DIE HARD III / Herman Tiu Laurel / May 26, 2014 / Daily Tribune
Last week Russia’s President Vladimir Putin signed the “Holy Grail” deal with China’s President Xi Jing Ping, to supply Siberian natural gas to China for the next 30 years. The deal is worth $400 billion.
Part of the deal is a pre-payment from China of up to $50 billion for Russia to construct the direct pipeline to China. But that is not all. The two countries are constructing the $60 billion Pacific Ocean Oil Pipeline from Russia’s Skovorodino to China’s Mohe to delivery for 25 years $270 billion of 360.3 million tons of crude for the Chinese National Petroleum Corp. Russia is accepting Chinese Yuan for all these while China will in turn accept Roubles for what Russia will import in return. The next move, as one apt headline put it: “Russia Prepares Mega-Deal with India after locking up China with ‘Holy Grail’ Gas Deal.”
India as of May 1, 2014, according to the World Bank, overtook Japan as the third largest economy in the World in purchasing power parity terms. Talks of construction of a $30 billion Russia to India, through Northeast China, oil pipeline project are expected to conclude by mid-2014, says India’s Oil and Natural Gas Corp. The trade will be done in the national currencies. China supports the pipeline project while India has expressed interest in joining the Shanghai Cooperation Organization which includes Russia and the Central Asian states.
As the 21st Century turns, the World is turning from the West to East in a momentous shift marked by the “pivot” of oil, gas and energy supply away from the Organization of Petroleum Exporting Countries (OPEC) and the Petrodollar. OPEC, organized in 1960, was controlled by Western big oil behind the five founding members Saudi Arabia, Iran, Iraq, Venezuela and Kuwait.
In 1971 as the US dollar collapsed on the weight of its Vietnam War debts, US State Secretary Henry Kissinger arranged with the largest oil producer, Saudi Arabia to accept only US dollar for its oil in exchange for security guarantees. This gave birth to the Petrodollar and subjected the oil-dependent World to its tender mercies.
The Petrodollar was the US Big Stick to compel countries to bend to US whims, like the Philippines, which hocked everything it had to get US dollars to buy oil and energy indispensible for economic sustainability and growth. The US manipulated the supply of the Petrodollar and caused currencies of other nations to rise and fall , like the devaluations of the Philippine peso from two-to-one in the early 50s up to over 50-to-1 at its nadir during the Asian Financial Crisis of 1998 and during the destabilization of Presidents Marcos 1983 to 1986 and Estrada in 2000 to 2001. The Petrodollar was the power then, but today even Saudi Arabia is striking direct deals with China, et al. OPEC and the Petrodollar are dying.
Ironically, OPEC and the US Petrodollar’s end were ushered in by the US itself. Hubris overtook the US after the Soviet Union collapsed in 1991. For nearly 25 years of US and Nato push that now threatens Russia at its borders with Ukraine, the US has treated Russia as a second class nation, insulting it with promises unkept, like the pledge not to expand Nato and such projects as the US-Nato missile defense system surrounding Russia claiming it is to defend itself against Iranian missiles (which can’t even cross Turkey). Now, Russia responds and shakes the foundation of US power over the World — the erosion and demise of the Petrodollar.
Where does the Philippines stand in the face of the radically shifting global oil, gas and energy supply scenario for the coming years? Under BS Aquino and the current ruling class (the Yellows) beholden to the Royal Dutch Shell, Saudi-Aramco/Chevron Texaco (and fronts) energy-finance enslavement to high-oil and energy prices of the Western energy transnationals and vassalage to their geopolitical foibles reign. Low cost energy from Russia, Iran and Venezuela awaits, but there will be no action. Vietnam, RP’s new ally on the China Sea issues, is into joint exploration and development of oil resources in the China Sea with Russia and India in its energy development projects.
The World is celebrating the end of times of the Petrodollar and the OPEC, and the Philippines should be celebrating with it and starting steps to join the emerging new world order led by the leading countries of BRICS (Brazil, Russia, India, China and South Africa) — but Philippines is being left behind, to the Filipino people’s great present and future loss. Let’s ensure the Filipino people are enlightened about these changes in the World and prepare a leadership to take the new direction in 2016.
(Tune to 1098AM, Tues. to Fri. 5 p.m. to 6 p.m. “Sulo,” watch GNN TNT with HTL on Destiny Cable channel 8 and Skycable channel 213 Sat. 8 p.m. and Sun. 8 a.m., www.gnntv.asia.com or YouTube “Talk News TV (and date)” — this week “The Promise of BRICS’ New World Order ” with Hiro Vaswani, Richard Javad Jaydarian and Dr. Benito Lim; visit www.thenewkatipunero.blogspot.com)
Last week Russia’s President Vladimir Putin signed the “Holy Grail” deal with China’s President Xi Jing Ping, to supply Siberian natural gas to China for the next 30 years. The deal is worth $400 billion.
Part of the deal is a pre-payment from China of up to $50 billion for Russia to construct the direct pipeline to China. But that is not all. The two countries are constructing the $60 billion Pacific Ocean Oil Pipeline from Russia’s Skovorodino to China’s Mohe to delivery for 25 years $270 billion of 360.3 million tons of crude for the Chinese National Petroleum Corp. Russia is accepting Chinese Yuan for all these while China will in turn accept Roubles for what Russia will import in return. The next move, as one apt headline put it: “Russia Prepares Mega-Deal with India after locking up China with ‘Holy Grail’ Gas Deal.”
India as of May 1, 2014, according to the World Bank, overtook Japan as the third largest economy in the World in purchasing power parity terms. Talks of construction of a $30 billion Russia to India, through Northeast China, oil pipeline project are expected to conclude by mid-2014, says India’s Oil and Natural Gas Corp. The trade will be done in the national currencies. China supports the pipeline project while India has expressed interest in joining the Shanghai Cooperation Organization which includes Russia and the Central Asian states.
As the 21st Century turns, the World is turning from the West to East in a momentous shift marked by the “pivot” of oil, gas and energy supply away from the Organization of Petroleum Exporting Countries (OPEC) and the Petrodollar. OPEC, organized in 1960, was controlled by Western big oil behind the five founding members Saudi Arabia, Iran, Iraq, Venezuela and Kuwait.
In 1971 as the US dollar collapsed on the weight of its Vietnam War debts, US State Secretary Henry Kissinger arranged with the largest oil producer, Saudi Arabia to accept only US dollar for its oil in exchange for security guarantees. This gave birth to the Petrodollar and subjected the oil-dependent World to its tender mercies.
The Petrodollar was the US Big Stick to compel countries to bend to US whims, like the Philippines, which hocked everything it had to get US dollars to buy oil and energy indispensible for economic sustainability and growth. The US manipulated the supply of the Petrodollar and caused currencies of other nations to rise and fall , like the devaluations of the Philippine peso from two-to-one in the early 50s up to over 50-to-1 at its nadir during the Asian Financial Crisis of 1998 and during the destabilization of Presidents Marcos 1983 to 1986 and Estrada in 2000 to 2001. The Petrodollar was the power then, but today even Saudi Arabia is striking direct deals with China, et al. OPEC and the Petrodollar are dying.
Ironically, OPEC and the US Petrodollar’s end were ushered in by the US itself. Hubris overtook the US after the Soviet Union collapsed in 1991. For nearly 25 years of US and Nato push that now threatens Russia at its borders with Ukraine, the US has treated Russia as a second class nation, insulting it with promises unkept, like the pledge not to expand Nato and such projects as the US-Nato missile defense system surrounding Russia claiming it is to defend itself against Iranian missiles (which can’t even cross Turkey). Now, Russia responds and shakes the foundation of US power over the World — the erosion and demise of the Petrodollar.
Where does the Philippines stand in the face of the radically shifting global oil, gas and energy supply scenario for the coming years? Under BS Aquino and the current ruling class (the Yellows) beholden to the Royal Dutch Shell, Saudi-Aramco/Chevron Texaco (and fronts) energy-finance enslavement to high-oil and energy prices of the Western energy transnationals and vassalage to their geopolitical foibles reign. Low cost energy from Russia, Iran and Venezuela awaits, but there will be no action. Vietnam, RP’s new ally on the China Sea issues, is into joint exploration and development of oil resources in the China Sea with Russia and India in its energy development projects.
The World is celebrating the end of times of the Petrodollar and the OPEC, and the Philippines should be celebrating with it and starting steps to join the emerging new world order led by the leading countries of BRICS (Brazil, Russia, India, China and South Africa) — but Philippines is being left behind, to the Filipino people’s great present and future loss. Let’s ensure the Filipino people are enlightened about these changes in the World and prepare a leadership to take the new direction in 2016.
(Tune to 1098AM, Tues. to Fri. 5 p.m. to 6 p.m. “Sulo,” watch GNN TNT with HTL on Destiny Cable channel 8 and Skycable channel 213 Sat. 8 p.m. and Sun. 8 a.m., www.gnntv.asia.com or YouTube “Talk News TV (and date)” — this week “The Promise of BRICS’ New World Order ” with Hiro Vaswani, Richard Javad Jaydarian and Dr. Benito Lim; visit www.thenewkatipunero.blogspot.com)
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