NationStates Jolt Archive

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British Londinium cuts off petro-chemical supplies

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Amidst international controversy regarding war crimes in Cazelia, British Londinium has ceased oil and natural gas exports to the rest of the world, despite possessing reserves of over three trillion barrels of petrol and one trillion of natural gas within its territory.

All Londinian-petrol ships have been recalled to their ports, though drilling continues.

Many unofficial sources have stated that the petrol is being stockpiled for 'later usage'.

The government did state that oil exports may resume, though on a nation-by-nation basis.

Story from LBG NEWS:
http://news.lbg.co.rsp/go/pr/fr/-/2/hi/bl_news/2677291.stm

Published:03:53:02 LST

© LBG MMXII

We do our best to remain self-sufficient when it comes to matters of energy consumption - and the deposits of uranium found in the Sakic mountains have gone a long way to making this a reality - but we previously bought from British Londinium for those industries that still use petrochemicals. Considering that we stood alongside you amidst the claims of war crimes, we are rather offended with these actions.

The Worker's Report

Good evening, comrades. I'm Sasha Bravaden and this is your news tonight. Our top story tonight is British Londinium's complete shut down of oil and natural gas exports. Following the on-going controversy with alleged war crimes during the Cazelian crisis and ViZion's detention of British Londinium citizens within their country are further. This is an unexpected move which has caught many by suprise. Though, some experts within the government expected a move similar to this by BL in response to these events. The Chancellor met with his cabinet today to discuss how this could affect Kulikovia.

The deputies from the Ministry of Commerce and Economics and The Ministry of Energy informed The Chancellor during this meeting that it could effect Kulikovia, especially during the brutal winter when oil and natural gas are sold the most to heat the nation. So far, The Chancellor has not made a statement yet, but we will keep you posted, comrades.

[Secret IC]
"Excellent..." said President Kilo. "The plan is working. They move out of Cazenia. Now they cut off one of the trillion-dollar exports. What will that do to them? Can you say a strained economy?" he said, showing a large grin. "Little does he know, he just keeps moving himself further into a wall. And, does he think that will be hurting US? We have our own means of fuel... why the hell would ANYONE want his blood-soaked fuel?"

from the Financial Review Online Edition

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Reaction in Brief to British Londinium's Overreaction

Earlier today, the government of British Londinium announced a cessation of petroleum exports, with LBG News claiming that the petroleum and natural gas have been stockpiled for the nation's use. While such extreme measures are in line with the government and its history or arbitrary policy shifts, they are also in line with the government's poorly planned policies.

Petroleum is a commodity often traded at various bourses throughout the world, and sudden shifts in supply such as today's have an adverse effect on market prices. Natural gas, unlike petroleum, is often provided by long-term contracts with the supplies guaranteeing supply over a period of years at established prices.

Consequently, not only are British Londinian natural gas firms breaching their contractual obligations to their customers, they are feeding a slight rise in petrol prices, at least in the geographic regions nearest British Londinium, and by flooding the domestic market, creating a plummet in prices for the consumer. While the domestic profit losses could ordinarily be offset by the higher gains in exports, the isolationist policies of the government preclude any such balancing of the bottom line and serves only to hurt the profitability of British Londinian petroleum firms.

Additionally, the breach of long-term natural gas contracts tarnishes the reputation of British Londinian firms if not the government itself and will hamper efforts to lure foreign investment and end consumers. Most impacted will be the latter, for any rational consumer will at the least hedge against having British Londinian supplies cut off in the future by ordering a minimal amount. This is especially so given that such interruptions in supply rise from the reaction of Sir Davidson's government in reaction to his rash rule of the nation. With the government under Sir Davidson's continued control, rash decisions are likely to breed international condemnation and so will by chain reaction cause further such temper tantrums as that so ordered today.

Ultimately, with so many nations providing significant amounts of petroleum, the only state truly impacted by the cessation of petroleum and gas flow from British Londinian ports is British Londinium. While the immediate term may see shortfalls in petroleum imports by nations heavily dependent upon British Londinium, the excess capacity by many nations shall more than meet the demand in the medium-term. Long-term, only British Londinium will suffer. More so not because of the backwards-looking isolationism witnessed today, but because of the inept governance of Sir Davidson.

Ministry of State

We are exceptionally interested to hear what the Londinium government plans to do with the flood of oil entering their domestic market, and how they will be able to maintain their hard currency reserves as well as the health of their economy and the petroleum sector once they have cut off exports. Our consumers will have to pay more, of course, but we have long prepared for disruptions of this nature and any price rises will have negligible effect on our economy and our rate of inflation.

As purchasers, we eagerly await the flood of cheap oil and natural gas from your stockpiles once the negative economic effects set in. In addition, there will undoubtedly be other nations more than willing to fill the void in short order.

British Londinium cuts oil exports

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Clandonian tankers have now been charted to other countries following the latest incident

From the New Clanon City Times
Front Page of Business Section

British Londinium again cut oil supplies from its lucrative Black Gold Sea causing a minor destabilisation in Clandonian crude prices leading to a spike in nearly forty dollars a barrel. Prices fell in the late afternoon trading with Imperial Oil and Gas and Royal Clandonian Oil promising to reroute tankers to supplies in Doomingsland which already is supplying sixty percent of Clandonian oil after a government plan to increase trade following a multinational boycott.

Oil companies reassured investors and the public that the situation was under control and following meetings with the Minister for Energy there would be no shortage, this settled the markets and the price of oil had fallen back to thirty dollars a barrel. Oil contracts with British Londinium have been cancelled and companies are pulling staff out and ordering payments to stop following the latest volatility with companies looking for more stable routes. A spokesperson from Royal Clandonian Oil said "Doomingsland provided a stable supplier and the price was very acceptable and we look forward to working with our Doomani suppliers in the future". In the Commons during a late night hearing Ministers expressed their disgust, with one Junior Minister calling British Londinium a "Rogue nation on the path to self destruction". Times Chief Business correspondent David Lewick said the situation was likely to hit countries who are supplied in the short term but in the longer term there will be a decline in the economy of British Londinium as investors view it as a unstable place to conduct business and will likely seek other markets.

Internationally British Londinium despite being invaded twice by the Sovereign League allied block and later the NATO block has not changed its tune and with reports of war crimes conducted many question if the NATO heads of state are keeping a tight enough leash on the Londinium government.

Official Response

Consul Davidson,

I laugh in your general direction. If you think this is going to force anybody's hand, you're dead wrong. This action is quite cowardly of you, and we would think that if you keep ruling the government this way, perhaps the government needs to be changed.

Everyone,

Coincedentally, VISA is about to open to international trade. One of the tradeable resources is oil. Another is petroleum. Please contact us if you are interested.

~Kenworth L. Stevens
Director, Foreign Affairs

TO: British Londonium
FROM: The Commonwealth of the Crystal Mountains

RE: Oil Exports

_________________________________________________

As British Londonium came to our aid during our submarine crisis some years ago and we have cordial relations and deep cultural ties, we wish to repay your good turn.

We have need of petroleum products and would prefer to spend that capital with a friendly country. Please put us on your customer list and I'm sure that we can work out a contract whose terms are mutually beneficial to us both.

We look forward to doing business with you.

If we may be of assistance, please don't hesitate to contact our Ministry of State.

-snip-

Official Londinian Response

We appreciate your patronage, and we would be more than happy to add The Crystal Mountains to our customer list.

The United Socialist states of New Brittonia aims to be self sufficient in its oil reserves, by using only Brittonian oil, along with a mix of renewable energy sources. Actions like this only re-enforce our position.

The Imperial Empire of Maldorians finds this disturbing. Although we do not rely on their oil or natural gas, it is still shocking to see how messed up the government of British Londinium has become. It is a monster and must be stopped, for the sake of the international community.

-The Mandalore.

The Imperial Empire of Maldorians finds this disturbing. Although we do not rely on their oil or natural gas, it is still shocking to see how messed up the government of British Londinium has become. It is a monster and must be stopped, for the sake of the international community.

-The Mandalore.

A monster? The only people it seriously hurts are its own - if you want to go to war with British Londinium, stop dancing around the issues and have the balls to stand up yourself rather than hiding behind the facade of concern for the international community. You and I both know that you couldn't care less if other countries suffered the Londinian wrath.

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NATIONAL PEOPLE'S NEWS




"Greetings to you Comrades, I am Kara Troyka," The beautiful Wanderjarian blonde News Anchor said. "Today, British Londinium in addition to reinstating a totalitarian and pyschotic dictatorship, also cut off oil and natural gas sales to the world. The world's response: Nobody cares."

A monster? The only people it seriously hurts are its own - if you want to go to war with British Londinium, stop dancing around the issues and have the balls to stand up yourself rather than hiding behind the facade of concern for the international community. You and I both know that you couldn't care less if other countries suffered the Londinian wrath.

OOC: Was that IC or OOC. But yea, I really don't care.

Official Statement from TSRT Government
"The Totalitarian State must protest the recent cut-off from the nation of British Londinium petrol. The funds for this years 1.6 billion barrels of crude and refined oil imports will not be wired until the Londiniumians put us on their customer list.

After all, we are a completely neutral nation in this affair."
End Message

Red Tide is added.

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Official Message From Her Majesty's Government

After British Londinium stated that oil or natural gas have been cut off from the owrld two factorys were closed and two million people were fired from the jobs. Her Majesty's Government is currently asking when oil or natural gas are going to opened to the world again from British Londinium.

Signed,

Rt.Hon Tom Howard, Prime Minister of The United Kingdom

OOC: Was that IC or OOC. But yea, I really don't care.

[In character. Everything I do that's out of character is enclosed in these natty brackets.]