Sunday, August 10, 2008

Russia Shuts Down Caspian Oil Production

Russia has purposely shut down all oil exports from Azerbaijan. The operation was very strategically planned, probably months ahead of time. Russia's military operation was carried out while U.S. and EU governments were in recess, as well as during the Olympic Games.

Beijing 2008

Exactly two days before Russian tanks started rolling south into Georgia, a Turkish section of the Baku-Tbilisi-Ceyhan pipeline was bombed. Kurdish militants claimed responsibility however the operation was well out of PKK operating areas. In any event, if they were involved, the PKK could not have timed an operation more conveniently for Russia. Just 48 hours later Russia sent warships south from ports in the Ukraine to close all Georgian oil export terminals.

Russia even bombed a Georgian oil terminal to reinforce the message. Now the older Baku-Supsa pipeline is out of action again too. That pipeline only came back into use after major repairs in June of this year.

One of the loudest voices in opposition to original construction of the Baku-Tbilisi-Ceyhan pipeline was Russia.

How convenient that Russia had so many tanks already staged near the Georgia border. At the same time Georgia had 3,000 troops out of town, putting in extra hours helping out the U.S. forces in Iraq. The U.S. put those Georgian troops on planes headed back to Tibilisi just hours after Russian forces started rolling into South Ossetia.

How interesting that U.S. advisors have been in Georgia, training their troops for many years now.

Even more fascinating is how Russia had offered the largest contingent to the United Nations peacekeeping force operating in Georgia's breakaway province regions. So now that Russia is invading does that UN contingent simply convert to being a hostile force, assisting in the seizure of the Baku-Tbilisi-Ceyhan and Baku-Supsa pipelines?

Of course the Baku-Novorossiysk pipeline, which runs primarily through Russia, sits available to start pumping Caspian oil to the west if Azerbaijan would only let bygones be bygones.

Royal Dutch Shell Station, Annapolis 48997

As a major exporter of oil and gas, Gazprom and other Russian firms will benefit from the spike in global oil prices caused by the closure of both Georgian ports and the Baku pipelines.

Western news organizations once again appear reluctant to provide any detailed analysis. BP and other oil firms may fret over the loss of production from the Caspian Sea region but soaring oil prices will contribute to a rise in quarterly earnings no matter what the underlying causes may be.

New Olympic Logo

One wonders what threatening words Texas oilman George W. Bush launched at Vlad Putin in the diplomatic section of the bird nest stadium in Beijing. Western news reporters (censored by Communist China right now) could only say that "heated words were exchanged."

Now one must remember that W. is the son of a former CIA director and Putin's early career was as a KGB man. There is more subterfuge here than meets the eye.

White House



Washington Post article
Daily Mail
Times UK

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