Wednesday, May 14, 2014

Cold War II - Libya's oil for EU- Embargoing Russia?

Continuing on with pipeline wars and the planned embargo on Russia.
Did I say embargo? Yes, because that looks to be the US/NATO plan.
Embargo Russia until it falls. Sanctions are part of the embargo, but only a part of it.

 Embargo defined 
The partial or complete prohibition of commerce and trade with a particular country.Embargoes are considered strong diplomatic measures imposed in an effort, by the imposing country, to elicit a given national-interest result from the country on which it is imposed.
Will they succeed? Time will tell.
Judging by some of the news from recent days, Libya looks to have been a means to an end.
Oust a dictator?- never!
Save civilians? Absurd!
Control the easily accessible oil? And ship it to Europe to cut European dependency on Russian oil
Denying Russia important state revenues- It looks like that may just be part of the plan.....

 Tripoli eyes EU energy market, investment
Libya can achieve an oil production of 1.3-1.4 million barrels per day within a few weeks once the security situation is under control, Libya’s deputy minister of oil and gas told New Europe on 5 May.
 He told New Europe that, due to Libya’s proximity to the Mediterranean, “Europe is the first direct market. On the other hand, we have no limitation.
 Hopes that production at El Sharara can be resumed, which would significantly increase Libyan oil production, outweighed rising tension in Ukraine, lowering oil prices.

Reuters:

Libyan officials said they planned to reopen late on Monday western oilfields and pipelines that had been blockaded by protesters. The oilfields could raise Libyan output by 500,000 barrels per day.
Increased Libyan oil exports would reduce Europe's exposure to the crisis in Ukraine and could mean diplomats lower the bar for sanctions on Russia, analysts said.
One More!
Libya can Loosen Putin's Energy Grip on Europe

As Western powers continue attempts to diminish tensions between Ukraine and Russia, an unlikely player looms to help loosen President Vladimir Putin's grip on the region.
Libya, which the U.S. Energy Information Administration reports has 48.47 billion barrels of proven reserves, soon may resume production at three oil fields that the state-owned National Oil Corporation expects will increase production to 500,000 barrels per day (double the current amount) in the near future.
Oil analysts say such a supply boost by Libya would be bearish for Brent crude oil prices, but some are also pointing out that an unintended side effect is that it would allow the European Union more flexibility to levy harsher sanctions against Russia.
Just thinking out loud................

12 comments:

  1. Just a thought but the Libyan govt doesn't control the shipping port and doesn't have the army that could take it away from the tribe that controls it now. That would mean another round of nato and more than likely the tribes in the oil fields and the port would blow them up. This just sounds like more double talk from the west.

    Then you pointed out a few weeks back how much business is done between Germany and Russia. The ramping up sections against the Russian plays into the hands of those that want to destroy the Marshall Plan, the same people in Amerika that want to end the Safe Net for us on Main Street.

    The losers in this grand plan of madness is us on the Main Streets on the planet.

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    1. Hi jo

      no doubt there are issues with this plan, however, Libya is ideally located to serve the EU market- so I couldn't dismiss it out of hand

      One thing is clear the US and the other nato nations do intend to embargo Russia- as much as they can
      China is pivotal in this as are the other brics nations...

      it's like one big puzzle, just trying to fit the pieces together

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    2. you are 100 percent correct with this comment

      "The losers in this grand plan of madness is us on the Main Streets on the planet"
      Absolutely, I see it all around me. In the city I have lived in my entire life
      It has gone downhill steadily and it is tragic

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    3. Just in.

      http://news.antiwar.com/2014/05/14/us-marines-move-to-italy-over-possible-libya-threat/

      http://www.zerohedge.com/news/2014-05-14/ukraine-just-issued-1-billion-bonds-backed-us-taxpayer

      Also on the wsj site, nothing makes money like servicing debt. Ever seen the movie The International?

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    4. Hi jo
      thanks for that bit of news, not surprised and I bet you were not either
      I was going to put a link to something I had found last night after I read your comment
      Libya has asked NATO in June of last year 2013 to assist them with issues of security
      should have bookmarked it but did find this one from march of this year
      so just a few months back

      http://www.nato.int/cps/en/natolive/news_107855.htm?selectedLocale=en

      he Deputy Secretary General said that NATO’s first objective will be to advise the Libyan authorities on the establishment of the necessary structures, processes and arrangements to enable them to develop a national security strategy. “We could then also give advice on the adaptation of Libya’s existing security architecture to make sure that is compatible with the new policy framework,” Ambassador Vershbow said. He underlined, however, that NATO’s advisory mission will “not seek to establish a full-time presence on the ground in Libya. And that we will continue to conduct our advisory work in full coordination with the efforts of other national and international actors, including the United Nations Support Mission to Libya (UNSMIL) and the European Border Assistance Mission (EUBAM).”

      Allies agreed last October to respond positively to a request made by the Libyan Prime Minister for NATO to provide advice on defence institution building in Libya, as part of the overall efforts of the international community.

      there are also a number of msm news items

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    5. and yes I have seen the movie The International
      about the bankers and war?
      seen it!

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    6. Yes that it and in the movie there's a great line about why banks and others support war. It's not about anything other than servicing the debt and with a countries tax payers used as the suckers.

      Thanks for the link

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    7. That's it, in a nutshell, bankers love war because it indebts a nation
      which is why private central banks are a blight on humanity
      remove the mass profit motive, remove the incentive for war
      and peace would break out....

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  2. Good story coverage Penny, it would seem that Libya's selling of oil to the EU rather than Russia would hurt Russia, however this is yet another of a series of escalating and desperately petty embargo measures. As far back as 2012 Russia, mainly through their oil giant Rosneft, has been steadily nationalising and consolidating its own oil reserves. As a country they produce upwards of 10.2 million barrels a day, just on their own and have been reported as the world's largest oil producer globally. Augment that with oil sales purchased in both gold, forein exchanges (NOT the US petro-dollar) and trade in goods from Venezuela, Iran, China and Syria to name a few. It would seem that Russia is stockpiling both gold and oil which is indicative of a nation preparing for war. People should remember that Russia plays its foreign policy like a master chess game whereas the western powers, particularly the US and UK have always played poker, the game of high chance and bluff. In this dangerously high stakes game of Risk, the chess player always has the upper hand over the poker player. However these poker players are sore losers and will resort immediately to violent and ultimately self-destructive means to attempt to win at all costs. We are living in days that make the Cuban Missile Crisis of bygone years look like a quaint walk in the park. We exist on the precipice of a looming World War III going from once cold, to one fast heating up.

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    1. Hi HHQ! How are you?!
      Russia has seen this day coming, then?
      It would seem so.

      I hear you on the world war part- It's been bothering me for sometime now...
      I have mentioned it on more then one occasion- how easily this could spin out of control
      What frightens me is how out of touch with reality the leadership, particularly of the US is.
      It's like they live on some other bizarre plane of existence- the stuff they say... insane- John Kerry just keeps bleeting the most irrational lies- I shudder

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  3. Here we go, Pen. You were right
    http://rt.com/news/159548-libya-benghazi-militias-clashes/

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    1. Hey James:

      "apparently there is a faction of the government that wants to restore central control of the country"

      "but it certainly is a striking confluence of events that the US military has announced that it positioned new forces in the region"

      “With some people calling for new authorization of military force in Libya, which the Obama administration is resisting,(?) it certainly would be convenient from the point of view of the Obama administration if some other group of people would go after militias in Benghazi. So it may be the case, I am speculating, that in part, this group that is attacking these militias is making a play for external support.”

      This is exactly what would have to happen if the US is going to ship Libyan oil to the EU
      thanks james :)

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