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Islamic State’s Ultimate Goal: Saudi Arabia’s Oil Wells

Islamic State’s Ultimate Goal: Saudi Arabia’s Oil Wells For the terrorist group known as the Islamic State, Syria and Iraq were a good place to start their campaign, but in order to survive and prosper it knew from the outset that it had no choice but to set its sights on the ultimate prize: the oil fields of Saudi Arabia. It is in that direction that the battle for control of the world’s largest oil fields is currently heading. Islamic State — which has its origins in al-Qaeda – knows fully well that in order to sustain itself as a viable and lasting religious, political, economic and military entity in the region, it has to follow the same objectives established by al-Qaeda when Osama bin Laden broke off his relations with the Saudi monarchy and vowed to bring down the House of Saud. Bin Laden’s ire at the Saudi […]

Posted On : Published By : Tom Whipple
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Arabs Give Tepid Support to U.S. Fight Against ISIS

BEIRUT, Lebanon — Many Arab governments grumbled quietly in 2011 as the United States left Iraq, fearful it might fall deeper into chaos or Iranian influence. Now, the United States is back and getting a less than enthusiastic welcome, with leading allies like Egypt, Jordan and Turkey all finding ways on Thursday to avoid specific commitments to President Obama’s expanded military campaign against Sunni extremists. As the prospect of the first American strikes inside Syria crackled through the region, the mixed reactions underscored the challenges of a new military intervention in the Middle East, where 13 years of chaos, from Sept. 11 through the Arab Spring revolts, have deepened political and sectarian divisions and increased mistrust of the United States on all sides. “As a student of terrorism for the last 30 years, I am afraid of that formula of ‘supporting the American effort,’ ” said Diaa Rashwan, a scholar […]

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Advocates: Cut off oil funding to Islamic State

| License Photo WASHINGTON, Sept. 11 (UPI) — A U.S. peace advocacy group said cutting off weapons and oil funding streams for the Islamic State were better options than the use of military force. President Barack Obama laid out his plans to contain the threat posed by the Islamic State, known variably as the Islamic State of Iraq and Syria (ISIS) or the Islamic State of Iraq and the Levant (ISIL), in an address to the nation Wednesday evening. "We will degrade, and ultimately destroy, ISIL through a comprehensive and sustained counter-terrorism strategy," the president said. His agenda called for airstrikes against terrorist targets in Iraq in a broad-based strategy that may include support from U.S. allies in Europe and in the Middle East. Kevin Martin , executive director for U.S. advocacy group Peace Action, argued for a non-military solution to the problem. "It’s time to stop the bombing […]

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U.S. reviewing ‘rumors’ of Iran, Russia oil deal

WASHINGTON, Sept. 11 (UPI) — The U.S. government is taking a wait-and-see approach to the "rumors" of an oil-for-goods deal between Russia and Iran, a State Department spokesperson said. Iran and Russia have cooperated in the nuclear energy sector and more recently mulled the prospects of working on a deal for Iran to deliver oil to Russia. "In the past [we] had said we saw nothing at that time to indicate any real progress had been made in terms of that kind of agreement," spokesperson Marie Harf said during a Wednesday briefing. "There are lots of rumors about what may actually transpire from this, so we will watch and see." Iranian President Hassan Rouhani is scheduled to meet Friday in Tajikistan with Russian President Vladimir Putin. This week, Iranian Energy Minister Hamid Chitchian hosted Russian Energy Minister Alexander Novak for a two-day summit concluding in Tehran. Russian officials during […]

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Kuwait Boosts Oil Output Despite Falling Prices

KUWAIT CITY—Kuwait is boosting its crude output this month despite falling prices, people familiar with the matter said Thursday. Oil prices have declined sharply over the summer, even falling below $100 a barrel this week. But members of the Organization of the Petroleum Exporting Countries have been split in their response to the price drop. While Saudi Arabia cut its production by 400,000 barrels a day in August, others are boosting their oil flows. Kuwait has increased its production to 2.9 million barrels a day this month, up 100,000 barrels a day from August, the people familiar with the matter said. It could rise to 3 million barrels a day next month, one person said. The output hike is to supply a 10-year deal signed last month by Kuwait with Sinopec Corp. The contract will nearly double Kuwait’s supplies to the Chinese oil giant to 300,000 barrels a day. […]

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China Bid to Curb Coal Output Seen Lifting Prices by 10%

Cutting production at the largest mining companies in China is on track to do what government officials are hoping: boost coal prices and help shore up the struggling industry. That’s the conclusion of ICIS-C1 Energy, a consulting company in Shanghai, which predicts coal prices may advance 10 percent in the fourth quarter because of the output reduction and government plans to ban shipments of lower-quality cargoes from overseas. China, both the world’s largest market for coal and worst carbon-dioxide emitter, is seeking to reduce output at the nation’s 14 largest producers after prices slumped amid efforts to moderate economic growth and fight pollution. More than 70 percent of miners are unprofitable and half are delaying or cutting wage payments, according to the China Coal Industry Association. “Coal prices have started to show a recovery since the moment the government decided to step in,” Shi Yan, a Shanghai-based analyst at […]

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IEA: US Shale Squeezing Out Saudi Oil Imports, Boosting Gasoline Exports

Hess To Form MLP For North Dakota Oil, Gas Transport Assets LONDON, Sept 11 (Reuters) – North America’s shale oil boom has started to squeeze Saudi Arabian oil out of the U.S. market in the same way it did with West African crude, the West’s energy agency said on Thursday. The International Energy Agency also predicted a flood of U.S. gasoline exports to world market. "In recent years, surging light tight oil production has backed out U.S. imports of West African crude, which are now moving to Asia," the IEA said in a monthly report. "Saudi exports seem to be showing the beginning of a similar shift," it said, estimating that Saudi exports have likely run below 7 million barrels per day for the last four months, their lowest level since September 2011. "Exports to the U.S. led the drop amid rising Saudi domestic demand for crude burn and […]

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Oil Glut Ignites Gasoline Price Swoon

Consumers are expected to see lower prices at the pump as gas prices fall. Associated Press Gasoline prices have tumbled from highs hit in June. And markets are signaling that consumers will get even more relief at the pump. A global glut of crude oil is the main driver behind the decline in gasoline. Relatively cheap oil has made it more profitable for refiners to produce gasoline and other fuels, and they have ramped up production to record levels. This boom in supplies has sent gasoline prices tumbling. Traders and other market observers expect the flow of both crude oil and gasoline to keep rising, likely exerting more downward pressure on prices. The average retail price for a gallon of regular gasoline was $3.42 on Thursday, down 3.8% from the same period in 2013, according to motor club AAA. For this time of year, gasoline prices are at their […]

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API: Recent LNG nods not enough

WASHINGTON, Sept. 11 (UPI) — Despite a nod for southern U.S. LNG exports, the application backlog needs clearing to strengthen U.S. leverage, the American Petroleum Institute said. API Upstream Director Erik Milito welcomed a decision from the U.S. Energy Department to allow for exports of liquefied natural gas from projects in Cameron Parish, La., and Marion County, Fla. "But dozens of other permits still face lengthy delays," he said in a statement Wednesday. "We urge the administration to accelerate this process and work with leaders in Congress who have shown they are ready to strengthen America’s position as an energy superpower." Bills that have passed through the U.S. House of Representatives tied LNG exports to overseas leverage in the foreign policy and economic arenas , a sentiment backed by API. The Cameron LNG project and the Carib Energy project in Florida were cleared for LNG exports to countries like […]

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New gas flaring for North Dakota

NEW YORK, Sept. 11 (UPI) — The expansion of a project in the Bakken reserve area of North Dakota will cut down on costs in part due to the use of flared natural gas, project leaders said. The U.S. subsidiary of Norwegian energy company Statoil, along with a joint venture between General Electric and Ferus Natural Gas Fuels, announced plans to expand the so-called Last Mile project in order to capture flared natural gas and use it to power Statoil’s drilling operations in North Dakota. "By using this captured natural gas in place of diesel in our drilling and hydraulic fracturing operations, we are further reducing emissions and costs," Lance Langford, Statoil’s vice president for Bakken development and production, said in a statement Wednesday. Natural gas associated with the vast shale oil deposits in the states is burned off, or flared, because of a lack of processing capabilities. North […]

Posted On : Published By : Tom Whipple