The group will soon control nearly half of the world’s total oil output, calculations show © Getty Images / ANDRZEJ WOJCICKI
The BRICS group of nations is on course to change the power balance in the global energy market, InfoTech news outlet reported on Thursday, citing calculations based on 2022 OPEC data on oil exports and production.
According to the calculations, once the group expands after adding six new nations to its ranks, it will control nearly half of the world’s oil production and reserves.
BRICS currently consists of Brazil, Russia, India, China, and South Africa. However, at the summit in Johannesburg this week, the group announced that Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates will officially join in January 2024.
According to the report, the group will greatly increase its weight in the oil market with the inclusion of Saudi Arabia, the UAE, and Iran. Along with current members Russia and Brazil, these nations combined control 39% of the world’s total oil exports, or 17.1 million barrels per day (bpd). The 11 nations of the expanded BRICS will account for around 47.6% of the world’s total oil production, data shows.
In terms of oil reserves, BRICS will also control nearly half of the world’s total, 719.5 billion barrels out of 1.6 trillion. If Venezuela, which has also recently applied for membership, is accepted into its ranks, the group’s control will be even greater – around 65.4%. In comparison, the G7 group of leading economies (The US, UK, Germany, Italy, Canada, France, and Japan) controls only 3.9% of known crude reserves.
Analysts note that the expansion of BRICS to the Gulf countries is likely to see the US lose its influence in the global oil market.
“Saudi Arabia and the UAE joining is… extremely significant. The United States used to rely on the Gulf monarchies, especially Saudi Arabia, to exert control over the oil price. With their accession to BRICS, it seems likely that America has lost any control it had over oil prices for the foreseeable future,” Irish economist Philip Pilkington said in an article for the British portal UnHerd.
According to Pilkington, the outcome of this week’s BRICS Summit also symbolizes the end of Iran’s economic isolation.
“Given that the country is the world’s eighth largest oil producer and possesses the third largest proven oil reserves, this is a substantial economic and geopolitical development,” he stated.
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Pepe Escobar: BRICS 11 – Strategic Tour de Force
It will take time for the Global South, or Global Majority, or “Global Globe” (copyright President Lukashenko), not to mention the stunned collective West, to fully grasp the enormity of the new strategic stakes.
President Putin, for his part, described the negotiations on BRICS expansion as quite difficult. By now a relatively accurate picture is emerging of what really went down on that table in Johannesburg.
India wanted 3 new members. China wanted as many as 10. A compromise was finally reached, with 6 members: Egypt, Iran, Saudi Arabia, United Arab Emirates (UAE), Argentina and Ethiopia.
So from now on it’s BRICS 11. And that’s just the beginning. Starting with the rotating Russian presidency of BRICS on January 1, 2024, more partners will be progressively included, and most certainly a new round of full members will be announced at the BRICS 11 summit in Kazan in October next year.
So we may soon progress to BRICS 20 – on the way to BRICS 40. The G7, for all practical purposes, is sliding towards oblivion…
With BRICS 11 possibly including Venezuela, Algeria and Kazakhstan as new members as early as in 2024, it may control as much as 90% of all oil and gas traded globally.
Inevitable corollary: operations settled in local currencies bypassing the US dollar. And inevitable conclusion: petrodollar in a coma. The Empire of Chaos and Plunder will lose its free lunch menu: control of global oil prices and means to enforce “diplomacy” via a tsunami of unilateral sanctions.
Already in the horizon, direct BRICS 11-OPEC+ symbiosis is inevitable. OPEC+ is effectively run by Russia and Saudi Arabia.
https://sputnikglobe.com/20230825/pepe-escobar-brics-11—strategic-tour-de-force-1112882830.html
Meanwhile, in Turkey….
Turkey shocks with big rate hike to 25% to cool raging inflation
Turkey’s central bank hiked its key interest rate by a surprisingly large 7.5 percentage points to 25% Thursday, signaling a new determination to address rebounding inflation as part of a broader policy U-turn.
The move took the rate to its highest level since 2019, and sent the Turkish currency to its strongest level against the US dollar since mid-July.
https://www.cnn.com/2023/08/24/economy/turkey-interest-rate-hike-25/index.html
He who controls energy controls the world…..
No, who controls the Heartland Volga to the Yangtze controls the world.
Niger getting frisky….
Nigers Tell French Ambassador to Exit Niger Within 48 Hours
So now you’ve got this situation that has been bubbling finally boiling over, with most of Africa ready to switch teams, as the US struggles to maintain these figureheads that run their occupation governments.
The leader of Mali is saying that if Nigeria invades Niger, he will invade Nigeria and change the results of their presidential election.
https://www.unz.com/aanglin/nigers-tell-french-ambassador-to-exit-niger-within-48-hours/
Argentina….
Could New BRICS Member Argentina Become First Country to Receive a Full-Scale BRICS Bailout?
The other new member, Argentina, is half a world away. And for the umpteenth time, it is in the grip of a very serious financial crisis.
Though much anticipated, the enlargement of the BRICS will have myriad potentially game-changing ramifications. The fact that three of the six countries (Saudi Arabia, Iran and the United Arab Emirates) are among the world’s eight biggest oil producers while another, Argentina, could (and should) become a major natural gas exporter in the coming years is a sobering reminder of the enduring importance of fossil fuels.
The BRICS alliance now includes two of the world’s three preeminent oil producers, Saudi Arabia (#2) and Russia (#3), which will probably further erode the influence of the US (#1) over global energy markets in the future…
The latest disbursement of IMF funds buys Argentina a little extra time. But much of the money is being used to pay back the Fund for the original 2018 bailout program. Part of it will also be used to pay back some of the latest $1.7 billion swap payment from China, which enabled Argentina to continue servicing its IMF debt in the first place. Before the latest disbursement from the IMF, Argentina’s government had managed to secure a $775 million loan with Qatar as well as a $1 billion bridge loan from regional development bank CAF…
But since the announcement of Argentina’s BRICS membership, the Sergio Massa campaign potentially has an ace up its sleeves: it can say that if Massa wins, his government may become the first recipient of a BRICS bailout. In such an event, Argentina could significantly reduce or, in the case of a bailout covering the full value of the IMF loan, even eliminate its dependence on the IMF, just as happened in 2006.
It is probably safe to assume that the strings attached to a prospective BRICS loan would not be as onerous as those attached to the IMF loan. For China, Russia and the other BRICS members, issuing such a loan would be a relatively low-risk way of further eroding US influence over the global economy. After all, the IMF and World Bank are two of the fundamental pillars of the neoliberal world order that has prevailed since the 1970s, enabling the US and its allies in Western Europe to continue plundering the resources of the former colonised countries of Africa, Latin America and Asia without having to use standing armies. They have also hugely enriched the financiers of Wall Street and the City of London.
Bailing out Argentina would be a relatively low-risk gambit for the BRICS members. While Argentina may have a long, storied history of defaulting on its debts, it also has two hugely valuable assets that it can put up as collateral: its huge natural gas reserves in Vaca Muerta, which are only just coming on line, and its vast, unexploited lithium deposits in the north, both of which are already of keen interest to Beijing. Plus, Argentina is of vital strategic interest to the BRICS given it is the second largest economy in South America, a resource-rich region that is already trading more with China than anywhere else, but which is in the cross-hairs of the US Southern Command for precisely that reason.
Such a move would also send a clear message to many of the world’s struggling economies that there is a new lender in town — and what’s more, with the combined financial backing of not just China, Russia, India, Brazil and South Africa but also all the new members, including the financial powerhouse that is Saudi Arabia.
Veeeerrrry interesting. Thanks for posting.
Brics or no Brics no bail out will help Argentina much. Living off of stuff you steal from others doesn’t work for long.
So, you traded in dollars and your banks issued debt in dollars to make it easier to sell or buyers easier to invest in.
The option to trade in your local currency was always there. Now your going to wind up with a basket of reserves all backed by gold presumably. You can’t issue more reserve notes then you have ounces of gold.
The government has a shortfall or deficit. It can only promise to pay back in gold with interest in the future. But it doesn’t have the gold. So it can only pledge other assets in exchange for gold, increase taxes , cut spending or a combination of all 3. This can only lead to a deflationary depression.
I am confused.
Would you expound?
I think this will speed up the slow bleedout of fUSA. Right now Saudis and smaller OPEC are supporting the PetroDollar. That means for most nations to buy oil from them it must be priced in dollars. To get those dollars the buyer must purchase dollars. Purchasing those dollars creates demand and artificially raises the value of dollars. It is essentially how FEDGOV finances debt, buy selling dollars.
Once they become BRICS the Saudis and others will begin trading in other currencies instead of dollars. Once BRICS sort out their currency, or how they will exchange their native currency that, will seriously curtail the need for dollars to purchase oil.
It is a large part of why we whacked Qaddafi, Saddam, and many others. They were trying to move their economy or region away from dollar-based transactions.
“We will increase the use of local currencies,” CFO Leslie Maasdorp told Bloomberg on the sidelines of the BRICS meetings in Johannesburg on Wednesday. “It does not mean we are de-dollarizing or moving away from the dollar. It just means that we are raising more local-currency financing.”
“But the majority of the bank’s funding — about 70% — will continue to be denominated in dollars, he said.
“The bank’s capital is in US dollars. Our reporting currency is US dollars. So the dollar is hot-coded in the DNA of the bank,” he said.”
https://archive.is/dkbTq about the NDB aka the BRICS Develoment bank,
37% of the world’s GDP in PPP terms. …. 54% of the world’s oil production …… 46% of the world’s population …. 36% of the world’s landmass area.
.
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All but Russian hates whites tho
Civilization and wealth and quality of life depends on cheap abundant energy. When you have them by the balls their hearts and minds will follow. Interesting times ahead.
BRICSs did not take away America’s energy dominance, Biden gave it away for his green energy agenda. Never forget that.
Abiotic oil?
…had ANYTHING to do with https://en.wikipedia.org/wiki/1973_oil_crisis ?
🤣🤣🤣
Vote. Harder.
How many dinos died to support that output ? The govenor of Alaska says they provide all the oil we need.
Fugm and feed them fish