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ENERGY NEWS ROUNDUP

To read some of the news, one might think the U.S. is the only place affected by the rise in world energy prices. After all, we are the world’s largest energy consumer (no value judgment, I add) and Venezuelan President Hugo Chavez often makes anti-U.S. statements expressly for the purpose of driving up prices, something he can benefit from. Meanwhile, in the Middle East, Zarkawi, bin Laden, and other terrorists expressly target U.S. economic interests in a bid to wage economic warfare on us. Usually that means attacks on critical energy supply. Sometimes they gain small victories.

Europe has diversified its power sources and manages pricing with long-term contracts, so while prices are high there, due to taxes, they don’t fluctuate around as much as the U.S.. But prices hit $6.81 in Paris, a record, and has also triggered unrest.

But in the developing world, it is very different. There is great suffering for those states that cannot produce their own energy. It affects so many places – China, India, Japan, Central America, Chile, Egypt, Turkey. It even affects energy producers with inefficient state-owned energy companies, something that should give pause to Sandalistas who believe nationalization of energy resources is the only means of securing energy to the people, and who for that reason vehemently oppose privatization. Some of the worst energy shortages out there are in these places. Iran and Indonesia are prime examples. There are definitely others. To make matters worse, successive currency devaluations have destroyed the purchasing power of many of these peoples, leaving the poor dependent on government subsidies – and when subsidies become unsustainable, the poor bear the brunt of the price hikes – massive price hikes.

World demand is blamed for the driving up of energy prices, but it cannot explain a 100% rise in the prices of gas at the pump – demand is up, but not by that variable. Zarkawi has something to do with it – after all, prices were not like this until the U.S. invasion of Iraq. SUV sales are probably part of the problem, too, and speculative positions in the energy markets – which is true – is only a secondary phenomenon – speculators are always FOLLOWING an already-existing financial condition. Meanwhile, tales of gouging are baloney, the old wives’ tales of the superstitious on the energy front, but some actually believe it.

But as prices soar, the people who lose are the world’s poorest. So much for Hugo Chavez caring about their fate – except as a means of forcing their countries, if they are in this hemisphere, into his alliances. The essential heartlessness of the world energy crisis is not against us in the States, but against the world’s poorest. Here is a roundup of today’s news showing how widespread the world energy crunch really is, with notes about its potential for unrest:

BOLIVIA: Miguel Buitrago at MABB reports that a shortage of liquid gas in gas-rich Bolivia has deprived poor people of the means to heat their food. The government is countering this by ‘demanding’ foreign energy companies to raise money – as if the business climate they have created to placate Evo Morales & Co. isn’t the full-blown reason why this has happened in the first place. Miguel warns that patience is running thin and has good photos of the event.

PANAMA: Fiscal Study has a photo of street riots over high energy prices, as well as protestors’ blame of Bush. They don’t want him to set foot in the country next month where he should arrive to sign a free trade pact.

UNITED STATES: Monisha Sujan at Blog for America, a blog for the opposition party U.S. Democrats, reports that in Congress, an energy bill was passed Friday, but by a mere two votes. The Democrats are angry about it and say it doesn’t include tax credits for hybrid cars or other ideas they have to assuage the energy-shortage issue. Meanwhile, Pamela Leavey of The Unofficial John Kerry Blog writes that ruling-party Republicans are still opposing John Kerry’s idea of new heating subsidies for the poor. From the free-market side, Andy at The Charlotte Capitalist notes with highly reasoned disgust an energy-gouging case being brought against a local gas station owner by a state attorney general, wryly notingthat “his Christian impulses lead to shortages.” (Andy’s whole analysis is not only witty but economically flawless, he’s a not only a must-read, he’s a must-blogroll.)

CANADA: Geoffrey Hale at Policy.ca has a long and carefully considered analysis of how high oil prices are likely to cause policy mistakes over in Canada. They’ve screwed up all their other oil booms, this case might not be different.

ZAMBIA: Michael Wagner at Stamping Out A Living, a trade blog, reports that Zambian factories have shut down due to fuel shortages, which, piled on top of a strike, has cut copper production 20%.

ZIMBABWE: Sokwanele at This Is Zimbabwe writes that rural buses have simply stopped running, leaving the poor and the helpless to walk across vast stretches, keeping to groups, and setting up bonfires at night to scare away the elephants. This story will chill you to the bone.

INDONESIA: Via Global Voices, Nad at Nad’s Notes has a detailed outline of the exact actions the government intends to take to end fuel subsidies. In Indonesia, this is an explosive issue.

AUSTRALIA: Geoff Sidebottom of View from Towradgi reports that old coal mines no one thought had any useful purpose left, have now been ramped up for production to help relieve critical energy shortages in India.

WORLD: Dropout/Postgrad has an excellent roundup of key newspaper stories regarding how countries are handling the world energy shortage – all of the stories he links are quite good journalism.

WORLD: Fuel Review has a superb news roundup from local presses, particularly around Asia, all of whom are being squeezed big time for fuel shortages. It’s well worth a click.

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