Category Archives: Energy markets

World Bank Pays $500 Million to Ukraine Central Bank Despite Warnings of World Bank Board and IMF Staff

Yves here. We are pleased to introduce Naked Capitalism readers to John Helmer, a Moscow-based analyst and journalist who, in the words of Mark Ames, “writes about the murky convoluted world of the extraction industry, its politics, and its oligarchs.” Given that the extraction industry is increasingly driving geopolitics, his beat overlaps with our “follow the big money” orientation. For instance, Helmer did original reporting on the IMF-Ukraine relationship which provided crucial to a recent Michael Hudson post on Ukraine that was first published at NC. Today he continues his look at how the US is funneling money into Ukraine, this time via a sus World Bank loan.

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Oil Is Back! A Global Warming President Presides Over a Drill-Baby-Drill America

Yves here. It should come as no surprise that Obama’s rhetoric on climate change is sorely out of whack with his policies. Indeed, as Michael Klare reports, there’s been enough of a economic rebound in the US to lead to more driving, and hence more oil usage. And rather than regard that as a problem, the Administration has shifted from talking up clean energy to pushing more domestic oil production.

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Mathew D. Rose: Merkel’s Götterdämmerung, Victory in Ukraine and Draghi’s Old Trick

Yves here. Mathew’s post describes the political and ideological dynamics that continue to drive failed austerity policies in Europe. But even more important, it also explains why Europe, and German leaders in particular, have fallen in line with the US and are escalating the conflict with Russia over Ukraine. As we’ve discussed, they’ve convinced themselves that Russia will suffer from the economic sanctions imposed by the US and EU before Russia can play its energy card. And some analysts further believe that Russia would not dare restrict gas supplies to Europe, that it cannot afford to lose the income.

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Don Quijones: Spain’s Silent Reconquest of Mexico

With the ink still drying on Mexico’s historic energy reform, global oil and gas majors are salivating at the prospect of gaining access to one of the world’s largest and until recently most nationalized energy markets. One of those companies is the Spanish electricity giant Iberdrola, which expects to massively expand its operations in Mexico through increased investments of close to €1 billion.

Now, I know what you’re thinking: €1 billion is chicken feed in this age of inflated corporate balance sheets. Indeed, for some corporations such a sum is probably hardly worth getting out of bed for these days. However, in Mexico it can go a very long way, much further than it can in Europe or the US – especially when you have paid moles lobbying for your every interest at the highest level of government.

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Patrick Cockburn: Why Washington’s War on Terror Failed – The Underrated Saudi Connection

Yves here. While this is an informative piece, quite a few readers are likely to take issue with the notion that the war on terror is as failure. US foreign policy appears to be run by Saudi Prince Bandar and the military-survelllance complex, and the war on terror caper looks to be working out just fine for them. And the super wealthy and the domestic policy elites get the added bennies of having a political justification for full-spectrum-coverage of ordinary citizens’ activities and authoritarian policing.

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Ukraine’s Next Crisis? Economic Disaster

Yves here. While it’s not hard to imagine that war is bad for economies as well as living things, this post gives an overview of some of the costs that the proxy war in Ukraine is inflicting on the economy and hence on the population. Note that this tally does not include the impact of the efforts to render cities in the east uninhabitable by destroying water supplies and other critical infrastructure.

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Fracking Waste Disposal Fuels Opposition in U.S. and Abroad

Yves here. We’ve posted on some of the not-as-widely publicized damage done by fracking, such as methane releases and increased incidence of earthquakes, as well as the most obvious hazard, which is contamination of water supplies.

This article describes yet another environmental cost, that of fracking waste disposal. Expect this to become a new NIMBY (not in my back yard) issue as the public becomes more familiar with this risk.

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Is the West Risking Financial Blowback From Sanctions on Russia?

The spectacle of insanely authoritarian policing in Ferguson, as well as media jitters over ISIS and ongoing reports of action in Gaza and Ukraine, has shifted attention a bit away from simply lousy economic results from Europe. That fragility could play in a nasty way into blowback from sanctions against Russia.

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New Study Says U.S. Underestimated Keystone XL Emissions

Yves here. Some advocates greenhouse gas reduction policies argue that the fight against the Keystone XL pipeline is misguided, since it represented a lot of political capital spent against a not-terribly-significant target. However, this post does reveal an important coda: that of the Administration’s characteristic dishonesty, in this case around climate change issues. Other examples, chronicled at length here and here, is Obama’s pro-fracking climate change headfake, which conveniently fails to include methane emissions in his new carbon containment policies.

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