Thursday: Another Grungey Anniversary Observed
In this roundup: Recalling 25 years of Nirvana’s Nevermind, petro-pipeline-economic challenges, lead poisoning, anthrax, and cops gone wild. Read more →
In this roundup: Recalling 25 years of Nirvana’s Nevermind, petro-pipeline-economic challenges, lead poisoning, anthrax, and cops gone wild. Read more →
I freely admit to being the oddest of the quadruplets in the Emptywheel sensory deprivation pool, producing the quirky minority report from time to time.
Which may explain the following graphic with regard to current geopolitical tensions.
As you can see, not every trending burp in the news about either Venezuela or Ukraine produced a corresponding bump in the fossil fuel market. Some trend-inducing news may have nothing at all to do with energy. It’s quite possible I may not have captured other key businesses as some of them don’t trade publicly, or are don’t trade in a manner readily captured by Google Finance.But there are a few interesting relationships between news and price spikes, enough to make one wonder what other values may spike with increased volatility in places like Venezuela (which has the largest oil and natural gas reserves in the western hemisphere), and Ukraine (which lies between the EU and the largest natural gas deposits in the world, and the world’s eighth largest oil reserves).
Of course there’s an additional link between these two disparate countries. Both of them have already seen similar upheavals in which the U.S. played a role — Ukraine’s 2004 Orange Revolution, and the 2002 attempted coup in Venezuela.
When someone made noise about an Afghan Muslim being a key locus of the latest unrest in Ukraine, I couldn’t help but think of the Trans-Afghanistan Pipeline for natural gas which has yet to be realized, primarily for a lack of adequate political will among nation-states with a vested interest in its success.
It also made me think of news reports from this past summer when Turkmenistan, sitting on the fourth largest natural gas reserves in the world, expressed a readiness to export gas to Europe. This would cut into Russia’s sales, but not for a few years, requiring continuation of existing relationships for the next three to five years. Note the pipelines, existing and planned on the following U.S. State Department map (date unclear, believed to be post-2006).*