Michele Kearney's Nuclear Wire

Major Energy and Environmental News and Commentary affecting the Nuclear Industry.
Showing posts with label Persian Gulf. Show all posts
Showing posts with label Persian Gulf. Show all posts

Wednesday, December 29, 2010

U.S. dominates Middle East arms market




http://www.spacewar.com/reports/US_dominates_Middle_East_arms_market_999.html Dubai, United Arab Emirates (UPI) Dec 28, 2010 The United States-dominated defense sales in the Persian Gulf in 2005-09 and delivered 54 percent of the Middle East's military hardware, including advanced systems that had been denied Arab states because of Israeli objections, analysts say. The Stockholm International Peace Research Institute, which monitors global arms sales, said in a recent study that the United Arab Emirates was the largest market for conventional arms in that time frame.
SIPRI reported that U.S. defense companies won 60 percent of contracts by value awarded by the federation of seven emirates, a key oil producer and a member of the Gulf Cooperation Council, with Saudi Arabia, Kuwait, Oman, Qatar and Bahrain.
Dan Darling, a Middle East defense analyst with the U.S.-based Forecast International, said the United States has consolidated its status as the principal supplier of advanced military systems to the United Arab Emirates, which has emerged a regional military heavyweight.
"The U.S. arms sales to these countries are meant to improve the defense capabilities of the recipient nations, reinforce the sense of U.S. solidarity with its GCC partners and, finally, create a semblance of interoperability with American forces," Darling observed.
"This is noteworthy as France has traditionally been a supplier to the United Arab Emirates, selling them everything from combat aircraft to helicopters to battle tanks."
The United States plans to sell Saudi Arabia, the principal power in the GCC and Iran's main rival for regional leadership, advanced weaponry worth some $67 billion over the next 10 years.
That's the biggest arms deal in U.S. history and it's part of some $123 billion in anticipated arms purchases by the gulf states over the next decade as they build up their military capabilities to counter Iran.
"With the Persian Gulf in flux, the United States is trying to get back into a position where the natural Arab-Persian divide in the region balances itself out," the U.S. global security consultancy Stratfor observed.
"From the U.S. point of view, Iran and Iraq could go on fighting each other for years -- as they did throughout the 1980s -- as long as neither is capable of wiping out the other.
"Right now, Iraq is in far too weak a position and is too wedded to the Iranians to rebuild itself as a useful counter to Iran, so that responsibility is increasingly falling to Iraq's neighbors."
Stratfor, noting the massive U.S. arms package proposed for Saudi Arabia, said the Americans are "investing the years into shaping the Saudi military into an effective force and encouraging the United Arab Emirates to reduce its vulnerabilities to Iran."
The top four nations providing arms to the region after the United States and France are Russia, Britain and China.
Most Russian and Chinese arms deliveries have gone to Iran. Western suppliers don't deal with the Islamic Republic because of international arms embargoes that have been in effect more or less since the Islamic Revolution in 1979.
However, Russia still entertains hopes of securing an arms package worth $2 billion-$2.4 billion to Saudi Arabia.
Riyadh proposed a deal involving 150 T-90 main battle tanks, 250 BMP-3 armored personnel carriers and short- and long-range surface-to-air missiles, apparently to persuade Moscow not to sell powerful S-300PMU air-defense missiles to Iran.
Russia announced in June it wouldn't deliver on its $800 million 2007 deal with Tehran.
Israel, which got $2.78 billion in U.S. military aid in 2010, is the region's second largest defense spender. Its main supplier is the United States, which has vowed to maintain Israel's technological superiority.
"Though the U.S. remains sensitive to the potential erosion of Israel's regional qualitative military edge, it has granted major equipment sales to gulf nations in recent years," observed Darling of Forecast International.
These have included advanced the MIM-104 Patriot air-defense system built by the Raytheon Co. and Lockheed Martin GBU-28 "bunker buster" bombs to the emirates, Boeing AH-64D Apache Longbow combat helicopters to Saudi Arabia and Lockheed Martin F-16s, Boeing AGM-84 Harpoon and Lockheed AGM-114 Hellfire missiles to Egypt.
GCC defense spending is expected to rise in 2011 by an additional 2.5 percent, Darling reported.
"Over the next five years, the greater Middle East defense market is projected to grow by over 11 percent, reaching nearly $120 billion by 2014," he said.

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Friday, November 19, 2010

Emirates seek alternative oil export route




http://www.energy-daily.com/reports/Emirates_seek_alternative_oil_export_route_999.html Abu Dhabi, United Arab Emirates (UPI) Nov 18, 2010 Amid continuing fears that Iran may seek to close the choke point Strait of Hormuz in the Persian Gulf, a vital oil artery for the world, the United Arab Emirates is seeking alternative export routes for its oil. The federation opened a naval base Oct. 20 at Fujairah on its east coast, south of the entrance to the strait in the Gulf of Oman.
It will play a key role in plans to construct an overland route from Abu Dhabi, the emirate that contains more than 90 percent of the federation's oil, to the sea without using the narrow, horseshoe-shaped strait.
Abu Dhabi is reported to be building two pipelines -- one for oil, the other for natural gas -- across the desert to Fujairah, where it plans to construct a huge export terminal and an oil storage facility.
"A naval base in Fujairah will give the emirates more capabilities to protect its economic zone and its strategic facilities, the port down there which will be a major point of export for oil and gas," said Riad Kahwaji, director of the Institute for Near East and Gulf Military Analysis in Dubai.
Tehran has threatened several times to close the strait if the United States or Israel launches pre-emptive attacks against Iran's nuclear facilities. This could be done by sinking large ships to block the waterway, in airstrikes or missile attacks, or by placing sea mines.
On a typical day, around 15 tankers carrying up to 17 million barrels of oil and oil products, along with dozens of freighters, pass through the strait -- two-fifths of the world's oil supply.
This comprises most of the oil and liquefied natural gas exported by Saudi Arabia, the emirates, Qatar and Kuwait, as well as Iran and those from southern Iraq.
Going the other way, the Gulf Cooperation Council states -- Saudi Arabia, the United Arab Emirates, Kuwait, Oman, Qatar and Bahrain -- import most of their food and consumer goods through the strait and a prolonged shutdown would cause serious economic and social disruption.
The gulf region holds 55 percent of the world's known oil reserves. So a prolonged closure of the 112-mile strait, whose eastern shore is controlled by Iran, would send oil prices soaring, causing a global economic shockwave.
"If this chokepoint was closed for an extended period, the economies of the Middle East would suffer significantly and this would generate severe economic dislocation around the world," Jane's Intelligence Review reported recently.
"Millions of guest workers in gulf states from developing countries could also be left unemployed, leading to greater poverty in South Asia and East Asia."
This would undoubtedly send oil prices soaring from the current level of around $80 per barrel to the peak of nearly $150 it hit in 2007-08, possibly to even more crippling levels.
The U.S. Energy Information Administration estimates that if the strait were closed, only about 3 million barrels of oil per day could realistically be redirected through Saudi Arabia through a trans-Arabian pipeline to the Red Sea port of Yanbu on the kingdom's west coast.
There would no other way to transport the 31 million tons a year of LNG -- 18 percent of world consumption -- that Qatar and the emirates export.
However, the emirates and Saudi Arabia are planning to construct a major rail network across the peninsula that would allow them to move oil and gas exports overland to the west to the Red Sea or north through Iraq to Turkey to join the European energy grid, as well as to bring in imports.
"The first of these projects," a north-south minerals rail link, "is now only weeks from completion," the Middle East Economic Survey reported this week.
Even if a closure of the strait was relatively short, in the order of several weeks, the economic impact would still be substantial, magnified by the global economic crisis.
"Extended closure of the strait would remove roughly a quarter of the world's oil from the market, causing a supply shock of the type not seen since the glory days of OPEC," Caitlin Talmadge of the Security Studies Program at the Massachusetts Institute of Technology, warned in a mid-2008 assessment.
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UAE Ambassador to IAEA pursues development of nuclear energy

By Dan Yurman
"In December 2009, the United Arab Emirates awarded a $20 billion contract to a consortium of South Korean firms to build four nuclear reactors on a remote desert location along the Persian Gulf. The consortium, led by state-owned Korea Electric Power Corp. (KEPCO), is committed to having the first reactor in revenue service by 2017. The change from fossil (natural gas) to uranium as a fuel source comes not a moment too soon as the UAE is now a net importer of gas for electricity generation and desalinization."  More at:
http://ansnuclearcafe.wordpress.com/2010/11/17/uae-ambassador-to-iaea-pursues-development-of-nuclear-energy/
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Monday, November 8, 2010

U.S. arms deal raises concerns in Mideast




The wholesale upgrading of the armed forces of Saudi Arabia and its partners in the Persian Gulf is seen in some quarters as a risky enterprise that will only convince the Iranians they need nuclear weapons to counter such a buildup of conventional forces ranged against them.

Dubai, United Arab Emirates (UPI) Nov 8, 2010 The U.S. administration's plan to sell advanced weaponry worth at least $122 billion to its allies in the Persian Gulf to counter Iran is causing unease in the Middle East. There are fears that the mega-deal, the biggest arms sale in U.S. history if Congress approves, carries serious risks it will inflame regional rivalries while it provides huge profits for the U.S. defense industry.
The potential for conflict in an inherently unstable region prone to war and insurgency is immense. Iraq, Yemen, Lebanon and the Levant are all powder kegs. Israel feels increasingly squeezed by missile-armed forces that ring it and may resort to pre-emptive strikes.
The massive U.S. deal doesn't cover Iraq, where the Americans are still rebuilding the country's postwar military and security forces.
But that, too, causes concern. Saddam Hussein launched two wars against his neighbors. He invaded Iran in September 1980, triggering a grueling war of attrition that ended in August 1988. Two years later he invaded Kuwait, which ended in a crushing defeat for Iraq by a U.S.-led coalition.
Iraq's neighbors, particularly Iran and Saudi Arabia, have no wish to see the new Iraq become a military power.
Right now, that prospect is less threatening than the reality of the present, with Iraq once again sliding into chaos and anarchy that could spill over into the Persian Gulf as the Saudis and other Sunni states seek to prevent the Iranians gaining a foothold in the heart of the Arab world.
The Americans have armed the gulf states for decades but this time they're providing them with offensive systems.
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Sunday, October 17, 2010

One month delay in launching Bushehr power plant: nuclear official

October 17, 2010 Tehran Times Political Desk TEHRAN – The launch of Bushehr nuclear power plant is delayed one month due to some minor technical problems, Atomic Energy Organization of Iran Deputy Director Mohammad Ahmadian has said. “After inspection, we made sure that we are not faced with any serious problem, but there are some minor problems including a small leak in a pool in the middle of the reactor which was fixed,”
 
Ahmadian told IRNA in an interview published on Saturday.“It takes one month to fix these minor problems, so unfortunately there will be one month delay in the transfer of fuel rods into the reactor core,” he added
 
.On September 11, Iran’s Nuclear Chief Ali Akbar Salehi announced that nuclear fuel will be loaded into the core of the Bushehr reactor at the beginning of the Iranian calendar month of Mehr (September 23 to October 22), and afterwards, the Bushehr nuclear power plant will begin operation
 
.Salehi also said the nuclear plant will be able to produce electricity in the Iranian calendar month of Azar (November 22 to December 21).The plant, located near the port of Bushehr on the coast of the Persian Gulf, will produce 1000 megawatts of electricity once all the fuel rods are loaded into the core of the reactor
 
.The Bushehr reactor may save Iran 11 million barrels of crude oil or 1.8 billion cubic meters of gas per year, the London-based World Nuclear Association has estimated.The plant will also put Iran at least a decade ahead of more prosperous Middle Eastern neighbors such as the United Arab Emirates, which plans to build four nuclear plants by 2020.
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