by F. William Engdahl
The OPEC oil-producing states of the Middle East, including Iran, through the skillful mediation of Russia, are carefully laying the foundations for a truly new world order.
The first step in testing this will be
if they collectively succeed in eliminating the threat to Syria of
the Islamic State, and prepare the basis for serious,
non-manipulated elections there.
Tectonic motion involves the huge plates that our Earth is divided into which are in constant micro-motion.
At critical junctures which Earth science or geophysics has yet to
be able to predict far ahead, the motion of those tectonic plates
cause earthquakes and determine where earthquakes will occur.
It involves a new attractive force drawing the Middle East OPEC countries, including Saudi Arabia and Iran and other Arab OPEC countries, into what will soon become obvious as a strategic partnership with the Russian Federation.
It transcends the huge religious divides
today between Sunni Wahhabism, Sufi, Shi'ism, Orthodox Christianity.
In the interview, Sechin, considered one of President Vladimir Putin's closest allies, confirmed the Saudi offer.
The Financial Times (FT) is an influential media owned until this past July by the Pearson Group an asset tied to the Rothschild family who historically also dominate Royal Dutch Shell. The London paper chose to emphasize Sechin's rejection of the Saudi offer.
However, most instructive is to read between the lines of what he said.
He told a Singapore commodities conference organized by the FT,
Sechin well knows the background to the Saudi oil price war and the fact it was triggered by a meeting between US State Department's John Kerry and the late Saudi King Abdullah in the desert Kingdom in September 2014, where Kerry reportedly urged the Saudis to crash oil prices.
For Kerry the aim was to put unbearable pressure on Russia, then hit by US and EU financial sanctions.
the Saudis, it was a golden opportunity to eliminate the biggest
disturbing factor in the OPEC domination of world oil markets - the
booming production of US unconventional shale oil that had made the
USA the world's largest oil producer in 2014.
The Russian ruble lost more than 50% of its dollar value by January 2015. Oil prices similarly fell from $103 a barrel in September 2014 to less than $50 today. But Russian oil production costs are calculated in rubles, not dollars.
So, as Sechin states, the dollar cost of Rosneft oil production has dropped dramatically today from $5 a barrel before the sanctions to only $3 a barrel, a level similar to that of Arab OPEC producers like Saudi Arabia.
Rosneft is not hurting despite sanctions. USA shale oil by contrast is unconventional and vastly more costly. Industry estimates depending on the shale field and the company, put costs of shale in a range of $60-80 a barrel just to break even.
The current ongoing shakeout in the US
shale industry and prospects of rising US interest rates dictate the
demise of shale oil from the US for years if not decades to come as
Wall Street lenders and shale company junk bond investors suffer
I call it "unknotting the 'not' knot," the
knot over control of world oil flows that has held the world in a
hypnosis of wars and murder, hate for too long.
Alexander Mercouris in a very
insightful piece suggests that the Sechin statement to the FT can be
seen as an opening Russian negotiating position with the Saudi OPEC
Saudi Arabia was formerly China's largest oil source until Russia's Rosneft entered in a major way. That was a strategic decision for Russia as for China and not a mere market-driven one.
Now, regardless what Sechin did or did
not say to the FT, there is no good reason for Russia not to untie
the knot of world oil to the Anglo-Americans and enter into serious
negotiations with Saudi Arabia on strategic cooperation of some
The American and British oil companies formally agreed to a "ceasefire" which resulted in the creation of the enormously powerful Anglo-American oil cartel, later dubbed the 'Seven Sisters.'
The peace agreement was formalized in 1927, at Achnacarry, the Scottish castle of Shell's Sir Henri Deterding.
John Cadman, representing the British government's Anglo-Persian Oil Co. (British Petroleum), and Walter Teagle, president of Rockefeller's Standard Oil of New Jersey (Exxon), gathered under the cover of a grouse shoot to create the most powerful economic cartel in modern history.
The Seven Sisters were effectively
joined at the hip, acting in the world as one at least until 1945.
Britain forced a weakened France to
agree in 1927 to let the Americans into the Middle East and revise
the secret wartime Sykes-Picot accords to reflect that. A Red Line
was drawn from the Dardanelles down through Palestine, to Yemen and
up through the Persian Gulf.
The benefits of such a
new world ordering are simply too great for all involved parties to
It would secure the world's largest pool of hydrocarbons - oil and gas - by the nations of the contiguous land mass that British "father" of geopolitics, Sir Halford Mackinder referred to as the "World island" - Russia, China, Indian subcontinent, South Asia - and now radiating in an arc deep into the entire Middle East oil belt and on into Egypt in North Africa.
It would provide Russia safe markets outside the
Anglo-American current war zone.
The development of
huge new sea ports in Myanmar and other sites around Eurasia and the
Indian Ocean will directly link the Gulf countries to that Eurasian
booming new economic market and beyond.
would deal a devastating blow to the Washington war-hawks.
...becomes more likely by the day,
poor unhappy people, are beginning to feel suddenly naked, standing
in the Arctic cold frozen waters without even a paddle or an
ice-breaker to navigate.
After all, aren't we the majority? We just forgot we can also be good.
We should leave the war matrix behind...