Monday, 22 February 2016

Oil glut has been created with a purpose

In one of my previous blogs I raised a point that western media often mislead. I have a strong feeling that like any third world country news are produced on the behest of lobbying firms. These lobbying firms often call their work ‘Policy Advocacy’. These entities work for protecting the interest of Fortune-50 and Fortune-500 companies and not the consumers or public at large.
My perception gets further strength when I go through the reports of mainstream media regarding the prevailing oil glut. These media companies paint a scenario that if oil price goes further down, the entire global economy would plunge in serious crisis. There would be many bankruptcies and for saving the oil and gas exploration and production companies crude price must be hiked.
These companies had made tons of money through connivance. This game was started by the US companies and Saudi Arabia and other oil producing countries were trapped. They lived under the false impression that inflow of petro-dollars was on the rise and totally ignored the fact that one the US attains self sufficiency in oil production, it would gradually deprive all other oil countries from oil income.
Interestingly, the US has plunged oil prices to present lows to inflict material injury to all the oil producing countries, Saudi Arabia, Russia and Iran being the prime targets. It is stunning that Russia and Saudi Arabia are fighting a proxy war in Syria but have joined hands to convince OPEC and non-OPEC members that their survival was in cutting down production.
This brings to mind an old saving that enemy of an enemy can be made friend. Saudis very strongly believe that the US has betrayed them with regards to Syria and Iran. Russia has established its nuisance value in the Middle East and its policy makers strongly believe that by joining hands with Saudi Arabia they can achieve twin objectives, weakening the US influence on countries located in Arabia Peninsula and pushing many of the US oil producing companies out of business.
Ironic is the attitude of oil consuming countries, which feel helpless before these exploiters. They are also falling victim of the disinformation being spread by the western media.  These countries have been made to believe that economic downturn in the US would also affect their economies adversely.
Since I live in Pakistan and following this issue to some extent, the incumbent government has failed in passing the benefit of low oil prices to the masses. Following IMF mantra the government has increased percentage of tax on energy products to overcome budget deficit. I am sure Pakistan is not the only countries following IMF recipe blindly but all those countries that live on the crutches of IMF are following the same policy blindly.
Pakistan has failed in benefiting from the GSP plus status granted to the country by the European Union only because of prevailing energy crisis. I would say it very loudly that energy crisis in Pakistan is not due to the shortage of energy products but blatant theft, gross inefficiencies and above all massive corruption.
In the third world rulers are installed and toppled in the name of ‘regime change’. It is simple that once an agent becomes redundant it is eliminated, assassinations are common but portrayed as act of rebels or an act of God.
Explosion of aero plane of Pakistan’s President Ziaul Haq was not an accident but outright killing. Those who died along with Zia included the US Ambassador to Pakistan, a Brigadier General of the US Army and many generals of Pakistan Army, who had played key role in defeating USSR in Afghanistan.

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