The Wall Street Journal
is the perfect example of a state and corporate controlled
counter-information service. A report recently attempts to characterize
the Saudi war on the Yemeni people as having little to do with oil.
Nothing my friends, nothing could be further from the truth. The Saudis
need untapped reserves Yemen currently controls. Here’s a look at the
real reason for the genocide in Yemen.
“Yemen doesn’t produce a lot of oil, but
there are reasons why oil markets would react to military action there.
Why? Here’s the short answer, ” this is the “lead” for
an unnamed WSJ author shifting the blame for a war for profit. The
story is bait, counterintuitive and blurbish, but just enough to get
Americans thinking in the right direction. “Right” that is, if you’re
Rupert Murdoch’s newspaper. But the reality underneath is all about
Murdoch and his cronies’ investments in the region, and nothing to do
with geo-strategic tanker routes.
The WSJ wants investor types who read
the paper to believe oil prices surged a bit last week because of the
“fear” a “strategic chokepoint” known as the Bab el-Mandeb Strait might
be clogged if the Yemen chaos spilled over into Saudi Arabia. Well,
there’s no danger of that given the fact the Saudis are bombing Yemen
back into the Stone Age using US weaponry. Another potential though,
does implicate the Bab el-Mandeb Strait, as well as Somalia across the
waters from the Saudis. Our past research has shown clearly, the fact
Saudi Arabia and most of the OPEC nations have already reached the oil
supply tipping point, the so-called “
peak oil”
paradigm. Running out the last of the nation’s only saleable resource,
the Saudi royalty have put their country into a mess, the potential for
revolution there being acute, should the people discover the real
predicament. This is why we see an “
all in” Saudi
aggressive stance, on Syria, with Iran, and especially where Yemen is
concerned. While Washington think tank evangelists try and play the
tensions off as Sunni-Shiite religious friction, new oil reserves are
the truth of these matters.
When I first heard of drone strikes by
the Obama administration on targets in Yemen, I was skeptical of any US
effort targeting terror there. Obama, as we now see in every case of
chaos in the region, is neck deep in WikiLeaks cables, investigative
reports, and highly illegal military actions that contravene the US
Constitution. Just how the man has stayed out of prison these 7 years
seems miraculous for me. Just last week, the
Pentagon ordered strikes
supposedly targeting al-Qaeda in Yemen. This reported fact reverberates
in my head as I recall the al-Qaeda George Bush swore to eradicate, and
the al-Qaeda Vladimir Putin and Assad are trying to kill in Syria. Or
should I say ISIL? You get the point, nobody seems to know who the enemy
is, but shoeless and foodless people in wadis all over the Middle East
seem to be dying as a result. Excuse me, I divert from the subject of
the report here only to emphasize the clearly cohesive mission of
corporation, the investor elite, media, and our governmental leadership.
Oil, this story is about oil.
A few weeks ago
Zero Hedge
ran a piece talking about new oil rigs being brought on by the Saudis.
The piece was, for once, erroneous in its supposing the Saudis were
putting new rigs online in order to boost a “sustainable” production.
The indubitable Tyler Durden is seldom wrong where such
investing-strategic information is concerned, but in this case he was
180 degrees off. His supposition that rig counts going up indicate the
Saudis “panning” for increased exports is not even a remotely possible.
The Saudis are bringing new rigs online alright, offshore ones that are
many times more expensive than their inland cousins. And there’s only
one reasonable explanation for them doing this, the biggest fields that
once contained more energy wealth than any place on Earth have peaked.
Short version, the Saudis need more fields, more oil from somewhere, in
order to survive.
This report
I found shows clearly, the Bush and Obama administrations have known
for a long time that the Saudis are almost out of oil. “Peak oil” is a
reality; the wealth of the Saudi people has been squandered on frivolous
investing and building projects, and if they don’t prop up the
industry, then the regime is over. This brings us to Yemen and the
concrete reasons for Saudi aggression. I’ll try and be brief.
Zero Hedge and other analytical sources
have failed to take into account the nature of new rig expansion the
Saudis have undertaken. This Offshore report
from November 2013 tells us of Saudi Aramco’s Manifa shallow water
oilfield development program, which began production in April 2013. The
report also clues us to another logical conclusion; the Saudis have been
lying about their capacity for decades. Why add as many as 170 new
rigs, if the projected production levels are not to be increased for
another 30 year, as the Saudi oil minister proclaimed in 2013? Add to
this ridiculous notion, the fact these offshore rigs are 7 times more
costly to run, and you have a good idea of the fallacious nature of
these reports. The Saudis have to have less more capacity, a lot more,
in order to still compete with the Russians, Iranians, and Venezuelans.
(Forget the Americans, shale production in North American cannot be
sustained).
Finally, while the Wall Street Journal
reports Yemen as a minor oil “producer”, evidence is emerging that the
oil Yemen sits on has yet to be fully explored or accessed. This Yemen
Post article first clued me to the possibility the Saudis are after
Yemens reserves. While this news source is not the most reliable in all
cases, the contention that the Jawf field, in northern Yemen just south
of the Saudis, it interested me. The facts the Saudis are killing people
in the Jawf region in record numbers aside, the oil basins first
explored by Hunt Oil, Exxon, and Phillips in blocks around Jawf have
largely been expropriated (2005 for
block 18)
by Yemen. And big oil hates countries taking back their resources. Most
people do not realize that the oil politicians and their armies fight
over is almost totally controlled by conglomerates like Shell, and the
others. This
report from 1997
names some of the developers of Yemen’s main revenue source, but it
does not tell us of the targeted goal of the new Saudi aggression.
Before I elaborate on the big “kill” for
the Saudis, let me frame American President Barack Obama and hi state
department in this mess first. The reader needs nothing more than
this WikiLeaks
cable to galvanize the fact the Obama administration, and former
Secretary of State Hillary Clinton especially, knew exactly the nature
of new Yemeni oil and gas capacity in 2009. What the cable made
“classified” by Ambassador Stephen A. Seche revealed was just business,
but damning when current events are overlapped, I quote in part:
“In an October 13 meeting with
Econoff, the Chair of the Petroleum Exporting and Production Authority
(PEPA), Ahmed Abdillah, told Econoff that the governorates of Shabwa,
Marib and al-Jawf have high potential for significant gas deposits. He
said that natural gas deposits have been found in Occidental Block 20
(Marib-al-Jawf), Occidental Block S-1 (Shabwa) and Canadian Nexen Block
51 (Hadhramout).”
Without going into a geology or oil
& gas lecture here, natural gas, particularly LNG are the mid term
future for the people of Yemen. That is if the Saudis with American
assistance will let them live. As for oil, and the crude the Saudis need
to survive, Yemen has a partial solution there too.
Yemen’s real treasure trove is actually
situated in a shared region of the Red Sea, and offshore in the Sea of
Aden. It should come as no surprise that companies like British Gas and
even the United States Geological Survey (USGS) have been fully aware of
vast oil and gas deposits offshore of Yemen for some time. This
USGS report
from 2002 shows an immeasurable potential, while numerous surveys and
explorations offshore show vast reservoirs and potential so obvious
amateur geologists could hit oil around Yemen. A report about Samhah
Island, in the Gulf of Aden off Somalia told of oil seeping up through
the solid rock. Readers will find it ironic that the United States Navy
has seized the island, and is building the largest naval base in the
region on nearby Socotra Island. Further discoveries beneath the shallow
sea bed of the Red Sea stretch from Yemen to the shores of neighboring
Saudi Arabia, Sudan and Eritrea. Offshore “heavy oil” and onshore
natural gas riches beckon the Saudis, Brits, Americans, and the French.
So now you know why Barack Obama never
comes to the rescue for Yemeni civilians being murdered, it’s the same
reason Russian speakers in the East of Ukraine are not protected, and
the same reason ISIL has been allowed to roam Northern Iraq and Eastern
Syria. Oh, and Rupert Murdoch, the owner of the Wall Street Journal, his
key energy investment in Genie Oil is a direct competitor with any
future Yemen revenue gains from new sources. AMSO American shale, a
subsidiary of Genie is vested in monetizing the last of America’s shale
reserves. So the picture puzzle of Yemen chaos should be complete for
you now. And the Wall Street Journal’s counter-intuitive news revealed
as well.
Phil Butler, is a policy
investigator and analyst, a political scientist and expert on Eastern
Europe, exclusively for the online magazine “New Eastern Outlook”.