The Politics of Oil

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here's a few more
 

Jubail

These industrial complexes, built at Jubail on the Arabian Gulf and Yanbu on the Red Sea by the Royal Commission for Jubail and Yanbu, are the key to the Kingdom's national industrialization plans. These two industrial cities provide the basis for the Kingdom's program to develop hydrocarbon-based and energy intensive industries. The massive investment in these industrial cities has as its major objective a reduction in the Kingdom's dependence on oil revenues by gaining access to the world's petrochemical markets. This route to industrialization exploits the Kingdom's natural advantages, in terms of cheap energy and cheap raw materials for petrochemical manufacture.

Q-8

Apparently a relatively new oil company based out of Kuwait, hence the name

The Q8 Special Products portfolio consists of base oils, process oils, L.P.G. and bitumen. All of these products derive from Kuwait Export Crude refined at our facility in Rotterdam. Because of this we are the only oil company in the world who can guarantee the consistency of our product quality.

Finished product is stored in Rotterdam and the UK

International Energy Agency

The International Energy Agency, based in Paris, is an autonomous agency linked with the Organisation for Economic Co-operation and Development (OECD).

The IEA is the energy forum for 26 Member countries. IEA Member governments are committed to taking joint measures to meet oil supply emergencies. They have also agreed to share energy information, to co-ordinate their energy policies and to co-operate in the development of rational energy programmes.To maintain and improve systems for coping with oil supply disruptions;
To promote rational energy policies in a global context through co-operative relations with non-Member countries, industry and international organisations;
To operate a permanent information system on the international oil market;
To improve the world's energy supply and demand structure by developing alternative energy sources and increasing the efficiency of energy use;
To assist in the integration of environmental and energy policies.

Sabah family

The Sabah family has traditionally assigned most of the key Cabinet positions — the Foreign, Defense, Interior, and Finance ministries almost always, and often (as now) Oil and Information as well — to members of the extended family. This has led to a fairly consistent pattern of conflict with Parliament, especially when a critical parliament wants to exercise its right to question Cabinet ministers who, it just happens, are also members of the ruling family. That was almost certainly what brought the last Parliament down (See The Estimate, May 7, 1999).

Haidar Aliev

Hi, for those of you who do not know me I am Heydar Aliyev. I am
the President of Azerbaijan which was once a part of the former Soviet
Union
. I have been described as a pragmatic leader and I was been in
office since 1993. I have promised the people of Azerbaijan many
democratic reforms along with an institution of free markets. One of the
markets that Azerbaijan excels in is the oil industry. For the past 70
years Azerbaijan had been a part of the Soviet Union and all the oil went
to Moscow now the oil belongs to Azerbaijan and now the country can
prosper. Since the beginning of the 20th century Azerbaijan has been
among the world

Oscar Wyatt

founder and chairman of Coastal Oil & Gas Corporation of Houston, Texas
(Mack). Coastal has international investments in Libya, Iraq, Peru,
Bermuda, Germany, India, Pakistan, Estonia, Canada, China, Central
America, the Caribbean, Indonesia, and Venezuela, and offices in London
and SingaporeI was instrumental in the Coastal-Libya contract arrangement during the
economic sanctions against Libya in 1987 in response to that countries
involvement in international terrorism. I was able to sleaze my way
into that one by working through a foreign subsidiary and a refinery in
Germany not bound by U.S. sanctions.

Abdul Aziz Ibn Saud

King Abdul Aziz bin Abdul Rahman Al Saud (known as Ibn Saud) was a tall, imposing figure, a natural leader of men. He knew instinctively how to judge men and, as his rule progressed, how best to exploit the natural resources of his country for the benefit of his people. His achievement, the unification of many warring tribes all proud of their own lineage and traditions, laid the foundations for the modern state of Saudi Arabia.

President Nazerbayev

In June 1989, Kolbin was replaced by Nazarbayev, a politician trained as a metallurgist and engineer. Nazarbayev had become involved in party work in 1979, when he became a protégé of reform members of the CPSU. Having taken a major role in the attacks on Kunayev, Nazarbayev may have expected to replace him in 1986. When he was passed over, Nazarbayev submitted to Kolbin's authority and used his party position to support Gorbachev's new line, attributing economic stagnation in the Soviet republics to past subordination of local interests to the mandates of Moscow.

Soon proving himself a skilled negotiator, Nazarbayev bridged the gap between the republic's Kazaks and Russians at a time of increasing nationalism while also managing to remain personally loyal to the Gorbachev reform program. Nazarbayev's firm support of the major Gorbachev positions in turn helped him gain national and, after 1990, even international visibility. Many reports indicate that Gorbachev was planning to name Nazarbayev as his deputy in the new union planned to succeed the Soviet Union

Rentier State

i.e. a state that depends on external aid (or oil revenues) rather than on the production of goods and services by its citizens.

Shatt al Arab

tidal river, 120 mi (193 km) long, formed by the confluence of the Tigris and Euphrates rivers, flowing SE to the Persian Gulf, forming part of the Iraq-Iran border; the Karun is its chief tributary. The Shatt al Arab flowed through a broad, swampy delta, but the marshland in Iraq was drained in the early 1990s in order to increase government control over the Arab Shiites who lived there. The river supplies fresh water to S Iraq and Kuwait and is navigable for oceangoing vessels as far as Basra, Iraq's chief port.

Iraq and Iran have disputed navigation rights on the Shatt al Arab since 1935, when an international commission gave Iraq total control of the Shatt al Arab, leaving Iran with control only of the approaches to Abadan and Khorramshahr, its chief ports, and unable to develop new port facilities in the delta.

The Tanker War, 1984-87

Naval operations came to a halt, presumably because Iraq and Iran had lost many of their ships, by early 1981; the lull in the fighting lasted for two years. In March 1984, Iraq initiated sustained naval operations in its self-declared 1,126-kilometer maritime exclusion zone, extending from the mouth of the Shatt al Arab to Iran's port of Bushehr. In 1981 Baghdad had attacked Iranian ports and oil complexes as well as neutral tankers and ships sailing to and from Iran; in 1984 Iraq expanded the socalled tanker war by using French Super-Etendard combat aircraft armed with Exocet missiles. Neutral merchant ships became favorite targets, and the long-range Super-Etendards flew sorties farther south. Seventy-one merchant ships were attacked in 1984 alone, compared with forty-eight in the first three years of the war. Iraq's motives in increasing the tempo included a desire to break the stalemate, presumably by cutting off Iran's oil exports and by thus forcing Tehran to the negotiating table. Repeated Iraqi efforts failed to put Iran's main oil exporting terminal at Khark Island out of commission, however. Iran retaliated by attacking first a Kuwaiti oil tanker near Bahrain on May 13 and then a Saudi tanker in Saudi waters five days later, making it clear that if Iraq continued to interfere with Iran's shipping, no Gulf state would be safe.

These sustained attacks cut Iranian oil exports in half, reduced shipping in the Gulf by 25 percent, led Lloyd's of London to increase its insurance rates on tankers, and slowed Gulf oil supplies to the rest of the world; moreover, the Saudi decision in 1984 to shoot down an Iranian Phantom jet intruding in Saudi territorial waters played an important role in ending both belligerents' attempts to internationalize the tanker war. Iraq and Iran accepted a 1984 UN-sponsored moratorium on the shelling of civilian targets, and Tehran later proposed an extension of the moratorium to include Gulf shipping, a proposal the Iraqis rejected unless it were to included their own Gulf ports.

Iraq began ignoring the moratorium soon after it went into effect and stepped up its air raids on tankers serving Iran and Iranian oil-exporting facilities in 1986 and 1987, attacking even vessels that belonged to the conservative Arab states of the Persian Gulf. Iran responded by escalating its attacks on shipping serving Arab ports in the Gulf. As Kuwaiti vessels made up a large portion of the targets in these retaliatory raids, the Kuwaiti government sought protection from the international community in the fall of 1986. The Soviet Union responded first, agreeing to charter several Soviet tankers to Kuwait in early 1987. Washington, which has been approached first by Kuwait and which had postponed its decision, eventually followed Moscow's lead. United States involvement was sealed by the May 17, 1987, Iraqi missile attack on the USS Stark, in which thirtyseven crew members were killed. Baghdad apologized and claimed that the attack was a mistake. Ironically, Washington used the Stark incident to blame Iran for escalating the war and sent its own ships to the Gulf to escort eleven Kuwaiti tankers that were "reflagged" with the American flag and had American crews. Iran refrained from attacking the United States naval force directly, but it used various forms of harassment, including mines, hit-and-run attacks by small patrol boats, and periodic stop-and-search operations. On several occasions, Tehran fired its Chinese-made Silkworm missiles on Kuwait from Al Faw Peninsula. When Iranian forces hit the reflagged tanker Sea Isle City in October 1987, Washington retaliated by destroying an oil platform in the Rostam field and by using the United States Navy's Sea, Air, and Land (SEAL) commandos to blow up a second one nearby.

In early 1988, the Gulf was a crowded theater of operations. At least ten Western navies and eight regional navies were patrolling the area, the site of weekly incidents in which merchant vessels were crippled. The Arab Ship Repair Yard in Bahrain and its counterpart in Dubayy, United Arab Emirates (UAE), were unable to keep up with the repairs needed by the ships damaged in these attacks.

Al Thani Family

Qatar became an independent country on 3 September 1971. In 1974, the Qatar General Petroleum Corporation took control of all oil operations in the country.

Qatar
rapidly became a rich country with a modern and well-developed infrastructure.

On
27 June 1995, His Highness Sheikh Hamad bin Khalifa Al Thani assumed power with the support of the ruling family and the Qatari people. With his accession Qatar
entered a new era of modernisation and embarked on the development of a strong base for democracy.
A great social and political transformation is under way.

Gulf Cooperation Council - GCC

Saudi Arabia was a prime mover in setting up the Gulf Cooperation Council in 1981. Other members are Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates (UAE).

The Gulf Cooperation Council aims to coordinate resistance to outside intervention in the Gulf. Progress towards economic integration has been slow during the 1980s economic downturn in the region.

The Gulf Cooperation Council seeks to strengthen cooperation (in areas such as agriculture, industry, investment, security, and trade) among its six members:
Bahrain, Kuwait, Quatar, Oman, Saudi Arabia, and the United Arab Emirates.

The Gulf Cooperation Council, created in response to the outbreach of the Iran-Iraq war, established the Gulf Standards Organization in November 1982 and the Gulf Investment Corporation in 1984.

The presidency of the Gulf Cooperation Council rotates yearly among members. Council headquarters are in
Riyadh, Saudi Arabia.

 

 

 

Hosni Mubarak

In 1981, Mr. Mubarak became President of the Arab Republic of Egypt and the Chairman of the National Democratic Party. President Mubarak was re-elected by majority votes in 1987,1993, and 1999 for three successive terms.

Netback Pricing
An arrangement, by contract where the price of natural gas purchased is based upon the resale price, less transportation-related costs. Also, call a percentage of proceeds contract.

New York Mercantile Exchange (NYMEX)
The first
U.S. exchange to trade natural gas futures contracts and has contracts with Henry Hub, Permian and Canadian delivery.

Natural Gas Policy Act of 1978 (NGPA)
A federal law adopted in phased-in deregulation for gas discovered after 1977. Among other provisions, the NGPA also established incentive prices for certain types of natural gas in order to encourage increased exploration and production

Iran Libya Sanctions Act of 1996

Purpose: The Iran and Libya Sanctions Act of 1996 imposes new sanctions on foreign companies that engage in specified economic transactions with Iran or Libya. It is intended to: -- Help deny Iran and Libya revenues that could be used to finance international terrorism; -- Limit the flow of resources necessary to obtain weapons of mass destruction; and, -- Put pressure on Libya to comply with U.N. resolutions that, among other things, call for Libya to extradite for trial the accused perpetrators of the Pan Am 103 bombing.

The Sanctions: The bill sanctions foreign companies that provide new investments over $40 million for the development of petroleum resources in Iran or Libya. The bill also sanctions foreign companies that violate existing U.N. prohibitions against trade with Libya in certain goods and services such as arms, certain oil equipment, and civil aviation services. If a violation occurs, President Clinton is to impose two out of seven possible sanctions against the violating company. These sanctions include: -- denial of Export-Import Bank assistance; -- denial of export licenses for exports to the violating company; -- prohibition on loans or credits from U.S. financial institutions of over $10 million in any 12-month period; -- prohibition on designation as a primary dealer for U.S. government debt instruments; -- prohibition on serving as an agent of the United States or as a repository for U.S. government funds; -- denial of U.S. government procurement opportunities (consistent with WTO obligations); and -- a ban on all or some imports of the violating company.

 


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