Oil Scene

Author: 
Syed Rashid Husain
Publication Date: 
Fri, 2006-12-29 03:00

Securing the energy infrastructure is definitely a major issue all around. Stakes are high. The lifeline of this civilization has to be protected, from extremists, in an era marked with greater insecurity and threat perceptions from various quarters. Everyone concedes that all parties need to help bolster the total security efforts so as to ensure continuity and stability of crude supplies. This is of utmost importance and hence billions of dollars are being pumped to ensure security.

This oil-rich region has been battling out the menace of extremism for some time now, and successfully too. Despite threats and attempts to sabotage the oil and energy infrastructure in Saudi Arabia, so as to disrupt the flow of crude, the security has been exemplary. In February this year, Saudi authorities foiled an extremist attempt at the oil infrastructure at Abqaiq, the world’s largest processing facility.

But despite the success, it seems the world’s sole surviving superpower wants to somehow get involved, even if for enhancing and ensuring security of the energy assets at the oil-rich Gulf states.

Already there exists close coordination between the US and the regional governments on anti-terrorism efforts. Intelligence exchange is one sector where regular cooperation and coordination is very much reported. And it has been of great help too in thwarting many attempts. Recently in the backdrop of intelligence exchanges, a report of a possible seaborne threat was announced. Consequently Saudi Arabia heightened security measures at all the energy installations whereas, multilateral internal navies started patrolling the international waters of the Gulf. This cooperation has worked well to date.

The US is now also offering to enhance the security relationship with the Gulf states under a multi-year initiative, known as Global Critical Energy Infrastructure Protection Strategy. Dow Jones reported earlier this week that the US has now embarked on a quiet campaign to boost security at major Middle East oil installations. Last month, the report said, American officials met in Saudi Arabia and the United Arab Emirates with government and oil industry officials to discuss closer energy security cooperation and to offer US advice and expertise on how to better protect infrastructure like pipelines, processing plants and terminals.

Some US officials say the initiative was aimed at beefing up what they believe were insufficient energy security precautions in the region. Bruce A. Averill who represented the State Department at the meetings said the objective was to highlight the importance of safeguarding the infra structure.

“All we want to do is engage and say, have you really thought seriously about what would happen ‘if,” he was quoted as saying. Security measures in the Arabian Gulf “are not adequate,” another US official was quoted as saying during a recent trip to the region.

Under the proposed program, the US is also offering the assistance of “security experts” to provide recommendations on security improvements. The US government is planning to send a Department of Energy official to some of the countries in the region for six months in 2007 to advice on security matters; a Western security analyst was quoted as saying. The US offered assistance reportedly also provides for assessing the impact of bomb attacks on energy facilities and providing guidance on how to proceed if an attack succeeds.

However, all this effort is taking place in an environment when all around there are a number of apprehensions about the US motives. Many are suspicious, and may be wrongly so one may argue, of the real motives behind the US moves. Many here in the region and beyond, strongly assert that the US onslaught on Baghdad had much to do with its oil and energy assets.

And there seems a global trend now toward increasing national controls on oil and energy assets - in the name of being strategic. Russia only late last week, almost forced Shell to share the “strategically” important Sakhalin fields to the state giant Gazprom, enhancing in the process the state control on the fields, some assert.

In South America too from Venezuela to Bolivia, there seems a growing emphasis on enhancing governmental controls over the energy assets. Oil majors are having tough time in many senses. Free market economy does not seem to be in vague currently in the energy sector. And the proponents of the free markets are themselves to be blamed to a great extent for this development.

In this environment, the US intentions and efforts in actively supporting the security efforts of the energy infrastructure in the region could easily be perceived with some salt. Already the comments received in response to the US moves have not been very favorable.

It is said when the East India Company entered the subcontinent in the later stage of the Mughal Empire, it received the permission to operate in India only when one of its medics cured the ailing daughter of the then Emperor Shahjahan. That opened the door for East India Company in the subcontinent and ultimately the British dislodged the Mughals from power in Delhi and took over. This is how imperial forces operate.

Hence, when some Gulf officials disputed the US assertion that security at regional oil installations is inadequate and say they don’t need US assistance, it has to be seen in the right perspective. In response to the US move, an Oil Ministry official from one Gulf country was quoted as saying that regional security measures are already robust, and that regional governments would be reticent about publicly seeking assistance from the US, given high levels of public distrust in the region for American foreign policy.

Indeed this may not be the right environment to propose an arrangement, which may not be received in the same spirit. However, the sole surviving super power of the world knows very well how to get things done. They have their way and means to get things done the way they want, one has to concede.

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