Ugly Moose Ak’s “Wisdom Of The Donut
Hole” Podcast Episode 3
Episode 3:
Alaska True To Life Crime Author Ron Walden … Cinch Knot: Pigs,
Petroleum & Politics, The Plot To Nuke The Trans Alaska Pipeline
©
ugly moose AK (2-08-2024)
Podcast Episode 3 of Book #1
Cinch Knot: Pigs, Petroleum and Politics,
The Plot To Nuke The Trans Alaska Pipeline
Copyright 1996 By Ron Walden
Author Of Alaska True To Life Crime And
Other Stories
Ugly Moose Alaska Publishing, Soldotna,
Alaska
Podcast Episode 3 of Book #1
Cinch Knot: Pigs, Petroleum and Politics,
The Plot To Nuke The Trans Alaska Pipeline
This episode is about Ron’s very first book: “Cinch Knot…Pigs, Politics and Petroleum. A Multinational Plot To Nuke The Trans Alaska Pipeline” Copyright 1996, 2nd Edition Copyright 2023.
Cinch Knot is the first of more than a dozen exciting, family friendly books Ron has written. They feature crime and adventure stories loaded with places bursting with history, characters and plots of interest to all ages. There’s no gratuitous violence or rough language, just good stories readers of any age can enjoy.
Podcasts
take you to real places, mainly in Alaska, to meet characters featured in his
books and how they came to be. Our goal is to post a new episode monthly, if
not more often.
Ron’s
books are available wherever books are sold, including hometown bookstores and
online. Ron’s arranged special pricing for wholesale buyers through Ingram
Spark. Ask for his books if you don’t see them on shelves. And Thank You for giving us a try.
Trans Alaska Pipeline photo By I, Luca Galuzzi
Map By Flominator - Excerpt Alaska 90.jpg
I owe a huge thanks to a book club in Anchorage, Alaska. They provided a cordial, direct review. In the context of their perspective it makes sense that Cinch Knot needs historical perspective for today’s readers. They articulated good points regarding Ron’s first novel. Ron continues to improve with each book and has a nice following. In this episode I’m gonna tell the story of how Cinch Knot came to be as historical events unfolded in the 1990s, and how it remains relevant today in light of current events. Readers 50 and older familiar with 1990s technology global events may recognize and accept time-hops in stories easier having familiarity with the era, historical impetus and limited technical resources of the day.
If you’re under 30, you likely weren’t born by Cinch Knots’ 1996 publication. Certainly not old enough to recall the circumstances supporting its plot.
Not
long after publication, an entertainment industry person was rumored to have
considered Cinch Knot for a script possibility. Over the years, others in that
industry have bought Ron’s books. I’ve always hoped one of them would run with
it. There are so many great stories in Ron’s library, with a new one coming
later this year that’s sure to garner attention.
Today’s dictatorial scoundrels are again inspired to take advantage of circumstances to re-possess countries and resources they’d relinquished or even sold generations ago. Only this time, not as a work of fiction. Same problems. Different eras. Different excuses. Read Cinch Knot. Decide for yourself. Root for bad guys if you choose. By the end you’ll appreciate the good guys.
Published in 1996, Cinch Knot is the culmination of a decade of global events. Nearly 30 years later an update wouldn’t take much more than dollar figures. That and the speed, quality and type of information technology that’s available. Those were the Pony Express in the 90s compared to Virtual Reality, Zoom Classes, smartphones, DMs and AI of today.
The 1990s gave us mainly two-way line-of-sight radios, maybe a few mobile repeaters, bulky vehicle mounted mobile phones with limited range, drivers relaying correspondence pouches by truck 500 miles one-way to Fairbanks for delivery beyond there.GPS was “Classified” as it had an impressive 50-meter accuracy window. Now we have real time “Turn at the Next Stop Sign in 30-feet” type of accuracy in our SUVs, sedans and Electric Vehicles.
Real people flew missions in aircraft from carriers or distant bases. Not much drone work back then in the Middle East or in defense of Alaska airspace. Certainly no operations flown by college students behind a gaming system monitor tweaking a joystick.
Dictators, Politicians, Cartels, OPEC and other organized gangs ruled the day. Russian and Middle East conspirators? Those are movie bad guys. Not really a threat, right? Believe it or not, Russia has never stopped loitering long range aircraft within a few miles of the US border along Alaska’s coast. This includes bombers, fighters and marine patrol aircraft. It’s still their weekly mission, apparently.
The USAF does a fine job of reminding them where the “No Trespassing” signs are, though. Do an internet search for US intercepts of Russian aircraft near Alaska. It’s the norm, not the exception. Complacency opens doors. Our military has not been complacent. Even the Chinese “weather” balloon was detected quicker than NORAD tracking Santa on Christmas Eve.
Cinch Knot posits what-ifs: What if those Russian pilots had orders from corrupt commanders to disregard the No Trespassing signs and warnings? What if those pilots were ordered to use weekly intrusions as a Plan B, in the event nuking the pipeline using an inspection pig failed.
Just a couple years before publishing Cinch Knot’s 1st Edition, the Middle East literally exploded with Saddam Hussein’s tyrannical antics and greed. He murdered his own countrymen for decades to eliminate any perceived opposition. Even interrupting his own party’s official parliamentary sessions to force rivals to confess complicity in opposing him.
In one session alone, 50 conspirators were revealed by one man. They were marched away one at a time by the Red Guard, Hussein’s personal defense force. The remaining opposition not named as conspirators were forcibly armed with pistols and ordered to execute their named colleagues, to make them complicit in Hussein’s crimes.
When oil became a volatile gold mine under OPEC pricing combined with the sometimes-self-inflicted global shortages, he invaded his neighbor: The Kingdom of Kuwait. Maybe he actually believed his Red Guard combined with his own pompous, egotistical and sadistic bullying of his own country would keep world forces fearful and at bay.
That worked for about a month.
He’d plotted to drive oil prices higher by reducing supplies while stockpiling his own by stealing Kuwait’s, using his invasion of Kuwait to reduce competition at the same time.
Realizing he’d committed a Middle East faux pas with the invasion, he ordered troops to torch the Kuwaiti oil fields he’d just boosted. If he couldn’t have ‘em, no one could. The price leaped higher under OPEC.
In military parlance, he successfully executed a jumbo FUBAR. Geysers of oil-fueled fire and billowing black clouds continued for nearly a year before the final well was capped.
A month or so after Hussein had initially triggered events, US Army General Schwartzkopf and the rest of the good guys restored a semblance of normalcy.
OPEC again began manipulating crude prices at warp speed.
Within 6 months the amazing footage of the bombing of Baghdad kept the world up late watching Bernie, Wolf and other reporters dodge tracers and SCUDS. Soon, Hussein was spider-holed and later hanged by his own countrymen.
If you don’t know who “Baghdad Bob” is, AKA “Chemical” or “Comical Ali”; who Bernie or Wolf is; what a tracer or SCUD is; what a Patriot Missile System or a Spider Hole is, you may need some historical background of what happened before Cinch Knot was drafted.
A couple years later, in 1993, the first World Trade Center terrorist attack was carried out. A truck bomb detonated under the North Tower, intended to send it crashing into its twin, taking down both. Intended to kill tens of thousands of people, it failed to cause catastrophic damage. It did kill six people, caused thousands of injuries and the evacuation of about 50,000 people.
Afghani Al-Qaeda terrorists, some with Iraqi passports, had traveled through Pakistan to New York. They executed the attack with help from local conspirators. They claimed they intended to kill about 250,000 people in revenge for US support of Israel regarding Palestine.
Those references, along with timelines and global oil fluctuation info are in our Show Notes. It all contributed to Ron drafting Cinch Knot as a very real possibility in the late 1990s.
Simultaneously, cartels, gangs and others were infiltrating National Parks in get-rich schemes of their own with massive marijuana grow operations during the “Just Say No” generation.
Long before Americans could skip lightly down the block to buy an elevating batch of cannabis, cartels and gangs turned national parks into farmland and pesticide waste dumps. They were doing business with just about anyone they could profit from, in any way that improved profits. They still do.
Cinch Knot describes fictional efforts and responses to those factions including complicity of government officials in schemes involving both oil and drugs, including the lowly marijuana. Sometimes processes and organizations are more harmful than any perceived ills of products. Organizations know people won’t always “Just Say No” when they want something or can profit from it.
The invasion of National Parks is less obtrusive now. Likely more local too, and surely more business savvy. Still deadly in terms of people and environmental damage. Traffickers use Parks as routes for human trafficking, even slavery to work crops or in even worse capacities, to work off border crossing costs.
Reading this novel from 1996 where the price of oil is less than a tank of gas today, even when terrorists and criminals had inflated costs by a factor of three, you can believe organizations including OPEC, street gangs and even politicians were thick as thieves.
Together, they were complicit in doing anything to get in your pocket, even artificially boosting per barrel prices from $9 to $30 averages, to $30 to $100 or more per barrel. Gasoline was costlier and the shady elements were richer.
Interdiction resources distracted by National Park grow operations and other crimes thinned response resources. Spread the wealth, conspire as a distraction.
Today, under special interest and political thumbs, your pocket is ripe for picking again with $75 to $100 or more per barrel oil, on average. This adds another factor of 3 or more per barrel than in the 1996 Cinch Knot plot.
Back then, plot overhead included oil tankers as floating holding tanks, full crews and security, technical services, nuclear and military resources, bribes and profits. Billions expended were recouped under seemingly low, but inflated prices along with a tidy shared profit for years to come. That was the goal.
Greed and corruption are the unknown factors in oil valuation, especially when conspirators arbitrarily set global daily prices anyway.
Look at factors used today to estimate annual per-barrel profit or loss. In 2023, State of Alaska revenue estimates used a calculation assuming a direct annual impact of $70 Million Dollars per each $1-per-barrel fluctuation in oil price. Every one dollar change in price per barrel, sends a $70Million dollar tide change through economies.
A $1 increase in a barrel of oil’s price is a possible $70 Million-dollar profit.
A $1 drop in a barrel of oil’s price is a
possible $70 million-dollar loss.
The new Alaska Willow Project, which is tiny in comparison to Prudhoe Bay and Texas fields, is expected to produce 600 million barrels of oil over its 10-year life. A daily production of about 180,000 barrels is expected.
At $30 per barrel, the daily gross revenue could be about $5.5Million bucks. Every day. For at least 10 years. Imagine the Cinch Knot opportunity that little field could have!
A $70Million impact per $1-dollar fluctuation in per barrel oil value means that tiny Willow Project has less than a $400 million-dollar revenue loss to Alaska before production; but a $1.3 Billion-dollar revenue or profit over the 10-year field life. Small project, big profit. That’s just Alaska’s revenue from the project. The real profit goes to developers and producers in exponentially larger dollar amounts. And Feds get their cut, too. Fossil fuel phobias be damned.
Today, we can buy legal pot. It’s sourced somewhere for profit. If anyone believes government decriminalization reduces criminal involvement, they must have at least a contact high. Especially when a government legalizes by tying it to taxation. Like oil and pot.
Create a problem to solve, manipulate the cost and benefit in favor of a planned outcome. Sounds like Cinch Knot’s plot way back when.
See Show Notes for details on OPEC, the 1990’s weekly oil price gouging, Saddam “Spider Hole” Hussein, National Park invasions and terroristic behavior to accomplish manipulation of global markets.
The dawn of our existence with artificially high oil prices and dreams of everything electric are by-products of events from the decade leading up to Cinch Knot. It’s just grown from there.
Add artificially inflated fossil fuel and coal costs, production and transportation interference, export suspensions and bans, red-tape in permitting, federal lease and export shut downs that inflate costs forcibly and before you know it, the manipulation helps make Electric Vehicles appear cost-competitive and ready to go by 2030.
EVs aren’t likely to be competitive or even reasonable replacements by 2030 without manipulation. Like it or not, fossil fuel resources are likely here to stay in spite of political grandstanding.
Climate change is a separate issue. Cinch Knot doesn’t preach. It simply asks what-if, using real world and market manipulation in its day. Money and votes appear to be prime drivers in all cases today, as in the 1990’s. That’s what drives the plot of Cinch Knot.
The difference is wind and solar were science fiction daydreams as replacements for fossil fuels in the 90s. Free wind and free sun, like most free stuff is just too darned expensive. Lucrative though or it wouldn’t be forced so acutely.
Remember. These opinions are premised on a work of fiction, not reality. They’re meant to provide context to a 40-year-old issue and encourage readers to enjoy the ride Cinch Knot provides.
So, buy an EV. Buy an SUV. It’s your choice, for now. Later… in 2030 or so, not so much.
The folks that know this is true will profit unless someone, even a “Nobody”, like an oil field security worker with a few critical skills, stands up and says: “Nope, something has to be done”.
Cinch Knot’s characters do just that. Read Cinch Knot with a view of a Pre-9-11 world.
9-11 was the second terrorist attack on
the World Trade Center and wouldn’t even happen until 5 years after publication.
But Cinch Knot foretold some pretty solid scenarios. Some of those continue to coincide
with needs for border protections to keep bad actors out, and even
international strategies protecting critical infrastructure and obviously,
economies.
Now, what about the oil fields and pipelines themselves. Is Pigging really a thing? And could it be used nefariously?
Oil was discovered in Prudhoe Bay in
1968. Pipeline construction began in 1973 at a cost of about eight billion
dollars. Every day saw innovations that hadn’t existed before. A 500-mile road between
Fairbanks and Deadhorse near Prudhoe Bay was completed in 1974.
The first oil left the North Slope’s Pump Station One in 1977 to travel 800 miles to the ice-free port of Valdez on the Gulf of Alaska.
Land and Marine mammals have always been protected and preserved as priorities since day one. Pollution is almost unheard of on the North Slope. Even accidental spills are thoroughly returned to pre-spill environment and habitat. Indigenous lifestyles and wildlife are always priorities.
At under 215,000 acres, Prudhoe Bay is the largest field in North America. It originally held about 25 billion barrels of oil. Recoverable amounts in that field alone were more than double the size of the next largest in the US, the East Texas Fields.
Crude comes from depths through
permafrost, routes into the 4-foot diameter pipeline, flows through 12 pump
stations, two being flow-through only. Each station has two operating pumps and
one standby, powered by turbine engines generating power for pump station facilities.
Crude requires additives to reduce friction and tumbling of oil inside the pipe. Friction heats it naturally to between 70 and 80 degrees. Oil moves safely from the frozen North, across tundra, rivers, mountains and valleys to the Valdez Marine Terminal where it is stored in huge tanks, where supertankers are gravity fed through miles of pipes for shipping.
Alaska’s economy is based on the price of a barrel of oil. Neither Alaska nor producers dictate market prices. Many factors contribute, the largest being the Organization of Petroleum Exporting Countries or OPEC, a Middle East group of producers, the largest reserve holders on the planet.
OPEC holds the power to dictate world oil prices. Their track record of frequent price manipulation and production quotas has been less than exemplary.
Unstable governments, Middle East strife, roller-coaster prices, production quotas, loss of tax incentives, oil depletion taxes and many other ills make it tougher than necessary to produce and sell crude. Political interference and angling globally can force oil-dependent societies like Alaska, into feast or famine existences. Even into possible victimization if a Cinch Knot style plot were to succeed. US Politics exacerbates that.
In the 90’s of Cinch Knot’s era, rumors soared of layoffs and cutbacks when oil dropped 30% to $6 to $9 per barrel. Still profitable, just not enough profit for some.
Advances in today’s directional drilling technology create more and better options for smaller operational footprints. Remote, pristine areas can be reached directionally without a full presence on critical habitat. A plus for the environment. Permitting should be much simpler, but it’s vilified and delayed.
In “Cinch Knot”, readers get a front row seat and an exciting ride with civilian and government agencies working together to derail an international plot-for-profit trying to destroy infrastructure of the United States and Alaska.
The uproar we see in today’s news was captured in Ron’s book from 1996. A Multinational Plot to destroy a pipeline sounds as familiar today as it did in the 1990’s. The difference? The value of a barrel of oil.
Imagine Cinch Knot only in today’s values, economy and environmental concern. This story is based on real events of the 90s. It culminates in a terrifying multi-pronged scenario no one wants to have happen. But it did, minus the nuke as far as we know, with Nord Stream 1 and 2.
The players even resemble Cinch Knot conspirators. The ongoing importance of oil fields and related products to the US are immeasurable. A portion of North Slope fields are designated Strategic National Reserves intended to fuel US infrastructure, economy and military resources in emergencies.
This happened in the 1990’s and as recently as 2023 when policies reduced production and the nation depended on that reserve, even selling some internationally. America shines bright on the world stage partly because of its ability to rely on its own energy resources. Those have to be protected. Cinch Knot assumed they would be and provided the means to do so.
OPEC and other organizations lost a stranglehold on the US with development Alaska’s North Slope fields and Pipeline. If the pipeline and fields were lost, damaged or made unusable, world economies would see massive shifts.
The US could sink as a world power. Allies could seek partners elsewhere. Enemies could gain significant ground. Maybe they’d even feel froggy enough to try to re-possess what’s no longer theirs. Sound familiar?
A small cabal, properly positioned with good technology, aggressive resources and time could change the financial history of the world. A single bad act in a single day using a low yield nuke with a Plan B, even gradual deterioration due to poor maintenance due to misinformation by a pigging company, could reduce the US to energy subservience.
Pump Stations keep oil moving and detect anomalies along every inch. That depends on subcontracted, outside agencies and technology.
The exterior is continuously inspected and maintained. Deficits are repaired immediately. The inside is different. How do you see inside a steel pipe 4-feet in diameter, generally filled every day with unprocessed crude? Every inch of pipeline must be in top condition every second, every hour, every day. That’s where Pigging comes in.
Pigs diagramed in Cinch Knot are as they existed in 1996. Technology was advanced for the day. It’s improved exponentially since then. There’s usually little corrosion in the Pipeline. The Pipeline Service Company has run corrosion detection pigs through from the start to extend the minimum 30-year lifespan.
When an inspection is scheduled, a Pig ships from Japan through U.S. Customs in Anchorage. It’s dismantled and inspected for contraband. That process takes a full month. The pig is sealed in a custom container and trucked over 500 miles to the North Slope for final installation of on-board power and technology.
Pigging is done by the Japanese company’s technicians. Pig run info is translated and evaluated at company labs in Japan. Data is sent to Alyeska in Anchorage to compare previous data.
Ultrasonic pigs detect corrosion early for quicker, simpler mitigation. They weigh 6600 pounds and are 10 feet long. Onboard technology sorts masses of information, electronically divides pipe into small grids and transmits signals every 15mm the entire 800-mile trip, while traveling at about 10 feet per second.
Inspections detected over 1,800 anomalies as of 1996 when Cinch Knot was published. Some required exhumation and repair of miles of pipeline.
As written in Cinch Knot, a service company conspirator could be able to onboard a nuke device by having it appear as updated technology.
Show Notes include links to an FBI.gov multi-part article “North To Alaska Part 4, The Shot That Pierced the Trans-Alaska Pipeline.” It describes an event that demonstrated how well the pipeline and it’s operators can respond to the unexpected. The article describes what’s possibly the US’s likeliest vulnerability to energy sector damage: “just somebody being stupid.”
October 2001. Near Livengood, Alaska: A man shot a single hole into the Pipeline near the base of a gentle rise. Strong pipe pressure spewed 285,000 gallons of oil 75-feet in the air, soaking tundra. The pipeline was shut down 3 days while workers fixed the leak.
That single shot shut down the pipeline, delaying delivery of nearly 3 million barrels of oil in under a week. No well-planned plot. No low yield nuke. No Plan B foreign airborne assaaullts. No planning or organized details. No pre-determined goals. No billions stolen. No harm to speak of.
The man was no terrorist. Police reported he was “just somebody being stupid.” A hunter and alcohol. Nothing deeper than that. Imagine a low-level nuclear detonation in a flowing pipeline in this remote part of the world. 800 miles of oil under pressure, dumping from 4-foot diameter openings along a miles-long gap of pipeline. Environmental damage would be catastrophic. Years of repairs and loss of energy to our country.
Without that resource, the world economy again implodes under stress of arbitrary prices. The Middle East already controls OPEC. Today, with this scenario, OPEC could control world supply with Russia, China, Iran and North Korea.
Oil has been safely produced, flowing through pipelines and distributed for over 50 years from the North Slope. Alaska’s only been a state for 65 years, as of 2024.
After Ron retired from Alaska Department
of Corrections, he provided security at pump stations along the Alaska Pipeline
route. World events influenced fuel price hikes and other events planted the
seed for his novel Cinch Knot.
Having
never written a novel before, but having it on his bucket list, Ron researched and
drafted a manuscript. A first-time author, he knew it would be rough. He learned
what he could and made his best effort. Along the way he got some informal coaching
from a few authors we’d all read. Some local, some in-state, others broadly known.
He
realized the scenarios he’d settled on were quite possible, even probable. He
sought oil industry and military experts to review and critique ideas. Some expressed
concern scenarios had merit and maybe hadn’t been fully considered in ongoing response
planning and protocols. They ran a few scenarios and had many discussions
before tactics appeared in this book.
The
most unbelievable parts of this book are the changes in the value of oil. It’s
been 50 years since the Trans Alaska Pipeline began carrying oil to keep
America strong, providing reserves for infrastructure and protection of our
country.
In
30 years, young adults reading a story published today about most anything, aren’t
likely to recall much of today’s history that keeps a story relevant.
Technology doesn’t require that. Just Google it.
Cinch
Knot is a good story. Better when considered in the context of its day and that
it remains relevant today. Every generation has elites that plan to profit from
disaster. They might even perpetuate fear of disaster to prosper. Create a
problem to solve. Circumstantial dependence. There’s no reset. Just a
prescribed path one is told to follow.
Fortunately,
there are elements protecting us from such elitists. Cinch Knot presents a
story where an average guy, with average friends and educated associates won’t
give up. Won’t be shamed or threatened into inaction. They see the broader
dangers and act.
That’s
a good story.
The
internet went from a military and corporate asset to kindergarten Zoom classes
and nanny cams overnight. A car can drive itself. Civilians can build and
launch spacecraft for low orbit tourism, leaving hot air balloon rides and
bungy jumping in the dust.
So
as you read Cinch Knot, relax and step back 30 years. Technologically anyway.
As
in the novel, some information had to be delivered first hand, depending on
sensitivity. Email, texts, digital smartphones, even digital radio systems were
yet to come.
Now
they’re embedded in our lives. Still built from fossil fuels and byproducts,
though.
The
new fears of global warming or it’s alias, climate change, can be
consequential. To what scale is debatable.
Small
planes, commercial airlines, telephones and face-to-face meetings were the norm
in the 90s. No Zoom meetings, no Facetime. Just people talking to people.
Alaska is massive. And wealthy. But the communication system across the State
is still weak.
Developing
this story included getting clearance and help from the Air Force Public Affairs
Office to enter a military base to chat with fighter pilots and detection
officers about possible new scenarios affecting US airspace and protection of Alaska’s
boundaries and resources. Try that today. There’s even a Space Force Base in
Alaska now.
Ron’s
imagination combined with ground truth resulted in fictional scenarios that
sounded too extreme to ever be used to devastate the largest State in the Union,
environmentally or financially. Ron visited industry and defense experts and
developed a great story to engage readers as far as it can without becoming
sensational or even dangerous.
This
novel “Cinch Knot” Pigs, Politics & Petroleum, the Multinational Plot to
Nuke the Trans Alaska Pipeline is on sale wherever books are sold.
Check
your hometown bookstores and online, including: RonWalden.com, Booksamillion.com, BarnesandNoble.com
and many more.
Ask
for the books in your local stores if you don’t see them. Shopping locally is
always best.
Next
time, we will return with Ron’s 2nd novel. This one from 2009:
“Devil’s
Heart” Native American Lore and Modern Police Work (Pursuit of a serial killer).
You’ll love this book!
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Transcripts and show notes are downloaded and available at wisdomofthedonutholeblog.blogspot.com
(Thanks
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Theme” an instrumental written, performed and provided with permission by Ray
Lankford of Shoshone County Idaho…Look for more of Ray’s music on his website
“Ray Lankford Music and Writing”)
Thank
you for listening.
Ron Walden, Author Of Alaska True To Life
Crime And Other Stories
Ugly Moose Alaska Publishing, Soldotna,
Alaska
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Episode 3Trailer:
Musk Ox in defensive formation
Permission: This image or recording is the work of a U.S.
Fish and Wildlife Service employee,
taken or made as part of that person's official duties. As a work
of the U.S. federal government,
the image is in the public domain. For more information, see the Fish
and Wildlife Service copyright policy.
Hello,
I’m Scott Walden your host of the “Wisdom of the Donut Hole” Podcasts by Ugly
Moose Alaska Publishing.
It’s
the podcast about books by True to Life Alaska Crime Author Ron Walden. We want
to thank you for reading the books and for Listening to our podcasts on your
favorite platform! I wanted to take a minute to answer a couple questions I’m
often asked.
First,
Why call a podcast about an Alaska Author The Wisdom of the Donut Hole? Well, Ron’s a big believer in the meaning of The Wisdom of the Donut
Hole. He encourages everyone to appreciate what they have, and to choose
Optimism over Pessimism. It’s and old saying that goes like this:
As you ramble through Life, Brother, Whatever be your
goal.
Keep your eye upon the doughnut, And not upon the
hole.
So
enjoy what you’ve and stay optimistic. Life’s more enjoyable that way.
So,
Why
Book Publishing And Podcasts By Ugly Moose Alaska? Ugly Moose Alaska’s trademark and logo
for products is a Musk Ox. Seen on
business cards, banners, websites, brand items and book covers, the Ugly Moose
trademark and logo causes people to take a second look. They ask questions like
“Why is that Ugly Moose not a moose?” It
generates interest and opportunity to introduce folks to Ron’s books, where they
find great stories and interesting information about Alaska. We enjoy sparking
interest in visiting our amazing State. We’re very proud of it.
Ugly
Moose
is a respectful translation of northern Alaskan and Canadian indigenous
dialects, in which the term “Musk Ox” can be interpreted as “Ugly Moose”. Ancient animals with long, thick coats of
hair hanging nearly to the ground, they appear Mammoth-like. Smaller than
bison, they have horns that curl tightly against the sides of their large
compact heads. The musky scent they exude adds to the name.
Brushed
properly, the fine insulating fur deep in their coats is ultra soft and warm. Woven
into a fine yarn-like material, called qiviut by indigenous experts, it’s the
warmest, softest material from one of the toughest mammals to call Alaska’s frigid
far-north home.
Ugly
Moose are durable and protective of family. They’re Versatile, Stubborn and
determined. Ron’s friends will tell you “Ugly Moose Alaska” is the perfect name
for his publishing and podcasts. And the
moral of the Wisdom of the Donut Hole its Ron perfectly. Podcast Episode Transcripts, show notes and lots
of additional information for episodes are posted at: Wisdomofthedonutholeblog.blogspot.com
That
site includes Ron’s Book Covers, story related photos, Alaska photos and maps, interesting
side-stories, Links about places in his books and unique history associated
with his stories. Even links to learn more about Musk Ox. The Bearded Ones...Our
own Ugly Moose Alaska. When you visit
Alaska, visit Alaska Musk Ox farm in Palmer, Alaska for an up close, memorable
experience. Go to www.muskoxfarm.org. and then check out
more musk ox Links in our show notes.
Listen
to The Wisdom of the Donut Hole Podcast On your favorite platform. Subscribe, like and tell your friends.
Episode
3 is coming up very soon. It’s about his very first book: “Cinch Knot.. The
Plot To Nuke The Trans Alaska Pipeline”.
Look for links in Show Notes to 1990s world
events leading up to Cinch Knot. From
Middle East strife, OPEC price manipulation and oil shortages, the first World
Trade Center terrorist attack and other pertinent history there to help frame
Cinch Knot’s story line.
Order
your books today. Check out
RonWalden.com for a look at covers and a synopsis of each book. You can order them directly from there too.
They make great gifts.
I’m
your host, Scott Walden. Read Ron’s Books! Subscribe and like the Podcasts! And Visit Alaska!
Thanks
for listening. Episode 3 is coming soon!
SHOW NOTES
Ugly Moose Alaska Wisdom of the Donut Hole
Podcast Episode 3 “Cinch Knot”
“ABSCAM” Sting https://en.wikipedia.org/wiki/Abscam
ABSCAM:
How
could congressmen be part of a global conspiracy as written in Cinch Knot?
Though not the basis for Cinch Knot, the ABSCAM Sting is a good example. It
happened less than 15 years before Cinch Knot’s plot unfolded.
Summary:
"ABSCAM" an FBI codename, a contraction of "Abdul Scam", Abdul
the name of the FBI’s fictitious company. The sting in
the late 70s - early 80s led to convictions of Congressmen and others,
including State officials, for bribery and corruption. The investigation
was started to investigate theft, forgery and stolen art, but evolved into
a public corruption investigation.
FBI
and US Department of Justice hired a convicted con artist informant
and his girlfriend to help plan and conduct the operation. In exchange,
the FBI agreed to let them out on probation, rather than prison. They
videotaped politicians taking bribes from a fake Arab company in return for
political favors.
Under
FBI supervision, the conman created the fake company Abdul Enterprises. FBI
employees posed as Arab sheikhs
with millions to invest in the US. FBI set up a million-dollar account
at Chase Manhattan Bank as
Abdul Enterprises, giving the company credibility to further the operation.
When
a forger under investigation suggested sheikhs invest in New Jersey casinos,
that licensing could be obtained for a price, ABSCAM was re-directed to
political corruption. Congressmen were bribed in for "private immigration bills"
for foreigners associated with Abdul Enterprises to enter the country, building
permits and licenses for Atlantic City casinos, among other arrangements.
The
first political participant was Camden New Jersey’s mayor in exchange for
kickbacks. He told sheikhs, "I'll give you Atlantic City." He helped
recruit government officials and Congressmen to grant political favors for
bribes as low as $50,000. FBI recorded exchanges, making history being first to
surreptitiously videotape government officials accepting bribes.
Aircraft And Bush Pilots In Alaska
https://www.businessinsider.com/why-alaska-bush-pilots-are-essential-in-the-state-2022-1?op=1
https://dot.alaska.gov/stwdav/
https://bush-air.com/bushflying-intro.htm
https://nationalaviation.org/our-enshrinees/wien-noel/
https://www.mensjournal.com/adventure/deadly-myth-alaskan-bush-pilot
https://www.historynet.com/flying-on-the-edge-alaskas-legendary-bush-pilots/?f
Alaska Department of Revenue
ConocoPhillips Willow Project Revenue Calculation per barrel
https://alaskapublic.org/2023/03/24/new-revenue-estimate-for-willow-project-presents-rosier-picture-for-alaska-treasury/
Cinch Knot: Ron’s Dedication Of Cinch Knot:
“Cinch Knot is dedicated to the men and women who
conceived, designed, engineered, constructed, and operate the Trans Alaska
Pipeline. They represent every American, who have (given), and continue to give
of themselves to ensure our country maintains a position of strength in
protecting the worldwide environment and freedom of people everywhere, while
still providing the highest standard of living history has ever recorded.
In the course of writing this book I received a great
deal of help and advice from many people. I have tried to provide accurate
technical information within the story. In accumulating this information, I
called on so many individuals it would be impossible to acknowledge all, but
every one of you has my thanks.
The personnel of the Alyeska Pipeline Service Company
were wonderful in providing information. My thanks to the people of their
Public Information Office for their assistance, and for the written and video
materials they provided.
I also thank the Public Affairs Office at Elmendorf Air
Force Base (now Joint Base Elmendorf, USAF, and Richardson, US Army) for
arranging interviews with Captain Brad Davis, an F-15 pilot. He helped correct
some errors in the book and provided tactical advice. I also extend my thanks
Captain Troy Jackson of the Radar Section. He provided a great deal of
information that added realism to the text.
I owe a debt of gratitude to the many security officers
with whom I worked during my tenure on the pipeline. Many of the experiences
quoted in this work are composites of stories told to me by those men and
women. These people are still out there doing their jobs. They are
professionals, providing a service in an environment too inhospitable for most
of Mother Nature’s creatures. Each of you have my sincere gratitude and
admiration.
Cinch Knot is a work of fiction. Any resemblance to
actual persons, living or dead, is purely coincidental and unintentional.
Except for the obvious inclusion of such broad categories of geography of
Alaska, the Trans Alaska Pipeline and its environs, and other cities worldwide,
the places are products of the author’s imagination. Historical events
surrounding the operation of the pipeline provide the backdrop for the story;
but none of the story in this book should be construed as being a factual part
of those events.”
Generations: Millennials, Baby
Boomers Or GenZ: Which One Are You And What Does If mean?
https://www.bbc.co.uk/bitesize/articles/zf8j92p
Musk
Ox https://www.muskoxfarm.org
https://en.wikipedia.org/wiki/Muskox#/media/File:MuskOxen.jpg
National Parks: Drug Production on Public Lands – A Growing Problem; House Hearing, 108th Congress; U.S. Government Publishing Office
https://www.govinfo.gov/content/pkg/CHRG-108hhrg93426/html/CHRG-108hhrg93426.htm
National Parks: The Secret Life of Drugs
in Parks | National Parks Traveler
https://www.nationalparkstraveler.org/2007/09/secret-life-drugs-parks
National; Parks: Drug Control: DEA's Strategies and Operations in the 1990s
https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-99-108/html/GAOREPORTS-GGD-99-108.htm
National Parks: War on Drugs – Wikipedia https://en.wikipedia.org/wiki/War_on_drugs
National Parks: Wild West: Drug cartels thrive in US national parks - CSMonitor.com https://www.csmonitor.com/2003/0610/p01s03-usgn.html
National Parks: Marijuana Farms Take Root In National Parks – NPR https://www.npr.org/2009/05/12/103866520/marijuana-farms-take-root-in-national-parks
Nord Stream pipeline sabotage 2022
https://en.m.wikipedia.org/wiki/2022_Nord_Stream_pipeline_sabotage
Prudhoe Bay Field history
https://en.wikipedia.org/wiki/Prudhoe_Bay_Oil_Field
Saddam Hussein: how a deadly purge of opponents set up his ruthless dictatorship
Trans Alaska Pipeline Pigs in the Pipeline (Quirky Attraction. Static Display)
https://quirkytravelguy.com/quirky-attraction-trans-alaska-alyeska-pipeline/
Trans Alaska Pipeline Shooting Damage
https://outlookseries.com/A0990/Security/3925_Daniel_Lewis_Shot_Pierced_Trans-Alaska_Pipeline.htm
Trans Alaska Pipeline shooting FBI- North To Alaska
https://www.fbi.gov/news/stories/north-to-alaska-part-4
Trans Alaska Pipeline Map By Flominator - Excerpt from Alaska 90.jpg with additional information from:
http://www.solcomhouse.com/AKMap3.gif, CC
BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=201869
Trans Alaska Pipeline photo By I, Luca Galuzzi, CC BY-SA 2.5, https://commons.wikimedia.org/w/index.php?curid=2161622
World Events 1991-1996 – USA Today
World History 1994-1995: https://www.historycentral.com/dates/1994.html
World Oil Market Chronology 1990–1999 – Wikipedia
https://en.wikipedia.org/wiki/1990%E2%80%931999_world_oil_market_chronologyWORLD HISTORY
1994-1995
1990-1991: America Goes to War in Middle East Saudi Arabia and Kuwait
Saddam Hussein invades,
occupies Kuwait August 1990. US defends Saudi Arabia, protects vital oil assets
(Operation Desert Shield). U.S. Operation Desert Storm to push Iraqi forces
back across border from Kuwait, Military operation lasts until ceasefire in
April.
|
1992: Cold War Ends. Weeks after dissolution of Soviet Union, President
George H.W. Bush & Russian President Boris Yeltsin formally declare end
of Cold War that began at end of World War II. Countries announced they’d
stop aiming nuclear missiles at each other. Russia declares 11 former
communist satellite republics from Armenia to Uzbekistan, independent. 1993: EU a Reality: European Union Treaty in effect. Allows U.K. & Denmark to opt out of common euro currency. Treaty opens way to remove border controls among member states, invites new members to join. |
|
1994: NATO shoots down Serb Aircraft: NATO warned Bosnian Serbs to stay out of UN no-fly
zone. Ultimatum ignored. NATO shot down four jets in First NATO combat action
in 45-year history. |
|
Civil War, Chechnya: Chechnya sought independence, like oher Soviet
Union states had received. Russia claimed Chechnya as part of Russia, refused
to give independence. War lasted two years. |
|
1995: Domestic Terror. Oklahoma City: Deadliest
domestic terrorist attack in U.S. history; Timothy McVeigh and Terry Nichols
bomb Alfred P. Murrah Federal Building in truck-bomb attack on a weekday
morning to maximize casualties. Murdered at least 168 people, including 19 kids
in daycare; injured hundreds, McVeigh executed 2001. Nichols serving life
without parole, later released into Witness Protection Program. Israel Prime Minister Yitzhak Rabin
Assassinated: Succeeded by Shimon Peres. In 1996
election Peres lost to Benjamin Netanyahu. |
|
Mexican Bailout: President Clinton invoked emergency
powers, granted $20 billion bailout loan to Mexico. |
1996: Cloning: Scottish scientists
clone Dolly the Sheep using adult cells rather than embryonic, turning udder
cell into nearly complete biological copy of Dolly.
1990 World Oil Market Chronology 1990-1999
Sources include: Dow Jones (DJ),
Financial Times (FT), New York Times (NYT), and Platt's Oilgram News (PON),
Washington Post (WP), and the Wall Street Journal (WSJ).
August 1990
·
Iraq invades Kuwait; President Bush
orders troops to Saudi Arabia.
·
Crude prices soar; markets react wildly to any Middle East
news. Cash markets dominate prices after trading hours; Jet fuel prices rose
to record levels due to high defense demand.
·
OPEC fails to organize formal meetings to discuss crisis
& production strategies; Informal meetings result in record price drops.
·
Conflicting reports promise increased OPEC output to
compensate for embargo of Iraq and Kuwait oil, compounds market uncertainties.
Market prices plunge. OPEC nears informal agreement to increase output to
cover 4million barrel shortfall due to the invasion. Cash market trading has
abrupt decline.
September 1990:
·
U.S. citizen shot in Kuwait.
·
4.4 Million barrels per week drawn from domestic
crude stocks.
·
Oil markets surge on
aggressive U.S. statements toward Iraq. Crude prices outpace increase in
product prices.
·
Talk of cutting refinery runs. September reports poor refining
margins. U.S. refinery issue lead to 200,000 barrels/day
capacity loss.
·
Aggressive remarks by Saddam
Hussein send crude prices to new highs.
·
Iraq invades Kuwait. French President calls it violation
of international law. U.S. warship boards
Iraqi-flagged tanker bound for Basrah. Saddam Hussein states willingness
to strike first and intention to damage regional oil fields if Iraq strikes.
October 1990
·
Hussein says he may be willing to negotiate occupation of
Kuwait and consider foreign participation in negotiations.
·
9million barrels/week drawn from U.S. SPR inventory. War
fears and long-term supply disruptions rise as Hussein threatens Israel. News: crude inventories drop
more than 4million barrels in a week.
·
Libya's Qadhafi: Israel must be eliminated U.K. Foreign Secretary says
force to be used if Iraq doesn't withdraw from Kuwait.
November 1990
·
Increased Saudi production, lower world demand. Iran's oil-producing region suffers earthquake.
·
5Million barrels/week U.S. crude inventory increase.
·
Rumors Bush to announce supply airlift to U.S. embassy in
Kuwait. Could trigger military clash.
·
Saudis ask U.S. for rights to bid on US SPR crude.
·
Iraq to bolster forces in Kuwait. Russia reluctant to
endorse force against Iraq.
·
US crude inventory drop of more than 4Million barrels.
·
Hussein announces plan to release German hostages.
·
France supports U.N. resolution to authorize use of force
in Persian Gulf. U.S. proposes addition to U.N.
resolution to require Iraq's withdrawal from Kuwait by January1. UN Security Council approves
US resolution authorizing use of force in Persian Gulf if Iraq doesn’t withdraw
from Kuwait by January 15, 1991. President Bush offers to send Secretary of
State to Baghdad to meet with Hussein.
December 1990:
·
Iraq will withdraw if it retains control of the Rumaila Field and keep Bubiyan and
Warbah Islands. Iraq demands Palestinian issue be treated
separately, not given up. Iraq willing to speak with US to resolve Persian Gulf
crisis. Secretary of State questions Iraq's seriousness on Middle East peace. President Bush
reiterates "no concessions" stance against Iraq.
January 1991:
·
Iraq will accept U.S. offer of Geneva talks. Hussein
prepares troops for “long, violent war” against US. At Geneva, US Secretary of State:
"regrettably" Iraq Foreign Minister indicated no softening in Iraq's
position. Peace talks break down, but still talk of a peaceful solution. Report:
Iraq has new peace initiative. US begins air attacks on Iraqi military
targets.
·
President Bush directs drawdown of SPR. US Secretary
of Energy orders 33.75Million barrel drawdown. Crude prices drop $9–10 per
barrel in a day after rising $3–5 per barrel in the first half of January.
·
Early US/allied success against Iraqi forces.
·
Department of Energy issues SPR sales notice.
·
Iraqi Scud missiles land in Israel. Some
Kuwaiti oil facilities destroyed by Iraq. More Iraqi missile attacks on
Saudi Arabia.
·
US Department of Energy selects 13 firms to purchase
17.3Million barrels of SPR crude oil.
February 1991:
·
Surplus unsold oil held by oil producers reaches 80 to 90Million
barrels. First SPR oil was delivered to commercial buyers.
·
Daily market volatility occurs as Hussein mentions
withdrawal, President Bush calls offer a "cruel hoax."
·
Iran crude now an option for US refiners. No imports from
Iran likely in near future.
·
War ends February 28. UN troops move into Kuwait City. Hussein orders troops out of
Kuwait. Iraqi soldiers ignite Kuwaiti oil fields during retreat.
March 1991:
·
Kuwait need to import crude in the short term. OPEC
announces production cut to 22.3Million barrels. 6Million barrels weekly
domestic crude inventory draw. Saudi Arabia and Iran say OPEC production cuts
take effect April 1. Gorbachev says Soviet Union will cut oil exports by
nearly half. Nigerian crude becomes
competitive in U.S. Gulf Coast as Nigeria cuts crude prices.
April 1991:
·
Iraq expects to resume crude and product exports by July.
June 1991:
·
Kuwait asks Gulf members to produce 800,000barrels per
day on its behalf.
August 1991:
·
Unsuccessful coups attempt against Soviet President
Gorbachev has minimal effect on oil markets.
October1991:
· Russia suspends petroleum exports. Fuel shortages are growing. Futures price climbs nearly $2, to $24 per barrel.
November1991:
·
Last Kuwait well fires extinguished.
·
U.S. Senate filibuster causes withdrawal of Arctic National Wildlife Refuge (ANWR) pro-leasing bill.
·
Russia collapses as series of events precipitated
by Ukrainian independence vote leads to
formation of Commonwealth of Independent States.
·
Kuwait
oil production at 400,000 barrels/day. Insists restoration of pre-invasion
OPEC quota of 1.5million barrels/day.
·
UN
threatens sanctions on Libya for refusal to extradite suspected terrorists.
·
Saudi
Arabia supports crude price hike at OPEC meeting. Futures prices exceed $22
per barrel.
·
OPEC
production at highest level in more than a decade: 25.25million barrels/day.
·
US, Mexico and Canada sign NAFTA.
·
Oil
prices plunge. Speculation Iraq to accept UN missile test-site inspections to get approval to resume oil exports.
·
Combined
OPEC overproduction, surging North Sea output.
Weak demand lowers North Sea oil to nearly $15 per barrel.
· Oil Prices firm on strength of shifting of US investments from equity/bonds to cash/commodities.
Apr-September 1994:
·
Nigerian production disrupted by worker strike in
response to imprisoning apparent winner of presidential elections.
·
Mexico pledges profits from Pemex's $7-billion-per-year
oil revenues in effort to secure US Congress approval of $40 billion of loan
guarantees. President Clinton approved $20billion US aid package to Mexico.
·
Norway's Statoil announces new consortium of 11 oil
companies to develop plan to supply Norwegian LNG to Europe. Three Norwegian
companies sign contract with Gaz de France to bring Norwegian LNG to France between
2001 and 2027.
·
Pentagon monitored Iranian
installation of surface-to-air Hawk missiles in Strait of Hormuz. Iranians took
possession of and fortified Abu Musa and the Tunb Islands claimed by Iran and
United Arab Emirates
·
After OPEC meeting in Vienna, discloses OPEC's intention to exceed
its crude oil production ceiling of 24.52 million barrels/day. Announcement followed by trip to Norway by
Saudi Arabian Oil Minister asking Norwegian Minister of Industry and Energy to
restrain oil production in hopes of stabilizing world oil prices.
June1995:
·
Exxon signs $15.2-billion deal
to develop oil and gas fields near Russia's Sakhalin Island. Project will develop offshore
fields estimated at 2.5 billion barrels of crude and 15 trillion cubic
feet of LNG. Exxon has 30% stake in the project
·
Venezuela approves country's first
investment law to allow foreign oil exploration and production. "Model
agreement" authorizes state-owned oil company to offer 10 exploration
blocks to foreign investors. If oil is discovered, government maintains
majority stake in any joint venture to develop new fields.
·
Saudi Aramco awards giant Shaybah oil
field development project to US based Parsons Corp. $2.5-billion project will
develop the 7-billion-barrels field, including construction of oil production
facilities, gas-oil separation plants and pipeline. Shaybah field is expected to
produce 500 million barrels/day when online in 1999.
·
Norwegian Finance Minister says Norway should not lower
crude production in attempt to boost world oil prices. Norwegian Oil Minister
believes production cuts may be necessary if prices fall. Minister's remarks
follow visit by Saudi Arabian Oil Minister to cut Norway's crude oil production
·
Saudi King decrees replacing all members of Council of
Ministers with no blood ties to the royal Family. Most of the council's top
positions were unaffected. Oil Minister is replaced.
·
Iran's news agency reports Iran unable to sell 200
million barrels/day since imposition of unilateral oil embargo by US. Iran sold crude oil on spot markets as opposed
to long-term contracts. Large purchases by France, Spain, Italy, China, India, Pakistan and Thailand failed to offset decreased
demand by German, Japanese refiners.
·
Before US embargo in April 1995, US companies bought
400,000 to 450 million barrels/day, down from 600 million barrels/day in 1994.
·
Kuwaiti Oil Minister announces country to increase oil
production up to 3.5 million barrels/day by 2005
·
Kuwait intends to seek 200-million-barrels/day increase
to current 2-million-barrels/day crude production quota at November OPEC meeting
in Vienna. Announcement comes amidst growing non-OPEC oil production and weak
oil prices.
·
OPEC will exceed current oil production quota of 25.42
million barrels/day. Roll-over widely anticipated due to slack world demand,
rising non-OPEC production and weak prices.
·
President Clinton approves legislation lifting
22-year-old ban on exports Alaskan North Slope oil. Ban was imposed after oil
embargo by Arab producers in 1973. The lifted ban opens about one-quarter of US
crude export production. Legislation also waives royalty payments on deep water
oil and gas leases in the Gulf of Mexico.
·
In New York, Angolan
of the state-owned
oil company says Angola will increase crude production by 10 percent/year over
five years, to 720 million barrels/day by the end of 1996 and 1 million barrels/day
by 2001. Statement comes amidst sporadic violence between government forces and
rebel group UNITA, less than a year after peace accord was signed ending the
country's 20-year-old civil war. At the end of 1995, Angola raised its crude
oil production to 690 million barrels per day
·
Iraq agrees to talks on UN plan to allow Iraqi sale of $1
billion of oil for 90 days for a 180-day trial period. UN Resolution 986: proceeds
from sale to be used for humanitarian purposes. In past, Iraq opposed clauses
stipulating oil exports under the plan pass through Iraq-Turkey
pipeline, currently unusable due to sludge build-up and pump station damage. The
line would take minimum of three months to repair. Clause 8b says some proceeds
from sales would be disbursed under UN supervision to Kurdish provinces in
northern Iraq.
·
Negotiations between Iraq and UN set February 1996. Commander
of the US Fifth Fleet in the Persian Gulf says Iran test-fired new anti-ship
missile near Strait of Hormuz January 6. Missile has range of 60 miles. Is
viewed as threat to regional security by US naval forces.
·
Oil tankers carry about 15Million barrels/day through the
Strait.
·
UN & Iraq end 3rd round negotiations on Iraq's
possible sale of $1 billion of oil for 90 days for a 180-day trial period. Proceeds
would be used for humanitarian purposes. Both sides agreed on most issues, Iraqi
negotiator says US and UK altered text of proposed agreement he received from UN
earlier. Says changes postponed any possible deal. UN-Iraq talks to restart May
10.
·
President Clinton approves sale of $227 million of crude
oil from SPR. Roughly 12 million barrels would be sold. Admin hopes sales will
lower US gas prices from highest levels in five years.
·
UN and Iraq agree to UN Resolution 986, to sell $1
billion of oil for 90 days for a 180-day trial period, proceeds to be used for
humanitarian purposes. Agreement comes after months of heated negotiations. Iraqi
oil exports expected to begin by Fall1996, after pump station on the Iraq-Turkey pipeline is repaired and
UN monitoring and aid facilities are in place. Shortly after agreement, the
White House announces its decision to allow US oil companies to purchase Iraqi
oil exports.
·
Exxon to begin work on $15-billion Sakhalin I oil and LNG
development in Russia's Far East. Project to develop about 5 billion barrels of
oil and 15 trillion cubic feet of LNG in three offshore fields. $300
million appraisal program to include drilling and exploration well and
conducting 3D seismic survey. Will start working despite differences with
Russia over country's new production sharing law, viewed as not offering
adequate legal protection for foreign investment in the oil and gas sectors.
·
Venezuela approves eight, multibillion-dollar,
profit-sharing deals allowing foreign oil companies to explore and produce oil
in Venezuela for the first time since
the country's 1975 nationalization of the industry. Deals could boost
Venezuela's current oil production by 500,000 barrels/day by 2005. Foreign
companies sign final deals with state-owned PdVSA within 10 days and begin work
on new land by end of 1996. Eight blocks are estimated to hold between 7 and 11
billion barrels of light crude oil reserves.
·
OPEC issues resolution of Gabon's withdrawal from OPEC
effective January 1, 1995. Gabon had OPEC quota of 287,000 barrels/day.
·
UN formally approves Iraqi aid distribution plan,
major step forward in allowing Iraq to sell oil under Resolution 986.
·
President Clinton signs bill imposing sanctions on non-US
companies investing over $40 million/year in energy sectors of either Iran or Libya. By law, President required to
impose at least two of the these sanctions: import and export bans; lending
embargoes from U.S. banks; ban on U.S. procurement of goods and services from
sanctioned companies; denial of U.S. export financing. EU opposed the law,
threatened retaliation. Venezuelan subsidiary of state-owned Petroleos de
Venezuela Corpoven, signs MOU with US-based ARCO. Provides $3.5-billion joint venture to develop and upgrade
200,000 barrels/day of crude oil from country's 270-billion Orinoco Heavy
Oil Belt. Project to produce low API gravity crude oil in and upgrade
it to higher API for U.S. refineries. Project
to be implemented in three phases, the last completed in 2006. Another subsidiary
signed similar deal with Conoco.
·
US cruise-missile strikes on military facilities in
southern Iraq; crude prices rise; market speculates when Iraq will begin
exporting oil under UN Resolution 986. U.S. attack follows Iraqi-supported invasion of Kurdish
safe havens in the northern area. President Clinton says UN oil-for-food sale
should be postponed indefinitely.
·
Exxon confirms talks with Qatar on
new tech to convert natural gas to petroleum products. Exxon developed a
successful 200 barrel/day LNG refinery project in Texas, would work in
Qatar. Proposed $1-billion plant could produce 50,000 to 100,000 barrels/day
of distillate. Under the proposal, Qatar's North field would supply LNG as
feedstock. Previous tech barriers and high costs precluded development of
natural gas refineries.
·
Iran says it supports free flow of oil through Strait of
Hormuz; reserves option to close shipping if threatened. Iran admits deploying
anti-aircraft, anti-ship missiles on an island near Strait of Hormuz's shipping
lanes.
·
UN announces 21 contracts for limited Iraqi oil sales
under UN Resolution 986. 43.68 million barrels of oil to be exported in the
first 90 days of the sale. Exports of 26.37 million barrels approved for second
90-day sale period; allows Iraq to sell up to $1 billion of oil every 90 days
for an initial 6-month period.
·
December 1996, Iraq restarted Kirkuk-Ceyhan pipeline to
carry up to 450,000 barrels/day under sales agreements approved under UN Resolution 986. Iraq's remaining oil exports
will flow through the Mina al-Bakr terminal.
February 1997:
·
Japan announces plans to cut import tariffs on crude and
most petroleum products from April 1997, a phased process to reduce the
country's crude oil import tariff rate to zero in April 2002.
·
Qatar opens world's largest LNG export facility, launches
Qatar Liquefied Gas Co., with output capacity of 6 million tons per year LNG. Facilities
part of new industrial zone includes sea port capacity to handle 25-30 million
tons of LNG annually. Qatar plans more gas liquefaction plants
to exploit natural gas reserves.
·
Shell confirms it will
declare force majeure at Nigerian Bonny terminal
due to local protests that disrupted 210 million barrels/day of company oil
production. Though protests ended and production returned to normal, backlog is
temporarily delaying loading.
·
Final agreement creating Caspian Pipeline Consortium signed by participants:
Russia (24%), Kazakhstan (19%), Chevron Corp. (15%), Lukoil/Arco Corp.
(12.5%), Mobil Corp. (7.5%),
Rosneft/Shell Corp. (%), Oman (7%), Agip SpA (2%),
British Gas PLC (2%), Oryx Corp. (1.75%), and Kazakhstan Pipeline Ventures (joint
venture Kazakhstan's state oil company and Amoco Corp 1.75%).
·
Russian government plans transfer its stake to two
Russian oil companies. CPC to begin building 932-mile pipeline to transport
crude from the Caspian region to Russia's Black Sea coast in 1998 and begin
shipping about 558 million barrels/day in 1999 (planned peak is 1.4 million
barrels/day).
·
President Clinton signs executive order barring new US
investment in Burma (Myanmar), effective May 21, renewable annually. U.S. companies
invested about $250 million in Burma, primarily in oil and gas sector. Biggest
US investor is Unocal, building with France's Total, a $1.2 billion
pipeline from Burma's Yadana natural
gas field to an electric power plant in Thailand.
·
UN Security Council renews another 180-day
period for Iraq "oil for food" initiative to sell $2 billion worth of
oil to buy food, medicine and other necessities to alleviate civilian suffering
under sanctions imposed when it invaded Kuwait in 1990.
·
First oil shipments produced from Kazakhstan's Tengiz
field arrive at terminals on the Black Sea in Russia and Georgia for export through the Bosphorus
Strait. Volumes total 100,000 - 150 million barrels/day.
·
U.S. State Department rules Turkey's August 1996
agreement to purchase $23 billion of natural gas from Iran over 20-years does
not violate Iran and Libya Sanctions Act. In a May 1997 an MOU with Iran and Turkmenistan, Turkey modified original
arrangement so LNG will be purchased from Turkmenistan rather than Iran.
·
Colombia: Occidental Petroleum, California-based oil company, and Colombia’s
Eco petrol national oil company, declared force majeure on all oil exports from
the Cano Limon field, after series of attacks since July knocked out a major
pipeline transporting oil from the field to the Caribbean port of Covens. Pipeline
attacked 45 times in 1997, equal number of 1996 attacks. Responsibility not determined;
leftist guerrillas from the National Liberation Army are usually blamed. Force Majeure doesn’t apply to
oil in the 2-million-barrels storage Covens facility.
·
UN approves sale-price formula for Iraqi crude oil under
oil-for-food plan. Approval cleared way for Iraq to resume immediate limited
oil exports through Turkish port on Mediterranean Sea and Iraq's Persian Gulf
port of Mina al-Bakr. UN will review contracts for Iraqi crude oil purchases.
Iraq has until September 5 to raise $1.07 billion allowed under existing 90-day
oil-for-food plan window. Iraq says they will boost exports to 2 million
barrels/day to meet sales target. Industry experts say Iraq's export capacity
is untested beyond 1.4-million-barrels/day
·
UN Security Council passes resolution allowing Iraq to
reach $2.14 billion oil sales limit under oil-for-food program by December 5. Current
6-month oil sales window from June 8 to December 5 will split into 120-day and
60-day segments instead of two 90-day segments. During each segment Iraq can
sell $1.07 billion of oil. Resolution should enable Iraq to make up for lost
revenue during delay in start of oil sales during the first two months of the
current six-month sale period.
·
Iraq's Revolution Command Council, main decision-making
body, announced it will no longer allow US citizens and US aircraft to serve on
the UN arms inspection teams. Statement gives US citizens working with
inspection teams one week to leave. Iraq also asked UN to stop flights by
American aircraft monitoring compliance with UN resolutions on elimination of WMDs.
In response, UN Security Council unanimously approves a statement
condemning Iraq's threats to expel the Americans.
·
Iraq's Revolution Command Council formally endorses an
agreement arranged by Russia enabling UN weapons inspection teams to resume
operations in Iraq. Deal ends a 3-week standoff between UN and Iraq since
October when Iraq would no longer allow US citizens on UN weapons' inspection teams.
·
First time in four years, OPEC agrees to increase production
ceiling, raising ceiling to 27.5 million barrels/day for the first half of
1998. New ceiling represents a 10 percent increase over current ceiling. New
quotas in barrels/day: Saudi Arabia 8.76 million, Iraq 1.314 million; Venezuela
2.583 million; Nigeria 2.042 million; Indonesia 1.456 million;
Kuwait 2.19 million; Libya 1.522 million; United
Arab Emirates 2.366 million; Algeria 0.909 million; Qatar
0.414 million.
·
Iraq UN Ambassador warns Iraq will not allow oil to
flow during a third six-month phase of the UN's oil-for-food sale until UN
approves an aid distribution plan. Despite the warning, UN Security Council
approves a third six-month phase following the end of the second six-month
phase. Like first two phases, third allows Iraq to sell up to $1.07 billion of
oil in each of two 90-day periods. Sales level may be increased by Security
Council January 1998 after UN Secretary-General reports on Iraq's needs. Next
day, Iraq stops pumping oil into the Iraqi-Turkish pipeline at the end of the
second six-month phase of the UN oil-for-food program.
·
150 industrial nations at a UN climate conference in Japan
agree on a protocol to control heat-trapping greenhouse gases. If ratified,
would commit nations to roll back emissions of six greenhouse gases below 1990
levels. US would be required to reduce greenhouse gas emissions by 7 percent
below 1990 levels; Europe and Japan would cut 8 and 9 percent, respectively.
Developing countries exempt from ceilings for the time being.
·
Due to continuing Asian economic crisis, South Korea
refiners cut operations to about 80% capacity. Refiners had difficulty securing
crude in late January/February, which could cut operations to low as 70-75 % capacity.
·
Environmentalists hail implementation of a
50-year moratorium on Antarctic mining and oil exploration. Protocol for
protection of Antarctic adopted by 26 countries in 1991 but couldn’t be
implemented until Japan's ratification. Antarctica
has 70% of the world's fresh water. The moratorium attempts to preserve the
world's least polluted continent.
·
Federal judge denied environmentalists and Native
Americans requests to block sale of the Elk Hills Naval Petroleum Reserve (NPR). U.S. Department of Energy formally transfers ownership of
the reserve to Occidental Petroleum Corporation who bought 78% interest in the field. Chevron
holds 22%. Elk Hills
contains 450 million barrels of proven oil reserves; Occidental believe reserve
may contain a billion barrels of recoverable reserves.
·
UN Security Council votes unanimously to more than double
amount of oil Iraq can export under the UN oil-for-food program. Security
Council vote increases the amount Iraq can export from $2.14 billion to $5.26
billion over six months. Iraq maintains it only has the capability to export up
to $4 billion over a six-month period.
·
OPEC issues official release from 104th meeting in Vienna
March 30, 1998; member countries agreed to voluntary cuts of each country's
current production to boost oil prices. OPEC cuts totaling 1.245 million
barrels/day effective April 1998. Cuts in barrels/day, break down as
follows: Algeria 50,000; Indonesia 70,000;
Iran 140,000; Kuwait 125, 000; Libya 80,000; Nigeria 125,000; Qatar 30,000;
Saudi Arabia 300,000; United Arab Emirates 125,000; Venezuela 200,000. Non-OPEC
oil-producing countries Mexico, Oman and Yemen agreed to cut production by 100,000, 30,000, and 20 million
barrels per day respectively. Norway, a non-OPEC country, the world's third
largest oil exporter, pledged to reduce oil production by 3 percent, about 100
million barrels/day). Norway's cuts take effect mid-April 1998.
·
ARCO announced it acquiring Union Texas Petroleum
Holdings Incorporated, an independent oil company in Houston, Texas, for $2.47 billion. Acquisition
adds 140 million barrels per day to ARCO's oil and natural gas production and
increase ARCO's total oil and gas reserves by 14 percent. Deal helps ARCO enter
the Caspian Sea region, gaining a 12.5 percent interest in the Caspian Pipeline
Consortium and 5 percent interest in Kazakhstan's Tengiz oil field. ARCO gains
additional interests in projects in the United Kingdome, Indonesia, Alaska and Venezuela.
·
India announced it conducted three underground nuclear
tests, their first since 1974. Tests were conducted
simultaneously 330 miles southwest of New Delhi, near the
Pakistani border. Indian government says tests included a thermonuclear device,
commonly known as a hydrogen bomb. Two days later, on May 13, 1998, India
announced it conducted two more underground nuclear tests in the same desert
range.
·
UN Security Council approves resolution to allow Iraq to
spend $300 million on spare parts for its oil industry. Funding intended to
help Iraq increase oil exports under 4th phase of the UN oil-for-food program. Spare
parts expected to expand Iraq's oil export capacity from to 1.8 million or 1.9 million
barrels/day.
·
OPEC agreed at its 105th ministerial conference, to
another round of oil production cuts. Recently oil prices fell to lowest levels
in more than a decade. OPEC agreed to cut production by 1.355 million barrels/day
effective July 1, 1998, bringing the total reductions since March 1998 to 2.6
million barrels/day. With promises from non-OPEC nations, world producers
pledged cuts worldwide by about 3.1 million barrels/day
·
British Petroleum say it will acquire Amoco for $48.2
billion in stock. If the merger is approved by regulators and shareholders of
both companies, it will be the largest oil industry merger and the largest
foreign take-over of a U.S. company to date.
·
South Korea's oil refining sector fully
deregulates, allowing 100% foreign investment. South Korea had expected to
fully deregulate its refining industry by 1999, but decided to move the date to
help reform its economy.
·
EU nations approve accord that European car makers
voluntarily agree to cut carbon dioxide emissions 25 percent by 2008. EU says
they will seek similar deals with automakers in Asia and North America.
·
Japan's Nippon Oil, the country's second largest
petroleum distributor and Mitsubishi Oil Company, the sixth-ranking
company in the industry, agree to merge as of April 1, 1999. The combined
company will be the largest oil distributor in Japan.
·
Exxon Corp agrees to buy Mobil for about
$75.4 billion, making the largest corporation in the U.S. Companies say they
expect to cut about 9,000 jobs from worldwide workforce and close offices,
saving $730 million. Merger comes in the context of low oil prices, which hurt
profits at many oil companies.
·
The Colombian government says it will
allow gasoline and diesel prices to float with international oil prices
starting January 1, 1999. The move will end a system of artificial price fixing
which has cost the government more than $3.2 billion in subsidies over the past
five years.
January 1999:
·
British
Petroleum and Amoco
Corporation complete their $53 billion merger.
·
Italy's ENI SpA and Russia's RAO Gazprom, the world's
largest natural gas producer, agree to build a natural gas pipeline from Russia
to Turkey at a cost of nearly $3
billion.
·
Each project partner will hold a 50 percent stake in the
project.
·
The proposed pipeline, called the Blue Stream project, is expensive partly
because it would run at great depth under the Black Sea.
·
U.S. Energy Secretary visits Saudi Arabia to discuss
potential U.S. investment in the Kingdom's oil and gas sectors. Following his
visit, Secretary Richardson says Saudis are primarily interested in foreign
investment in the natural gas sector and oil refining and marketing sectors,
rather than upstream crude oil sector.
March 1999: In an effort to raise oil prices, which fell sharply in
late 1997 and stayed low through 1998 and into early 1999, OPEC and non-OPEC
countries agree to cut oil output by combined 2.104 million barrels/day
effective April 1, 1999, for one year. OPEC pledged to cut 1.716 million
barrels/day. Several non-OPEC countries pledged total reductions of 388 million
barrels/day
April 1999:
·
With arrival in Netherlands of two Libyan suspects in
the 1988 bombing of PanAm Flight 103 that killed 270 people, UN sanctions
against Libya are suspended. Sanctions imposed March 31, 1992, included ban on sale
of equipment for refining and transporting oil but excluded oil production
equipment. Sanctions expanded November 11, 1993 to include freeze on Libya's
overseas assets, excluding revenue from oil, natural gas, or agricultural
products.
·
US
Department of Energy to begin taking oil
deliveries under plan to add 28 million barrels of oil to the US Strategic Petroleum Reserve (SPR) from Federal oil
royalty payments. Phase 1, SPR expected to acquire about 43 million barrels/day
over 3 months from oil companies in Gulf of Mexico. About 50 percent of the oil in
Phase 1 will be imported, domestic producers benefit from acquisition since oil
market is international and fungible. Under Phase 2 DOE expects to get about
100 million barrels/day of royalty oil over 6-months.
·
An oil pipeline that transports oil from Baku, Azerbaijan, to Georgia, is officially opened. The
second pipeline dedicated to exporting Caspian Sea oil, but first built since
the Soviet Union disbanded in 1991. The other Caspian Sea oil pipeline, which
runs through the Russian breakaway republic of Chechnya to the Russian port
of Novorossiysk, is often shut down. The new
pipeline to Georgia has a capacity of 100 million barrels per day.
·
The U.S. Department of Treasury Office of Foreign Asset Control
notifies Mobil it turned down Mobil's request for a license to swap crude oil produced
in Turkmenistan with Iranian oil. Mobil hoped to be allowed to ship oil from Turkmenistan
to northern Iran oil refineries. Iran in turn, would provide Iranian oil from
Iran's Persian Gulf export terminals to Mobil
for shipment to global markets as payment. OFAC is responsible for enforcing
U.S. unilateral sanctions against foreign countries. As a result of OFAC's
denial, Mobil will have to continue exporting Turkmenistan oil production
across the Caspian Sea by barge to Azerbaijan, where it’s carried by rail or
pipeline to Black Sea ports.
·
President Clinton unveils plan to apply same standard for
tailpipe emissions to cars, light-duty trucks and most SUVs. Proposed plan
would result in a 77% reduction for cars and 95% reduction for light-duty
trucks and SUVs. New standards would be phased in from the 2004 to 2007 model
years.
·
EPA proposed a rule to require refiners to reduce
gasoline sulfur content from current
average of nearly 330ppm to 30ppm. New sulfur standard proposed in conjunction
with new tailpipe emission proposal since sulfur impedes catalytic converter
efficiency, making it more difficult to reduce tailpipe emissions without
reducing sulfur content in gasoline. Oil industry vows to protest proposed
rule, claiming that it will cost refiners $3 billion to $6 billion. EPA
estimates cost of compliance for both auto and oil industries between $3.4
billion and $4.4 billion.
·
Caspian Pipeline Consortium begins construction of 981-mile
pipeline to carry crude oil from the Caspian Sea to Russian port of Novorossiysk
for export to foreign markets. Pipeline's planned capacity is about 1.3 million
barrels/day and is expecting to load the first tanker in mid-2001.
·
EPA says it will not change its "Tier Two Plan"
to cut gasoline sulfur content and tailpipe emissions, in response to a recent
appellate court ruling that the EPA overstepped its mandate in implementing
some provisions of the Clean Air Act.
·
Beginning 2004, Tier Two Plan would require refiners to
cut gasoline sulfur content to an average down more than 90 percent from the
current national average.
·
Sudan starts pumping oil through its pipeline linking the
Heglig oil field in Western Kordofan province to Port Sudan on the Red Sea. The
pipeline has a capacity of 250 million barrels per day and was financed by a
consortium of Chinese, Malaysian, Canadian, and Sudanese firms.
·
US Department of Commerce dismisses petition filed
by Save Domestic Oil, Inc. under anti-dumping statutes. Petition alleged
that Saudi Arabia, Venezuela, Mexico, Iraq had sold crude to the US at artificially low
prices.
·
OPEC to maintain current production cuts until March
2000, despite fact crude oil prices doubled since 1999. OPEC announces current
Secretary General will stay in office until March 2000. Follows vigorously
contested race to succeed Lukman, in which OPEC's three largest members, Saudi
Arabia, Iran, and Iraq fielded candidates.
·
Japan suffers serious nuclear accident at uranium processing plant;
radiation released after apparent uncontrolled nuclear chain reaction. Three
workers were injured. Japan issued warning for 310,000 people in to stay
indoors.
·
UN Security Council agrees to raise monetary ceiling on Iraqi oil sales
continuing Iraqi production until the end date for the current six-month
extension of the "oil-for-food" program. Move is a one-time adjustment;
does not bind Security Council to continue a higher ceiling if the program is
renewed for another six-month term.
·
Turkey, Azerbaijan and Georgia sign agreement to build a
pipeline to export crude from Caspian Depression.
·
The Federal
Trade Commission approves proposed merger between oil giants Exxon
and Mobil. $80 billion merger approved by FTC after firms agree to largest asset
divestiture ever in a merger. Companies will sell over 2,400 retail outlets,
mostly in the Northeast, Texas, and California, and a refinery in California.
·
Export-Import Bank drops proposed $500 million loan to
Russia's Tyumen Oil after Secretary of State Madeleine Albright exercised statutory
authority to block it. Loan was controversial partly because of Tyumen Oil's
dispute with BP Amoco over bankruptcy of Russian oil firm Sidanko, as BP Amoco owns a major
stake.
·
Panama Canal Zone reverts to Panamanian
sovereignty after nearly a century of American control. More than half-million
barrels of crude and petroleum products transit the Canal each day.
·
After nearly two years of construction, ExxonMobil
completes the Sable Offshore Energy Project, a $2 billion project to bring
natural gas from fields offshore Nova Scotia to the northeastern US.
·
Russian President Boris Yeltsin makes a surprise
announcement he’s resigning immediately. Vladimir Putin becomes Acting
President; presidential elections to be held within 90 days; date to be set by
the State Duma. Russia is the largest exporter of energy in the world.
World
Trade Center Bombing 1993 – first attack
https://en.m.wikipedia.org/wiki/1993_World_Trade_Center_bombing
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