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Shell Announces $11 Billion Petrochemical Plant for Iraq: What Could Go Wrong?

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Today’s entry in the “What Could Go Wrong?” sweepstakes is quite a beauty, courtesy of Reuters:

Royal Dutch Shell (RDSa.L) has signed a deal with Iraq worth $11 billion (7 billion pounds) to build a petrochemicals plant in the southern oil hub of Basra, Industry Minister Nasser al-Esawi said on Wednesday.

Esawi told a press conference in Baghdad the Nibras complex, which is expected to come on line within five to six years, would make Iraq the largest petrochemical producer in the Middle East.

“The Nibras complex will be one of the largest (foreign) investments (in Iraq) and the most important in the petrochemical sector in the Middle East,” Esawi said.

Proponents of the deal undoubtedly will point to the fact that Basra is in the far southeastern part of Iraq, far from the swathe of territory controlled by ISIS. Others will even point to the apparent defeat of ISIS in Kobane and how that might signal a turning of the tide in the battle against them. And yes, oil output in Iraq has been steadily rising since that little blip in 2003. As of the time of that linked report from the US Energy Information Administration from 2013, there were other plans for another $24 billion or so in new refineries in Iraq’s oil-producing regions, so why not jump on this Shell plan?

It turns out that there is plenty of fodder for fans of Lee Corso to shout “Not so fast, my friend!” when it comes to this deal. Back in June, there were already rumblings that the big uptick in Iraq violence could threaten expansion of Iraq’s oil sector. Even that article, though, attempted to support the notion that the Basra area remained relatively safe:

As grim as the worst-case situations may be, most analysts still say there is no immediate threat to Iraq’s southern oil fields, which account for approximately 90 percent of the country’s production and oil export. Basra, the heart of Iraq’s oil economy, is situated in an area strongly dominated by Shiites who generally support the central government and are implacable enemies of the Sunni forces on the march in the north.

Badr H. Jafar, chairman of Pearl Petroleum, a consortium that operates in Iraqi Kurdistan, said it was “highly unlikely” that terrorists could disrupt production and operations in southern Iraq.

The New York Times article containing the quote above is dated June 13, 2014. Just a couple of days later, though, we have this:

Turkey’s consulate in the Iraqi city of Basra has been evacuated due to security concerns, Foreign Minister Ahmet Davutoğlu announced June 17. The 18 staff members at the consulate, including the consul general, were were taken to Kuwait, Davutoğlu wrote via his Twitter account.

And that wasn’t just a one-off thing. Consider this tweet from October:

A number of airlines discontinued flights to Baghdad because a civilian airplane was hit by bullets there yesterday while landing, but coverage of that halt notes that flights continue in and out of Basra. There was a report January 12 of a plot to attack the port just 20 miles or so from Basra.

There is one more situation that suggests future problems around Basra:

Thousands of Iraqis are living in penury and running out of money after fleeing fighting and settling in the south of the country, the UN’s food agency said on Tuesday, warning that the situation was becoming critical for families in Najaf, Kerbala and Babil.

Jane Pearce, the World Food Programme’s (WFP) country director for Iraq, said structures had not yet been put in place to cater for the people fleeing into the three southern provinces.

WFP is distributing food to 50,000 displaced families in Basra, Dhi Qar, Qadisiya, Missan, Wasit, Muthanna, Najaf, Kerbala and Babil.

/snip/

WFP needs $292m for its operations in Iraq this year, and has a shortfall of $200m.

Imagine that. Yet another region where the US has no trouble finding funds for bombs, weapons and “training” and yet the WFP is facing a shortfall of hundreds of millions of dollars. But never fear, I’m sure my adorable little troll will be around shortly to stamp his foot and inform us how disaster responders in all their glory have the situation safely in hand and the US can continue its work to create even more refugees because sufficient scraps will be found just in time to avert the worst.

And of course, folks living on the edge of starvation and death from exposure will never, ever be radicalized by such an experience. Sure, go ahead and build that $11 billion petrochemical plant. The US war-industrial complex will be happy to spend hundreds of times more than that amount defending the facility.

Emergency Fundraising Succeeds: World Food Programme Restarts Suspended Aid for Syrian Refugees

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A week ago today, I pointed out the moral depravity of a situation in which the US never hesitates to find funding to increase air strikes and the flow of weapons into Syria and other fronts in the battle against ISIS while the UN World Food Programme was forced to suspend emergency food aid to 1.7 million Syrian refugees due to a funding shortfall. There is a rare bit of good news on that front, as the WFP announced today that the emergency appeal for funds has made up for the shortfall and food aid is restarting. In fact, more than $80 million has been raised, so some funding will carry over into January.

It appears that private donations made up only a small part of this influx of funds:

Among individuals contributing online through wfp.org, the third largest number by nationality were Syrians, after Americans (first) and Canadians (second). The online campaign featured Aloe Blacc’s song “I Need A Dollar” as the soundtrack for the #ADollarALifeline video which launched on social media channels. Almost 14,000 individuals and private sector donors in 158 countries contributed US$1.8 million dollars.

It is indeed heartwarming to see so many individuals step up to do what they can. However, considering how many US amoral contractors are making outrageous amounts of money shipping weapons into the region, I find it repulsive they didn’t make up the funding shortfall entirely on their own. Just their lobbying funds alone could have taken that hit without affecting their other funds. We have not yet gotten the list of countries that stepped up for the bulk of the emergency funds nor how much each gave, but we can only hope that the countries doing the most meddling in the region are also providing the most funding for the residents they have displaced.

Sadly, this stopgap funding is merely the beginning. The New York Times reports this morning that the UN’s budget request for 2015 for all humanitarian assistance will go up 27% over the amount needed in 2014:

The appeal, a barometer of the global impact of wars and disasters, calls for 27 percent more funding in 2015 than the amount requested a year ago for 2014 and is intended to aid more than 57 million people in 22 countries.

The number of people affected by conflict “has reached record levels” for the post-World War II era, Valerie Amos, the United Nations emergency aid chief, told a news conference in Geneva. She said that aid agencies had assessed that 78 million people were in need of assistance, but the appeal targeted only the most vulnerable.

Nearly three-quarters of the funds were designated for just four crises: in Syria, Iraq, South Sudan and the protracted but little-reported conflict in Sudan. Other priorities included the Central African Republic, Somalia, the Democratic Republic of Congo and Yemen.

The number of people displaced by conflict reached the highest level since World War II at the end of 2013 but is still rising “exponentially,” António Guterres, the United Nations refugee chief, told the news conference, climbing to 32,000 a day last year from 14,000 a day in 2011. In 2014, he said, the figure would certainly have increased further.

Given the US role in those countries leading the way in terms of number of refugees, it is fitting that a large portion of the costs of caring for the refugees should fall to us as well. And of course, those first two are problem areas very much because of our meddling. We broke Iraq and have continued to feed its dysfunction ever since. We helped start the unrest in Syria, too. In fact, as the torture report drops today, don’t forget that we relied on Bashar al-Assad as an “ally” for outsourcing of torture early in that program, so getting rid of him is needed to help hide what we did.

However, I still long for the day when the US response to a crisis gets out of the “which group do we fund” approach and instead looks to “how can we help the people” as the approach that will work. As we see from the record numbers of displaced people, our approach now spreads hunger and death. What would happen if instead of sending in weapons, we sent in food, housing construction materials and medical assistance? What if we even actively excluded weapons from these areas?

Of course, that has little chance of happening in our lifetimes. In the meantime, your donations for assistance to Syrian refugees can be made here and the WFP provides updates here.