Archive for August, 2008

Peak oil anyone?

Source: Reuters

Crude output from Mexico’s struggling Cantarell oil field fell for the 10th month in a row in July to 974,000 barrels per day, energy ministry data showed on Tuesday.

The fading jewel of Mexico’s oil industry, Cantarell is now producing half what it was yielding at its 2004 peak, pulling down overall output in the world’s No. 6 oil-producing nation and threatening Mexico’s status as a top U.S. supplier.

The steady decline of around 15 percent annually in the field’s output has pressured the divided Congress to tweak laws in the closed energy sector. The government, with backing from centrists, hopes to push a bill through congress to allow more private participation in the state-run oil business.

The conservative government’s proposal seeks to shore up flagging output and reserves by having the national monopoly Pemex hire private companies under incentive-fee contracts, particularly in costly high-risk areas like deepwater oil.

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A few interesting tidbits for the UFO crowd…

Source: NSA Technical Journal Articles

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Source: Los Angeles Times

Western anti-terrorism officials are increasingly concerned that Hezbollah, the Lebanon-based Shiite Muslim militia that Washington has labeled a terrorist group, is using Venezuela as a base for operations.

Linked to deadly attacks on Jewish targets in Argentina in the early 1990s, Hezbollah may be taking advantage of Venezuela’s ties with Iran, the militia’s longtime sponsor, to move “people and things” into the Americas, as one Western government terrorism expert put it.

As part of his anti-American foreign policy, Venezuelan President Hugo Chavez has established warm diplomatic relations with Iran and has traveled there several times. The Bush administration, Israel and other governments worry that Venezuela is emerging as a base for anti-U.S. militant groups and spy services, including Hezbollah and its Iranian allies.

“It’s becoming a strategic partnership between Iran and Venezuela,” said a Western anti-terrorism official who spoke on condition of anonymity due to the issue’s sensitivity.

Several joint Venezuelan-Iranian business operations have been set up in Venezuela, including tractor, cement and auto factories. In addition, the two countries have formed a $2-billion program to fund social projects in Venezuela and elsewhere in Latin America.

Those deepening ties worry U.S. officials because Iranian spies around the world have been known to work with Hezbollah operatives, sometimes using Iranian embassies as cover, Western intelligence experts say.

In June, Assistant Secretary of State Thomas A. Shannon said Iran “has a history of terror in this hemisphere, and its linkages to the bombings in Buenos Aires are pretty well established.”

“One of our broader concerns is what Iran is doing elsewhere in this hemisphere and what it could do if we were to find ourselves in some kind of confrontation with Iran,” Shannon said.

Fears about the threat from Hezbollah’s global networks intensified after the slaying in February of Imad Mughniyah, a notorious leader of the militia, in Damascus, the Syrian capital. Hezbollah and Iran accused Israel and promised revenge, putting Western authorities on guard against attacks on Israeli or Jewish targets around the world.

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I said this last week, that what we are seeing is the beginning of a new cold war…

Source: FT.com

David Miliband, the British foreign secretary, led a chorus of support for Ukraine on Wednesday as western fears rose of possible Russian attempts to build on its victory in Georgia by threatening other neighbouring states.

Speaking during a visit to Kiev, he called on the European Union and Nato to prepare for “hard-headed engagement” with Moscow following its military action in Georgia. “The Russian president says he’s not afraid of a new cold war. We don’t want one. He has a big responsibility not to start one,” he said.

Mr Miliband’s remarks coincided with warnings from Bernard Kouchner, French foreign minister, Olli Rehn, EU enlargement commissioner, and Carl Bildt, Swedish foreign minister.

They were all speaking after Moscow’s recognition on Tuesday of the independence of the breakaway Georgian territories of Abkhazia and South Ossetia in the first effort to redraw international borders in the former Soviet Union since its 1991 collapse.

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Source: Reuters

Federal Deposit Insurance Corp (FDIC) might have to borrow money from the Treasury Department to see it through an expected wave of bank failures, the Wall Street Journal reported.

The borrowing could be needed to cover short-term cash-flow pressures caused by reimbursing depositors immediately after the failure of a bank, the paper said.

The borrowed money would be repaid once the assets of that failed bank are sold.

“I would not rule out the possibility that at some point we may need to tap into (short-term) lines of credit with the Treasury for working capital, not to cover our losses,” Chairman Sheila Bair said in an interview with the paper.

Bair said such a scenario was unlikely in the “near term.” With a rise in the number of troubled banks, the FDIC’s Deposit Insurance Fund used to repay insured deposits at failed banks has been drained.

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