Shale gas and politics: Are Western energy giants’ interests behind Ukraine violence?

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Shale gas and politics: Are Western energy giants’ interests behind Ukraine violence?

Shale gas and politics: Are Western energy giants’ interests behind Ukraine violence?




Economic interests, such as untapped shale gas resources, already sliced and diced by Western energy giants, are behind the Kiev government’s ‘anti-terrorist’ operation against the pro-federalist regions, foreign policy expert Nebojsa Malic tells RT.

The eastern Donetsk and Lugansk regions cut ties with Kiev and declared independence from Kiev after a popular vote last Sunday. Yet federalist activists have no doubt that a new wave of government crackdown is on its way.

And they do have every reason to think so, because, as RT’s Gayane Chichakyan reports, reinstating control over the restive regions isn't the only agenda driving Kiev's ongoing offensive, as the core of the conflict is probably only business as usual.

Eastern Ukraine is not only of people who don’t want to be under the Kiev coup-installed government’s control, but there are also natural energy resources in the region, such as coal and more specifically, shale natural gas, untapped deposits of which lie underground in the Dnieper-Donets basin.

The cities Kiev is now striving to force into submission by making them war zones are situated in the area of shale gas deposits.

Tensions are highest in the city of Slavyansk in the Donetsk region: it has been besieged by Kiev’s troops and armed militants of the Right Sector neo-Nazi union for weeks. The self defense forces in eastern Ukraine's newly-proclaimed Donetsk People's Republic are on high alert.

It’s in the Donetsk Region that Shell signed, in January 2013, a 50-year profit sharing deal with the government of Ukraine to explore and drill for natural gas in shale rock formations.

These are future profits that Kiev doesn’t want to lose.

“I would say that the economic interest in this case is what’s driving the coup regime in Kiev to launch military actions against its own citizens, because they stand to make a profit from these contracts signed by the previous government,”foreign affairs expert Nebojsa Malic commented to RT.

US energy giant Chevron signed a similar deal for $10 billion last year, but it is focusing on developing shale gas reserves in the West of Ukraine.
Yet it’s not just energy giants that have a stake in Ukraine’s reserves.

The recent appointment of the US Vice President’s son, Hunter Biden, to the board of directors of Ukraine’s largest private gas producer, Burisma Holdings, has put the Ukrainian shale gas development deal into a new perspective.

Burisma holds licenses covering the Dnieper-Donets basin in the eastern Ukraine and Biden jr. is not the only American with political ties to have recently joined the company's board.

Devon Archer, a former senior advisor to current Secretary of State John Kerry's 2004 presidential campaign and a college roommate of Kerry's stepson, signed up with Burisma in April.

“There is certainly no better demonstration of altruism and humanitarianism in a free market than criticizing a country for corruption, sponsoring a coup to overthrow the allegedly corrupt government - and then appointing sons and friends of American officials to be on boards of companies having interests in that country,” Nebojsa Malic said. “Surely, that is perfectly legal and above board,” he added.

Washington now props up the coup-imposed government in Kiev in any way it can, justifying its crackdown on the pro-federalist protesters under the pretext of maintaining the nation’s territorial integrity.

The interim government does not hesitate to use the army against the protesters in the East, including unarmed civilians, dubbing them ‘terrorists’ and ‘pro-Russian activists,’ which makes people in the eastern Ukraine strongly believe that it is not their interests that Kiev and its Western backers have at heart.

Continued - http://rt.com/news/159588-east-ukraine-shale-deposits/
 
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US energy agency cuts Monterey shale oil estimate by 96%

The US Energy Information Administration (EIA) has cut the Monterey Shale oil formation estimate by 96 percent to just 600 million barrels from 13.7 billion, due to a lack of extraction technology. The assessment cut US national reserves by 39 percent.

The reassessment comes as a blow to the US plan to become energy independent.

Continued - US energy agency cuts Monterey shale oil estimate by 96%
 
US energy agency cuts Monterey shale oil estimate by 96%
Continued - US energy agency cuts Monterey shale oil estimate by 96%


From the article: "The reassessment comes as a blow to the US plan to become energy independent."

The U.S. will never become energy independent: the goal of the oil and gas companies and many in congress have already clearly stated they want to really drum up exports in both oil and gas-- so none of this has to do with energy independence-- it only has to do with deep pocketed politicians who get lots of campaign dollars from oil companies.

Right now politicians in the House and on the Natural Resources Committee in the House are already pushing to export crude oil and gas. Gasoline is, and has been, already be exported for years in huge amounts:



[size=+1]US Exporting a ‘Tidal Wave’ of Gasoline, other Fuels[/size]


WASHINGTON — U.S. refiners are sending a “tidal wave” of gasoline, diesel and other refined products onto the world market, taking advantage of the surge in domestic oil development that has helped drive Gulf Coast crude stockpiles to record levels, according to a new report.

The jump in domestic oil supplies means the U.S. is on track to become a net exporter of gasoline — producing more than it needs — next year, said Wakefield, Mass.-based ESAI Energy in an analysis released Thursday.

Refiners boosted their output by 130,000 barrels per day in 2013, over the previous year – a trend that is likely to continue with predicted production gains of 135,000 barrels per day in 2014 and another 110,000 in 2015, the energy research firm said. Much of that will be flowing from the Gulf Coast, where refiners are expanding capacity and benefiting from climbing crude supplies.
 
From the article: "The reassessment comes as a blow to the US plan to become energy independent."

The U.S. will never become energy independent: the goal of the oil and gas companies and many in congress have already clearly stated they want to really drum up exports in both oil and gas-- so none of this has to do with energy independence-- it only has to do with deep pocketed politicians who get lots of campaign dollars from oil companies.

This is why I usually try to ask what people mean by "Energy Independence". Of course, US won't be able to fulfill its promise to export oil and gas to the EU any time soon. And now California has millions of gallons of polluted water ....for what? I'm extremely skeptic of the idea that Western energy giants’ interests are not behind Ukraine violence in some way. It's rich in shale oil/gas. Agribusiness and water industry wanted in there too, like we've seen with other coups.
 
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