Posts Tagged ‘Control of Oil’

China comes to the rescue of Iran

September 9, 2019

The Chinese and Iranian governments have announced that China will invest $400 billion to develop the Iranian oil and gas industry, a petroleum industry newsletter has reported.

The Iranian government has embraced the Chinese Belt and Road Initiative, also known as the New Silk Road, an ambitious plan to build infrastructure to unify the economy of the interior of Eurasia under Chinese leadership.

It will include $120 billion for new oil and gas pipeline, including a pipeline through Turkey in violation of U.S. sanctions.  All the equipment for the new projects will be provided by Chinese contractors.

China has the right to buy Iranian oil at a discount and pay for it in soft currencies it has accumulated in dealings with countries in Africa and Asia.  This amounts to an overall 30 percent discount from the world price.

China will employ 5,000 “security personnel” to guard its properties.  This means that any attack on Iran would involve risk of killing Chinese and inviting Chinese retaliation.

Presumably the Iranians, like the Russians, would prefer to sell to Europe, their natural market, for full price, but the U.S. government has blocked them from doing business in Europe in dollars.

The goal of U.S. foreign policy for 70 years has been to control the oil of the Middle East.  Now the oil of Iran is within the Chinese sphere of influence.

There is little intrinsic common ground between China, Iran and Russia.  The U.S. government has driven them together by waging economic warfare against all three.  In the process, it is antagonizing its allies in Europe by forcing them to act against their economic interests.

China’s foreign policy makes it economically stronger.  United States foreign policy is a drain on U.S. strength.  China is making friends.  The U.S. is making enemies.  This will end better for China than it will for the United States.

LINKS

China Defies Trump Big Time With $400 Billion Belt and Road Investment, 5,000 Security Personnel by Juan Cole for Informed Comment.  Hat tip to peteybee.

China and Iran flesh out strategic partnership by Simon Watkins for Petroleum Economist.

How Tehran Fits into Russia-China Strategy by Pepe Escobar for Asia Times.

What’s at stake in Venezuela

May 6, 2019

The unlabeled country at the bottom center is Nigeria; the one at the upper right is Kazakhstan.  Click to enlarge.

What’s at stake in Venezuela is which oil companies get to control the world’s largest national oil reserve.

LINKS

Venezuela and Binary Choice by Craig Murray.

Venezuela: Forensics of a Clownish Coup by Moon of Alabama.

The Making of Juan Guaidó: U.S. Regime-Change Laboratory Created Venezuela’s Coup Leader by Dan Cohen and Max Blumenthal for Consortium News.