Friday, January 16, 2015

The Peak Of The Oil Wars - 12

Russia is rerouteing gas to Turkey
Of course the Epigovernment has not accomplished its goal for fossil fuel wars, i.e. has not reached the peak of the oil wars yet (Civilization Is Now On Suicide Watch - 2).

But, like those persistent climbers who climbed the face of El Capitan's Dawn Wall recently, they are working hard and getting closer.

In the previous post of this series we discussed the Black Sea oil episode which the Russians won, only to prompt a storm of sanctions, including the manipulation of the global oil market,

Manipulation that targeted Russia and U.S. fracking companies, fracking companies that have no counter attack except to bitch, moan, and shut down because their costs exceed the barrel price of oil in most cases.

Russia can do more than bitch, moan, and shut down ... well except they have implemented a shut down mechanism that will "incidentally" shut off gas to six European nations:
"Russia plans to shift all its natural gas flows crossing Ukraine to a route via Turkey, a surprise move that the European Union’s energy chief said would hurt its reputation as a supplier.

The decision makes no economic sense, Maros Sefcovic, the European Commission’s vice president for energy union, told reporters today after talks with Russian government officials and the head of gas exporter, OAO Gazprom (GAZP), in Moscow.

Gazprom, the world’s biggest natural gas supplier, plans to send 63 billion cubic meters through a proposed link under the Black Sea to Turkey, fully replacing shipments via Ukraine, Chief Executive Officer Alexey Miller said during the discussions. About 40 percent of Russia’s gas exports to Europe and Turkey travel through Ukraine’s Soviet-era network." - Bloomberg

"Russia has said it will stop EU gas transit via Ukraine and do it via Turkey instead in the second shock announcement on energy in as many months.

It said on Wednesday (14 January) that the EU should build new infrastructure to link up with a future Russia-Turkey pipeline or lose access to supplies.

Gazprom head Alexei Miller issued the ultimatum during a visit to Russia by EU energy commissioner Maros Sefcovic, who said he was "very surprised" by the statement." - EU Observer

"Russia cut gas exports to Europe by 60 per cent today, plunging the continent into an energy crisis 'within hours' as a dispute with Ukraine escalated.

This morning, gas companies in Ukraine said that Russia had completely cut off their supply.

Six countries reported a complete shut-off of Russian gas shipped via Ukraine today, in a sharp escalation of a struggle over energy that threatens Europe as winter sets in.

Bulgaria, Greece, Macedonia, Romania, Croatia and Turkey all reported a halt in gas shipments from Russia through Ukraine.

Croatia said it was temporarily reducing supplies to industrial customers while Bulgaria said it had enough gas for only 'for a few days' and was in a 'crisis situation'." - Daily Mail

"In the last few hours Russia has announced two key strategic decisions that show they are not going to stand idly by while their economy and way of life are destroyed by Western forces.

First, presumably in response to stiff sanctions leveled by the United States and the European Union after the annexation of Crimea last year, Russia has cut off 60% of Europe’s gas supplies right in the middle of winter. This has caused an almost immediate crisis in six European nations that have seen a complete cut-off to their supplies – Bulgaria, Greece, Macedonia, Romania, Croatia and Turkey – with more to follow. According to reports via Zero Hedge, the effect has been almost instantaneous.

Without Russia residents across Europe have no way of staying warm." - Putin Strikes Back

"Vladimir Putin has been silent lately. But if anyone thought he had been shamed into defeat or marginalized, then think again.

In the last few hours Russia has announced two key strategic decisions that show they are not going to stand idly by while their economy and way of life are destroyed by Western forces.

First, presumably in response to stiff sanctions leveled by the United States and the European Union after the annexation of Crimea last year, Russia has cut off 60% of Europe’s gas supplies right in the middle of winter. This has caused an almost immediate crisis in six European nations that have seen a complete cut-off to their supplies – Bulgaria, Greece, Macedonia, Romania, Croatia and Turkey – with more to follow. According to reports via Zero Hedge, the effect has been almost instantaneous.

Without Russia residents across Europe have no way of staying warm." - SHTFplan

"EU Parliament Calls Russia Potential Threat to EU

BRUSSELS — The EU parliament on Thursday condemned Russia as a "potential threat to the European Union itself" even as the EU foreign policy chief sought to resume dialogue with Moscow to help end the conflict in Ukraine.

The legislature backed a resolution with a show of hands that called for a continuation of the sanctions against Moscow even beyond March, when the first measures will be up for review." - AP NY Times

"Russia pulls out of the petrodollar

In addition to cutting off natural gas supplies to Europe, Russia has also "just pulled itself out of the petrodollar," reports Zero Hedge.

The story quotes Bloomberg.com stating that Russia "may unseal its $88 billion Reserve Fund and convert some of its foreign-currency holdings into ruble."

This is further explained by Mac Slavo at SHTFplan.com who explains, "What we are seeing are the strategic moves that will eventually catalyze the next great war. And make no mistake, this is exactly what's in store for the world should these escalations continue." - Natural News

CONTRA [update]:

"The reports from the UK Daily Mail and from Zero Hedge that Russia has cut off natural gas deliveries to six European countries must be incorrect. These sources are credible and well-informed, but such a cut-off would have instantly produced political and financial turmoil of which there is no sign. Therefore, unless there is a news blackout, Russia’s action has been misunderstood.

We know something real has happened. Otherwise, EU energy official Maros Sefcovic would not be expressing such consternation. Although I am without any definite information, I believe I know what the real story is. Russia, tired of Ukraine’s theft of the natural gas that passes through the country on its way to delivery to Europe, has made a decision to route the gas to Turkey, thus bypassing Ukraine.

The Russian energy minister has confirmed this decision and added that if European countries wish to avail themselves of this gas supply, they must put in place the infrastructure or pipeline to bring the gas into their countries.

In other words, there is a potential for a cutoff in the future, but no cutoff at the present." - Paul Craig Roberts (emphasis added)
As you can read in those quotes, there are different takes on the Russian action, from ramifications for business all the way to ramifications for war.

The previous post in this series is here.

Canned Heat, "On the Road Again"



4 comments:

  1. Leaders of England and the U.S. double down on sanctions.

    They have gas, so what about the six countries in Europe that may not? (link)

    ReplyDelete
  2. Hey Dredd, long time no see you on the Turley Blog, have you also been exiled for being insufficiently right wing.

    ReplyDelete
  3. Conservative nutbags in U.S. Catholicism are right crazy (Conservative Catholics working selves into a lather).

    They think sexy suits them (Agnotology: The Surge - 14).

    They are in an evangelistic mode to spread their garbage (New Continent Found - Garbage Gyre II).

    I recycle.

    ReplyDelete
  4. Maybe the U.S. has wised up (link)

    ReplyDelete