Building a world of
resilient communities.



Energy producers - Oct 28

Click on the headline (link) for the full text.

Many more articles are available through the Energy Bulletin homepage

Financial Storm Hits Gulf States

Margaret Coker and Chip Cummins, Wall Street Journal
Speculative Currency Trades Plunge Kuwait Into Bank Bailout
The global financial storm rolled across the Persian Gulf on Sunday, as Kuwait's central bank guaranteed bank deposits and cobbled together a hasty bailout for one of the country's largest banks.

The Kuwait intervention is the first bank rescue in the oil-rich Gulf, which until now had seemed relatively immune to the current crisis. It came as local markets across the region continued their steep selloffs. With oil prices down more than 50% from their July highs, the explosive, petroleum-fueled growth of the Gulf now looks suddenly vulnerable at the same time as international and local investors are pulling back sharply.

Saudi Arabia, in an apparent bid to ease the fallout of the global credit crisis on its citizens, said it would funnel some $2.3 billion in loans to low-income borrowers. And in Dubai, real-estate brokers in the Mideast boomtown said they are seeing signs of price weakness for the first time in years, as financing dries up and speculators bow out of the once red-hot market.
(27 October 2008)

The rise (and fall?) of petro-states

Sreeram Chaulia, Asia Timies
Even before armed hostilities between Russia and Georgia ended in August, the ultra-nationalist mayor of Moscow, Yuri Luzhkov, began investing
colossal sums in changing the ethnic geography of the Georgian breakaway state of South Ossetia in favor of Russia. In one public speech to Ossetians, he exuded the confidence and chutzpah that has come to symbolize the Russia of Prime Minister Vladimir Putin and President Dmitry Medvedev. Smug with the knowledge that oil and gas revenues had raised his country's international stature, Luzhkov wooed his Ossetian audience with a startling claim, "Russia needs nothing. It has everything. It is the wealthiest country."

The Kremlin's assertiveness and strident defense of national interests in the Putin era is ascribed to the boom in world prices of natural gas and oil, which Russia exports in abundance. Russia reaped direct dividends from the steep increase in fossil fuel prices by accumulating foreign exchange reserves to the tune of US$560 billion by mid-2008. Indirectly, possession of the much-coveted strategic minerals enabled Russia to neutralize energy-hungry Western European countries, particularly Germany, so that the "West" was divided over taking an anti-Moscow foreign policy line.

Ever since fossil fuel prices inflated from 2004, the Middle East, Latin America and Africa saw their own versions of petro-states that turned into major regional powers to threaten American hegemony. Thanks to steady increases in the price of oil, Iran's star rose astronomically in the most volatile area of the world.

Sreeram Chaulia is a researcher on international affairs at Syracuse University's Maxwell School of Citizenship and Public Affairs, New York.
(28 October 2008)

As Dubai skyscrapers keep rising, buyers and developers eye world's financial woes

Adam Schreck, AP
Dubai's long, lucrative property boom is hitting rough times, with property-flipping speculators and hopeful foreign buyers increasingly worried as easy oil money and quick profits dry up.

It's far from clear, though, if a bubble has truly burst or if the once red-hot market is simply cooling.
(27 October 2008)

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Find out more about Community Resilience. See our COMMUNITIES page
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.


This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.

2014 biggest year ever for solar, but oil price threat looms

Will only time tell whether it will be enough to keep solar panels cheap …

Rethink the Grid: Personal Power Stations

Rethinking the grid is quickly emerging as one of the hottest topics.

Goldilocks Is Dead

For oil, the Goldilocks zone has ceased to exist. This will have staggering …

US enters undulating crude oil production plateau in 2015

Feel-good-outlooks make the TV audience happy, but sleepy.

Global Shale Fail: Oil Majors Leaving Fracking Fields Across Europe, Asia

As Post Carbon Institute has pointed out in two major reports, estimated …

Peak Oil Review - Mar 23

A weekly review including Oil and the Global Economy, The Middle East & …

Cheap oil, complexity and counterintuitive conclusions

The chief intellectual challenge of our age is that we live in complex …