China vs the US: The Battle for Oil

China vs the US: The Battle for Oil

Directed by Jean-Kristophe Klots (2012)

Film Review

The Battle for Oil is about the battle between China and the US over the world’s dwindling oil reserves. Globally China is the second biggest oil consumer – after the US. Owing to its dwindling reserves, they import two-thirds of their oil. High domestic demand for oil leads to periodic power blackouts and long queues at services stations.

China has three state-owned oil companies employing tens of thousands of workers, mainly in London, Singapore, New York. The country’s high demand for oil has led to major investment in African and South American oil producers. Rather than buying barrels of oil, China seeks investment in oil production capacity. Chad, Sudan and other African countries have granted them major oil concessions in return for major infrastructure investment in ports, railroads, telecommunication networks, schools, and clinics.

China’s ability (thanks to immense cash reserves) to invest in massive infrastructure projects gives them significant competitive advantage over western oil companies. As does China’s commitment to absolute non-interference in the host country’s political affairs. This contrasts sharply with western loans. The latter are always accompanied by demands for “democratic” and “human rights” reforms, which turn out to be camouflage for further penetration by Wall Street interests.

In 2005, China freaked out US lawmakers by attempting to take over the American oil company Unocal. Owing to their desire to preserve friendly trade relations, China dropped their Unocal takeover bid and shifted their focus to forging alliances with oil producers hostile to the US, such as Iran, Russia and Venezuela. Much of the current US animosity towards Venezuela stems from growing Chinese investment in their oil industry – a fact rarely mentioned in the mainstream media.

 

Chevron vs the Amazon

Chevron vs the Amazon

Abbey Martin (2016)

Film Review

 

Chevron vs the Amazon is an Abbey Martin documentary about Texaco-Chevron’s deliberate dumping of oil and toxic waste in Ecuador’s Amazon rain forest and the vicious dirty tricks they have engaged in to avoid responsibility for cleaning it up.

Texas began drilling for oil in Ecuador in 1964, under a US-installed dictatorship that agreed not to regulate their activities. The amount of oil they spilled into the Amazon was 1700 times the size of the 1989 Exxon Valdez oil spill and 140 times that of BP’s 2010 Deepwater Horizon spill. Indigenous groups filed suit for the extensive damage to their water, health and livelihoods in 1993, a year after Texaco abandoned their Ecuadoran well sites. Texaco settled this first suit by agreeing to a phony remediation scheme that never happened.

Part 1 consists of great footage of the vast amount of oil remaining in Ecuador’s Amazon rain forest and interviews with indigenous Ecuadorans whose entire families have been devastated by the health effects (cancer, leukemia, rashes, miscarriages, birth defects) of the contaminated water they are forced to drink.

Part 2 provides background to the second class action lawsuit brought against Texaco by 30,000 indigenous residents – the largest environmental lawsuit in history. Texaco has a really ugly human rights history, beginning with the bankrolling of Spain’s fascist dictator Francisco Franco and illegal provision of oil, financial support and secret intelligence to Hitler and Mussolini. After losing a series of punitive lawsuits over its environmental crimes, they were forced to merge with Chevron in 2000.

The latter has its own history of human rights and environmental crimes in Nigeria, Kazakhstan, Chad, Cameroons, Equatorial Guinea and Richmond California.

After fighting the suit for eight years in US courts, Chevron eventually won a court ruling that that the suit had to be tried in Ecuador instead. When it was re-filed in Ecuador, Chevron engaged in blackmail, extortion, bribery, illegal surveillance, “judicial terrorism” (bringing 30 lawsuits against oil spill victims for “racketeering”), and “financial terrorism” (suing all the non-profit groups supporting the indigenous plaintiffs).

In 2011 the Ecuadoran plaintiffs ultimately won their suit for $9.6 billion – a ruling confirmed by Ecuador’s supreme court. Instead of paying up, Chevron forced them to file suit in various countries where Chevron has financial assents (including Canada, Brazil and Argentina). A 2016 ruling in US court makes it illegal for Ecuador to file a claim against Chevron’s US holdings.

Part 3 explores the long history of US economic colonization in Latin America (on behalf of Wall Street corporations) via direct military intervention, the installation of puppet dictators and the paramilitary death squad terrorism carried out through Henry Kissinger’s notorious Operation Condor. All this has changed with the 2007 election of Rafael Correa (who granted Julian Assange asylum in London’s Ecuadoran embassy).

At present Chevron seek to perpetuate their economic imperialism via a secret World Bank tribunal in the Hague. There 20 hand picked corporate “judges” have found that the successful lawsuit against Chevron retroactively violates of the 1997 US-Ecuador Bilateral Investment Treaty (Texaco-Chevron left Ecuador in 1992) and ordered Ecuador to pay Chevron $112 million in damages.

2017 update: In March 2017 lawyers representing the Ecuadoran plaintiffs have petitioned the US Supreme Court to overturn the flawed (by bribery and corruption) racketeering conviction  against the Ecuadoran plaintiffs and their lawyers. (See Chevron in Ecuador )