AuthorTopic: Oil Producers and Their Governments  (Read 114 times)

Offline steve from virginia

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Oil Producers and Their Governments
« on: June 14, 2018, 04:55:55 AM »


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Published on the Economic Undertow on June 2, 2018






Discuss this article at the Geopolitics Table inside the Diner



Being a top oil producing country is not conducive to good government.



Looking at the top fifteen oil producing states, nine are autocracies, seven of which are of long standing. Only three are democratic republics. Two other producer states are transitioning to single-party status or decaying to warlordism. While the US is officially a democratic, multi-party republic, it is a de-facto corporate autocracy. The policy impulse for the US establishment as it is for other single party states is enrichment of elites: waste-based, finance-driven ‘growth’ regardless of the cost, ‘out of the barrel of a gun’ as necessary; (from Wikipedia):



 












































































































 

Country

Oil Production, Bbls/day

Political System



World Production

80,622,000

Indicates OPEC membership

1

Russia

10,551,497

Single-party police state

2

Saudi Arabia

10,460,710

Monarchy/Single-party police state

3

United States

8,875,817

Corporate autocracy

4

Iraq

4,451,516

Iranian protectorate.

5

Iran

3,990,956

Single-party police state

6

China

3,980,650

Single-party police state

7

Canada

3,662,694

Multi-party republic

8

United Arab Emirates

3,106,077

Monarchy – effective single-party state

9

Kuwait

2,923,825

Monarchy – effective single-party state

10

Brazil

2,515,459

Transitional*

11

Venezuela

2,276,967

Single-party police state

12

Mexico

2,186,877

Transitional**

13

Nigeria

1,999,885

Multi-party republic

14

Angola

1,769,615

Effective single-party state

15

Norway

1,647,975

Multi-party republic


* Brazil is in the process of transitioning to military rule or single party status.

** Mexico is in the process of transitioning to warlord (failed) state or control by criminal gangs.



Petroleum resources offer enormous leverage for those able to gain control over them; at the same time control over the resources offers political advantages that are both obvious and difficult to overcome. Because of its dependence on integrated refining, processing and distribution infrastructure, petroleum is a resource that lends itself to ‘cartelization’. A government has only to create a monopoly to access resources at hand or take over control of existing businesses and combine them together.



Because of the absence of public input or a ‘negative feedback channel’ to restrain leadership, single-party states tend to be militaristic. Control over large petroleum resources offers managers the appearance of the means to dominion, to overrun or undermine neighbors, to expand control over resources or to destroy consumption in target countries so that it can be exported elsewhere:






































































































 

Country

Military Expenditures (in US dollars)

Current Wars – Potential Wars

1

Russia

$63 billion

Ukraine, Syria – Poland, Baltic states, Balkan states

2

Saudi Arabia

$69.5 billion

Yemen, Syria – Qatar, Egypt, Lebanon, Iran

3

United States

$610 billion

Afghanistan, Iraq, Syria, Pakistan, Somalia, western Africa – China/North Korea, Iran, Venezuela, Mexico

4

Iraq

$19.4 billion

Turkey, Syria, Islamic militants

5

Iran

$14 billion

Iraq, Yemen, Syria, Turkey – US, Saudi Arabia

6

China

$228 billion

Low intensity war in Xinjiang – US, Vietnam, S. Korea, Japan

7

Canada

$20.6 billion

Various support efforts for US and Nato

8

United Arab Emirates

$21.8 billion

Yemen

9

Kuwait

$7 billion

Iran

10

Brazil

$29.3 billion

Civil war

11

Venezuela

$4.5 billion

Civil war, US

12

Mexico

$6 billion

Civil war

13

Nigeria

$1.8 billion

Civil war vs Islamic militants and others

14

Angola

$2.3 billion

South Africa, civil war

15

Norway

$6.3 billion

Russia


The US gets away with its belligerence because the dollar is the world reserve currency; Wall Street simply produces dollar credit on demand, borrowers both domestic and abroad wind up indirectly funding the US war machine. Because Wall Street cannot lend resources into existence, credit creation runs ahead of available resources as they are depleted. At the same time, the US must hunt everywhere for new resources to cannibalize … or rivals to destabilize. In a way, the US has given itself no other choice, wasting fuel and other resources is what makes up our precious lifestyle.



Primary credit providers such as Great Britain during its imperial heyday are aggressive in preserving their credit monopoly, exorbitant privilege. The US’ role as primary credit provider suggests conflict with China is likely, perhaps between the two countries’ proxies on- or near the Korean peninsula or in the South China Sea. It is probable none of the autocrats in either country understand credit provision and the necessary infrastructure, these being a native currency, a treasury, a lender of last resort, strong commercial banks (able to distribute their own losses into the general economy); also private property, equitable regulation, enforceable contracts, the rule of law and a body of jurisprudence. All of these marshaled over time equal ‘creditworthiness’; the last three — enforceable contracts, rule of law and body of jurisprudence — are absent in China. Without fundamental changes, it will rely on external (dollar) credit. As it is, of the fifteen top oil producers, only the US is a credit provider, a status that required over 100 years and the exhaustion of Great Britain in two world wars to achieve.



As economic activity continues or increases, so does resource depletion. It is not depletion per-se that is causing problems within individual countries but the larger dynamics, energy deflation and dollar preference. The peripheral countries are affected first.



Single party states = poor economic management; inflation in Iran, (Prof. Steve Hanke):






Figure 1: Annual inflation in Iran is now running 78%. Iranians are ‘voting with their wallets’ and using the local currency to buy whatever dollars they can get their hands on.






Figure 2: Inflation in Venezuela is accelerating, now an amazing 30,000%+. Venezuela has the world’s largest reserves of oil but it does not matter: the country lacks the funds to access them, even as Venezuelans must either flee their country or face starvation.



There is inflation elsewhere: official figures tend to understate actual rates of inflation because they discount black-market rates; Angola, 30%; Nigeria, 16%; Russia, 4%, etc.



The question for Americans and the West becomes how much erosion of rights and privileges will people accept, how many wars, how much ruin; how far down the rat hole to we travel before questioning the energy-wasting status quo? How much are we prepared to give up for illusions?



Offline agelbert

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Re: Oil Producers and Their Governments
« Reply #1 on: June 14, 2018, 10:45:14 AM »
While I certainly agree that Oil Producers and the governments they 🐉🦕🦖 have ALWAYS CORRUPTED Their Governments are a pack of profit over planet criminal greedballs doing whatever they can, no matter how environmentally damaging (i.e. STUPID), unprincipled AND ERoEI math challenged, to keep their 😈 UNCOMPETITIVE POLLUTING CRAP PRODUCT in our faces, I have a "renewable energy isn't practical" bone to pick with you. 

Hey Steve, do you STILL think 100% Renewable energy is a "pipe dream", as you tirelessly proclaimed for YEARS on this forum?

It's time for you to APOLOGIZE for pushing the erroneous hypothesis that Renewable Enegy would NEVER be price competitive with fossil fuels.


Or, just pretend I did not post this and have no "basis" for my "groundless" assertion.

Easiest Way To Counterattack Russia — Go Electric

June 14th, 2018 by Zachary Shahan

SNIPPET:


Russia is highly dependent on its oil & gas industry. Its economy is already quite weak and its people suffer under a low quality of life as a result, but it’ll get worse if Russia’s oil & gas business is harmed. And, more importantly for the Russian oligarchs running the show over there, it gets much worse for them if they can’t hoard another billion or 10 from oil & gas sales.


Put your own sanctions on Russia, as well as on the sketchy, corrupt, humanity-threatening work of US oil & gas companies, European oil & gas companies, Saudi Arabia, etc.

Lay a smackdown on these anti-social jacktards to the greatest degree you personally can. Go electric.

2017 Electric ⚡ Vehicles 

Full article:

https://cleantechnica.com/2018/06/14/easiest-way-to-counterattack-russia-go-electric/
« Last Edit: June 14, 2018, 10:48:44 AM by agelbert »
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