Rosneft

Behind Trump’s Push for "American Steel" in Pipelines, Another Russian Company with Putin Ties Stands to Benefit

In his speech at the Conservative Political Action Conference (CPAC) last week, President Donald Trump commemorated the one-month anniversary of his executive orders calling for the approval of the Keystone XL and Dakota Access pipelines, as well as one calling for U.S. pipelines to get their line pipe steel from U.S. facilities.

“I said, who makes the pipes for the pipeline?” Trump told the CPAC crowd. “If they want a pipeline in the United States, they're going to use pipe that's made in the United States, do we agree?”

But while the pipe may be made in the U.S., as DeSmog has shown in previous investigations, ownership tells a different story. Enter: TMK IPSCO, a massive producer of steel for U.S. oil country tubular goods (OCTG) and line pipe, and a subsidiary of TMK Group. A DeSmog investigation has found ties between TMK Group's Board of Directors and Russian President Vladimir Putin.

Rex Tillerson Backs Aggressive Policy in Disputed South China Sea as Exxon, Russia Eye Region’s Oil and Gas

Tillerson getting sworn in as Secretary of State with Trump

President Donald Trump's newly sworn-in Secretary of State, recently retired ExxonMobil CEO Rex Tillerson, turned heads when he expressed support for an aggressive military stance against China's actions in the disputed South China Sea during his Senate committee hearing and in response to questions from Democratic Party Committee members.

Tillerson's views on China and the South China Sea territory appear even more concerning against the backdrop of recently aired comments made by Trump's increasingly powerful chief strategist, Steve Bannon, that the two nations were headed toward war in the next five to 10 years, as reported by the Independent (UK). However, what Tillerson did not reveal in his answers is that Exxon, as well as Russian state-owned companies Gazprom and Rosneft, have been angling to tap into the South China Sea's offshore oil and gas bounty.

Exxon CEO Rex Tillerson Tapped for Secretary of State Despite Close Ties to Russia, Putin

Tillerson and Putin

ExxonMobil CEO Rex Tillerson — who has close personal and company ties to Russia and President Vladimir Putin — is President-elect Donald Trump's top pick to become the next secretary of state, with the decision likely coming next week according to NBC News.

The news comes amid reports that Congressional members and senior U.S. Central Intelligence Agency (CIA) officials say they have intelligence showing Russia attempted to tip the balance of the November U.S. presidential election in favor of President-elect Donald Trump by hacking into email systems and giving those emails to Wikileaks. And President Barack Obama has called for a complete investigation on the matter before he leaves the White House on January 20.

Though the evidence presented to the U.S. public so far lacks smoking gun documentation, many are alarmed that a geopolitical adversary may have interfered with the U.S. electoral process. Trump, though — who has signaled a potential sea change in the U.S.-Russia geopolitical relationship — is not among them, as indicated in his choice of Tillerson for top U.S. diplomat.

Big Oil Argued for U.S. Crude Exports to Fend Off Iran, But First Exporter Vitol Group Also Exported Iran's Oil

The American Petroleum Institute (API) successfully lobbied for an end to the 40-year ban on exporting U.S.-produced crude oil in part by making a geopolitical argument: Iran and Russia have the ability to export their oil, so why not unleash America?

What API never mentioned — nor the politicians parroting its talking points — is that many of its member companies maintain ongoing business ties with both Russia and Iran.

And The Vitol Groupthe first company set to export U.S. crude after the lifting of the ban (in a tanker destined for Switzerland), has or had its own ties to both U.S. geopolitical rivals.

Russia Works to Improve Oil Spill Monitoring in Arctic Tundra Region Known for Accidents

As the US grants Shell its final permit to drill off the coast of Alaska, Russia, too, continues to prepare for a future with Arctic drilling as it takes steps to improve environmental safety in the Timan-Pechora tundra after a series of oil spills in recent years.

Arctic drilling is a risky business. Russia’s new monitoring system includes information about regional oil fields, including the quality of equipment used by the companies operating there. It will give local authorities a better overview of sites where spills appear most imminent, thereby helping authorities prevent accidents.

The region is notorious for its history of oil accidents spanning back to 1988. The biggest accident occurred in 1994 when somewhere between 100,000 and 200,000 tons spilled into the tundra. But with the continued expansion of oil extraction in the Arctic region, the number of incidents has increased.

Vice President Joe Biden Promotes U.S. as Fracking Missionary Force On Ukraine Trip

During his two-day visit this week to Kiev, Ukraine, Vice President Joe Biden unfurled President Barack Obama's “U.S. Crisis Support Package for Ukraine.”

A key part of the package involves promoting the deployment of hydraulic fracturing (“fracking”) in Ukraine. Dean Neu, professor of accounting at York University in Toronto, describes this phenomenon in his book “Doing Missionary Work.” And in this case, it involves the U.S. acting as a modern-day missionary to spread the gospel of fracking to further its own interests.     

With the ongoing Russian occupation of Crimea serving as the backdrop for the trip, Biden made Vladimir Putin's Russia and its dominance of the global gas market one of the centerpieces of a key speech he gave while in Kiev.

“And as you attempt to pursue energy security, there’s no reason why you cannot be energy secure. I mean there isn’t. It will take time. It takes some difficult decisions, but it’s collectively within your power and the power of Europe and the United States,” Biden said.

“And we stand ready to assist you in reaching that. Imagine where you’d be today if you were able to tell Russia: Keep your gas. It would be a very different world you’d be facing today.”

The U.S. oil and gas industry has long lobbied to “weaponize” its fracking prowess to fend off Russian global gas market dominance. It's done so primarily in two ways.

One way: by transforming the U.S. State Department into a global promoter of fracking via its Unconventional Gas Technical Engagement Program (formerly the Global Shale Gas Initiative), which is a key, albeit less talked about, part of President Obama's “Climate Action Plan.”

The other way: by exporting U.S. fracked gas to the global market, namely EU countries currently heavily dependent on Russia's gas spigot. 

In this sense, the crisis in Ukraine — as Naomi Klein pointed out in a recent article — has merely served as a “shock doctrine” excuse to push through plans that were already long in the making. In other words, it's “old wine in a new bottle.”

"Russia with Love": Alaska Gas Scandal is Out-of-Country, Not Out-of-State

A legal controversy — critics would say scandal — has erupted in Alaska's statehouse over the future of its natural gas bounty.

It's not so much an issue of the gas itself, but who gets to decide how it gets to market and where he or she resides.

The question of who owns Alaska's natural gas and where they're from, at least for now, has been off the table. More on that later.

At its core, the controversy centers around a public-private entity called the Alaska Gasline Development Corporation (AGDC) created on April 18, 2010 via House Bill 369 for the “purpose of planning, constructing, and financing in-state natural gas pipeline projects.” AGDC has a $400 million budget funded by taxpayers. 

AGDC was intially built to facilitate opening up the jointly-owned ExxonMobil-TransCanada Alaska Pipeline Project for business. That project was set to be both a liquefied natural gas (LNG) export pipeline coupled with a pipeline set to bring Alaskan gas to the Lower 48.    

Photo Credit: TransCanada

Things have changed drastically since 2010 in the U.S. gas market though, largely due to the hydraulic fracturing (“fracking”) boom. And with that, the Lower 48 segment of the Alaska Pipeline Project has become essentially obsolete.

Dreams of exporting massive amounts of Alaskan LNG to Asia, however, still remain. They were made much easier on April 14, when the Kenai LNG export facility received authorization to export gas from the U.S. Department of Energy.

Why ExxonMobil's Partnerships With Russia's Rosneft Challenge the Narrative of U.S. Exports As Energy Weapon

In a long-awaited moment in a hotly contested zone currently occupied by the Russian military, Ukraine's citizens living in the peninsula of Crimea voted overwhelmingly to become part of Russia.

Responding to the referendum, President Barack Obama and numerous U.S. officials rejected the results out of hand and the Obama Administration has confirmed he will authorize economic sanctions against high-ranking Russian officials.

“As I told President Putin yesterday, the referendum in Crimea was a clear violation of Ukrainian constitutions and international law and it will not be recognized by the international community,” Obama said in a press briefing. “Today I am announcing a series of measures that will continue to increase the cost on Russia and those responsible for what is happening in Ukraine.” 

But even before the vote and issuing of sanctions, numerous key U.S. officials hyped the need to expedite U.S. oil and gas exports to fend off Europe's reliance on importing Russia's gas bounty. In short, gas obtained via hydraulic fracturing (“fracking”) is increasingly seen as a “geopolitical tool” for U.S. power-brokers, as The New York Times explained. 

Perhaps responding to the repeated calls to use gas as a “diplomatic tool,” the U.S. Department of Energy (DOE) recently announced it will sell 5 million barrels of oil from the seldom-tapped Strategic Petroleum Reserve. Both the White House and DOE deny the decision had anything to do with the situation in Ukraine.

Yet even as some say we are witnessing the beginning of a “new cold war,” few have discussed the ties binding major U.S. oil and gas companies with Russian state oil and gas companies.

The ties that bind, as well as other real logistical and economic issues complicate the narrative of exports as an “energy weapon.”

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