Category Archives: Uncategorized
10/06/10
Fears of Chinese land grab as Beijing’s billions buy up resources
China is pouring another $7bn (£4.4bn) into Brazil’s oil industry, reigniting fears of a global “land grab” of natural resources.
State-owned Sinopec clinched the deal with Spain’s Repsol yesterday to buy 40 per cent of its Brazilian business, giving China’s largest oil company access to Repsol Brasil’s estimated reserves of 1.2 billion barrels of oil and gas. The whopping price tag for Repsol Brasil – which values the company at nearly twice previous estimates – is a sign of China’s willingness to pay whatever it takes to lock in its future energy supplies and avoid social unrest. It will give the company enough cash to develop all its current oil projects, including two fields in the Santos Basin.
The Repsol deal is not China’s first in Brazil. In February last year, Sinopec stumped up a $10bn loan to Petrobras, the state-owned oil company, in return for guaranteed supplies of 10,000 barrels of oil every day for the next 10 years.
It also follows a slew of similar deals across the world. While much of the developed world is baulking at its debts in the aftermath of the financial crisis, China has continued a global spending spree of unprecedented proportions, snapping up everything from oil and gas reserves to mining concessions to agricultural land, with vast reserves of US dollars.
This year alone, Chinese companies have laid out billions of dollars buying up stakes in Canada’s oil sands, a Guinean iron ore mine, oil fields in Angola and Uganda, an Argentinian oil company and a major Australian coal-bed methane gas company.
“China is rich in people but short of resources, and it wants to have stable supplies of its own rather than having to buy on the open market,” Jonathan Fenby, China expert and director of research group Trusted Resources, said.
But it is a strategy causing anxiety elsewhere in the world. Rumours in recent weeks that China’s Sinochem may make a bid for Canada’s Potash Corporation raised fears that the Middle Kingdom would corner the global market for fertiliser.
Similarly, when BP’s share price plummeted after Barack Obama’s criticisms in the wake of the Gulf of Mexico oil spill, there was concern that the company would be driven into the hands of the Chinese.
More explicitly still, when the aluminium giant Chinalco was trying to buy Anglo-Australian Rio Tinto last year, television ads protesting against the scheme from no less than the Senate opposition leader bellowed “Keep Australia Australian”.
“Chinese acquisitions are increasingly on the political radar,” said Robin Geffen, the chief executive of Neptune investment Management, which runs a leading China investment fund. “The pinch points come when people feel that supplies affecting national security could be threatened by China buying them all up.”
Contrary to the conspiracy theories, China is not looking for world domination. It has seen economic growth averaging a massive 10 per cent for the best part of three decades, and although it is expected to drop into the high single-digits in the coming years – in response to a dip in export demand – the natural resources required to support even slightly moderated growth are an overwhelming priority.
China is already the second-largest oil consumer in the world and far outstrips its domestic supplies. Neptune estimates that it will need to buy two companies the size of BP each year for the next 12 years to meet its growing domestic energy demand. Demand for electricity alone is growing each year equivalent to Britain’s entire output.
“These are massive, massive numbers,” Mr Geffen said. “The deal with Repsol today, and all the others we have seen in recent years, are wholly strategic, to nail down what they estimate future demand will be.”
But, despite the concerns that China is cornering the market and will push up prices, the developed world also has a vested interest in China pursuing a successful strategy.
Notwithstanding qualms about a change in the global balance of power, China’s continued economic growth has been vital to hauling the world out of recession – and will continue to do so for the foreseeable future. The threat from political instability if Chinese growth stalls has similarly global implications. “The whole world needs China to have these resources to help pull us out of recession and avoid local unrest,” said Ian Sperling-Tyler, a partner and oil and gas expert at the consultancy Deloitte.
But concerns remain about China’s involvement in politically difficult countries, particularly in Africa. China is not squeamish about the politics of its business partners. It follows a simple formula, offering premium prices and massive infrastructure investments in return for long-term concessions for key resources. There are several well-documented deals on the continent – including a recent $2.5bn tie-up with Britain’s Tullow Oil in Uganda and off-shore production in Angola and Nigeria. And the positive impact is evident in spanking new infrastructure including hospitals, ports, and road and rail links being built with the influx of Chinese money.
But China is also involved in some of Africa’s more controversial countries. It came in for widespread criticism in 2008 for arms sales to war-torn Sudan, a major trade partner, and its alleged refusal to help resolve the humanitarian crisis in Darfur. It has also been accused of paying multimillion-dollar backhanders in return for African leaders repudiating Taiwan at the UN, although nothing has ever been proved. And because the majority of the deals are done on a government-to-government basis, there is no way to be clear on the extent of the relationships.
Iraq increases oil reserves by 24%
Iraq has raised the level of the oil reserves it claims to own by 24% in its first revision since Saddam Hussein fell from power.
The country has 143.1bn barrels of known and extractable oil, up from the 115bn barrels previously estimated.
If correct, the revision means that Iraq now has bigger oil reserves than its neighbor Iran.
Under Saddam Hussein, sanctions and political isolation meant little new exploratory work was undertaken.
However, since he was toppled in 2003, Iraq has issued two rounds of international oil licenses, and launched a big step-up in exploration efforts in the last two years.
Oil dependenceAnnouncing the new figures, the Iraqi oil minister, Hussein al-Shahristani, said he expected “other increases of even these fixed reserves” as further exploration yields more results.
“This is fairly significant,” says David Hunter, analyst at M&C Energy Group. “You have to bear in mind that 80% of the Iraqi economy is based on oil.”
The Iraqi oil minister also said that his country would now officially inform the Organization of Petroleum Exporting Countries (Opec) of its findings, so that the new reserves figure can obtain international recognition.
“There may be a political angle here,” says Mr Hunter, who suggests that Iraq may be pushing for a bigger share of Opec’s oil production.
Opec, which controls 40% of global production, sets limits on the amount of oil its members should produce, in order to control the oil price.
Lacking infrastructureHowever, Iraq is currently exempted from Opec’s system of quotas, while it struggles to rebuild its oil industry.
Iraq’s oil production is only about 2.5 million barrels per day.
Opec is not expected to reimpose a quota on Iraq, until it has achieved output of about four million barrels – equivalent to neighboring Iran.
“Oil production took a huge hit because of the conflict, and then the insurgency,” notes Mr Hunter.
“The problems haven’t gone away with respect to the security issues and getting the stuff out of the ground.”
But Mr Hunter notes that a recent IMF report was quite positive on how investment in the country is fairing.
Iraq aims to increase its oil exports to 10-12 million barrels per day in the next five to 10 years, but this will require sustained investment in infrastructure to extract and transport the crude.
Biggest oilfieldThe new proven reserves figure excludes oil located in the autonomous province of Kurdistan in the north of the country, according to the oil minister.
“The Kurdish regional government did not supply us with the latest developments of their activities,” complained Mr al-Shahristani.
“We are surprised that they supply oil companies with this information, but do not inform the oil ministry or the federal government.”
The reserves are mainly located in the Shia-dominated south of the country. Iraq’s biggest oilfield – West Qurna – is the world’s second largest, with 43bn barrels, according to the oil minister.
He said that a further 33.5 billion barrels of oil are known to exist, but are unrecoverable.
League tableIf confirmed by Opec, the proven reserves would put Iraq ahead of Iran, but still in fourth place globally.
However, the reserves of second-place Venezuela and third-place Canada rely on unconventional oil sources, such as tar sands – almost exclusively so in Canada’s case.
Tar sands are only economical to extract at a high oil price.
Moreover, some sources put Venezuela’s oil reserves much lower than the 211 billion barrels stated by Opec.
First place is held by Saudi Arabia, with 264 billion barrels.
Iraqi oil reserves estimated at 143B barrels
Iraq’s estimated oil reserves have grown by nearly 25 percent, the oil ministry announced Monday.
“Iraq’s oil reserves which are extractable are 143.1 billion barrels,” said Hussein al-Shahristani, Iraq’s oil minister, based on data provided by Organization of Petroleum Exporting Countries.
The OPEC figures are about 28 billion barrels higher than previous estimates.
At $81 a barrel, about what oil was trading at early Monday, the added reserves would be worth about $2.27 trillion.
About 70 percent of all reserves are concentrated in Iraq’s southern oil fields, with 20 percent in the north and 9 percent in the country’s center.
10/05/10
10/04/10
* Mass European Rally for Israel A mass rally-demonstration entitled “For the truth, for Israel” will be held in Rome this Thursday.
* Iraq increases oil reserves by 24% Iraq has raised the level of the oil reserves it claims to own by 24% in its first revision since Saddam Hussein fell from power.
* Netanyahu: Stop Picking on Settlers; They Deserve a Normal Life Prime Minister Binyamin Netanyahu voiced support for one of the most viciously maligned populations in the world – the Jews who live in Judea and Samaria.
* Iraq’s Sunni-backed bloc united against al-Maliki A Sunni-backed bloc that came first in elections seven months ago is united against the bid by Shiite Prime Minister Nouri al-Maliki to remain in office.
* Ex-Moscow Mayor Mocks Russian Democracy, Vows to Fight Yury Luzhkov, whom President Dmitry Medvedev fired as Moscow mayor last week, disparaged the state of democracy in Russia.
* IDF Chief of Staff Visits Bethlehem IDF Chief of Staff Gabi Asheknazi visited the Palestinian Authority-controlled city of Bethlehem on Sunday and met with senior commanders of the PA armed police forces.
* Muslim Journalist: Jerusalem Arabs Prefer Israeli Sovereignty Jerusalem’s Arab population prefers Israeli sovereignty to the prospect of living under Palestinian Authority rule.
* Japan joins US, UK in issuing Europe travel terror alert In blow to fragile European tourism, Foreign Ministry in Tokyo warns citizens to be cautious in public due to possible terror attack by al-Qaida.
* Behind the Crisis in Obama’s Middle East Peace Effort US diplomats scurried around Middle Eastern capitals over the weekend as President Barack Obama’s efforts to broker a Middle East peace agreement risked collapse.
* Lebanese See Ahmadinejad’s Visit as Jab at ‘Peace’ Talks Mahmoud Ahmadinejad is expected to make his first official visit to Lebanon as Iranian President on Wednesday, October 13.
10/02/10
10/01/10
Islamic Terror Inside America
By: -Col. Bob Maginnis
The nation’s leading security experts warn homegrown Islamic terrorism is becoming a serious problem. And it will likely get worse because our politically correct (PC) leaders refuse to address the root cause—fundamentalist Islam—and virtually no Muslim leaders are willing to demonize the teachings that fuel Islamic terrorism.
The Senate Homeland Security Committee heard last week from those charged with America’s domestic security. FBI Director Robert Mueller III testified, “The threat from radicalization has evolved” from homegrown Islamic extremists during the past year and they are “increasingly more savvy, harder to detect, and able to connect with other extremists overseas.”
Department of Homeland Security Secretary Janet Napolitano testified the homegrown terrorist threat increased over the past year because of cooperation with groups like al Qaeda by “sharing financial resources, training, tactical and operational expertise.”
Unfortunately, these officials only offer defensive solutions while avoiding Islamic terrorism’s root cause. That’s because our government is operating on the false premise that Islam is only a religion and that terrorism is caused by legitimate complaints—such as social injustice—and not an Islamic imperative.
For the sake of our security, our leaders must acknowledge Islamic terrorism is rooted in their religion. That doesn’t mean all Muslims endorse terrorism but to ignore the association is naively PC.
Our officials cited evidence of surging domestic Islamic terrorism. “The range of al-Qaeda core, affiliated, allied, and inspired U.S. citizens and residents plotting against the homeland during the past year suggests the threat against the West has become more complex and underscores the challenges of identifying and countering a more diverse array of homeland plotting,” testified Michael Leiter, director of the National Counterterrorism Center (NCTC).
FBI Director Mueller testified to recent examples of domestic Islamic terrorism. The FBI disrupted the al Qaeda plot to attack the New York subway system and, in May, an attempt to detonate a car bomb in Times Square, Mueller said. There were homegrown “lone-wolf” extremist attacks on soldiers at Fort Hood last November and the Arkansas recruitment station over a year ago. There were attempted bombings of an office tower in Dallas and a federal building in Springfield, Ill.
Secretary Napolitano testified to evidence of al Qaeda’s growing homeland influence. She said “over the past 12 months, efforts by violent [Islamic] extremist groups and movements to communicate with and recruit individuals within the United States have intensified.” Some Americans, Napolitano said, are inspired by the global jihadist movement to commit violent acts in the U.S. and use the Internet to connect with extremists.
Internet relationships have led to recruiting and overseas terrorist training. NCTC director Leiter testified, “at least 20 U.S. persons—the majority of whom are ethnic Somalis—have traveled to Somalia since 2006 to fight and train with al-Shabaab,” a U.S.-designated terrorist organization.
Unfortunately our government has no agency charged with identifying radicalization or preventing terrorism recruitment. Rather, the federal government’s anti-Islamist terrorism efforts focus almost exclusively on defensive systems such as hardening our transportation systems.
Even though our transportation systems were strengthened after 9/11 there are still flaws. The attempted terrorist attack on Northwest Flight 253, bound to Detroit, last Christmas, illustrates aviation’s continued vulnerability.
The FBI developed an extensive outreach program to Muslim communities to develop trust, address concerns, and dispel myths. It established the Specialized Community Outreach Team to work with communities such as those in Minneapolis, where U.S. persons are recruited to travel overseas to fight with the al-Shabaab. There are also numerous information sharing programs across government agencies with links to local law enforcement.
These defensive programs must continue but they will never defeat homegrown Islamic terrorism alone. Rather, fundamentalist Islam’s toxic influence must be addressed but politics are in the way. Some PC leaders like President Obama, who exorcised Islamic references from our security strategies, want us to believe that defeating Islamic terrorism depends on addressing grievances like the Israeli-Palestinian conflict and Muslim poverty. And those who correctly blame terrorism on Islamic religious and cultural traits are labeled Islamophobic.
In truth, jihadists—Islamic fighters who favor waging religious war—motivate the Islamic terrorist by “creating for him a social environment that provides approbation and a religious environment that provides moral and legal sanction for his actions,” writes Shmuel Bar of the Hoover Institution in his paper “The Religious Sources of Islamic Terrorism.”
Islamic fundamentalists want modern Muslim societies to return to traditional Islam which makes no distinction between the political and the religious. “Islam is the solution” to all problems, explains Mr. Bar, and “no area of human activity is outside its remit.”
That is why one must understand the religious-ideological factors which are deeply embedded in Islam in order to formulate an effective strategy for fighting Islamic terrorism, Mr. Bar argues.
But this view creates a dilemma for Westerners who believe there are pragmatic causes of Islamic terrorism rather than an ideological basis, says Mr. Bar. That puts Westerners at a disadvantage because the only effective counter to Islamic terrorism requires a religious-ideological solution which is precluded by Western concepts of civil rights and government non-intervention in matters of organized religion.
What can be done?
The U.S. must seek religious reform in the Muslim world. Mr. Bar suggests Islamic authorities must intervene to contradict their radical worldview—such as there is no state of jihad between Islam and the West and terrorism has no justification—and they must “excommunicate” the radicals. But at present the West is unprepared to deal with Islamic imams who incite followers with fiery sermons and fatwas—Islamic rulings—justifying terrorism.
This strategy, Mr. Bar argues, cannot take shape without a “reinterpretation of Western concepts of the boundaries of the freedoms of religion and speech, definitions of religious incitement, and criminal culpability of religious leaders for the acts of their flock as a result of their spiritual influence.”
The solution is to make a paradigm shift and understand that Islam is not a Western-style religion that deserves protection and noninterference from the state.
Fundamentalist Islam is a theocracy which means it is a dominant government philosophy and mandate, a cultural imperative designed to control all aspects of life and an oppressive judicial system designed to establish and enforce certain religious beliefs. Finally, Islam is a national strategy that openly states that it is the only acceptable form of government for the world and that tactics including murder of unbelievers is mandated in order to achieve it.
Once free from the false view of Islam as solely a religion, our leadership will be able to move from the defensive to an offensive mindset and fight for the safety and security of America and the West. Our present PC mindset regarding Islam and terrorism dooms us to reaction and ultimate failure.