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‘Historic breakthrough’: Norway’s giant oil fund dives into renewables

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This story was originally published by the Guardian and is reproduced here as part of the Climate Desk collaboration.

Norway’s $1 trillion oil fund, the world’s largest sovereign wealth fund, is to plunge billions of dollars into wind and solar power projects. The decision follows Saudi Arabia’s oil fund selling off its last oil and gas assets.

Other national funds built up from oil profits are also thought to be ramping up their investments in renewables. The moves show that countries that got rich on fossil fuels are diversifying their investments and seeking future profits in the clean energy needed to combat climate change. Analysts say the investments are likely to power faster growth of green energy.

Norway’s government gave the go-ahead on Friday for its fund to invest in renewable energy projects that are not listed on stock markets. Unlisted projects make up more than two-thirds of the whole renewable infrastructure market, which is worth trillions of dollars.

Previously, it had warned that such investments could be at risk from political interference. But now the sum the fund can invest in green projects has been doubled to $14 billion. “Even a fund built on oil is seeing that the future is green,” said Jan Erik Saugestad, CEO of Storebrand Asset Management.

In March, Norway’s sovereign wealth fund said it would dispose of its investments in 134 companies that explore for oil and gas, worth almost $8 billion. But it is retaining stakes in oil firms such as Shell and BP that have renewable energy divisions.

Norway also announced on Friday that the fund would sell off its stakes in more coal companies, having set a new limit for them of 20 million tons of reserves. This may see its investments in giants Glencore and RWE dumped. The fund divested $6.5 billion of coal-related investments in 2015.

Across the world, almost 1,000 institutional investors, managing more than $6 trillion, have now committed to fossil fuel divestment, driven by concerns about global warming and financial losses if climate action cuts the value of coal, oil, and gas investments.

“Unlisted renewable energy is a growth industry,” said Tom Sanzillo at IEEFA. “Investments by Norway’s fund now allow it to take advantage of this growth and to use its resources to develop the market for decades. This is a strong step for the health of the fund and the planet.”

Sverre Thornes, CEO of Norwegian pension fund KLP, said: “This move will most likely expand the market further and faster. Our overall renewables infrastructure rate of return was around 11 percent last year. Clean energy is what will move us away from the dangerous and devastating pathway we are currently on.”

Per Kristian Sbertoli, at the Norwegian climate think tank Zero, said the decision on unlisted renewable infrastructure was a “historic breakthrough” and welcomed the further divestment from coal: “These actions by the world’s largest sovereign wealth fund are noticed and contribute to reducing the cost for renewables, whilst accelerating the global shift away from coal.”

Charlie Kronick, at Greenpeace U.K., said such moves were “genuinely good news” but that all investors would have to follow suit to beat climate change.

Saudi Arabia’s Public Investment Fund sold its last investment linked to oil and gas last week, with the sale of its $69 billion stake in Saudi Basic Industries Corporation to the nation’s oil company, Aramco.

Other Middle East oil funds are moving to diversify into renewable energy, according to Reuters, but are stopping short of following Norway in shedding oil and gas investments.

Individual sovereign wealth funds make little information public about their investments, but data on total private equity investments involving such funds suggests a strong shift from fossil fuels to renewables.

In 2018, $6.4 billion went into hydrocarbons, compared with $5.8 billion in renewable energy, according to the data firm PitchBook. In 2017, $18.8 billion went into fossil fuel investments, compared with just $0.4 billion into renewables.

Mark Lewis, at BNP Paribas Asset Management, said: “Renewables are the new rust for the oil-and-gas industry, and if the industry does not adapt to this new reality they will corrode its future profits just like rust corrodes oil rigs.”

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‘Historic breakthrough’: Norway’s giant oil fund dives into renewables

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Trump Sets New Bar for Presidential Success

Mother Jones

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By the way, Donald Trump is getting good marks for today’s speech in Saudi Arabia because he managed to recite it adequately off the teleprompter and didn’t veer off topic into any of the usual Trump idiocy.

Seriously. This is what the coverage is like. Apparently that’s all we expect from a president these days.1

One other note: I’m not sure how many people have noticed this, but Trump has a long history of talking big when he’s on a stage or on TV but backing down when he meets people face-to-face. It’s already happened with China, Japan, Mexico, Germany, and a host of others. Now it’s happening with Saudi Arabia, which seems to have Trump practically in thrall. This should come as no surprise to anyone.

1Of course, the last time this happened was Trump’s state-of-the-union address, and he managed to bollox that up within two days. I won’t be surprised if he does the same this time.

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Trump Sets New Bar for Presidential Success

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Here’s Why the Saudis Love Trump

Mother Jones

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Last year, President Obama offered Saudi Arabia an arms deal worth $115 billion. President Trump just closed a deal valued at only $110 billion. He’s also spoken viciously about Islam on the campaign trail and tried to ban the entry of visitors from seven Muslim countries. And yet the Saudis are thrilled to have Trump in office. Why? Molly Hennessy-Fiske explains:

The White House they see now is presided over by a strong leader — a model Gulf monarchs recognize from their own governing styles — and if Trump surrounds himself with business-friendly family members high in his administration, well, so do they.

….“The GCC countries are not only excited about Trump, but the people he’s chosen to have around him,” said Alibrahim, who dismissed Obama as “the worst president ever,” unwilling to confront Iran and its Shiite Muslim proxies in Syria and neighboring Yemen, whom the Sunni leaders of the Gulf see as rivals.

….“Trump is a welcome change from Barack Obama because he does not remind them, does not pressure them, about American values and ideas about human rights and democracy. This president is a hardcore realist: He just doesn’t care. This goes well with many leaders in this part of the world,” Gerges said.

Trump has already impressed Gulf Arab leaders by escalating the war against Islamic State militants in Iraq and Syria and supporting the Saudi fight against Houthi rebels in Yemen.

As far as Saudi Arabia is concerned, Trump’s anti-Muslim rabble-rousing is just red meat for the American rubes. They don’t take anything Trump says seriously, only what he does. And what’s clear is that (a) Trump’s personal brand of corruption is reassuringly Middle Eastern, (b) he hates Iran, (c) he’s not going to harass the Saudis over trivia like human rights, and (d) he doesn’t care how brutal they get in their war against the Houthi rebels in Yemen.

That’s it. That’s all they care about. Trump isn’t bringing in more business and he’s not selling them more arms. Nor is his actual policy toward Iran and Yemen more than a few degrees different from Obama’s. He’s just carrying it out with no strings attached. They like that.

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Here’s Why the Saudis Love Trump

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Saudis Suck Up to Trump With Shiny Gold Medal

Mother Jones

Look, I get that the Saudis want to ingratiate themselves with our gold-obsessed president. It makes total sense. But isn’t this just a little too obvious?

Meh. Maybe not. Anyone with any self-awareness would sense overtones of mockery in such an over-the-top attempt to suck up, but not Trump. Subtlety is not the way to his heart. It’s shiny! He likes it!

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Saudis Suck Up to Trump With Shiny Gold Medal

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Three Unfortunate Facts About Yemen

Mother Jones

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Six years ago I read a pair of articles about Yemen which predicted that its population would double by 2035; oil revenue would decline to zero by 2017; and the capital city of Sanaa would run out of water by 2015. Today I got curious: How are those forecasts panning out?

Population: On target. Yemen’s population has increased from 23.6 million to 27.5 million since 2010—an annual growth rate of 2.58 percent. If this continues, Yemen’s population will double by 2037.

Oil revenue: On target. Yemen is currently producing a meager 22,000 barrels of oil daily. In fairness, much of this is due not to pumping their fields literally dry, but to infrastructure destruction during the current civil war. They still have proven reserves of about 3 billion barrels, so production could rise again if the war ever ends.

Water: On target? Adela Jones of USC writes: “Already, Yemenis allocate up to 30% of their annual income towards water….As early as 2017, Sana’a may officially run out of water. Given consumption trends, the rest of the nation may follow.”

I remain fairly ignorant about Yemen, aside from the fact that it’s the site of a brutal proxy war between Saudi Arabia and Iran—in Saudi Arabia’s view, anyway—and we’ve been assisting the Saudis since it started. But Yemen’s future looks pretty bleak no matter who wins. What happens when they finally pump the last of the groundwater and there’s nothing left?

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Three Unfortunate Facts About Yemen

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Oil industry supporters are getting ever more creative with their memes

Bad Internet

Oil industry supporters are getting ever more creative with their memes

By on Jul 27, 2016 6:06 amShare

A Canadian advocate for oil sands recently learned just how fickle the internet can be.

Robbie Picard, a former Alberta oil sands worker, posted a homemade meme to the Canada Oil Sands Community Facebook page this week. It showed two women kissing, and read:

In Canada lesbians are considered hot! In Saudi Arabia if you’re a lesbian you die! Why are we getting our oil from countries that don’t think lesbians are hot?! Choose equality! Choose Canadian oil!

The backlash was swift. People from within the group and beyond did not hold back their anger, although the source of that anger varied. Some objected to the treatment of women as sex objects, others to lesbianism itself, and still others to the idea that Canadian tar sands oil is any better for the planet than importing oil from Saudi Arabia. (For the record, they’re both bad.)

Then, naturally, the backlash to the backlash started: “People who legitimately complained about it being offensive should be banned from Universities,” Charles Garand weighed in on the Facebook page. “I urge you to reupload the picture back to your page because I really do love it.”

The point of the meme, according to Picard, was to raise awareness about how imports from Saudi Arabia are hurting the local economy. This is not the first time Picard, who lost his home in the recent wildfires in Fort McMurray, has said something controversial about oil exaction.

In 2015, he claimed that “[t]he oil sands are the best thing that ever happened for aboriginal people.” The aboriginal people of Alberta, however, may disagree. In fact, Canada’s First Nations people have been on the front lines of working against tar sands oil extraction for years. But Picard certainly has a creative way of thinking.

“When I say lesbians are hot, I don’t think there is anything wrong about saying that,” he told the National Post. “I think all lesbians are hot and I’m not opposed to putting a picture of two guys up there. It was just to strike up a conversation. I find anybody is hot. I think two women kissing is hot. I think that something that is part of the fabric of our city — that we can do whatever we want in our country — that is hot.”

It certainly is, Mr. Picard.

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Oil industry supporters are getting ever more creative with their memes

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Read The 28 Declassified Pages About Potential Saudi Involvement In 9/11

Mother Jones

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The House Intelligence Committee has released 28 previously classified pages of a congressional investigation into the 9/11 attacks that detail the potential involvement of Saudi citizens and government officials.

People including former members of the investigation, called the Joint Inquiry Committee, and lawyers for victims of the 9/11 attacks, have pushed for the release of the pages for years. Intelligence and law enforcement agencies had long resisted on national security grounds.

The report (which contained some redactions), did not, as some critics suspected, implicate the Saudi government directly in the attacks. “Neither the CIA nor the FBI was able to definitely identify for these Committees the extend for terrorist activity globally or within the United States and the extent to which such support, if it exists, is intentional or innocent in nature,” the report reads.

But the report did detail intelligence that linked a handful of Saudi citizens to the hijackers. “While in the United States, some of the September 11 hijackers were in contact with, and received support or assistance from, individuals who may be connected to the Saudi Government,” the report said. “There is information, primarily from FBI sources, that at least two of these individuals were alleged by some to be Saudi intelligence officers.”

The FBI believed that one of the men, Omar al-Bayoumi, might have helped two of the 9/11 hijackers while they were living in San Diego. Bayoumi, who apparently co-signed a lease and paid the security deposit for the hijackers, had also worked for the Saudi government in the past. He was in frequent contact with senior Saudi officials, and was receiving large amounts of money from the Saudi government, according to the documents.

The report even mentioned a theory that Saudi intelligence may have had a direct line to Osama bin Laden through Bayoumi. “He acted like a Saudi intelligence officer, in my opinion,” one agent told the committee. “And if he was involved with the hijackers, which it looks like he was, if he signed leases, if he provided some sort of financing or payment of some sort, then I would say that there’s a clear possibility that there might be a connection between Saudi intelligence and Osama bin Laden.”

Another frightening passage described what seemed to be a dry run or information-gathering mission for the eventual hijackings. 1999, Saudi citizens Mohammed al-Qudhaeein and Hamdan al-Shalawi flew from Phoenix to Washington, DC to attend a party at the Saudi embassy. After the plane departed, they asked flight attendants suspicious technical questions about the flight. Qudhaeein twice attempted to enter the cockpit, and the plane made an emergency landing. The two men claimed the flight was paid for by the Saudi Embassy. The FBI investigated the incident and ultimately decided not to pursue a prosecution, but did uncover that both men had “connections to terrorism.”

Perhaps more damning were comments about the state of American intelligence on Saudi Arabia before the 9/11 attacks. “Prior to September 11th, the FBI apparently did not focus investigative resources on…Saudi nationals in the United States due to Saudi Arabia’s status as an American ‘ally,'” the report stated. For their part, the Saudis refused to give intelligence help to the United States without demanding sensitive information in return that could have damaged sources or intelligence collection. “According to some FBI personnel, this type of response is typical from the Saudis,” the report said. One FBI agent told the committee that “the Saudis have been useless and obstructionist for years.”

After the release of the pages on Friday, members of Congress cautioned that the document contained information and evidence that the commission had collected at the time, but no proven conclusions.

You can read all of the declassified pages here:

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Final-Inquiry-9-11 (PDF)

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Read The 28 Declassified Pages About Potential Saudi Involvement In 9/11

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A War Reporter’s Family is Suing the Assad Regime Over Her Death

Mother Jones

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As the Syrian government launched a scorched-earth siege of Homs in early 2012, the American war reporter Marie Colvin holed up in a clandestine media center inside the city, sending out live broadcasts on the attack’s heavy civilian casualties. “There are rockets, shells, tank shells, anti-aircraft being fired in parallel lines into the city,” she said in an interview with CNN’s Anderson Cooper in the pre-dawn hours of February 22, 2012. “It’s a complete and utter lie they’re only going after terrorists. The Syrian Army is simply shelling a city of cold, starving civilians.”

It was Colvin’s last call to CNN. Later that morning, the Syrian military fired directly at the makeshift media center. Using a targeting method called “bracketing,” rockets and mortars landed on each side of the center, the rounds inching closer until eventually, a rocket struck outside the front door as Colvin and her colleagues attempted to evacuate. Colvin and French photographer Rémi Ochlik were killed immediately, and shrapnel and debris severely injured the French reporter Edith Bouvier and Colvin’s colleagues, Paul Conroy and Wael al-Omar.

At the time, the Syrian Information Ministry said that the government was unaware that Colvin and Ochlik were in the country. However, a federal lawsuit filed over the weekend on behalf of Colvin’s family alleges that the Syrian government targeted the media center “with premeditation” to silence Colvin and other media critics of the regime of Bashar al-Assad. The civil complaint claims that Colvin was deliberately assassinated by high-ranking officials within the Assad government. “Marie Colvin was killed for exposing the Assad regime’s slaughter of innocent civilians to the world,” said attorney Scott Gilmore of the Center for Justice and Accountability, which is representing her family, in a statement. “The regime wanted to wage a war without witness against the democratic opposition. To do that, they needed to neutralize the media.”

The case, which is the result of a three-year investigation that draws on captured government documents and statements from defectors, seeks unspecified financial damages from the Syrian government. The suit alleges that Syrian intelligence officers got a tip that foreign reporters were staying at the media center in Homs and tried intercept Colvin’s broadcast satellite signal. After pinpointing her location, Syrian forces shelled her position with artillery strikes, the complaint states.

Colvin, who was 56 at the time of her death, had a reputation for courageousness while covering some the world’s most violent conflicts over the two decades that she reported for the London-based Sunday Times. She wore an eye patch after suffering an injury in an explosion while covering Sri Lanka’s civil war in 2001.

Her family’s suit is the first case yet that aims to hold the Assad regime responsible for war crimes. It was filed under the Foreign Sovereign Immunities Act, a relatively obscure federal law that allows Americans to sue nations that are designated as sponsors of terrorism. “It’s very hard to hold a foreign state accountable for war crimes,” says Dixon Osburn, the executive director of the Center for Justice and Accountability. But with the Colvin case, says Osburn, “we had the jurisdictional perfect storm of being able to have the plaintiff and defendant that both fit the statute.”

Previously, FSIA has been invoked against the Vatican in cases involving clergy sexual abuse. It also protected Saudi Arabia when families and victims of the 9/11 attacks filed a lawsuit alleging that Saudi leaders had financed Al Qaeda. In 1980, plaintiffs used FSIA to successfully sue the government of Chile for the assassination of its former ambassador to the United States, and in 1992, the act was cited in a torture suit against Argentina.

“The Colvin family recognizes that they’re in a unique position to bring this lawsuit, and there are so many others who have lost sons and daughters who don’t have the same kind of opportunity,” says Osburn. “The hope is to provide some voice about what’s happening in Syria, about what happened at the siege of Homs, and to shed light on the atrocities that have been committed.”

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A War Reporter’s Family is Suing the Assad Regime Over Her Death

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Why Do We Put Up With Saudi Arabia? Maybe We Don’t Have Much of a Choice.

Mother Jones

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Responding to reports that Pakistan’s intelligence service funded a deadly 2009 Taliban attack on a CIA outpost in Afghanistan, National Review’s David French says we should release the secret 28 pages of the 9/11 report that describe possible Saudi involvement:

We’ve long known that our “alliance” with Saudi Arabia has put us in bed with the devil. It’s time for us to find out how evil that devil truly is.

….I recognize that the needs of war sometimes require our nation to ally itself with dangerous regimes (see World War II for the most salient example), but there is still a difference between a shaky or temporary ally and an actual enemy — a nation that is trying to undermine American interests and kill Americans. In other words, there is a line, and it is worth asking (and re-asking) if Pakistan and Saudi Arabia are on the right side.

This is one of those remarkable issues that unites far right, centrists, squishy left, and far left. We all think pretty poorly of Saudi Arabia, and we’d all like to know what’s in those 28 pages. The fact that no one in the federal government wants to oblige us just adds to our conviction that these pages contain something pretty damning.

Still, this raises a difficult question, especially for conservatives: who do you want the US to ally with in the Muslim world? The basic power blocs in the Middle East are the Sunni gulf states led by Saudi Arabia and the Shiite bloc led by Iran. Obviously Iran is out. So does this mean conservatives want to dispense with allies altogether? Give lots of arms to Israel but otherwise just pull out of the Middle East altogether? Launch periodic wars against whoever happens to be the greatest perceived threat at any given time?

My loathing of Saudi Arabia is pretty boundless on all sorts of levels: religious liberty, treatment of women, encouragement of Wahhabi intolerance throughout the Muslim world, geopolitical treachery, general tribal assholishness, human rights in general, and plenty of other things I’ve probably forgotten. At the same time, Iran is hardly a sterling citizen. They lack some of Saudi Arabia’s vices, but make up for it with others (less proselytization, more export of terrorism). And at least Saudi Arabia cooperates with us some of the time. Iran wants nothing to do with us.

This is all pretty obvious, but I guess it’s why I go off on rants about Saudi Arabia only occasionally. It’s easy to do for someone like me, who has no influence over anything. But if I were president, and I had to choose from a steaming pile of seriously ugly choices—with American interests, American lives, Mideast stability, and the threat of global terrorist surges all on the line? Well, I might look at everything, hold my nose, and play nice with the Saudis. I don’t know. But that’s apparently the choice that President Obama made, even though it’s pretty clear he didn’t like it much.

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Why Do We Put Up With Saudi Arabia? Maybe We Don’t Have Much of a Choice.

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Why World Leaders Are Terrified of Water Shortages

Mother Jones

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This story was originally published by Reveal from the Center for Investigative Reporting and is reproduced here as part of the Climate Desk collaboration. Subscribe to the podcast and learn more at revealnews.org.

Secret conversations between American diplomats show how a growing water crisis in the Middle East destabilized the region, helping spark civil wars in Syria and Yemen, and how those water shortages are spreading to the United States.

Classified US cables reviewed by Reveal from the Center for Investigative Reporting show a mounting concern by global political and business leaders that water shortages could spark unrest across the world, with dire consequences.

Many of the cables read like diary entries from an apocalyptic sci-fi novel.

“Water shortages have led desperate people to take desperate measures with equally desperate consequences,” according to a 2009 cable sent by US Ambassador Stephen Seche in Yemen as water riots erupted across the country.

On September 22 of that year, Seche sent a stark message to the US State Department in Washington relaying the details of a conversation with Yemen’s minister of water, who “described Yemen’s water shortage as the ‘biggest threat to social stability in the near future.’ He noted that 70 percent of unofficial roadblocks stood up by angry citizens are due to water shortages, which are increasingly a cause of violent conflict.”

Seche soon cabled again, stating that 14 of the country’s 16 aquifers had run dry. At the time, Yemen wasn’t getting much news coverage, and there was little public mention that the country’s groundwater was running out.

These communications, along with similar cables sent from Syria, now seem eerily prescient, given the violent meltdowns in both countries that resulted in a flood of refugees to Europe.

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Groundwater, which comes from deeply buried aquifers, supplies the bulk of freshwater in many regions, including Syria, Yemen and drought-plagued California. It is essential for agricultural production, especially in arid regions with little rainwater. When wells run dry, farmers are forced to fallow fields, and some people get hungry, thirsty and often very angry.

The classified diplomatic cables, made public years ago by Wikileaks, now are providing fresh perspective on how water shortages have helped push Syria and Yemen into civil war, and prompted the king of neighboring Saudi Arabia to direct his country’s food companies to scour the globe for farmland. Since then, concerns about the world’s freshwater supplies have only accelerated.

It’s not just government officials who are worried. In 2009, US Embassy officers visited Nestle’s headquarters in Switzerland, where company executives, who run the world’s largest food company and are dependent on freshwater to grow ingredients, provided a grim outlook of the coming years. An embassy official cabled Washington with the subject line, “Tour D’Horizon with Nestle: Forget the Global Financial Crisis, the World Is Running Out of Fresh Water.”

“Nestle thinks one-third of the world’s population will be affected by fresh water scarcity by 2025, with the situation only becoming more dire thereafter and potentially catastrophic by 2050,” according to a March 24, 2009, cable. “Problems will be severest in the Middle East, northern India, northern China, and the western United States.”

At the time of that meeting, government officials from Syria and Yemen already had started warning US officials that their countries were slipping into chaos as a result of water scarcity.

A confidential 2009 cable from Stephen Seche, the Unites States’ ambassador to Yemen, raised alarms about water scarcity. Wikileaks

By September 2009, Yemen’s water minister told the US ambassador that the water riots in his country were a “sign of the future” and predicted “that conflict between urban and rural areas over water will lead to violence,” according to the cables.

Less than two years later, rural tribesmen fought their way into Yemen’s capital, Sanaa, and seized two buildings: the headquarters of the ruling General People’s Congress and the main offices of the water utility. The president was forced to resign, and a new government was formed. But water issues continued to amplify long-simmering tensions between various religious groups and tribesmen, which eventually led to a full-fledged civil war.

Reveal reviewed a cache of water-related documents that included Yemen, Nestle and Saudi Arabia among the diplomatic documents made public by Wikileaks in 2010. Thomas Friedman, a columnist for the New York Times, found similar classified US cables sent from Syria. Those cables also describe how water scarcity destabilized the country and helped spark a war that has sent more than 1 million refugees fleeing into Europe, a connection Friedman has continued to report.

The water-fueled conflicts in the Middle East paint a dark picture of a future that many governments now worry could spread around the world as freshwater supplies become increasingly scarce. The CIA, the State Department and similar agencies in other countries are monitoring the situation.

In the past, global grain shortages have led to rapidly increasing food prices, which analysts have attributed to sparking the Arab Spring revolution in several countries, and in 2008 pushed about 150 million people into poverty, according to the World Bank.

Water scarcity increasingly is driven by three major factors: Global warming is forecast to create more severe droughts around the world. Meat consumption, which requires significantly more water than a vegetarian or low-meat diet, is spiking as a growing middle class in countries such as China and India can afford to eat more pork, chicken and beef. And the world’s population continues to grow, with an expected 2 billion more stomachs to feed by 2050.

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The most troubling signs of the looming threat first appeared in the Middle East, where wells started running dry nearly 15 years ago. Having drained down their own water supplies, food companies from Saudi Arabia and elsewhere began searching overseas.

In Saudi Arabia, the push to scour the globe for water came from the top. King Abdullah decreed that grains such as wheat and hay would need to be imported to conserve what was left of the country’s groundwater. All wheat production in Saudi Arabia will cease this year, and other water-intensive crops such as hay are being phased out, too, the king ruled.

A classified US cable from Saudi Arabia in 2008 shows that King Abdullah directed Saudi food companies to search overseas for farmland with access to freshwater and promised to subsidize their operations. The head of the US Embassy in Riyadh concluded that the king’s goal was “maintaining political stability in the Kingdom.”

US intelligence sources are quick to caution that while water shortages played a significant factor in the dissolution of Syria and Yemen, the civil wars ultimately occurred as a result of weak governance, high unemployment, religious differences and the wars in Iraq and Afghanistan, in addition to water shortages.

For instance, the state of California has endured a record drought without suffering an armed coup to overthrow Gov. Jerry Brown.

But for less stable governments, severe water shortages are increasingly expected to cause political instability, according to the US intelligence community.

In a 2014 speech, US Director of National Intelligence James Clapper said food and water scarcity are contributing to the “most diverse array of threats and challenges as I’ve seen in my 50-plus years in the intel business.

“As time goes on, we’ll be confronting issues I call ‘basics’ resources—food, water, energy, and disease—more and more as an intelligence community,” he said.

A confidential 2008 cable from a US diplomat in Saudi Arabia Wikileaks

These problems are not just happening overseas, but already are leading to heated political issues in the United States. In the western part of the country, which Nestle forecast will suffer severe long-term shortages, tensions are heating up as Middle Eastern companies arrive to tap dwindling water supplies in California and Arizona.

Almarai, which is Saudi Arabia’s largest dairy company and has publicly said it’s following the king’s directive, began pumping up billions of gallons of water in the Arizona desert in 2014 to grow hay that it exports back to the Middle East. Analysts refer to this as exporting “virtual water.” It is more cost effective to use the Arizona water to irrigate land in America and ship the hay to Saudi Arabia rather than filling a fleet of oil tankers with the water.

Arizonans living near Almarai’s hay operation say their groundwater is dropping fast as the Saudis and other foreign companies increase production. They are now worried their domestic wells might suffer the same fate as those in Syria and Yemen.

In January, more than 300 people packed into a community center in rural La Paz County to listen to the head of the state’s water department discuss how long their desert aquifer would last.

Five sheriff’s deputies stood guard at the event to ensure the meeting remained civil—the Arizona Department of Water Resources had requested extra law enforcement, according to county Supervisor Holly Irwin.

“Water can be a very angry issue,” she said. “With people’s wells drying up, it becomes very personal.”

Thomas Buschatzke, Arizona’s water director, defended the Saudi farm, saying it provides jobs and increases tax revenue. He added that “Arizona is part of the global economy; our agricultural industry generates billions of dollars annually to our state’s economy.”

But state officials admit they don’t know how long the area’s water will last, given the increased water pumping, and announced plans to study it.

“It’s gotten very emotional,” Irwin said. “When you see them drilling all over the place, I need to protect the little people.”

By buying land in America’s most productive ground for growing hay, which just happens to be a desert, Saudi Arabia’s largest dairy company now can grow food for its cows back home—all year long. US Geological Survey/NASA Landsat

After the meeting, the state approved another two new wells for the Saudi company, each capable of pumping more than a billion gallons of water a year.

Back in Yemen in 2009, US Ambassador Seche described how as aquifers were drained, and groundwater levels dropped lower, rich landowners drilled deeper and deeper wells. But everyday citizens did not have the money to dig deeper, and as their wells ran dry, they were forced to leave their land and livelihoods behind.

“The effects of water scarcity will leave the rich and powerful largely unaffected,” Seche wrote in the classified 2009 cable. “These examples illustrate how the rich always have a creative way of getting water, which not only is unavailable to the poor, but also cuts into the unreplenishable resources.”

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Why World Leaders Are Terrified of Water Shortages

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