America's About To Unleash Its NOPEC 'Superweapon' Against The Russians & Saudis

Authored by Andrew Korybko via Oriental Review,

The US Congress has revived the so-called “NOPEC” bill for countering OPEC and OPEC+.

Officially called the “No Oil Producing and Exporting Cartels Act”, NOPEC is the definition of so-called “lawfare” because it enables the US to extra-territorially impose its domestic legislation on others by giving the government the right to sue OPEC and OPEC+ countries like Russia because of their coordinated efforts to control oil prices.

Lawsuits, however, are unenforceable, which is why the targeted states’ refusal to abide by the US courts’ likely predetermined judgement against them will probably be used to trigger sanctions under the worst-case scenario, with this chain of events being catalyzed in order to achieve several strategic objectives.

The first is that the US wants to break up the Russian-Saudi axis that forms the core of OPEC+, which leads to the second goal of then unravelling the entire OPEC structure and heralding in the free market liberalization of the global energy industry.

This is decisively to the US’ advantage as it seeks to become an energy-exporting superpower, but it must neutralize its competition as much as possible before this happens, ergo the declaration of economic-hybrid war through NOPEC. How it would work in practice is that the US could threaten primary sanctions against the state companies involved in implementing OPEC and OPEC+ agreements, after which these could then be selectively expanded to secondary sanctions against other parties who continue to do business with them.

The purpose behind this approach is to intimidate the US’ European vassals into complying with its demands so as to make as much of the continent as possible a captive market of America’s energy exporters, which explains why Trump also wants to scrap LNG export licenses to the EU.

If successful, this could further erode Europe’s shrinking strategic independence and also inflict long-term economic damage on the US’ energy rivals that could then be exploited for political purposes. At the same time, America’s recently unveiled “Power Africa” initiative to invest $175 billion in gas projects there could eventually see US companies in the emerging energy frontiers of TanzaniaMozambique, and elsewhere become important suppliers to their country’s Chinese rival, which could make Beijing’s access to energy even more dependent on American goodwill than ever before.

If looked at as the opening salvo of a global energy war being waged in parallel with the trade one as opposed to being dismissed as the populist piece of legislation that it’s being portrayed as by the media, NOPEC can be seen as the strategic superweapon that it actually is, with its ultimate effectiveness being dependent of course on whether it’s properly wielded by American decision makers.

It’s too earlier to call it a game-changer because it hasn’t even been promulgated yet, but in the event that it ever is, then it might go down in history as the most impactful energy-related development since OPEC, LNG, and fracking.

Comments

lock-stick Jus7tme Mon, 08/06/2018 - 13:22 Permalink

ONE SICK SPAMMER!

Adolfsteinbergovitch = "LandRover COckSucker" = Free This = Africoman = PrivetHedge = Cryptopithicus Homme = Biblicism = DailyWesterner = Mr Hankey = ravolla = alt-right-girl = Let-sit = lloll = pier = Aristotle of Greece = it goes on forever

In reply to by Jus7tme

Free This Adolfsteinbergovitch Mon, 08/06/2018 - 13:40 Permalink

Listen up nazi skin head, your axis of evil is dead and America helped to kill it.

your daddy Adolf offed himself, like the pussy he was, why don't you do us all a favor and do the same.

before I drop a warhead on your forehead, nazi scumbag!

jam the nearest kike up your ass. I am not a jew, just a regular Joe, who doesn't hate whole swaths of people like you do!

burn in hell

In reply to by Adolfsteinbergovitch

bshirley1968 HilteryTrumpkin Mon, 08/06/2018 - 14:47 Permalink

No way US can manipulate oil trade at this point without hurting themselves or helping their "enemies". Cause and effect, just think it through.

The world needs energy, Russia has energy...and a real surplus for sale. The US is a net energy consumer with no surplus. China needs energy in a big way. Trying to cut off Russian and Iranian oil and trying to blow up the Chinese economy are acts of war. The West realizes there is no way they can survive in their current status of moar with that kind of competition out there. The BRICST now constitute $17 trillion in combined GDP. They have the energy sources (Russia and Iran), they have the manufacturing base (China), they have the agricultural base (Russia, Brazil, South Africa), and they have plenty of customers.....even outside the BRICST union. That is a formidable competitive force to face when you are an economy structured on infinite growth on a finite planet......that you control less and less of each year.

In reply to by HilteryTrumpkin

MoreFreedom bshirley1968 Mon, 08/06/2018 - 19:58 Permalink

I agree bshirley, up til "The West ....".   I.E., the US only produces about 10% of the world's oil, consumes about 20% of the world's oil.   See

https://en.wikipedia.org/wiki/List_of_countries_by_oil_consumption

https://en.wikipedia.org/wiki/List_of_countries_by_oil_production

 

The way I see this, is the US looking to initiate force against other countries (sanctions?) and OPEC like all cartels eventually fall apart as the members cheat.  That's no way to win friends and influence countries.  Trump has already succeeded in getting Saudia Arabia to pump more and lower the price of oil (they have the lowest cost to extract oil on the planet).  Given this bill isn't enforceable, is interfering in other country's sovereignty, it appears to be an excuse to go to war with Russia driven by the establishment deep state as a move against Trump.

In reply to by bshirley1968

shortonoil Free This Mon, 08/06/2018 - 16:12 Permalink

It's worse than that; it was all made in China.

Guess Andrew hasn't heard, the US is now in the oil biz with the Ruskies. Putin and Trump had a nice little conversation on how to fix the price, and Paul is shuttling back and forth setting up the deal. Eat shit China, your buddy just sold you out for $20 a barrel. You got to give that Trump some credit, he knows how to play "let's make a deal"!

In reply to by Free This

lock-stick Free This Mon, 08/06/2018 - 14:23 Permalink

ONE SICK SPAMMER!

Free This = Adolfsteinbergovitch = "TodaysFox LandRover CockSucker" = Africoman = PrivetHedge = Cryptopithicus Homme = Biblicism = sanctificado = DailyWesterner = Mr Hankey = ravolla = alt-right-girl = Let-sit = lloll = pier = Aristotle of Greece =

it goes on forever

 

Gentle ZH User:  You may wish to send an email to The Tylers asking that Free This and ILK be "re-homed" to, perhaps, their own chat room.  That way, all the SPAMMER'S Imaginary Friends can duel it out with each other, interested ZHer's can drop in and make sarcastic comments, and the rest of us can engage in something approaching civilized conversation without wading through the monkey shit and attendant mental litter spewing from the orifices of this Flying-Mammal-Fæces-WHacko SPAMMER.

Please, Tylers.

abuse@zerohedge.com

In reply to by Free This

Free This USofAzzDownWeGo Mon, 08/06/2018 - 14:08 Permalink

So, another idiot who just crawls up my ass for the fun of it!! What have I written that pisses you off sister? The truth hurt that much?

I can post wherever and whenever I want, why don't you dry hump the other posters who do the same here? Or is it my cold hard facts you hate so much - I feel it is the latter! Suck it!

Bugger off you bombastic bitch!

EDIT - Look the witch took down her cursing screed at me and put a period in there. What a disingenuous whore. Removed comments the whole way down that she slagged me wholesale. Go ahead and Tuck tail, erase the hate you spewed at me, I really dislike morons like you!

In reply to by USofAzzDownWeGo

lock-stick USofAzzDownWeGo Mon, 08/06/2018 - 14:26 Permalink

Gentle ZH User:  You may wish to send an email to The Tylers asking that Free This and ILK be "re-homed" to, perhaps, their own chat room.  That way, all the SPAMMER'S Imaginary Friends can duel it out with each other, interested ZHer's can drop in and make sarcastic comments, and the rest of us can engage in something approaching civilized conversation without wading through the monkey shit and attendant mental litter spewing from the orifices of this Flying-Mammal-Fæces-WHacko SPAMMER.

Please, Tylers.

abuse@zerohedge.com

In reply to by USofAzzDownWeGo

Free This USofAzzDownWeGo Mon, 08/06/2018 - 14:39 Permalink

Insults is all you got! Refute my post then dummy? All you got is ignorance. You are a socialist attack dog. Go jump on a spike.

I am done with you. I am no longer gonna respond to this dog mess, post your drivel for all to see, I will no longer respond to any it.

Ignorant fuck!

Your down arrows are coming soon enough! Just wait socialist cow! mooooooooo

what video? you mean the prepared mind channel? that is not me, I posted it as information. See all you got is hot air!

In reply to by USofAzzDownWeGo

opport.knocks Free This Mon, 08/06/2018 - 16:20 Permalink

Monopoly - no
Oligopoly or Cartel - yes

Who cares whether OPEC is illegal in the USA or not. Their HQ is in Vienna, Austria, so not subject to US Laws. The US can make it illegal for US companies to buy oil from OPEC countries, but it does not. Which should tell you something, the US government works for the interests of US based multinational corps., not the other way around.

In reply to by Free This

Free This opport.knocks Mon, 08/06/2018 - 16:41 Permalink

I said it is a cartel. It is breaking our anti-trust laws, also making it a monopoly - go lookup the defs

Cartels exist primarily in Europe, being illegal in the United States under antitrust laws. ... Although illegal in the United States, foreign cartels influence prices within the United States on imported and smuggled goods that they control.

Anti-trust laws are for monopolies.

It is akin to AT&T, Verizon, and Sprint colluding to increase or decrease band-width to be able to set an arbitrary price at the detriment of the consumer. In other words affect supply and demand to rig the price as they see fit.

In reply to by opport.knocks

opport.knocks Free This Mon, 08/06/2018 - 18:35 Permalink

LOL - sure, double down on stupid. if you look at how regularly OPEC members violate production quotas and knife each other in the back, clearly they do not.

The USA supports the cartel because their traditional ally Saudi Arabia has the dominant position and can increase/decrease production on demand. However, they have become less reliable and dominant over the past few years.

In reply to by Free This