The 'under currents' to the potential for troubles to the USA, begins with opposition by countries seeking control over the issues in Gaza in inappropriate measures as if 'boycotting' American industries. That to me seems an extreme, especially for Kuwait, but in some ways this is an example of a bigger issue resulting from the "W"rongful invasion of Iraq.
Basically, the Middle East and Arab nations are tired of having Western entities in the region. When the destruction of al Qaeda was abandoned for the war in Iraq (Saddam to many was considered a brother regardless of how The West viewed him.) the burden of 'maintaining the peace' in these countries was placed directly on the soveriegn leadership. Not an easy job and certainly one that even threatens their lives.
The USA will suffer economically and militarily, including National Security if these countries do not get relief from the terrorist elements that continue to plague them. They will have to be assured by Obama that there is relief coming and there will be an end to al Qaeda and 'the influence' that taints civilization when it comes to groups such as Hamas.
Standing by Israel is important, but, it is also important to put an end to 'the terrorist influence' that allows 'elements' to survive and continue to reek havoc with sovereign authority.
The larger picture has to include a Palestine without violence that recognizes Israel and seeks peace through economic strategies and negotiations. I still see Jerusalem as an International City. Iran also plays into this and has to stop emulating violence against Israel and The West as a strategy for their own National Security.
Worse Case Scenario and I sincerely believe this is not the case, is that The Arab League is seeking control over The West's alliance with Israel due to the Gaza Conflict and will move against the forces of the USA in Iraq as well as any Israeli forces in Gaza. Ultimately. The West might be looking at Arab alliances with Russia to engage in a larger conflict to remove The West from the region and secure its coveting of their natural resources away from any possibility now or in the future.
Best case scenario : Kuwait has better ideas and better offers it is considering.
Dow Chemical to pursue legal options on Kuwait deal - Update 1 (click title to entry - thank you)
1/6/2009 7:47 AM ET
...The Midland, Michigan-based company last month was informed by its partners at the Kuwait Petroleum Corporation, or KPC, and Petrochemicals Industries Company, or PIC, about a decision made by the Kuwait Supreme Petroleum Council, to scrap the agreement between Dow and PIC to form K-Dow Petrochemicals, a 50-50 joint venture company valued at $17 billion....
A little history:
Kuwait to Pay Dow $9.5 Billion in Plastics Venture (Update7) (click here)
By Jack Kaskey
Dec. 13 (Bloomberg) -- Kuwait agreed to buy 50 percent of Dow Chemical Co.'s commodity-plastics unit for $9.5 billion, the biggest overseas investment by a Kuwaiti company.
Dow, the largest U.S. chemical maker, rose the most in five years in New York trading after announcing it will form a joint venture with Safat, Kuwait-based Petrochemical Industries Co. Dow generated 22 percent of sales last year from the unit, Midland, Michigan-based Dow said today in a statement.
Persian Gulf states, flush with oil revenue, have doubled their overseas investments to a record $74.5 billion this year, including today's deal, Bloomberg data show. Dow Chief Executive Officer Andrew Liveris said the venture will provide the world's largest plastics business with cheaper raw materials. Dow plans to use the cash to buy specialty-chemical assets.
``It's a decent deal,'' Steve Hoedt, an analyst who helps manage $34 billion in private investments at National City Corp., including 2.4 million Dow Chemical shares, said today in a phone interview....
Result of Kuwait's Decision goes beyond Dow Chemical as it generally diseffects the industry:
CHEMICAL GIANT NEARS CHAPTER 11 (click here)
Bankruptcy's effect on Houston operations of LyondellBasell unclear
By BRETT CLANTON Copyright 2009 Houston Chronicle
Jan. 6, 2009, 6:49AM
...A tough year
The filing would come after a difficult year for the chemical industry. In 2008, record oil and natural gas costs ate into profits, credit markets tightened and a global recession gutted demand for everything from auto parts to building supplies — all heavy users of plastics, nylons and other products derived from chemicals.
Dow, BASF, DuPont and other major chemical producers have responded by slashing production at plants worldwide and cutting thousands of full-time jobs and contractor positions.
In November, LyondellBasell announced plans to cut 15 percent of its global workforce of 16,000 employees and reduce output at factories worldwide, including sites on the Gulf Coast. But in bankruptcy, the company may be forced to go further....
Financial crunch has limited effect on Equate -- Qattan (click here)
..."Kuwait National Petroleum Company supplies us with gas under long-term contracts, so the company was able to avert the impact of the fluctuating prices of oil," Al-Qattan explained.
Global industrial standardization agencies gave Equate an advanced rating in recognition of its performance in all activities, he pointed out.
Equate started operating its major project dubbed EQUATE 2 which aims to double the output of the company and add new products to the market.
The construction works of the project started in 2004 at a total cost of USD 2.5 billion contributed by several local, regional, and global partners and banks.
The project produces basic ingredients for producing nylon such as polyethylene and polypropylene, and ethylene glycol which is a key ingredient in the production of polyester and nylon as well as plastic industries in general.
The production capacity of the project amounts to 2 million tons a year, Al-Qattan disclosed.
The company's ethylene glycol unit, one of the world's leading producers of this material, has become operational last August.
The unit will add 600,000 tons to the current 550,000-ton output of the company, he revealed, noting that the unit passed all necessary technical tests.
A new ethylene producing unit has also become operational with a total capacity of 850,000 tons a year. The production capacity of the unit can be expanded further to one million tons....
