The Wayback Machine -
  BLACK GOLD HOT GOLD (Chapter Three) POSTED: 05/17/01

The Rise of Fascism in the American Energy Business
(Pre-publication online preview excerpt)

-- by Marshall Douglas Smith

     In 1945, at the end of WWII, when the Japanese surrendered, General Douglas MacArthur became the military Governor of Japan. MacArthur's assistant was Laurence Rockefeller, one of John D's four grandsons. Just before the Japanese surrendered, the US had been preparing for a massive invasion of the Japanese home islands and had stockpiled vast supplies of weapons and munitions on the island of Okinawa. Enough weaponry to invade Japan. What ever happened to all those military supplies?

     With Vice-governor Laurence Rockefeller's assistance most of them were sold to the leader of Viet Nam, Ho Chi Minh, for something like one US dollar and Ho’s "goodwill." Why would Laurence do that? That was US taxpayer property. Ho Chi Minh had been an ally to help fight the Japanese during the war. But the Chinese had been an even greater ally, so why didn’t the weapons go to China? Those weapons might have prevented Mao Tse Tung from taking over China just four years later if they had been given to China. But that wasn’t the plan. From where did Mao get his weapons?

     In the 1920's an insider secret became known to a few people. It was published in an exhaustive world resources survey book written by a renowned world-traveling geologist named Hoover, who later became a US President. Not many copies were printed and few people read the book. The secret was that one of the world's largest potential oil fields ran along the coast of the South China Sea right off French Indo-China, now known as Viet Nam. But in the 1920's the method of deep sea oil drilling had not yet been developed. In 1945, the French still held small oil-poor Viet Nam as a colony. Laurence knew about Hoover’s book and the off shore oilfields. The French could be driven out if the Vietnamese nationals, lead by Ho Chi Minh, could be supplied with weapons. Did the French know about this?

     Laurence Rockefeller thought he could trick Ho Chi Minh by offering him the weapons to drive out the French and then in return Standard would take over the as yet undeveloped offshore fields. But in 1954 when Vietnamese General Giap finally defeated and drove out the French at Dien Bien Phu, Ho reneged on the deal. Since by then, everybody including the French, the Vietnamese, the Japanese and the Chinese had all read the same Hoover resource book and knew there was a vast supply of oil off the Vietnamese coast. Many people have wondered why the French have been so recalcitrant toward the US ever since French President Charles DeGaul wanted to pull out of NATO in the mid-1950's.

     Ho Chi Minh would not let Standard Oil simply walk in and walk off with all the Vietnamese oil. So as before, any country which owns the oil is branded as "communist" since they hold the oil as "community property" and won't allow private corporations, like Standard, to develop the fields and steal the oil. In this case, young American's themselves where "hired" directly to be the "fascists" to go fight the Vietnamese "communists."

     The whole 20 year Viet Nam “war” from 1955 to 1975 was an oil scam. And all during the "war," Vietnamese General Giap fought the Americans with weapons he got from Laurence for a dollar. Did you ever wonder why the US, despite, greatly superior weapons, and the loss of 57,000 Americans and half a million Vietnamese, never won the "war?" Ever wonder why the US President issued such strange “rules of engagement” for the American troops that made sure they didn’t win? Ever wonder why Henry Kissinger, a personal assistant to Nelson Rockefeller spent so much time in the Viet Nam/Paris Peace talks which never went anywhere but simply dragged on for years. Maybe winning the “war” wasn’t part of the plan of the Empire of Energy. Maybe the timing of the “war” was more important.

     In the 1950's a method of undersea oil exploration was perfected which used small explosions deep in the water and then recorded the sound echos bouncing off the various layers of rock below. The surveyor could then determine the exact location of the arched salt domes which hold the accumulated oil beneath them. But if this method were used off the Viet Nam coast on property Standard didn't own or have the rights to, the Vietnamese, the Chinese, the Japanese and probably even the French would quickly run to the United Nations and complain that America was stealing the oil, and that would shut down the operation.

     In 1964, after Viet Nam was divided into North and South, and the contrived Gulf of Tonkin incident, several US aircraft carriers were stationed offshore of Viet Nam and the "war" was started. Every day jet planes would take off from the carriers, bomb locations in North and South Vietnam, and then using normal military procedure when returning would dump their unsafe or unused bombs in the ocean before landing back on the carriers. Safe ordnance drop zones were designated for this purpose away from the carriers.

     Even close-up observers would only notice many small explosions occurring daily in the waters of the South China Sea and thought it was only part of the "war." The US Navy carriers had begun Operation Linebacker One, and Standard Oil had begun its ten year oil survey of the seabed off of Viet Nam. And the Vietnamese, Chinese and everybody else around, including the Americans, were none the wiser. The oil survey hardly cost Standard Oil a nickel, the US taxpayers paid for it.

     In 1995, in a multi-hour BBC TV documentary broadcast about the oil industry, the president of one of the oil companies, a spin-off of Standard, stated, ".. It was quite a coincidence, that we finished our offshore oil survey on the very last day of the war, just as the last helicopter was leaving the roof of the embassy in Saigon." A coincidence?

     Fifteen years later, after North and South Viet Nam were unified and all the dust settled and most people had forgotten about the "war," the Vietnamese decided they needed some cash and would allow offshore oil exploration. They divided up their coastal area into many oil lots and let foreign companies bid on the lots, with the proviso that Viet Nam got a cut of the action.

     Oil companies from 12 countries put in bids. Norway's Statoil, British Petroleum, Royal Dutch Shell, even Russia, Germany and Australia all put in bids. But when those countries drilled in their oil lots they all came up with dry holes. Only the "American" company had gushers and since 1990 has pulled billions of dollars out of their Golden Dragon, Blue Lotus, and White Tiger oil fields in the South China Sea off Viet Nam. Coincidence? Were they just lucky? Or did they know something those other oil companies didn’t?

     In order to cover for the fact that the Viet Nam “war” was a "phoney" war with the Vietnamese branded as "communists," and the US as a country having no intention of winning, the US would need to withdraw as soon as the oil survey was done. A reason would be needed to explain the withdrawal. In the late 1960's Standard recruited large numbers of idealistic youth who were against the war and the military draft. The oil companies supplied them with monetary assistance and organization.

     Those oil-backed and organized youth became the large anti-war demonstrations of the 60's and 70's. Almost none of the demonstrators knew they were being used. Most people still believe the “war” ended because of the strong US sentiment against the “war,” and President Nixon's withdrawal plan was a reaction to the demonstrators. There is too much information which explains the strange relationship between Richard Nixon and Nelson Rockefeller, the Nixon withdrawal plan and the resulting Watergate incident and Nelson's rise to power to become Vice President after Nixon resigned, so I will explain that later.

     So it appears there are many oil companies but they are, in fact, all under one controlling marketeer, BP also known as Standard Oil, which sets the world price of energy. Ever wonder why President G.W. Bush wanted to open up new drilling in Alaska? There is a vast new undeveloped oil field discovered in 1989 around and under the Caspian Sea in central southern Russia. This one oil field is larger than any other field ever discovered. This oil could be sent out through the Siberian Pipeline to the Arctic Sea, then down the Alaska Pipeline, as is the Black Sea oil. Something would need to account for the greatly increased and continuous flow of oil in the Alaska pipeline.

     New drilling in Alaska, whether oil is found or not, could be used to explain why so much oil is still coming from the Alaska pipeline. Nobody ever mentioned that the North Slope Alaska oil fields, around the Duck Island Western Facility, operated by BP, were running dry and that was the reason why new drilling was needed. Maybe because its not true. Nobody ever mentioned that the Prudhoe Bay Eastern Facility, just a mile or so east of Duck Island, also operated by BP, at the very top of the Alaska Pipeline is a harbor. Maybe nobody wanted you to know.

     And exactly where is this new freshly discovered mother of all oil fields in southern Russia? In a province called Chechnya. Is it any wonder the Chechens wanted to become an independent state? Is it any wonder there had been an ongoing ten year war between the Russian and Chechen troops. Did the Russians “brand” the Chechen rebels as “communists” because they want to keep their own oil? Most Russian mothers have no clue why their sons were sent to die in Chechnya. The same was true of the many Russian mothers whose sons died in Afghanistan. And also the very same is true of many American mothers whose sons died in Viet Nam.

     The vast new oilfield under Chechnya, by itself, could meet the world’s needs for energy for several hundred years. This new oil supply was far more than could be handled by the aging Trans-Siberia and Alaska pipelines. With the collapse of the USSR in 1991, the Russian oil could then be marketed directly. A new overland transport method needed to be built. An obvious and short method would be to build a pipeline westward from the Caspian Sea to the Black Sea and then existing oil tanker ships could take the oil across the Black Sea, through the narrow Bosporus channel at Istanbul, Turkey to the Mediterranean Sea and then on to the rest of the world.

     There was only one problem with that route. The older Russian oil fields around the Black Sea still produced enough oil to create a daily traffic jam of tanker ships through the narrow Bosporus channel. That long channel is barely wide enough in some places for two ships to pass each other. The Turks live in constant fear of an ecological disaster caused by an oil tanker accident on the very doorstep of Istanbul, which surrounds the channel.

     The Bosporus Channel was already beyond the safe limit for tanker traffic so the massive supply of new Chechen oil could not be shipped that way. Seven other long pipeline routes had been proposed in the 1990's. All of them required reaching the Mediterranean Sea by going through politically unstable regions such as eastern Turkey, Syria or Lebanon, all of which are areas of unrest and open to terrorist attack. None of those routes were viable.

     In 1995 a seemingly safe and short alternative route was discovered to get around the unsafe overloaded Bosporus Channel in Turkey. The oil tankers on the Black Sea, instead of going south through the narrow Bosporus, would turn northward up the wide Danube River toward Europe. But then at Belgrade, in Serbian Yugoslavia the tankers would make a quick left turn up a tributary river, unload the oil, and with only a short 50 mile pipeline could reach the large Mediterranean seaport of Tirana, Albania and then on to the world. It looked cheap and easy. And where would that short pipeline be built? Across a small province called Kosovo. If only Kosovo could be placed under some international control to eliminate terrorist attacks and ensure a safe pipeline.

     The US Air Force tried to put Serbia and Kosovo under NATO control in 1999. It almost worked. But, Albania was unlike all the other old Yugoslavian ethnic states which had been client states of the USSR under the dictator Tito. Albania, alone in that region, had been a client state of China since 1949. The Chinese had long used Tirana, Albania as a European opium and heroin shipping point, in an operation far larger than the “French Connection” in Marseilles. The Albanians still maintain ties with China.

     The Chinese, did not want to see large amounts of new energy supplies flowing to the west under BP-Standard control. The Chinese supported and used the “ethnic-Albanian rebels," since the breakup of Yugoslavia in the early 1990's, to ensure continuous unrest in the whole region around Kosovo, Serbia, Bosnia and Macedonia, and thus no pipeline. Ever wonder why the Chinese embassy in Belgrade was "accidently" bombed and obliterated in 1999? The US Air Force claimed the old street maps their pilots were reading didn't show the Chinese Embassy. You can fool some of the people some of the time, but not always. Within a year the Empire of Energy would find an alternative. To most Americans and to the rest of the world that alternative would look like a very strange Presidential election.

(End of Chapter Three)


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