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Extreme energy, extreme implications

By James Stafford - posted Wednesday, 26 June 2013


James Stafford: Iraqi Kurdistan is shaping up to be one of the hottest exploration venues in the Middle East, and while it comes with a lot of political baggage, oil companies show no concern. What do you think the political risk potential is once the Kurds get a new pipeline up and running directly to Turkey by the end of this year or early next year, courtesy of Anglo-Turkish Genel Energy?

Michael Klare: I think it would be very dangerous to make predictions about this, given all the instability in the region. The Iraqis in Baghdad are obviously very unhappy about this, and have various means to make it difficult for companies that invest there. But these companies may feel that the risks can be overcome, or minimized. Given the unrest in Syria and Turkey, I just don't know how all this will play out.

James Stafford: We've written a lot about the petro-politics surrounding the conflict in Syria, both in terms of the Iranian-Qatari race for good pipeline acreage as well as the recent discoveries in the Levant Basin. What role do you think hydrocarbons and hydrocarbon infrastructure are really playing in the end game for this conflict?

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Michael Klare: Well, I always tend to look for the role of oil and gas in conflicts like this, and I'm sure that they're present. But I suspect that this is less about oil and gas per se than about the ultimate division of power in the Middle East between long-contending actors - the Iranians, Kuwaitis, Turks, Iraqis, Russians, Americans, and so on. Of course, this has a lot to do with oil and gas in the long run, as the victor in this power struggle will be able to dominate the production and sale of hydrocarbons. But for now I see it as a power game first and foremost.

James Stafford: What is the number one energy topic that grabs your readers, and how does your coverage of it go beyond the depths (or shallows) of the mainstream media?

Michael Klare: Right now the number one topic is how the "Shale gas (and oil) revolution" will alter the power balance between the United States and its major rivals, especially Russia and China. I heard this in Russia, China, and Mexico during visits to universities and think-tanks to these countries last year - it was always the #1 question. They want to know if other countries can replicate the US success in this field, or will be forever dependent on American fracking technology. People also want to know how this "revolution" will affect the future of renewables. Will more gas production prove a "bridge" to renewables, or a "bridge to nowhere?"

James Stafford: In your view, how is the mainstream media being manipulated in the climate change debate? How is the public being cheated out of a rational, smart debate?

Michael Klare: I am concerned that the media is not adequately explaining the difference between conventional and unconventional oil and gas. Proponents of fracking, the Keystone XL pipeline, deep-offshore production, and so on all say that these are just other forms of "oil" and "clean-burning natural gas," without explaining that vastly different production techniques are involved and that these techniques have significantly worse impacts on the environment.

James Stafford: Will we ever get to the real debate, or will interest groups continue to maintain control?

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Michael Klare: We can have a fair debate in universities and think-tanks, but the American media are saturated with advertising paid for by the oil and gas industry that distorts the environmental consequences of relying on these fuels - and it's very hard for ordinary people to challenge these accounts.

James Stafford: Recently you have expressed your disappointment over the climate change rallies, focusing on the Keystone XL pipeline. What's gone wrong? Has the movement lost its momentum?

Michael Klare: Perhaps I've expressed some disappointment from time to time but I've been very impressed by the emergence of a new movement on college campuses--including my own--to get colleges and universities to eliminate their investments in big carbon corporations, as a way of persuading them to keep unproduced carbon in the ground.

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This article was first published on OilPrice.com.



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James Stafford is the publisher of OilPrice.com.

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