Posted on 03/01/2022 12:27:37 PM PST by Hojczyk
According to David Frum of The Atlantic and author of Trumpocalypse: Restoring American Democracy (2020), Russia's Ukraine invasion has been greatly aided by high energy prices, especially natural gas, in the ongoing energy boom. Frum notes that the price of Russian gas on spot markets surpassed $10 per million metric BTUs in June 2021 before tripling to the current $30 per million metric BTUs. The sharp rise in energy prices has helped Russia's foreign exchange reserves hit $630 billion, or 42% of the country's $1.5 trillion GDP.
With those massive financial resources, Russia could inflict real havoc on world energy markets if it chooses to, with the natural gas markets likely to be the hardest hit because gas is harder to substitute. In theory, Russian pipeline gas could be partly replaced by liquid natural gas from the United States, Qatar, or other suppliers; unfortunately, ramping up LNG production and shipment is very difficult to do in a hurry.
According to Kateryna Filippenko, principal analyst for Europe gas research at Wood Mackenzie, "Were all gas flows to stop today, Europe could well muddle through in the short term, given higher storage inventories and low summer demand. But in the event of prolonged disruption, gas inventory couldn't be rebuilt through the summer. We'd be facing a catastrophic situation of gas storage being close to zero for next winter. Prices would be sky high. Industries would need to shut down. Inflation would spiral. The European energy crisis could very well trigger a global recession."
(Excerpt) Read more at oilprice.com ...
BTTT
A tool in their arsenal thanks to Biden’s energy policies.
The West has been writing checks they can’t cash.
Russia has the combined financial resources of Elon Musk and Bill Gates combined!
Seems Putin knows how to play Poker.😂
are those reserves in dollar or rubles? because if they are in Rubles they are worthless now.
I'd say that would be serious, so much for Putin and his allies being nice guys.
Why did Jao Bai-din shut down the U.S. - Canadian pipeline?
The West’s feckless and venal “leaders” think that everyone has a price and will sellout their own countries for a few pieces of silver.... like them.
I guess europeans can burn all those extra euros to heat their homes.
What next, reliance on 100% wind, and windmills made in China?
This is on FRUM and other Never Trumpers. They knew by helping defeat Trump they were putting people into power that would war against US oil and gas production.
biden’s energy policy amounts to unilateral disarmament
remember those kooks
now it is national policy
Energy markets are almost enitrely transacted in dollars. Russia has over $1 trillion in foreign currency holdings and very little debt. Russia has over teice the foreign currency reserves per capita as China and over 14 times the gold per capita. But the U.S. has over 20 times the government debt per capita as Russia.
Russia needs the money so they will not cut off gas flows to Germany and Europe. But I hope they do. This will make Europeans come their senses and dump their greenie agenda of solar farms and windmills making enough energy for a modern economy. Give Western Europe one freezing winter without Russian natural gas. And the greenies and their bllcrap “climate change” are finished.
UK has very good fracking areas in Yorkshire and NE England for natural gas. But Greenies block fracking. Only spoiled feminized fools in modern nations have the luxury to buy into WEF climate change lies and fantasies
If Biden stopped blocking oil and gas drilling here, we could supply LNG to Europe. We need to build the export terminals too.
Well, of Putin does that, we’ll take him to the World Court.
Russia is building an oil pipeline to China, also has contracts for wheat and coal. They’ll be fine.
Ooooh, he's so scared.
Just the other day the one ruble was .012 US dollars. Today it’s .0090. If .0090 equates to 630 billion, at .012 it was 840 billion. A 210 billion loss just on the value of the ruble in a few days.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.