Countries awash with carbon

Even though countries are burning unprecedented amounts of oil and gas, the estimates of how much is left continue to grow, thanks to high prices and new technologies that have enabled companies to find and extract new resources. Graphic: Nature

More than ever, these charts by Nature, the science magazine, show, countries are providing themselves with energy from (what they continue to believe are abundant supplies of) fossil fuels.

“Renewables such as solar and wind power are growing faster than any other source of energy, but are barely making a dent in fossil-fuel consumption,” said the Nature text accompanying these graphics. “The scale of the challenge will only grow as the expanding global population requires more energy. This tour of global and regional energy trends makes clear that even with aggressive action to reduce energy consumption and curb emissions, fossil fuels will be around for a very long time.”

A decade ago, it was the tar sands of Canada and Venezuela. More recently, hydraulic-fracturing technologies have opened up oil and gas resources in the United States. Across the globe, proven oil and gas reserves are 60% higher today than they were in 1991. Graphic: Nature

Nature also has a clickable guide to the world’s energy use which you can use to find out which countries were using up Earth’s resources fastest in 2011 (they’ve charted the numbers from the BP Statistical Review of World Energy 2012) and which ones were taking a lead on renewable energy.

At current consumption rates, fossil fuel reserves would last for about 60 years — and that could be extended by new discoveries and unconventional deposits. Coal reserves have not increased in size, but the supply will last for at least a century at current rates of consumption. Graphic: Nature

The bloody cost of ‘democratic transition’ in Libya

Libya's oil and gas industry. Graphic: Der Spiegel

The real nature of the US-NATO invasion of Libya has become even clearer in the last week. The orchestrated media coverage, similar to the trigger-happy reportage that marked the Gulf Wars and the USA’s Iraq and Afghanaistan wars, has focused on demonising Muammar Gaddafi and on the ‘rebels’ who are now in Tripoli. Absent from the popular coverage, especially on television, is the ordinary Libyan. Not absent any longer are the commercial roots of this invasion, for the German media are now openly talking about the business opportunities or Libyan “reconstruction”.

The Security Council’s stipulations that ground troops not be introduced into the country, that an arms embargo be kept in place and that mercenaries be prevented from entering Libya have all been flouted in this criminal operation to seize control of an oil-rich former colony and loot its resources, observed the World Socialist Website. There is barely any attempt to hide the fact that special forces, intelligence agents and mercenary military contractors have organized, armed and led the “rebels”, who have not made a single advance without the prior annihilation of government security forces by NATO warplanes.

After being terrorized for five months by NATO bombs and missiles, the people of Tripoli are now facing sudden death and a looming humanitarian catastrophe as a result of the NATO campaign to “protect civilians”. Kim Sengupta of the Independent reported Thursday from the Tripoli neighborhood of Abu Salim, which the “rebels” stormed under the cover of NATO air strikes. Known as a pro-Gaddafi area, its residents have been subjected to a reign of terror.

Libya military bases. Graphic: Der Spiegel

“There was no escape for the residents of Abu Salim, trapped as the fighting spread all around them,” Sengupta reported. “In the corner of a street, a man who was shot in the crossfire, the back of his blue shirt soaked in blood, was being carried away by three others. ‘I know that man, he is a shopkeeper,’ said Sama Abdessalam Bashti, who had just run across the road to reach his home. ‘The rebels are attacking our homes. This should not be happening. The rebels are saying they are fighting government troops here, but all those getting hurt are ordinary people, the only buildings being damaged are those of local people. There has also been looting by the rebels, they have gone into houses to search for people and taken away things. Why are they doing this?’ ”

Asked why local residents were resisting the NATO-led force’s takeover of the city, Mohammed Selim Mohammed, a 38-year-old engineer, told the Independent, “Maybe they just do not like the rebels. Why are people from outside Tripoli coming and arresting our men?” Meanwhile, other reports laid bare war crimes carried out by NATO and its local agents on the ground in Tripoli. Both the Associated Press and Reuters news agencies documented a massacre perpetrated against Gaddafi supporters in a square adjacent to the presidential compound that was stormed and looted on Tuesday.

“The bodies are scattered around a grassy square next to Moammar Gadhafi’s compound of Bab al-Aziziya. Prone on grassy lots as if napping, sprawled in tents. Some have had their wrists bound by plastic ties,” AP reported. “The identities of the dead are unclear but they are in all likelihood activists that set up an impromptu tent city in solidarity with Gadhafi outside his compound in defiance of the NATO bombings.” AP said that the grisly discovery raised “the disturbing specter of mass killings of noncombatants, detainees and the wounded.”

Libya oil pipelines and infrastructure. Graphic: Der Spiegel

Among the bodies of the executed the report added were several that “had been shot in the head, with their hands tied behind their backs. A body in a doctor’s green hospital gown was found in the canal. The bodies were bloated.” Reporting from the same killing field, Reuters counted 30 bodies “riddled with bullets”. It noted that “Five of the dead were at a field hospital nearby, with one in an ambulance strapped to a gurney with an intravenous drip still in his arm.” Two of the bodies, it said, “were charred beyond recognition.”

[See ‘A time before the pillage – what North Africa should mean to us’.]

The pretence that the US and its European NATO allies were intervening in Libya to “protect civilians and civilian populated areas from threat of attack,” as stated in the United Nations Security Council resolution, has effectively been abandoned. Behind the fig leaf of this resolution the naked imperialist and colonial character of the war has emerged. Der Spiegel has reported that three weeks ago, Hans Meier-Ewert, head of the German-African Business Association, travelled to Libya together with representatives from 20 German companies. Since all regularly scheduled flights to Tripoli have long ago been cancelled, the German government made a Transall military transport plane available for the journey, and the mission was headed up by Hans-Joachim Otto, a state secretary in the German Economics Ministry.

In Benghazi, where the rebel movement is headquartered, the group handed over aid goods and medical supplies to the city’s hospitals – public relations and photo ops. There, the Germans also met with representatives of the Libyan transitional council and of the country’s central bank in an effort to pursue economic interests in the country. Libya is rich relative to its African neighbors, but the Europeans consider its infrastructure woefully inadequate. Felix Neugar, an ‘expert’ on Africa with the German Chamber of Industry and Commerce (DIHK), has complained that Libya lags far behind the high standard of the large Gulf oil producers.

Economic associations estimate that between 30 and 50 German companies were active in Libya before the war. “But it was a difficult country to do business in,” reported Der Spiegel. “State-owned companies dominated most markets, and legal standards were at best fluid under Gadhafi’s leadership. During the meeting in Benghazi with the transitional council, the German economic leaders were assured that the private economy would be strengthened, says Meier-Ewert. Contracts signed with the Gadhafi regime are to be honored, and many Libyans with extensive business experience are planning to return from exile, the German delegation was told.”

Libya tribes and tribal areas. Graphic: Der Spiegel

The Germans aren’t the only ones who have begun exploring opportunities in post-Gadhafi Libya. The Italian oil concern Eni is doing all it can to defend its status as the largest foreign oil producer in the country. Even before the rebels stormed the Gadhafi residence in Tripoli this week, Eni technicians had begun preparing to restart the flow of oil. And Eni has the full support of the government in Rome. Prime Minister Silvio Berlusconi is meeting with rebel leader Mahmoud Jibril in a few days.

“Right now it is still too early to say when, how and under what conditions production can begin again in Libya,” said BASF subsidiary Wintershall, an oil producer active in the country since 1958, told Der Spiegel. The war also interrupted the construction of a highway that the German firm STRABAG had been working on. This autumn, the company plans to send a team to Libya to assess the situation. RWE Dea, another German firm that drills for oil in Libya, hopes the new government will uphold existing contracts. In the end, raw material exploitation contributes to reconstruction, the company says.

A lucrative reconstruction however requires destruction to be visited on Libya and its populace. This is taking place in appalling measure. Reporting from a local hospital, the Telegraph said: “As battle raged in the Tripoli streets hundreds of casualties were brought in, rebel fighters, Gaddafi’s soldiers, and unlucky civilians, laying next to each other in bed and even on a floor awash with blood, screaming or moaning in agony. Many died before they could be treated.” The paper interviewed Dr Mahjoub Rishi, the hospital’s Professor of Surgery: “There were hundreds coming in within the first few hours. It was like a vision from hell. Missile injuries were the worst. The damage they do to the human body is shocking to see, even for someone like me who is used to dealing with injuries.” Most of the casualties, he said, were civilians caught in the crossfire. The Telegraph reported that Tripoli’s two other major hospitals were similarly overflowing with casualties and desperately understaffed, as were all of the city’s private hospitals.

The aid group Medecins Sans Frontieres (MSF) warned that the city is facing a medical “catastrophe”. The group told Reuters that “Medical supplies ran low during six months of civil war [i.e., NATO bombardment] but have almost completely dried up in the siege and battle of the past week. Fuel supplies have run out and the few remaining medical workers are struggling to get to work.” The lack of fuel means that hospitals that have kept their power by running generators can now no longer do so. Health officials in Tripoli report that blood supplies have run out at the hospitals and that food and drinking water is unavailable over whole areas of Tripoli.

Distant from the battle, the hapless civilian victims and the constant terror of US-NATO airborne drones, fighter jets, bombers and surveillance aircraft, Western leaders have been parcelling out Libya’s future – this is mostly taking place in Paris, as the French government has played a leading role in the so-called “international deployment” against Gadhafi. The French government has proposed a quick meeting of the so-called Libya Contact Group, which is comprised of the countries that participated in the military operation. Germany, given its abstention in the United Nations vote to endorse a no-fly zone, is not a member of the group.

The meeting could happen as soon as next week, and high on the agenda will be drafting a plan together with the National Transition Council for the “international community’s” future role in Libya. The European Union’s deadly doublespeak is being broadcast regularly: “The way is now open for Libya for freedom and self-determination,” European Commission President Jose Manuel Barroso and European Council President Herman Van Rompuy said in a joint statement. They added that Europe would make “every endeavour” it could to help, providing “support for its democratic transition and economic reconstruction”. Of course it will, at a cost in North African lives and for a profit to be reckoned in many billions of euros.

Mussolini and Ethiopia, Italy and Libya, the mill of history

Un tunisino appena salvato dalla Guardia costiera ringrazia dio per la sua buona sorte. Photo: Immigrazione a Lampedusa/ Jean-Marc Caimi/ Redux Pictures

This week in 1936 the Mussolini regime’s declaration of an Italian empire in East Africa, upon its formal annexation of Ethiopia, increased tensions among the Great Powers, pushing the world closer toward a global conflagration.

The annexation was an open repudiation, said the World Socialist Web Site, of the norms of international law and the most devastating rebuke yet suffered by the League of Nations, forerunner of the United Nations, which had failed miserably to check Rome’s aggression. Likewise implicated were Britain, which had allowed the Italian war machine to pass through the Suez canal, and France, which was seeking to maintain Italian support for the Locarno Pact against Germany aggression.

A cartoon deriding the League of Nations

In response, Britain sent a diplomatic mission to Hitler seeking Germany’s non-recognition of Mussolini’s conquest, while France remained oriented toward maintaining Italy’s support against Germany. With all of Africa now divided by the Europeans—the exception being small Liberia in the west—no further gains could be made on the continent without war among the European powers.

Today, Italy’s participation in the war stems from the fear that it could lose its influence in Libya to France, Britain and the United States. The Financial Times noted: “The Franco-Italian spat over immigration follows sharp differences over Libya, where Rome has been dragged into a war it would rather avoid, fearing a Paris-Benghazi nexus will freeze out its substantial interests in Libyan oil and gas”.

The Libyan oil and gas reserves are a powerful motive for the Italian bourgeoisie to participate actively in the inter-imperialist struggle over their North African neighbour. Italy draws a quarter of its oil imports and ten percent of its natural gas from Libya. The energy group ENI has invested billions of euros in assets in Libya. Until the outbreak of open hostilities, Italy was the largest foreign trade partner of Libya, the largest buyer of its crude oil, and one of Gaddafi’s largest arms suppliers.

The West’s Libya campaign has begun

De la fumée s'élève au-dessus de Benghazi où s'écrase un avion, le 19 mars 2011. Photo: Libération/AFP-Patrick Baz

French military jets have begun enforcing the UN backed no-fly zone over Libya, Russia Today has reported, as international forces prepare to carry out possible air strikes. At an emergency meeting in Paris, attended by French President Nicolas Sarkozy, British Prime Minister David Cameron, US Secretary of State Hillary Clinton, UN chief Ban Ki-moon and representatives of the Arab League, it was decided to resort to military action to enforce the no-fly zone.

RT quoted news reports as having said that the operation is expected to involve British, Arab, Canadian and Danish jets, as well as French. ­Italy, France and Spain will provide airbases for support in the region. Arab states – Saudi Arabia, Qatar and United Arab Emirates – said they do back the no-fly zone over Libyan airspace. There is a report in the French news site Libération titled ‘Sarkozy annonce le début d’une action militaire en Libye’.

The UN news service has said that the UN Security Council “today effectively authorised the use of force in Libya to protect civilians from attack”, specifically in the eastern city of Benghazi, which Colonel Muammar Al-Qadhafi has reportedly said he will storm tonight to end a revolt against his regime.

Acting under Chapter VII of the UN Charter, which provides for the use of force if needed, the Council adopted a resolution by 10 votes to zero, with five abstentions, authorizing Member States “to take all necessary measures… to protect civilians and civilian populated areas under threat of attack in the Libyan Arab Jamhariya, including Benghazi, while excluding an occupation force.” The abstentions included China and Russia, which have the power of veto, as well as Brazil, Germany and India.

The full text of the UN Security Council resolution is here.

What is the ‘no fly’ zone about, and why are the Western powers committing fighter jets to maintaining it? Aijaz Ahmad has been interviewed on MR Zine. He said: “A no-fly zone is not about flying aircrafts. It’s about laying the groundwork for occupying at least certain parts of the country and for destroying the garrisons and fighting capacity on the ground. Robert Gates and others in charge of the American defense establishment have said that a no-fly zone really means a ground attack on the country. So that’s what a no-fly zone really is about. It’s not about some great air force that Gaddafi has because he doesn’t. Part of this council that has been set up in Benghazi has called for a no-fly zone.” It is about Libyan oil and gas, after all.

Unctad’s Global Commodities Forum is here

The United Nations Conference on Trade and Development (UNCTAD), will hold the second Global Commodities Forum in Geneva on 2011 January 31-February 01.

The rationale for the first Unctad Global Commodities Forum 2010 was described last year as centred on developing countries and their dependence on on commodities for their economic well-being. “As demand for commodities in the long term is going to increase, thus posing major challenges for their sustainable and efficient production, there is a very real need to consider how to make the commodities markets more stable and policies better designed, so that the benefits would be more equitably distributed between commodity producers and consumers.” Unctad’s GCF 2010 said then that it was important that an appropriate economic return could be delivered to commodities producers, many of whom are in developing countries.

Policy actions to consider were said to include, inter alia, the development of policies to ensure that countries producing commodities do not face the so-called ‘resource curse’ and, of equal importance, measures that could be taken to mitigate or reduce the adverse effects of price and commodities market volatility, “which cause so much uncertainty and hardship to many of the most vulnerable people in developing countries”.

Moreover, said the Unctad GCF 2010 rationale statement, “there is a clear need to ensure that commodities markets are more effective in serving the interests of the real economy, and that financial market speculators do not, through excessive influx or unwinding of liquidity in commodity futures markets, disturb the performance of commodity producers, consumers and intermediaries”. (We will have to pay close attention to the proceedings of GCF 2011, and not only the statements or resolutions, to judge how far they have progressed from last year’s positions.)

Unctad said then that markets should serve the interests of these stakeholders whose livelihoods are involved in commodities production, shipment, consumption, rather than being subject to manipulation directed at the single-minded purpose of providing a short-term financial return. “Solutions must be found to ensure that the prevailing terms of trade between countries are balanced and that regulatory interventions are optimized, with a view to protect the most vulnerable stakeholders without providing an impediment to trade.”

Now, Unctad has described GCF2011 as focusing on the instability of mineral and agricultural markets and their interconnectedness, the effectiveness of commodity policies and the sustainability of the production and use of commodities, long-term energy and food security, and the role of innovation and early warning systems. “The second meeting of the GCF, organized by UNCTAD with the support of its partners, including the Governments of China, France and Switzerland, as well as Global Fund for Commodities, is a major multi-stakeholder meeting to discuss and find better solutions to perennial problems of the commodity economy,” stated Unctad. “The GCF will also address such key issues as the performance of commodity supply chains and the state of business practices and innovation.”

From the GCF 2011 programme material – themes of the second meeting of this Forum will include the following plenary and parallel sessions:

Plenary A: The State of energy markets: lower volatility and a new price zone for hydrocarbons (A1), The state of agricultural markets: the drivers of increased volatility (A2) The state of selected metals market: fundamentals, non-fundamental factors and terms of trade (A3) Commodity markets’ volatility and interconnectedness (A4), Overcoming market volatility through better regulation, data and transparency (A5); Commodity policy challenges for oil and gas-exporting countries (A6) Commodity policy challenges for minerals and metal exporting countries (A7) Trade and other policy options for modernizing agriculture in developing countries (A8).

Parallels B: Long-term sustainable supply & demand and technological innovation: hydrocarbons and other energy (B1), Long-term sustainable supply & demand in the energy sector: developing early warning systems (B2), New technologies and commodities: agriculture (B3) Long-term sustainable supply and demand and technological innovation and early warning systems for food security (B4), New technologies and commodities: energy (B5); Forecasting trends and strengthening early warning systems for producers, innovators and other supply chain participants (B6).

Parallels C: Current trends and next frontiers for commodity finance (C1), The emerging regulatory environment and trade finance: new challenges and opportunities for banks and other financiers (C2), Support institutions for commodity finance (C3), Shipping and international trade in commodities (C4) Commodity futures markets: do they obscure underlying market realities, or provide long-term signals and management tools? (C5) Risk management in commodity markets: paper and physical markets and the realities of commodity exporters (C6).

Woodfuel in the Western Ghats

Goatherds in Chikodi taluka, Belgaum district, Karnataka

The woodfuel-and-dungcakes energy mix for rural India is alive and well in the hills of Maharashtra’s Deccan. The indications are that a combination of factors is at work. There’s less income for smallholder farming households, those farming families which have earnings have seen their monthly household budgets squeezed by rising food prices, and energy costs at least the same or more. That’s why I’ve seen in November and December – when early mornings and nights are cool to chilly, and heating at home is needed – more evidence of woodfuel use.

If you ask the energy planners and econometricians, they’ll say that fuelwood markets are important and have a great influence on shaping demand. As a rule this is likely to be true, but what we’re seeing here has resulted from a variety of volatile conditions. Let’s look at some of the alternatives that rural households in the hills use. A cylinder of LPG (liquefied petroleum gas) costs about Rs 325 in a town in western Maharashtra (the 14.2 kg domestic cylinder). A sack of coal costs about Rs 300 to Rs 350 (20-25 kg) which will usually include the cost of transport (it’ll be carted along with other goods on the roof of an old jeep, in a tempo or lorry – state transport bus conductors are not partial to letting these sacks on board any more).

From the planners’ point of view, market conditions for wood are highly distorted due to government policies on fuel, energy and forests. That’s why discussing both demand and supply in the context of prices and market conditions is important, because in isolation the terms ‘demand’ and ‘supply’ for rural energy mean next to nothing.

It’s important too to a rural household that wood is a multi-use material. For instance, for eucalyptus, the thickest portion of the trunk can be used as timber, if the girth of the trunk, with bark, is more than 70 cm. Poles are used for scaffolding support and as roofing material. The dimensions of logs for use as poles are 3 to 6 metres in length, and 30 to 70 cm in girth (cut pieces of similar girth but shorter are used as pulpwood in paper mills). All smaller pieces, twigs, bark, and roots, which cannot be used elsewhere, are used as fuelwood. Thus there is no single wood market in a town or peri-urban settlement. I’ve found it safe to say that the set-up and behaviour of each market differs from others depending upon the range of species available, and the purposes for which each wood species can be put to use.

Hillside grasses, ghat in Kolhapur district, Maharashtra

All that said, the main point here is that the price of fuelwood has risen in the hills of Maharashtra’s Deccan. A buyer will now pay Rs 60 for a ‘maund‘ of ‘jungli‘ wood and Rs 80 for a ‘maund‘ of babul wood. Now a ‘maund‘ is around 37 kg, so that makes a metric ton of ‘jungli‘ wood worth about Rs 1,620 (without complicating the matter with discounts for weight) and a metric ton of babul wood is worth around Rs 2,160. That’s a pretty steep annual growth rate because at the start of the 2000s – according to those who know about these things in Kolhapur, Satara and Pune – the price of a ton of ordinary wood was around Rs 1,300 and they also said that the price then was twice what it had been (around 700/ton) a decade earlier.

This is both worrying and curious. Worrying because it means that sources of energy among some sections of the rural population are defaulting to the woodfuel-dungcakes mix. Worrying also because it means that natural and protected forests, orchard and scrub are being scoured for woodfuel. Curious because we are in 2010 going to be less informed about the relative importance of the three major biofuels to rural households: has the animal population grown in the last decade? have the growing number of bio-gas plants installed during the last 15 years taken away from the dungcake source? have commercial crops reduced the available quantities of husk and straw (and what’s the effect on these as animal feed? We know a lot less than we think, but we do know what a ‘maund‘ of babul costs so that it can heat a hill household in winter.