Feral Jundi

Tuesday, December 15, 2009

Mexico: Drug Cartels Siphon Liquid Gold

Filed under: Crime,Mexico — Tags: , , , , , — Matt @ 8:32 AM

“Every possible encouragement should be given to privateering in time of war.” -Thomas Jefferson 

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   Now this is ridiculous. Yet again, my solution to this is simple.  The Mexican government should issue Letters of Marque and Reprisal to companies, both foreign and domestic, and give them the legal authority to destroy the cartels and get a percentage of what these animals own.  You create a free market based killing mechanism, and allow it to do it’s thing, and I guarantee you will see these vile organizations dry up.

   They are a threat to Mexico and to the free world, and I just don’t see the current drug war strategy working out too well. Actually, it is a dismal failure, and we are witnessing how bad it really is. I say diversify, and allow private industry to help, much like how private industry helped out my country during the Revolutionary War and the War of 1812.

   Thomas Jefferson, one of the founding fathers of my country, was a smart man.  His quote about privateering rings true today, as it did several hundred years ago.  I owe the survival of my country, in part, to the concept of privateering. So there must be something there, and especially if it was written into my country’s constitution. Too bad that weapon of warfare just sits over the mantel and collects dust like some old rifle from a war long ago.-Matt

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Mexico’s drug cartels siphon liquid gold

Bold theft of $1 billion in oil, resold in U.S., has dealt a major blow to the treasury

By Steve Fainaru and William BoothSunday, December 13, 2009

MALTRATA, MEXICO — Drug traffickers employing high-tech drills, miles of rubber hose and a fleet of stolen tanker trucks have siphoned more than $1 billion worth of oil from Mexico’s pipelines over the past two years, in a vast and audacious conspiracy that is bleeding the national treasury, according to U.S. and Mexican law enforcement officials and the state-run oil company.

Using sophisticated smuggling networks, the traffickers have transported a portion of the pilfered petroleum across the border to sell to U.S. companies, some of which knew that it was stolen, according to court documents and interviews with American officials involved in an expanding investigation of oil services firms in Texas.

The widespread theft of Mexico’s most vital national resource by criminal organizations represents a costly new front in President Felipe Calderón’s war against the drug cartels, and it shows how the traffickers are rapidly evolving from traditional narcotics smuggling to activities as diverse as oil theft, transport and sales.

Oil theft has been a persistent problem for the state-run Petroleos Mexicanos, or Pemex, but the robbery increased sharply after Calderón launched his war against the cartels shortly after taking office in December 2006. The drug war has claimed more than 16,000 lives and has led the cartels, which rely on drug trafficking for most of their revenue, to branch out into other illegal activities.

(more…)

Sunday, December 13, 2009

Iraq: Iraq Hails Second Oil Auction, But Risky Sites Shunned

Filed under: Industry Talk,Iraq — Tags: , , , , , , , , — Matt @ 7:20 AM

Even Gharraf’s winners appeared concerned despite its location in the relatively calm south.

“It depends on the security situation,” Katsuo Suzuki, Japex’s vice president, said when asked when the companies would begin work. “We are in contact with several security companies to discuss the security situations and analyze carefully the situation to decide our program.” 

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    “In contact with several security companies?”  Interesting news out of Iraq, and it is only logical that the next step in these deals is to evaluate how to properly secure operations there.  These companies want to succeed in their oil ventures, and you can bet that they will be seeking the best security companies out there that will insure that success.

   That means protecting the fields, the equipment, the employees, and the executives and engineers for these projects.  So you can guarantee that security will be partially coming from Iraqi companies and locals, and with a small contingent of security coming from highly skilled expats.  That is my guess, and it only stands to reason.

   Now one security company that might stand to benefit from this latest deal, is Oryol.  It would make sense that Lukoil would use a Russian security company for protective details.  I have no clue who Japex would use, and maybe some of the oil security pros out there can help to fill in the blanks. Of course there is the Oil Police down south, but companies will also want their own security that they can control and trust.  Either way, good on Iraq for getting this going, and the money earned from these deals will certainly help in the reconstruction of this war torn country. –Matt

Edit: 12/14/2009- I added a newer story on top of the original, in order to add more meat to this post. Check out both of them.

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Oil executives gird for work in risky Iraq

* Global firms arrive in Baghdad for oil auction

* Security still a major concern for oil work in Iraq

By Missy Ryan

BAGHDAD, Dec 14 (Reuters) – They sped into the Oil Ministry in armoured convoys, flanked by muscled guards and men in dark suits, but oil executives marked a milestone this week when they attended an oil auction outside Baghdad’s fortified Green Zone.

It was a measure of a broad improvement in Iraq’s security that executives from 35 global oil firms came for the ministry’s two-day bid round in downtown Baghdad, where the landscape is scarred by six years of suicide bombs and other bloody attacks.

(more…)

Friday, March 27, 2009

Iraq: Kurd Sees ‘Very Bad Signals’ From Baghdad

Filed under: Iraq — Tags: , , — Matt @ 9:06 PM

   This would not be good, and I certainly hope that this issue is hashed out before we draw down too much over there.  A war between the Kurds and Arabs would not be good, and only negatively disrupt the progress made so far.  Iraq is close to being able to stand on it’s own, but stuff like this could easily rip it apart again. –Matt

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From the Los Angeles Times

Q & A

Kurd sees ‘very bad signals’ from Baghdad

Masrour Barzani, the Kurdish region’s security chief, criticizes the failure so far to implement an article of the Iraq Constitution concerning control of oil-rich Kirkuk.

By Ned Parker

March 28, 2009

     Reporting from Salahuddin, Iraq — Masrour Barzani, the head of the Kurdistan regional government’s intelligence service and internal security agency in northern Iraq, rarely speaks in public. He is the powerful son of Massoud Barzani, the region’s president, and is seen as one of the next generation of Kurdish leaders expected to defend the autonomy Iraqi Kurds gained after years of war and instability.

     As tensions deepen between the Shiite Muslim-dominated government in Baghdad and the Kurds in the north, Masrour Barzani is a key player in the conflict over land in northern Iraq, including the oil-rich region of Kirkuk.

     The Kurds are struggling with how to respond to an ascendant Baghdad, which is reluctant to accede to Kurdish wishes on holding a referendum to settle the fate of the disputed territories. Article 140 of the Iraqi Constitution called for such a referendum to be held by December 2007, but the vote was never held. The 40-year-old leader recently spoke with The Times about the impasse, the chances of an Arab-Kurdish conflict and America’s obligation to both Iraq and the Kurds. How do you view the status of Article 140 and efforts by the Iraqi government to replace Kurdish officers with Arab leadership in the Iraqi army in the disputed territories?

(more…)

Monday, August 11, 2008

News: Russia and the Great Energy Game

Filed under: Georgia(country),News,Russia — Tags: , , , — Matt @ 2:56 PM

     So with the ongoing war in Georgia, it is important to figure out how all of this impacts the world and what are the prime motivations of Russia.  It is clear to me now that Russia had no intention of sticking with just protecting rebels in Georgia.  I think the overall motivation was to take control of Georgia and the pipelines running through it and to keep Georgia out of NATO.  And I think Russia has done that.  I do not see NATO or the US going in to fight off Russia and stopping their plans of controlling Georgia either.

     But back to the impact of all of this.  So far the oil markets have not reacted too severely.  The BTC pipeline pumps about a million barrels a day to the west and so far the only damage to the pipeline has been in Turkey by the PKK(is there a connection?). But in Georgia, I think Russia has no intention of damaging this cash cow that they are trying to seize.  So with this said, I believe if that this conflict becomes protracted, then you will see a constant attack on this pipeline by Georgian forces.  The idea being that if the oil means so much to Russia, then that is how you hurt Russia.  

     The other impact of this is that if there is instability with the Caspian Sea related oil supplies, then other supply sources will become more important to the West.  Most importantly, who will Europe turn to for oil in the future?  Will they deal with Russia, who would have a control on price and supply coming from this region, or will Europe look elsewhere?  I almost think Europe has to deal with Russia more than ever, until infrastructure and other oil deals and sources are found and secured. Like the articles talk about below, the west was depending on this pipeline as a way to bypass dealing with Russia.  And given the fact that Europe is already hurting bad with fuel costs, and the coming winter heating costs, this could be bad for them.  

     And with the other break away republics looking on, I think they are extremely nervous that they will be next in the coming years.  Which leads you to think, when will NATO and the west eventually have to step in?  Or will we? What is the message that the West is sending to these republics, by doing nothing?  We supported their democracies and breaking away from mother Russia, but now, what faith would they have in us when we stand by and do nothing while Russia violently takes over Georgia? And do we want to risk an all out war with Russia over such a thing?  

     To me, it always boils down to oil, and any threats to that oil supply will dictate our actions.  That is the reality.  With these countries that have oil or have a pipeline, we will always do what we can to protect them and insure that they do business with us and keep that flow going.  I look at oil, as the life blood of the world, and it is absolutely essential to secure supplies for our thriving economies.  There is no alternative right now, that will even come close to replacing oil.  Biodiesel, ethanol, all of it will not be able to replace oil in the time frame that we need it too.  Until some incredible advancements in science is able to turn water into oil or something, we are stuck playing the Great Energy Game.  Just my thoughts on the matter, and I think Russia is thinking the same way too.

   And with Russia controlling a larger percent of that oil, now that they have control of Georgia, then that gives them more power at the negotiating tables of the world.  To me, that is what is really at stake.  And Russia wants to make a lot of money and they want more power and influence.  So with that said, the economic landscape has just changed with Russia’s latest move and only time will tell how Russia wields their increased influence in the region.  –Head Jundi 

There Will Be Blood

Photo from the movie “There Will Be Blood” 

Georgia: Russians close off strategic Georgian port

Deal to transform Black Sea port of Poti could lie in ruins as Russians seal off access

By Christopher Hope

Last Updated: 6:21PM BST 11 Aug 2008

Just five months ago, Georgia’s President Mikhail Saakashvili was touting a $70million deal which he hoped would transform the Black Sea port of Poti, creating 20,000 jobs over the next five years.

Under the deal Arab investors were set to plough $200million into developing a new port alongside the existing commercial port, trebling Poti’s capacity to 25 million tonnes of cargo a year.

(more…)

Friday, July 11, 2008

News: Somalia and Nigeria Are Biggest Piracy Hotspots–Lloyds

Filed under: News,Nigeria,Somalia — Tags: , , , , , — Matt @ 12:16 PM

 

     Nigeria is the one to watch for security stuff, just because of the oil contracts there.  Just today, oil made a big push because of problems in Nigeria.  – Head Jundi

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Somalia and Nigeria are biggest piracy hotspots

By Marcus Hand in Singapore – Friday 11 July 2008

The IMB said the increasing use of automatic weapons remains unacceptable.

MORE than one-third of the piracy incidents reported worldwide in the first six months of this year took place in Somalia and Nigeria.

Out of the 114 piracy attacks reported to the International Maritime Bureau’s Piracy Reporting Centre in the first half of 2008, 24 were off the coast of Somalia and 18 offshore Nigeria.

The failed state of Somalia remained the global black spot with a spate of violent hijackings pushing out well into the main sea lane in the Gulf of Aden. Of the 24 actual and attempted Somalia attacks, 19 were in the Gulf of Aden.

“In the Gulf of Aden at least eight vessels reported being fired upon by pirates armed with rocket propelled grenade launchers and automatic weapons,” the IMB said.

In Nigeria there were 18 attacks largely centred on the port of Lagos.

“Lagos is becoming an increasingly dangerous port, with the number of reported attacks in the area growing from 8 in the first six months of 2007 to 12 for the corresponding period in 2008,” it said.

According to the IMB, in the first six months of 2008, 71 vessels were boarded, 12 vessels were hijacked and 11 vessels were fired upon. A total of 190 crew members were taken hostage, six kidnapped, seven killed and another seven are missing and presumed dead.

“The frequency and level of violence directed at seafarers is cause for alarm. The abduction of crew and the increasing use of automatic weapons remains unacceptable,” said Potengal Mukundan, director of the IMB.

Article from Lloyd’s List

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