Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Investing in Crypto Currencies With Both Eyes WIDE OPEN! - 25th Oct 21
Is Bitcoin a Better Inflation Hedge Than Gold? - 25th Oct 21
S&P 500 Stirs the Gold Pot - 25th Oct 21
Stock Market Against Bond Market Odds - 25th Oct 21
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Why ISIS Just Grabbed the Resource More Essential Than Oil

Politics / Water Sector Jun 05, 2015 - 09:57 AM GMT

By: ...

Politics

MoneyMorning.com Dr. Kent Moors writes: When we think of the resources under threat when it comes to the conflict in Iraq, crude oil is usually the first that comes to mind.

But ISIS just brought another resource back into play… one that has been a cause of dispute for centuries.

Oil may be the driver of the Iraqi central budget and economy, but there is something else even more essential to the people who live there.


And ISIS is now raising the stakes in Iraq by asserting its control over this vital resource.

ISIS Now Controls a Vital Dam

This resource more essential than oil is one of the basic building blocks of life. As you might have guessed, it’s water.

I have been writing about this situation for years. As I discussed in my recent book The Great Game: The Coming Face Off for Global Supremacy (you can still get a free copy here), there are regions of the world where nations would go to war in a matter of hours should the supply of water be cut off. And this part of the Middle East is poised on a razor’s edge.

Known as the “Cradle of Civilization,” the region’s salvation is the confluence of two mighty rivers, the Tigris and the Euphrates. In this otherwise arid desert, these have been lifelines for thousands of years.

ISIS controls the dam on the Euphrates north of the city of Ramadi. And this morning, it began using it for military purposes. There are 26 gates on the dam, controlling survival for a wide area south in the direction of Baghdad, Iraq’s capital. ISIS has closed all but two or three of these and even then opens them for only a few hours a day.

Increased Pressure on Baghdad

My sources in the region have concluded that the motivations for these actions are threefold. First, the intentional relocation of the waters will benefit the city of Fallujah already under ISIS control. By redirecting what water is allowed through which dam gates, volume can be provided to some areas (such as Fallujah), but not others, based on downstream flow.

Second, ISIS has already begun to “water starve” areas remaining loyal to the central government.

This objective puts additional pressure on the capital’s Shiite-controlled administration. Preventing water from moving south has an immediate (and very negative) psychological impact on both the population and the officials.

Remember, as I have previously mentioned here in the Oil & Energy Investor, ISIS does not intend to capture Baghdad. Rather, the goal is to immobilize the decision-making apparatus in the city, further weakening its ability to govern elsewhere and making the expansion of the insurrectionist “caliphate” the group is creating near the Iraqi-Syrian border more secure.

Additional areas to the west and southeast could always be employed as buffer zones over which ISIS would exert control – either directly or through surrogate rulers – thereby providing a more defensible periphery.

Oil Disarray Would Lead to Iraq’s Fall

Trying to extend formal control over Baghdad is not in the cards. However, by paralyzing the government, ISIS does wield direct control over both oil production and export.

The large international oil majors operating huge fields in the far south are working on restrictive agreements that pay a fixed fee on each barrel extracted beyond contract minimums. The companies do not control policy, payment, or exports. The government does. Lack of official oversight is tantamount to throwing the entire nation’s oil picture into disarray, which would increase sectarian infighting and put additional pressure on the central budget and provision of services, while prompting an increasing splintering of the country.

In short, this will accomplish what ISIS wants without forcing it to take over a single oil operation in the most productive (and Shiite-dominated) land around Basra in the south.

New Crossing Points for ISIS Attacks

However, it is the third rationale for the move on the Euphrates dam that has the Iraqi military leadership most concerned. By cutting down the water flow, ISIS is significantly reducing the river’s water level. This will provide numerous areas where the water is sufficiently shallow to allow forces direct (and hit-and-run) attack venues.

In short, by this afternoon there are too many crossing points for the effective defense of Iraqi positions. As the army becomes less able to stand its ground, Baghdad will need to rely more heavily on Shiite militias under the command of Iranian General Qasem Soleimani.

That guarantees two things: greater control of Iraqi defense from Tehran (a prospect keeping Washington planners up at night) and a further accentuation of Sunni-Shiite mistrust.

These are just what ISIS wants to expand its influence and perpetuate its drive for power. I’ll be watching closely how these events play out over the coming weeks and let you know of any ways to potentially profit from these geopolitical maneuvers.

Source :http://oilandenergyinvestor.com/2015/06/why-isis-just-grabbed-the-resource-more-essential-than-oil/

Money Morning/The Money Map Report

©2015 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in