Foreign Correspondence

[Amaunet]

This is from a somewhat dated text but nevertheless true, the BTC is expensive. Thus the higher the price of oil the better for the BTC. If oil goes down the BTC is in trouble and thus America’s dreams of controlling the world. Are we suffering out of our pocketbooks for the BTC? I wish people understood what truly is at play here.

Now Caspian Sea oil is at a competitive disadvantage. It comes with a price tag that is four times higher than oil from the Persian Gulf, and getting it to the end users is difficult. Also, the oil has a high surphur content and is not of high quality.
http://thunder1.cudenver.edu/inst_intl_bus/gef/issues/98july/caspian.html


From the beginning, the major oil monopolies of the world had deep misgivings about the White House plan for a Baku-Ceyhan pipeline--which, on paper at least, they were expected to finance.

They were concerned that the Baku-Ceyhan route was the most expensive route proposed--possibly exceeding $4 billion, almost twice the estimated cost of the Baku-to-Kharg route, proposed by Iran.

The oil companies were also concerned that the volume of oil passing through the Baku-Ceyhan route might not be enough to make it profitable--especially if oil prices stay low and other pipelines are also built in the Caspian region. In November 1998, Russia, Kazakhstan and Chevron agreed to build a $2 billion pipeline from Tengiz to the Russian port of Novorossisk. Would the larger Tengiz oilfield send its oil out through Russia, leaving the Ceyhan route with only the Baku output?

The U.S. government was determined to bring the oil companies "on board"--saying that the pipelines of the Caspian could not be decided by the narrower "ka-ching, ka-ching" calculations of U.S. and European bankers and oil companies. The U.S. government insisted that there were global, geo-strategic interests at stake here--specifically, who would control the energy resources of the world.
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