China-Saudi relations: China's Xi Jinping visits Riyadh to meet with Arab leaders

China relies heavily on Saudi oil and is expected to sign a number of agreements with Riyadh. This is Xi's third overseas visit since the start of the coronavirus pandemic.

Chinese President Xi Jinping arrived in Saudi Arabia on Wednesday for a three-day visit.

During the visit, Xi is expected to attend the China-Arab States Summit and a meeting of the Gulf Cooperation Council (GCC).

The GCC includes Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates.

The trip is Xi’s third overseas visit since the coronavirus pandemic began, and his first trip to Saudi Arabia since 2016.

Read more at: https://www.dw.com

Energy corporations; Amid world crises, ‘grotesque greed’ wins out

For months, spiking inflation has roiled poor and rich nations alike. The rising costs, which have reached 40-year highs, are largely thanks to the cascading global effects of the pandemic combined with the sudden supply chain and energy market disruptions that followed Russia’s invasion of Ukraine, as readers of this newsletter are well aware. Their effects have been deep and far-reaching.

Read more at: https://www.washingtonpost.com

As the cost of living soars, defending the living standards of workers and their families has become the primary concern of trade unions.

  On Friday, European Union energy ministers will meet in emergency session, to discuss measures to mitigate high energy prices and the state of preparedness for the winter. They must take decisive steps to tackle this crisis: immediate action is needed to support families unable to buy food or heat their homes.

Read more at: https://socialeurope.eu/trade-unions-on-the-frontline-in-the-cost-of-living-crisis

Germany and Canada hold energy supply talks

New German Chancellor Olaf Scholz and his deputy, Economic Affairs and Climate Action Minister Robert Habeck, kicked off a three-day trip to Canada on Monday, seeking to arrange short-term gas-based energy solutions and to explore longer-term, cleaner options, such as green hydrogen. 

In a joint press conference in Montreal, Canadian Prime Minister Justin Trudeau hailed his German counterpart Scholz as an "extremely important progressive voice," and expressed optimism about mutually beneficial business investments and cooperation defending Ukraine from Russian aggression.

Read more at: Germany and Canada hold energy supply talks | News | DW | 22.08.2022

EU's Energy Supply: Nord Stream 2: The gas pipeline′s second power struggle

Nord Stream 2 cost €9.5 billion ($10.6 billion) to build and, at 1,230 kilometers long (764 miles), is the longest subsea pipeline in the world. First conceived more than a decade ago, construction began in May 2018 and was completed in September.

However, Nord Stream 2 has yet to begin pumping gas as its operating license has been delayed.

Read more at: Nord Stream 2: The gas pipeline′s second power struggle | Business | Economy and finance news from a German perspective | DW | 08.02.2022

Russia - Gazprom: Why the EU needs Russian energy giant Gazprom

In January, Gazprom CEO Alexey Miller said 2021 had been a record year for the Russian energy giant, both in terms of production and profits. Thanks to rising demand and the exploding cost of gas and oil, the company is raking in rubles.

It is the Russian state that controls most of the shares and decides on the company's direction. But various German firms, such as electric utility company E.ON, also own shares in Gazprom, which is the biggest producer of natural gas in the world. It has almost 500,000 employees and claims to hold the biggest gas reserves in Russia.

Miller is an old friend of Russian President Vladimir Putin, who almost always sits at the table of the supervisory board and the board of directors.

Read more at Why the EU needs Russian energy giant Gazprom | News | DW | 06.02.2022

EU -Turkey-Russian Energy Cooperation: "Politics can make strange bedfellows" - Russia’s Gas Strategy Gets Help From Turkey - by Marc Pierini

Politics/Energy can make strange bedfellows

It was November 19 in Istanbul. There, Russian President Vladimir Putin and Turkish President Recep Tayyip Erdoğan held a ceremony marking the completion of the first underwater segment of the Turkish Stream gas pipeline, linking Russia to Turkey’s European shores. The project is a vivid illustration of Moscow’s strategy to strengthen its position in supplying gas to Europe while reducing its reliance on the Ukrainian transit corridor.

For Ankara, the project is a symbol of Turkey’s independent decisionmaking and of the country’s significance in the wider region. Seen from Ankara, Turkish Stream serves a political purpose. It celebrates the blossoming friendship between Turkey and Russia and confirms Ankara’s ambition to be part of the solution to major international issues—in this case, securing the gas needs for a large part of the EU. 

However, Turkish Stream will also increase Ankara’s dependence on Moscow for its energy needs.

The project’s second meaning is that Turkey is contributing to an essential element of Russia’s multi-pronged, long-term strategy of remaining Europe’s major gas supplier, while creating a “third gas corridor” in addition to the Ukrainian and Baltic Sea supply routes. This strategy is unfolding on several fronts: in Ukraine; in the Baltic Sea; and through future extensions of Turkish Stream to southern and central Europe (toward Bulgaria, Serbia, Hungary, Slovakia, and to Greece and Italy.)  

This Russian strategy has raised continuous opposition from the United States.

It is also worth noting that Turkish Stream is not part of the EU’s Energy Union plans since it does not contribute to diversification of supplies. In fact, it will rather reinforce Russia’s market  predominance in both Turkey and the EU.

In Ukraine, the multi-pipeline network channeling Russian gas to Western Europe will remain a vital link. But reducing its use could inflict massive losses in terms of transit costs for authorities in Kiev, which is part of Russia’s strategy in Ukraine.

Much will depend on negotiations for the extension of the Russia-Ukraine commercial agreement, which will end in 2019. To help alleviate Kiev’s concerns, Germany has made the continuation of transit via Ukraine an ingredient of a final agreement on Nord Stream 2, the latter being the subject of controversies within the EU.

The Russian strategy is in no way limited to selling Russian gas on the European continent. It extends much further afield in the wider Eastern Mediterranean region.

Egypt is a case in point.

Following the massive discoveries in the so-called Zohr field to the north and east of the Nile River delta, Russia bought a 30 percent stake from the Italian energy group ENI in 2016 with the consent of the Italian government, which Moscow has had a long and close relationship with. The official reason for the sale was the need for ENI to spread the risk of its Egyptian operation.

Similarly, offshore gas discoveries in Lebanese waters have attracted Russian interest— although drilling off Lebanon is largely dominated by France’s TOTAL and Italy’s ENI, who have a 40 percent share each. Russia’s NOVATEK has bought a 20 percent stake.

Russia has also made moves to control both the oil and gas sector in Syria, despite the ongoing war. The actual effect of these recent maneuvers will very much depend on the final political arrangement expected to end the almost eight-year-old civil war. Many of Syria’s oil and gas fields are located north and east of the Euphrates River, currently outside the control of regime forces. In addition, for reasons linked to the ongoing naval military activities, no offshore exploration has yet taken place in Syrian waters.

In Iraq, Russia is involved in pipeline deals in the Kurdistan region through a number of oil and gas companies, although the actual exports would have to take place through Turkish territory or possibly even through Syria in the distant future.

Such an ambitious Russia strategy is justified by Europe’s gas market fundamentals.

A stronger demand for gas in Europe is good for Russia. According to Oxford Energy, gas demand in Europe (Turkey and non-EU Eastern Europe included, except Serbia) has started rising again for three consecutive years—in 2015, 2016, and 2017—to reach a level of 548 billion cubic meters (bcm), due to continued economic recovery, the impacts of climate change, and the increased use of gas by the power sector. The trend seems to be continuing in 2018.

According to the Finnish Institute for International Affairs, Russia took advantage of several factors: economic recovery and decreasing gas production in the EU, lower Russian selling prices, and the current limited availability of non-Russian liquefied natural gas (LNG) on the European market.

In addition, preexisting disputes between the EU and Russia (including an antitrust investigation against Gazprom, and a Russian complaint at the WTO) have been resolved, signaling that commercial interests on both sides have prevailed, despite a less-than-optimal political climate.

In such an environment, Russia is in a strong position to keep dominating gas supplies to the EU, 

which amounted to 40 percent of extra-EU imports in 2016—although new developments could upset the current situation, such as a rapid development of LNG exports to Europe from other sources.

LNG imports amounted to only 14 percent of total extra-EU gas imports in 2017, with the main supplies coming from Qatar (41 percent), Nigeria (19 percent), and Algeria (17 percent).

In this wider context, and seen from Brussels, Turkish Stream—with a final projected capacity to deliver 31.5 bcm/y, of which 15.75 bcm/y would go to Europe —is a relatively small component of the wider gas supply chain to the EU. In fact, it would represent just over 6 percent of the EU’s imports at 2017 levels.

Yet, seen from Moscow, the pipeline is potentially a significant addition to Russia’s capabilities to export gas to Europe (Turkey included). Assuming that Turkish Stream’s second phase will be completed and operational, it would represent between 16 and 19 percent of Russian sales to the EU and Turkey (at 2017 levels and all other factors remaining unchanged).

In that sense, the ceremony on November 19 in Istanbul was more than just another photo opportunity. It was a symbol of the success of Russia’s objectives in the wider Western European area, with Turkey’s help. 

Together with Russia’s S-400 missile deal with Turkey, it was a symbol of how efficiently Moscow has been using Ankara’s relative diplomatic isolation to its advantage. For Ankara, this was another way of telling the world: Turkey matters.

Read more: Russia’s Gas Strategy Gets Help From Turkey - Carnegie Europe - Carnegie Endowment for International Peace

EU: Economy - Annual Inflation up to 2.2 % with energy cost rising to 10.6%

EU Annual Inflation rate rising.  Looking  at  the  main  components of  euro  area inflation, energy expected to have the highest annual  rate in October (10.6%)compared to 9.5% in September.

Read more  at: 2-31102018-AP-EN.pdf

Ukraine - Russia: EU leaders extend Russian sanctions over Ukraine for six more months

After meeting in Brussels on Friday, the European Council (EC) announced that EU leaders agreed to extend economic sanctions against Russia for six months.

The decision will be formally confirmed in the coming days, an EU official said.

The sanctions are aimed at Russia's financial, energy and defense industries. They are specifically intended to block Russian banks' access to EU markets and limit Russian access to some EU imports.

US sanctions against Russia are likely to figure large when US President Donald Trump meets his Russian counterpart Vladimir Putin in Helsinki on July 16.

Evidence of Russian meddling in the US 2016 election led the US to impose sanctions on Russia in April, but Trump and some European leaders have questioned if sanctions against Russia have the desired effect.

A spokeswoman from the German economy ministry said on Friday that the ministry had received a commitment from the US that any new US sanctions would not affect Russian pipelines, a reference to the controversial Nordstream II pipeline linking Russia and Germany.
 
Read more: EU leaders extend Russian sanctions over Ukraine for six more months | News | DW | 29.06.2018

EU: Overview - What is the Europe 2020 strategy about?

The Europe 2020 strategy is the EU's agenda for growth and jobs for the current decade. It emphasises smart, sustainable and inclusive growth in order to improve Europe's competitiveness and productivity and underpin a sustainable social market economy.

To reach this objective, the EU has adopted targets to be reached by 2020 in five areas:

• Employment
• Research & Development
• Climate change & energy
• Education
• Poverty and social exclusion

What are the key targets to be reached by 2020?

The headline targets related to the strategy's key objectives at the EU level cover:

• Employment:
  > 75% of the population aged 20 to 64 years to be employed;

• Research & Development:
  > 3% of GDP to be invested in the R&D sector;

• Climate change & energy: 
  > Greenhouse gas emissions to be reduced by 20% compared to 1990
  > Share of renewable energy sources in final energy consumption to be increased to 20%
  > Energy efficiency to be improved by 20%

• Education: 
  > Share of early school leavers to be reduced under 10%
  > At least 40% of 30 to 34 years old to have completed tertiary or equivalent education

• Poverty and social exclusion:> At least 20 million people fewer at risk of poverty or social exclusion.

The EU-level targets have been translated into  national targets in each EU country, reflecting different situations and circumstances.

EU-Digest - EUROSTAT

Russia-US Sanctions: U.S. lawmakers’ attempt to handcuff Trump on Russia could backfire, Europe says - by Michael Birnbaum

A top E.U. leader warned Wednesday that a U.S. congressional vote to strip President Trump of the ability to remove sanctions against Russia could backfire, dealing a blow to transatlantic efforts to curb Russian aggression against Ukraine and sparking a trade war between Europe and the United States.

The House of Representatives approved the measure Tuesday, 419 to 3, after the Senate passed similar legislation last month in a 98-to-2 vote. The White House has not indicated whether Trump will sign the bill.

The bill’s main goal is to force Trump to consult with Congress before dialing back sanctions, a reaction to a White House plan weighed in his first weeks in office to unilaterally end the measures against the Kremlin. But the legislation would also give Trump the power to ban investments in certain Russian energy projects, most notably a major Russia-to-Germany gas pipeline under development called Nord Stream 2, and to promote U.S. energy exports instead.

The legislation’s language was softened in the days ahead of the vote, in apparent acknowledgment of European worries. But many policymakers and experts in the European Union’s capital, Brussels, and in Berlin still say that Congress may ultimately harm its own effort to pressure Russia. The worries are also a measure of the Trump White House’s diminished standing in Europe, since the policymakers are mistrustful of U.S. natural-gas exports that were welcomed during the Obama administration.

Read more: U.S. lawmakers’ attempt to handcuff Trump on Russia could backfire, Europe says - The Washington Post

Russia: Putin delivers a speech on power, investment and defence in the Duma

President Vladimir Putin of Russia

Recently the ballot for Russia’s lower house, delivered the expected result, a landslide for Putin’s United Russia.

President Putin outlined the aims of the Duma, such as boosting investment and defence strategies as well as the need to be strong:

“Every individual and every country have the same rights, the right to be powerful, but we don’t think that being a superpower gives us the right to tell people what to do and we don’t do that,” he said.

Read more: Putin delivers a speech on power, investment and defence in the Duma

Oil: Will Cheap Oil Kill Global Stability ? "No it won't say experts-Yes it will says Wall Street PR on steroids" - by Judy Dempsey

Kris Bledowski, Director of economic studies at the Manufacturers Alliance for Productivity and Innovation notes:

"The answer depends on how “stability” is defined. In political terms, one could see some instability creep in or deepen in countries where oil plays a disproportionately large fiscal role.

Yet this impact would be felt locally rather than globally, andmostly in countries with already-weak polities. Venezuela, Nigeria, or parts of the Middle East come to mind. It’s less likely  that potential conflicts could spill over outside domestic or localtheaters.

The economic impact has already been felt the world over. In the United States, mining activity has depressed industrial output, while in Canada the entire economy plunged into recession in 2015 as a result of sharply lower oil prices.

At the same time, income losses are being at least partly offset by gains on the consumer end. Shifts in relative prices of major inputs or outputs occur all the time,and the world economy is resilient enough to absorb them. Overall, oil and its derivatives make up a small and declining share of unit energy costs.

If global investment flows are more unpredictable, currencies more volatile, and changes in income more pronounced, other factors should be taken into account as well. Among them are differences in monetary policies (in the United States and the EU), private debt levels (in Brazil and China), and economic governance (in Russia and Saudi Arabia).

Ian Bremmer, President and founder of Eurasia Group says: 
"Did Mikhail Gorbachev’s reforms kill Soviet stability? No. They hastened the melting of frozen instability. That’s the impact of cheap oil on the Middle East, in particular the Sunni Arab petrostates and the governments that rely on their largesse.

There’s already little domestic legitimacy keeping these regimes in place. The United States has little desire toact as the region’s policeman, and nobody else is going to pick up the baton.

Communication technologies allow disenchanted young men to more easily mobilize.

And there are scant few social, economic, and political reform efforts among the governments themselves; security solutions don’t address the underlying problems. Cheap oil makes those conflicts grow sharper. And faster."

Jan Cienski, Energy and security editor at POLITICO says:
"No, cheap oil won’t kill global stability—infact, it will bolster it. That doesn’t mean low oil prices aren’t terrible news for a host of countries like Russia, Saudi Arabia, Venezuela, Angola, and other emerging markets that have built their budgets on oil exports. But as their revenues shrink, their largely autocratic rulers will have to focus more on keeping their people from rebelling over budget cuts and less on causing trouble abroad.

No, cheap oil won’t kill global stability—in fact, it will bolster it. That doesn’t mean low oil prices aren’t terrible news for a host of countries like Russia, Saudi Arabia, Venezuela, Angola, and other emerging markets that have built their budgets on oil exports.

But as their revenues shrink, their largely autocratic rulers will have to focus more on keeping their people from rebelling over budget cuts and less on causing trouble abroad."

Deborah Gordon, Director of Carnegie’s Energy and Climate Program notes: "mighty global omnipotence is often attributed to oil. But it’s unclear whether low (or high) oil prices themselves can be squarely blamed for growing global instability. Increasing oil market volatility, however, could prove to be a stronger destabilizing force.

If oil prices continue to swing wildly back and forth in the years ahead, this could confound economic, technological, and geopolitical fundamentals."

Note EU-Digest: Wall Street and the financial Industry seem to be the only ones who are saying that lower oil prices will contribute to Global Economic and Political Instability , mainly because it hurts their energy investments and market portfolio's . The drop in oil prices, however, has been very beneficial  to consumers and the the economy in general.

EU-Digest

US Economy: US recession probability at highest levels since fall 2011

The chances of a recession in the United States are at their highest levels since the fall of 2011, according to the CNBC Fed Survey.

The survey also showed recession fears rising for the sixth straight time among respondents, and are now sitting at 28.8 percent.

One fairly reliable recession indicator, the spread between the 2-year and 10-year bonds has weakened just about to its lowest level since the last recession. But it tends to signal recession at zero...

So at 118 basis points, it's softer, but not soft enough to signal recession.

Read more: US recession probability at highest levels since fall 2011: Survey

E#nergy and the Environment: Environmentalists Sound Alarm On Proposed Drilling Near Florida Everglades - by Greg Allen

Florida's Everglades has an ecosystem known for its sawgrass, cypress trees, alligators — and perhaps soon, oil wells.

Oil drilling isn't allowed in the 1.5 million-acre Everglades National Park, but the ecosystem extends far beyond the park's boundaries — and drilling is allowed in Big Cypress National Preserve, an adjacent protected area about half the size of the park.

Environmental groups are concerned that the testing may harm endangered plants and animals, and that it may open sensitive areas to drilling and fracking.

Betty Osceola, a member of the Miccosukee tribe, has lived her whole life in the Everglades. During the Seminole Wars of the 19th century, her ancestors hid from federal troops in the Everglades swamps and cypress forests.

"This land, the Everglades, they protected us in our time of need — she provided us shelter, she provided us food, she provided us water," Osceola says. "As indigenous people, it's our turn to take up and speak for her."

Osceola is part of a group protesting plans for seismic testing on 70,000 acres in a key part of the ecosystem inside Big Cypress National Preserve.

Don Hargrove, the preserve's minerals management specialist, says there's nothing new about the efforts to drill there.

"Oil drilling and oil fields were here when Big Cypress was created; as a condition of the establishment of the preserve, oil and gas was to continue," he says.

Read more: Environmentalists Sound Alarm On Proposed Drilling Near Florida Everglades : NPR

Middle East:: NATO: The unwanted war against IS

What is this really about? Who is the enemy? These simple questions have to be asked when it comes to international attempts to fight "Islamic State." NATO now wants to do more to protect Turkey, mainly by strengthening its air defense systems. But IS doesn't even have an air force.

On the other hand, Turkey showed us last week that it is both capable of and willing to shoot down a Russian jet, which, according to Turkey, violated Turkish air space and failed to respond to several warnings.
NATO's most powerful member, the United States, is backing Turkey.

It says the Turkish version of events is correct; and besides, Turkey has the right to defend itself. Then there's the fact that Russia has regularly provoked northern NATO members in the Baltics, as well as neutral countries Sweden and Finland with air space violations. It's not as if the Turkish incident is without precedence.

Read more:Opinion - NATO: The unwanted war against IS | Opinion | DW.COM | 01.12.2015

USA: Energy - Obama administration rejects Keystone XL pipeline

The White House has rejected the Keystone XL pipeline, President Barack Obama announced Friday.

Obama, flanked by Secretary of State John Kerry and Vice President Joe Biden, delivered a statement on the pipeline decision from the White House, during which he said the proposed pipeline project had "occupied what I frankly consider an over-inflated role in our political discourse."

TransCanada — the company behind the proposal — shares traded about 5 percent down on the day as of 11 a.m. ET. Oil futures, however, moved little on the news, as traders said the pipeline has become less of a hot-button issue with the increase of U.S. production.

"This morning Secretary Kerry informed me that after extensive public outreach and consultation with other cabinet agencies, the State Department has decided that the Keystone XL Pipeline would not serve the national interests of the United States. I agree with that decision," Obama said.

Read more: Obama administration rejects Keystone XL pipeline

Canadian Government-Funded Secret Tar Sands Advocacy Worth Millions - by Aditya Tejas

The Canadian government spent millions of dollars on advocacy for extracting petroleum deposits from tar sands, a media report said Wednesday. Canada has one of the world’s largest oil reserves, behind only Venezuela and Saudi Arabia, but 97 percent of its reserves are in the form of tar sands.

The ruling Conservative Party’s 2013 budget included $30 million over two years that were spent on public relations and outreach activities to promote Alberta’s tar sands. The spending was revealed in documents found in a July 2014 policy binder acquired by the Guardian.

The outreach activities, which were never disclosed to the public, reportedly included provisions to “advance energy literacy amongst BC First Nations communities.”

The administration of Canadian Prime Minister Stephen Harper has focused strongly on trying to send tar sands to the British Columbia coast through two pipelines, Northern Gateway and Kinder Morgan. These pipelines have faced stiff opposition from members of Canada’s First Nations communities due to environmental and economic concerns.

The documents reportedly reveal that some outreach activities focused on overseas measures, including efforts to block a European environmental measure -- the EU Fuel Quality Directive -- that would have hurt tar sands exports.

Read more: Canadian Government-Funded Secret Tar Sands Advocacy Worth Millions: Report

US Oil Supplies: Oil returns to above $66 as US stocks fall and supply growth flattens

 It may be time to say goodbye to cheap oil with a barrel going back over 66 dollars on Wednesday after news US stocks had a sharp weekly fall, and production growth figures there were levelling off.

The fall in stocks was much bigger than forecast, four times more in fact, and in Washington the announcement it believed domestic oil production would fall more strongly and for longer than expected also weighed heavily on the market.

Read more: Oil returns to above $66 as US stocks fall and supply growth flattens | euronews, economy

Greece: Putin says:"Greece did not come to Russia with hat in hand"

There had been speculation that Mr Tsipras would seek Russian aid to ease Greece's debt crisis, and to counter pressure from its creditors in the EU.

Mr Putin said Russia would consider loans to Greece for big joint projects, potentially in the energy sector.

But analysts say Russia's own economic woes mean any help would be limited.
Greece's new government is embroiled in negotiations with the EU and IMF to unblock a bailout package and could run out of funds within weeks.

Russia was among Greece's leading trade partners before sanctions on its energy industry and Greece's own economic difficulties reduced trade between the two countries by 40%.

Read more: Putin: Greece did not seek financial aid from Russia - BBC News