Posted on 03/16/2022 3:49:51 PM PDT by lightman
Weaknesses of the Biden administration’s energy policies became one of the decisive factors that prompted Russian President Vladimir Putin to invade Ukraine, said Rick Santorum, a former U.S. senator from Pennsylvania.
War needs to be financed, and Russia relies on the revenue from the energy sector to fund its military and continue to feed its people, Santorum said in a March 11 interview for EpochTV’s “Crossroads” program.
Since oil prices increased from about $60 to $65 per barrel a year ago to about $130 per barrel recently, Russia “can sell half as much oil and still make as much money as [it] made a year ago, but [it’s] gonna sell a lot more than half as much,” Santorum explained.
The combination of President Joe Biden shutting down American production of oil and gas, such as the Keystone XL pipeline, and Europe becoming more dependent on Russian energy due to “greenlighting Nord Stream 2,” as well as “China with its having Russia’s back as a purchaser of oil,” has set up a perfect situation for Russia, Santorum said.
The oil and gas industry accounts for one-fifth of Russia’s gross domestic product and makes up about 60 percent of the country’s exports, according to Inside Climate News.
A World Bank report said that the portion of Russia’s federal budget revenue from oil and gas increased by 60 percent during the first nine months of 2021.
At the end of 2021, Russia’s sales of oil and natural gas far exceeded initial forecasts for 2021 as a result of skyrocketing prices, and it made up 36 percent of the country’s total budget, Reuters reported.
After Biden announced on March 8 that the United States would ban imports of Russian oil due to the invasion of Ukraine, the crude oil price in Europe hit a high of $132 per barrel, and in the United States, the price hit a high of $123 per barrel, Chadwick Hagan, a financier and entrepreneur, wrote for The Epoch Times.
The policy to not buy Russian oil–although it makes some sense, Santorum said–is not going to have a big impact on Russia’s ability to sell oil if most of the European countries and the rest of the world continue to buy it, he said.
“The thing that will stand up to the Russians is to reduce the price of oil. And the way you reduce the price of oil is producing more oil,” Santorum said.
“We can get a lot of production online very, very quickly. But the administration sent the message to the oil companies, which is, ‘We don’t want you doing this, we don’t want you doing this on federal land. … We’re gonna make it hard for you. We’re gonna make it expensive for you.'”
Oil-producing companies have no trust in the government’s intentions and are reluctant to produce more oil, fearing that the policy may change in six months because of the Green New Deal, Santorum said.
Brandon financed it.
“Weaknesses of the Biden administration’s energy policies became one of the decisive factors that prompted Russian President Vladimir Putin to invade Ukraine, said Rick Santorum, a former U.S. senator from Pennsylvania.”
Sorry Rick, you’re wrong, we now blame ONLY Putin for this war and for that we want to start WW3. (/sarc)
I might hate Putin, his cronies, and those who support him as much as any Ukrainian (or any decent person who is not a useful idiot), but this much is true, Brandon sure as hell made this fiasco much more likely (well, his handlers), and I bet we don’t know the half of it. An idiotic energy policy, utterly inept foreign policy designed and run by anti-American dolts, and senile prevarication are *not* things you want in your government when it is facing down a ruthless monster bent on reassembling the Evil Empire.
“And the way you reduce the price of oil is producing more oil,” Santorum said. “
That 1/2 of the puzzle Rick. Reagan attacked the Soviet Union with a two pronged attack. Pump more oil and strengthen the dollar. Baker took care of the dollar strength and the Saudis took care of the oil pumping. By 1984/85 the price of oil had dropped to $10/barrel, gutting the Sovets cash flow and income stream.
Is it fair to say the Democrat Party and Environmental groups ATTACKED UKRAINE
“oil prices increased from about $60 to $65 per barrel a year ago to about $130 per barrel recently,”
If I remember correctly, $100+ oil started with Putin’s invasion. Yesterday I heard it was below $100 again. Didn’t help that Saudi Arabia for it’s own reasons has refused to pump more oil. While I certainly enjoyed Trump years low gas prices, at a certain low oil price, expensive patches like N. Dakota and Canada stop or slow pumping and new drilling or opening sites. Remember when Cushing was full and oil was being stored in ships. With recent high oil prices they are probably opening up again with production. Yesterday a friend repored with glee that his natural gas stocks have recently doubled. Biden is shipping liquid natural gas to Europe to help with the shortage from Putin. Good for our surplus supply of LNG. Fuel markets are more complex than many realize. So, stop your anti US pro Putin propagand Mr. Newbie (9/9/21).
I’m always hoping for baby bear’s porridge. Oil prices too low and it hurts US companies. Too high and it hurts consumers. For me, the porridge price is roughly about $60.
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