How will geo-political unrest in the Middle East affect Cayman's Energy Security?

Will the battle for Iraq become Saudi war on Iran?

Be careful what you wish for could have been, and perhaps should have been, Washington’s advice to Saudi Arabia and other Gulf states which have been supporting Sunni jihadists against Bashar al-Assad’s regime in Damascus.

The warning is even more appropriate today as the bloodthirsty fighters of the Islamic State of Iraq and al-Sham (ISIS) sweep through northwest Iraq, prompting hundreds of thousands of their Sunni coreligionists to flee and creating panic in Iraq’s Shiite heartland around Baghdad, whose population senses, correctly, that it will be shown no mercy if the ISIS motorcades are not stopped.

The outbreak of civil war in Iraq has oil traders nervous. Crude oil trading on the NYMEX Thursday gained more than $2 per barrel and has so far continued its climb Friday morning, going as high as $107.68 for WTI and Brent Crude to $113.02.

Such a setback for Iraqi Prime Minister Nouri al-Maliki has been the dream of Saudi Arabia’s King Abdullah for years. He has regarded Maliki as little more than an Iranian stooge, refusing to send an ambassador to Baghdad and instead encouraging his fellow rulers of the Gulf Cooperation Council (GCC) — Kuwait, Bahrain, Qatar, the United Arab Emirates, and Oman — to take a similar standoff-ish approach. Although vulnerable to al Qaeda-types at home, these countries (particularly Kuwait and Qatar) have often turned a blind eye to their citizens funding radical groups like Jabhat al-Nusra, one of the most active Islamist groups opposed to Bashar al-Assad in Syria.

Iran’s President Hassan Rouhani commented on June 12 on the latest crisis in Iraq, making it clear that Iran will intervene at the appropriate time to combat terror. According to a transcript of the speech released by the Islamic Republic News Agency, he said, "The Islamic Republic of Iran will not tolerate this violence and we will not tolerate this terror and as we stated at the UN, we will fight and combat violence, extremism and terrorism in the region and the world."

Currently on vacation in Morocco, King Abdullah has so far been silent on these developments. At 90-plus years old, he has shown no wish to join the Twitter generation, but the developments on the ground could well prompt him to cut short his stay and return home. He has no doubt realized that — with his policy of delivering a strategic setback to Iran by orchestrating the overthrow of Bashar al-Assad in Damascus showing little sign of any imminent success — events in Iraq offer a new opportunity.

This perspective may well confuse many observers. In recent weeks, there has been a flurry of reports of an emerging — albeit reluctant – diplomatic rapprochement between the Saudi-led GCC and Iran, bolstered by the apparently drunken visit to Tehran by the emir of Kuwait, and visits by trade delegations and commerce ministers in one direction or the other. This is despite evidence supporting the contrary view, including Saudi Arabia’s first public display of Chinese missiles capable of hitting Tehran and the UAE’s announcement of the introduction of military conscription for the country’s youth.

The merit, if such a word can be used, of the carnage in Iraq is that at least it offers clarity. There are tribal overlays and rival national identities at play, but the dominant tension is the religious difference between majority Sunni and minority Shiite Islam. This region-wide phenomenon is taken to extremes by the likes of ISIS, which also likely sees its action in Iraq as countering Maliki’s support for Assad.

ISIS is a ruthless killing machine, taking Sunni contempt for Shiites to its logical, and bloody, extreme. The Saudi monarch may be more careful to avoid direct religious insults than many other of his brethren, but contempt for Shiites no doubt underpinned his Wikileaked comment about "cutting off the head of the snake," meaning the clerical regime in Tehran. (Prejudice is an equal opportunity avocation in the Middle East: Iraqi government officials have been known to ask Iraqis whether they are Sunni or Shiite before deciding how to treat them.)

Despite the attempts of many, especially in Washington, to write him off, King Abdullah remains feisty, though helped occasionally by gasps of oxygen — as when President Barack Obama met him in March and photos emerged of breathing tubes inserted in his nostrils. When Sheikh Mohammed bin Zayed, the crown prince of Abu Dhabi — and, after his elder brother’s recent stroke, the effective ruler of the UAE — visited King Abdullah on June 4, the Saudi monarch was shown gesticulating with both hands. The subject under discussion was not revealed, but since Zayed was on his way to Cairo it was probably the election success of Egypt’s new president, Abdel Fattah el-Sisi, considered a stabilizing force by Riyadh and Abu Dhabi. Of course, Sisi gets extra points for being anti-Muslim Brotherhood, a group whose Islamist credentials are at odds with the inherited privileges of Arab monarchies. For the moment, Abdullah, Zayed, and Sisi are the three main leaders of the Arab world. Indeed, the future path of the Arab countries could well depend on these men (and whomever succeeds King Abdullah).

For those confused by the divisions in the Arab world and who find the metric of "the enemy of my enemy is my friend" to be of limited utility, it is important to note that the Sunni/Shiite divide coincides, at least approximately, with the division between the Arab and Persian worlds. In geopolitical terms, Iraq is at the nexus of these worlds — majority Shiite but ethnically Arab. There is an additional and often confusing dimension, although one that’s historically central to Saudi policy: A willingness to support radical Sunnis abroad while containing their activities at home. Hence Riyadh’s arms-length support for Osama bin Laden when he was leading jihadists in Soviet-controlled Afghanistan, and tolerance for jihadists in Chechnya, Bosnia, and Syria. More

One of the reasons that I have been lobbying and submitting reports on the need for an energy policy and the need for alternative energy to the Cayman Islands Government for the last seven years is because of the possibility of geo-political instability triggering conflict in the Middle East.

This may have come to pass. As you will have read above the insurgency has moved out of Syria and into Iraq. Civil war appears to have broken out, with Iraq's most senior Shia cleric has issued a call to arms after Sunni-led insurgents seized more towns. The call by a representative of Grand Ayatollah Ali al-Sistani came as the militants widened their grip in the north and east, having seized Mosul and Tikrit and threatened to march south, towards Baghdad.

The question is whether Saudi Arabia will offer help to the ISIS insurgents. Currently on vacation in Morocco, King Abdullah has so far been silent on these developments, but the developments on the ground could well prompt him to cut short his stay and return home. The Washington Institute for Near East Policy asserted that the Saudi military parade on April 29 marked a message to both Iran and the United States. Institute fellow Simon Henderson said this marked the first time Riyad displayed its Chinese-origin CSS-2 ballistic missile, designed to contain a nuclear warhead. King Abdullah has no doubt realized that — with his policy of delivering a strategic setback to Iran by orchestrating the overthrow of Bashar al-Assad in Damascus showing little sign of any imminent success — events in Iraq offer a new opportunity. Saudi Arabia's defense budget according to Deloitt, stands at $16 billion dollars.

Iran’s President Hassan Rouhani commented on June 12 on the latest crisis in Iraq, making it clear that Iran will intervene at the appropriate time to combat terror. According to a transcript of the speech released by the Islamic Republic News Agency, he said, "The Islamic Republic of Iran will not tolerate this violence and we will not tolerate this terror and as we stated at the UN, we will fight and combat violence, extremism and terrorism in the region and the world."

Given that Iraq is OPEC's second largest producer and that Brent Crude is already at a nine month high, the possibility is that oil prices could rapidly escalate to $150 per barrel is high.

What effect would this have on the Cayman Islands you may ask. If we have civil war in Iraq, which already appears to be the case, and if the ISIS takes Baghdad and continues south to the oil rich areas we could see $150 per barrel oil. However, if conflict spreads further afield in the region, which conceivably could see the Straights of Hormus closed, we could see oil at $300 per barrel. Editor.

 

 

© 2014

“Climate Change War” Is Not a Metaphor

The U.N. Intergovernmental Panel on Climate Change has just completed a series of landmark reports that chronicle an update to the current state of consensus science on climate change. In a sentence, here’s what they found: On our current path, climate change could pose an irreversible, existential risk to civilization as we know it—but we can still fix it if we decide to work together.

But in addition to the call for cooperation, the reports also shared an alarming new trend: Climate change is already destabilizing nations and leading to wars.

That finding was highlighted in this week’s premiere of Showtime’s new star-studded climate change docu-drama Years of Living Dangerously. In the series’ first episode, New York Times columnist Thomas Friedman traveled to Syria to investigate how a long-running drought has contributed to that conflict. Climate change has also been discussed as a “threat multiplier” for recent conflicts in Darfur, Tunisia, Egypt, and future conflicts, too.

Climate change worsens the divide between haves and have-nots, hitting the poor the hardest. It can also drive up food prices and spawn megadisasters, creating refugees and taxing the resiliency of governments.

When a threat like that comes along, it’s impossible to ignore. Especially if your job is national security.

In a recent interview with the blog Responding to Climate Change, retired Army Brig. Gen. Chris King laid out the military’s thinking on climate change:

“This is like getting embroiled in a war that lasts 100 years. That’s the scariest thing for us,” he told RTCC. “There is no exit strategy that is available for many of the problems. You can see in military history, when they don’t have fixed durations, that’s when you’re most likely to not win.”

In a similar vein, last month, retired Navy Rear Adm. David Titley co-wrote an op-edfor Fox News:

The parallels between the political decisions regarding climate change we have made and the decisions that led Europe to World War One are striking – and sobering. The decisions made in 1914 reflected political policies pursued for short-term gains and benefits, coupled with institutional hubris, and a failure to imagine and understand the risks or to learn from recent history.

In short, climate change could be the Archduke Franz Ferdinand of the 21st century.

Earlier this year, while at the American Meteorological Society annual meeting in Atlanta, I had a chance to sit down with Titley, who is also a meteorologist and now serves on the faculty at Penn State University. He’s also probably one of the most fascinating people I’ve ever spoken with. Check out his TEDxPentagon talk, in which he discusses how he went from “a pretty hard-core skeptic about climate change” to labeling it “one of the pre-eminent challenges of our century.” (This interview has been lightly edited and condensed.)

Slate: You’ve been a leader when it comes to talking about climate change as a national security issue. What’s your take on the connection between war and climate?

Titley: Climate change did not cause the Arab spring, but could it have been a contributing factor? I think that seems pretty reasonable. This was a food-importing region, with poor governance. And then the chain of events conspires to have really a bad outcome. You get a spike in food prices, and all of a sudden, nobody’s in control of events.

I see climate change as one of the driving forces in the 21st century. With modern technology and globalization, we are much more connected than ever before. The world’s warehouses are now container ships. Remember the Icelandic volcano with the unpronounceable name? Now, that’s not a climate change issue, but some of the people hit worst were flower growers in Kenya. In 24 hours, their entire business model disappeared. You can’t eat flowers.

Slate: What’s the worst-case scenario, in your view?

Titley: There will be a discrete event or series of events that will change the calculus. I don’t know who, I don’t know how violent. To quote Niels Bohr: Predictions are tough, especially about the future. When it comes, that will be a black swan. The question is then, do we change?

Let me give you a few examples of how that might play out. You could imagine a scenario in which both Russia and China have prolonged droughts. China decides to exert rights on foreign contracts and gets assertive in Africa. If you start getting instability in large powers with nuclear weapons, that’s not a good day.

Here’s another one: We basically do nothing on emissions. Sea level keeps rising, three to six feet by the end of the century. Then, you get a series of super-typhoons into Shanghai and millions of people die. Does the population there lose faith in Chinese government? Does China start to fissure? I’d prefer to deal with a rising, dominant China any day.

Slate: That sounds incredibly daunting. How could we head off a threat like that?

Titley: I like to think of climate action as a three-legged stool. There’s business saying, “This is a risk factor.” Coca-Cola needs to preserve its water rights, Boeing has their supply change management, Exxon has all but priced carbon in. They have influence in the Republican Party. There’s a growing divestment movement. The big question is, does it get into the California retirement fund, the New York retirement fund, those $100 billion funds that will move markets? Politicians also have responsibility to act if the public opinion changes. Flooding, storms, droughts are all getting people talking about climate change. I wonder if someday Atlanta will run out of water?

Think back to the Apollo program. President Kennedy motivated us to land a man on the moon. How that will play out exactly this time around, I don’t know. When we talk about climate, we need to do everything we can to set the stage before the actors come on. And they may only have one chance at success. We should keep thinking: How do we maximize that chance of success?

Climate change isn’t just an environmental issue; it’s a technology, water, food, energy, population issue. None of this happens in a vacuum.

Slate: Despite all the data and debates, the public still isn’t taking that great of an interest in climate change. According to Gallup, the fraction of Americans worrying about climate “a great deal” is still roughly one-third, about the same level as in 1989. Do you think that could ever change?

Titley: A lot of people who doubt climate change got co-opted by a libertarian agenda that tried to convince the public the science was uncertain—you know, theMerchants of Doubt. Unfortunately, there’s a lot of people in high places who understand the science but don’t like where the policy leads them: too much government control.

Where are the free-market, conservative ideas? The science is settled. Instead, we should have a legitimate policy debate between the center-right and the center-left on what to do about climate change. If you’re a conservative—half of America—why would you take yourself out of the debate? C’mon, don’t be stupid. Conservative people want to conserve things. Preserving the climate should be high on that list.

Slate: What could really change in the debate on climate?

Titley: We need to start prioritizing people, not polar bears. We’re probably less adaptable than them, anyway. The farther you are from the Beltway, the more you can have a conversation about climate no matter how people vote. I never try to politicize the issue.

Most people out there are just trying to keep their job and provide for their family. If climate change is now a once-in-a-mortgage problem, and if food prices start to spike, people will pay attention. Factoring in sea-level rise, storms like Hurricane Katrina and Sandy could become not once-in-100-year events, but once-in-a-mortgage events. I lost my house in Waveland, Miss., during Katrina. I’ve experienced what that’s like.

Slate: How quickly could the debate shift? How can we get past the stalemate on climate change and start focusing on what to do about it?

Titley: People working on climate change should prepare for catastrophic success. I mean, look at how quickly the gay rights conversation changed in this country. Ten years ago, it was at best a fringe thing. Nowadays, it’s much, much more accepted. Is that possible with climate change? I don’t know, but 10 years ago, if you brought up the possibility we’d have gay marriages in dozens of states in 2014, a friend might have said “Are you on drugs?” When we get focused, we can do amazing things. Unfortunately, it’s usually at the last minute, usually under duress.

This article is part of Future Tense, a collaboration among Arizona State University, the New America Foundation, and Slate. Future Tense explores the ways emerging technologies affect society, policy, and culture. To read more, visit the Future Tense blog and the Future Tense home page. You can also follow us on Twitter.

The U.N. Intergovernmental Panel on Climate Change has just completed a series of landmark reports that chronicle an update to the current state of consensus science on climate change. In a sentence, here’s what they found: On our current path, climate change could pose an irreversible, existential risk to civilization as we know it—but we can still fix it if we decide to work together.

But in addition to the call for cooperation, the reports also shared an alarming new trend: Climate change is already destabilizing nations and leading to wars.

That finding was highlighted in this week’s premiere of Showtime’s new star-studded climate change docu-drama Years of Living Dangerously. In the series’ first episode, New York Times columnist Thomas Friedman traveled to Syria to investigate how a long-running drought has contributed to that conflict. Climate change has also been discussed as a “threat multiplier” for recent conflicts in Darfur, Tunisia, Egypt, and future conflicts, too.

Climate change worsens the divide between haves and have-nots, hitting the poor the hardest. It can also drive up food prices and spawn megadisasters, creating refugees and taxing the resiliency of governments.

When a threat like that comes along, it’s impossible to ignore. Especially if your job is national security.

In a recent interview with the blog Responding to Climate Change, retired Army Brig. Gen. Chris King laid out the military’s thinking on climate change:

“This is like getting embroiled in a war that lasts 100 years. That’s the scariest thing for us,” he told RTCC. “There is no exit strategy that is available for many of the problems. You can see in military history, when they don’t have fixed durations, that’s when you’re most likely to not win.”

In a similar vein, last month, retired Navy Rear Adm. David Titley co-wrote an op-edfor Fox News:

The parallels between the political decisions regarding climate change we have made and the decisions that led Europe to World War One are striking – and sobering. The decisions made in 1914 reflected political policies pursued for short-term gains and benefits, coupled with institutional hubris, and a failure to imagine and understand the risks or to learn from recent history.

In short, climate change could be the Archduke Franz Ferdinand of the 21st century.

Earlier this year, while at the American Meteorological Society annual meeting in Atlanta, I had a chance to sit down with Titley, who is also a meteorologist and now serves on the faculty at Penn State University. He’s also probably one of the most fascinating people I’ve ever spoken with. Check out his TEDxPentagon talk, in which he discusses how he went from “a pretty hard-core skeptic about climate change” to labeling it “one of the pre-eminent challenges of our century.” (This interview has been lightly edited and condensed.)

Slate: You’ve been a leader when it comes to talking about climate change as a national security issue. What’s your take on the connection between war and climate?

Titley: Climate change did not cause the Arab spring, but could it have been a contributing factor? I think that seems pretty reasonable. This was a food-importing region, with poor governance. And then the chain of events conspires to have really a bad outcome. You get a spike in food prices, and all of a sudden, nobody’s in control of events.

I see climate change as one of the driving forces in the 21st century. With modern technology and globalization, we are much more connected than ever before. The world’s warehouses are now container ships. Remember the Icelandic volcano with the unpronounceable name? Now, that’s not a climate change issue, but some of the people hit worst were flower growers in Kenya. In 24 hours, their entire business model disappeared. You can’t eat flowers.

Slate: What’s the worst-case scenario, in your view?

Titley: There will be a discrete event or series of events that will change the calculus. I don’t know who, I don’t know how violent. To quote Niels Bohr: Predictions are tough, especially about the future. When it comes, that will be a black swan. The question is then, do we change?

Let me give you a few examples of how that might play out. You could imagine a scenario in which both Russia and China have prolonged droughts. China decides to exert rights on foreign contracts and gets assertive in Africa. If you start getting instability in large powers with nuclear weapons, that’s not a good day.

Here’s another one: We basically do nothing on emissions. Sea level keeps rising, three to six feet by the end of the century. Then, you get a series of super-typhoons into Shanghai and millions of people die. Does the population there lose faith in Chinese government? Does China start to fissure? I’d prefer to deal with a rising, dominant China any day. More

 

© 2014