projects, & both Clinton & Bush administrations worked hard to curry favor w/ former Soviet republics & limit influence of Russia, Iran & China in the process.
“‘Since 2001, the U.S. has not only established military bases in the region, but it has conductedin the Caspian & supported Kazakhstan’s push to establish its own Navy.
joint Navy exercises w/ Azerbaijan
“‘U.S. Coast Guard even patrols the Caspian Sea, & the combined U.S. military presence makes Russia … whose Caspian fleet has long exercised de-facto control over the sea, very edgy.
General Charles Wald, deputy commander of U.S. European Command, explained to the Wall Street Journal, Jun 2003, ‘In the Caspian you have large mineral reserves. We want to be able to assure long-term viability of those resources.’
Of central concern to the U.S. is the Baku to Ceyhan (BTC) pipeline, a million-barrel-a-day project headed by BP, running from Baku *****Azerbaijan*****, through Nagorno Karabak, a region claimed by both Azerbaijan & Armenia, into ***the turbulent republic of Georgia,*** & on to the Black Sea port of Ceyhan. From there, oil would be shipped via tanker through the Bosphorus into the Mediterranean on its way to Europe & the U.S.
W/ new military bases in Romania & Bulgaria,to counter any threat to the supply of Caspian Oil. & in Georgia, U.S. forces have been training local military to counter armed Islamic groups operating out of the lawless, Pankisi gorge. *****“‘The stated purpose of this training is to fight the War on Terror, but insurgent activity now also threatens world oil security.*****
a U.S. rapid response force is in easy reach of the Caucasus region
“‘So far, West Africa poses less of a threat to energy security than Persian Gulf or the Caspian. Jun. 2003, on the eve of President Bush’s first visit to Africa, only the second time a sitting U.S. president had visited, General James Jones, commander of U.S. European command, gave an interview to New York Times, in which he outlined another layer of the U.S. military’s shift in global priorities.
The U.S. was negotiating w/ a number of African nations for long-term use of military bases, to help combat terrorist groups that may be operating in the region. Areas of interest included Algeria, Morocco, & also sub-Saharan venues like Mali.
Augmenting these bases would be a strong U.S. Navy & Marine force operating in Gulf of Guinea off coast of West Africa. ‘The carrier battle groups of the future may not spend six months in the Mediterranean sea,’ Jones said, ‘but, I’ll bet they spend half their time going down the west coast of Africa.’
There are very few known terrorist outfits in the waters off West Africa, but there is an enormous amount of oil. “‘Africa possesses an estimated 80 billion barrels of oil, 8 percent of total world crude reserves. U.S. imports 16 percent of foreign oil from this part of the world, & by 2015 it’s expected to rise to 25 percent. That makes African oil, in the words of U.S. Undersecretary of State for African affairs, Walter Kansteiner, ‘a national strategic interest.’
Nigeria, Angola & Equatorial Guinea, all of them serious oil powers in their own rights, have territorial claims to Gulf of Guinea, & U.S. oil companies including ExxonMobil, ChevronTexaco, ConocoPhilips & Marathon, along w/ many other foreign companies, all have invested heavily in the region.
“‘No nation has whetted the appetite of oil majors more than Sao Tome e Principe, a tiny island 500 miles west of Equatorial Guinea. Over 20 oil companies have bid for rights to drill in waters off Sao Tome, in a concession jointly run by the island’s government & neighboring Nigeria. Sao Tome has also been wooed by the U.S. military, which would like to build a naval base on the island.
Indeed, for a leader of just 150,000 people, president Fradique de Menezes could be said to be hitting above his weight. In Sept. 2002, de Menezes was one of nine African leaders that Bush hosted at the White House. All nine preside over sizeable deposits of African oil. Just in case Sao Tome doesn’t pan out,in Niger Delta region of the country, where insurgents from local ethnic communities have targeted international oil workers ...in a campaign to force out the major oil companies.
U.S. military recently agreed to conduct joint oil protection operations w/ Nigerian forces
“‘As U.S. searches for new ways to reduce reliance on Middle East oil, protecting energy supplies from Latin America, Central Asia & West Africa take on greater importance.
The new realignment of its global military will likely see the U.S. risk placing its armed forces in danger in the most treacherous & politically unstable areas of the world ...for decades to come. It’s a scenario likely to be replayed not just in Persian Gulf, but also across Central Asian republics, West Africa, Southeast Asia & Latin America & anywhere else in the developing world new oil is found.
The net result may ensure America gets oil it needs, but it is a policy that makes the U.S. secure, not safer,’ Mathew said. ‘More U.S. troops will perish protecting oil, & hatred of America will expand beyond ravings of Islamic extremists.'”
“‘For months China & Japan have been locked in a diplomatic battle over access to big oil fields in Siberia. Japan, which depends entirely on imported oil, is desperately lobbying Moscow for a 2,300-mile pipeline from Siberia to coastal Japan.
*****Fast-growing China, world’s second-largest oil user after U.S., sees Russian oil vital for its own ‘energy security’, & is pushing for a 1,400-mile pipeline south to Daqing.*****
Petro-rivalry is so intense, Japan has offered to finance the 5 billion dollar pipeline, invest 7 billion dollars in development of Siberian oil fields & throw in an additional 2 billion dollars for Russian ‘social projects’ … this despite the certainty if Japan does win Russia’s oil, relations between Tokyo & Beijing may sink to their lowest, potentially most dangerous, levels since World War II.
“‘In ‘emerging’ economies, Brazil, India & especially China, energy demand is rising so fast it may double by 2020. This hints at the energy crisis facing the developing world, where 2 billion people, a third of the world’s population, have almost no access to electricity or liquid fuels, & are condemned to medieval existence that breeds despair, resentment and, ultimately, conflict.
“‘Already we see outlines. China & Japan are scrapping over Siberia. In the Caspian Sea region, European, Russian, Chinese & American governments & oil companies are battling for a stake in big oil fields of Kazakhstan & Azerbaijan.
In Africa, the U.S is building a network of military bases & diplomatic missions, whose main goal is to protect American access to oilfields in volatile places such as Nigeria, Cameroon, Chad & tiny Sao Tome. And, as important, to deny access to China & other thirsty superpowers. In the run-up to the Iraq war, Russia & France clashed noisily w/ the U.S over whose companies would have access to the oil in post-Saddam Hussein Iraq.
[Editor’s note: Helps explain complex fighting groups in Iraq fighting the U.S. ... oil war between Russia, France, China & the U.S. (similar to the 1918 Russian revolution)... all financing & outfitting different mercenary terrorist group segments to stage conflict against each other, w/ a common purpose, to clear the land for oil -- & run up the national debts by all involved to the benefit of the private majority shareholders of the Fed, & their interlocking presence w/ Bank of England & others.]
often over Washington’s objections. In 2000, Chinese oil officials visited Iran, a country U.S. companies are forbidden to deal w/ … China also has a major interest in Iraqi oil.
“‘Less well known is the way China sought to build up its own oil alliances in the Middle East,
China’s most controversial oil overture has been made to a country America once regarded as its most trusted oil ally … Saudi Arabia. “‘In recent years, Beijing has been lobbying Riyadh for access to Saudi reserves, the largest in the world. In return, the Chinese have offered the Saudis a foothold in what will be the world’s biggest energy market, and, as a bonus, have thrown in offers of sophisticated Chinese weaponry, including ballistic missiles & other hardware, that the United States & Europe have refused to sell to the Saudis,’ Roberts said.
“‘China’s Gross Domestic Product rose at 9.1 percent in 2003, and surpassed Japan to become the world’s second-largest oil importer after the U.S. Domestic energy production is rapidly expanding, but China continues to rely on imported fuel to keep its economy growing.
The expectation that China will continue to demand more and more oil from foreign countries is beginning to reshape relationships between oil producing countries, and has had an effect on the U.S. ‘war on terrorism’.
The seemingly endless demand for energy has persuaded China to focus attention on finding foreign sources of oil and gas. China sits on major deposits of coal … China hoped to build a pipeline from Russia to avoid the cost of shipping oil through the Black Sea, but Russia’s prosecution of the Yukos Oil Company stymied this effort.
with each country hovering around 8 million barrels per day.
Russia and Saudi Arabia are jockeying for position as the global leader in crude oil exports,
The importance of oil to each country’s economy forces the leaders to change diplomatic strategies in reaction to China’s demand for energy. Because China’s need for oil is so great, neither country is interested in pursuing an aggressive strategy to weaken the other.
A Brunswick UBS analyst sums up the situation. ‘We believe that growing demand far in excess of Russian production offers the most realistic and probable outcome that would alleviate OPEC of the need to confront Russia dramatically, although the risk is present.’
As long as the Chinese economy continues to expand, Russia will persist on working with the Middle Eastern producers, but Russia has not forgotten the lessons of 1985, when the Saudis used excess production capacity to drive down oil prices to $12 a barrel, which wrecked any hopes of Soviet survival. [Editor’s note: And helped finalize the destabilization of Soviet Union and Eastern Europe.]
“‘Russia is demanding far more for its cooperation with OPEC during this cycle of increased demand. In September 2003, Crown Prince Abdullah bin Abdul Aziz of Saudi Arabia visited Russia and signed a five-year cooperation agreement.
Then, in Jan. 2004, Akhmad Kayrov, pro-Moscow president of Chechnya, visited Riyadh. Saudis agreed to halt all funding for Islamic rebels in Chechnya and recognize his government.
“‘Greater cooperation between the two largest suppliers of crude oil will leave producing countries in a better position to keep prices at higher levels, which will affect the bottom line of nearly every industry, in practically every country.
and will only stoke the fire that keeps al-Qaeda and similar organizations full of willing recruits,’ Adam said.
“‘Saudi Arabia’s recognition of the Chechnya government has made it a target for Islamic militants
‘China's economic rise has already begun to reshape the world in many ways, but perhaps its greatest effect will be on the global market for energy supplies.
While Asia purchases nine out of ten barrels of oil from the Middle East, China pursues Russia as its major supplier,’”
Originally posted by counterterrorist
The North-South conflict started when Chevron discovered oil in southern Sudan in 1978.