Democracy Now: Russia-Georgia Conflict Fueled by Rush to Control Caspian Energy Resources

[jaybeat]

August 15, 2008

Russia-Georgia Conflict Fueled by Rush to Control Caspian Energy Resources

Human Rights Watch has accused both Russian and Georgian forces of killing and injuring civilians through indiscriminate attacks over the past week of fighting. Professor and author Michael Klare joins us to talk about how the Russian-Georgian conflict is largely an energy war over who has access to the vast oil and natural gas reserves in the Caspian region.

http://i1.democracynow.org/2008/8/15/russia_georgia_conflict_fueled_by_rush

Much to the surprise of no one...

[jaybeat]

1. Self-kicking to spread the (what should be, but unfortunately isn't) obvious... (nt)

[Festivito]

2. It's just too obvious for us on DU.

Although, I think this conflict has multiple uses.
Oil is one. Military-Industrial-Complex is a second.
And instigating a war prior to election in order to enhance the incumbent party is a third reason.
Could be more, but it's late.

[jaybeat]

3. Nope, you're spot on.

1, 2, 3.

Boom, boom, boom. Out go the lights.

In other news, the big US oil companies are getting their hats handed to them around the world, except in D.C., where when they say "Drill!" their lackeys in the US Government (and especially the Republican Party) say, "How Deep?! As deep as you want!"

:puke:

[Joanne98]

4. Self-delete

[bemildred]

5. Russia takes control of Turkmen (world?) gas

From the details coming out of Ashgabat in Turkmenistan and Moscow over the weekend, it is apparent that the great game over Caspian energy has taken a dramatic turn. In the geopolitics of energy security, nothing like this has happened before. The United States has suffered a huge defeat in the race for Caspian gas. The question now is how much longer Washington could afford to keep Iran out of the energy market.

Gazprom, Russia's energy leviathan, signed two major agreements in Ashgabat on Friday outlining a new scheme for purchase of Turkmen gas. The first one elaborates the price formation principles that will be guiding the Russian gas purchase from Turkmenistan during the next 20-year period. The second agreement is a unique one, making Gazprom the donor for local Turkmen energy projects. In essence, the two agreements ensure that Russia will keep control over Turkmen gas exports.

The new pricing principle lays out that starting from next year, Russia has agreed to pay to Turkmenistan a base gas purchasing price that is a mix of the average wholesale price in Europe and Ukraine. In effect, as compared to the current price of US$140 per thousand cubic meters of Turkmen gas, from 2009 onward Russia will be paying $225-295 under the new formula. This works out to an additional annual payment of something like $9.4 billion to $12.4 billion. But the transition to market principles of pricing will take place within the framework of a long-term contract running up to the year 2028.

The second agreement stipulates that Gazprom will finance and build gas transportation facilities and develop gas fields in Turkmenistan. Experts have estimated that Gazprom will finance Turkmen projects costing $4-6 billion. Gazprom chief Alexei Miller said, "We have reached agreement regarding Gazprom financing and building the new main gas pipelines from the east of the country, developing gas fields and boosting the capacity of the Turkmen sector of the Caspian gas pipeline to 30 billion cubic meters." Interestingly, Gazprom will provide financing in the form of 0% credits for these local projects. The net gain for Turkmenistan is estimated to be in the region of $240-480 million.

http://www.globalresearch.ca/index.php?context=va&aid=9853