Posted on 07/03/2002 10:26:58 AM PDT by Texaggie79
Right on the eve of Independence Day, a rather unexpected event has occured: Russian companies started direct oil supplies to the USA. Very few people believed that it would happen indeed.
Beginning of the oil supplies is very important from both political and economic points of view. First, Washington demonstrates its interest in a close partnership with Russia not only fixed in documents, but in practice first of all. Russia’s Astro Lupus oil tanker will be met by US Deputy Energy Minister Michael Smith and US Congress members Nicolas Lampson and Ken Bentsen. This fact demonstrates the importance of the deliveries.
It is no secret that the USA wants to reduce the dependence of the US economy on oil import from Mideast countries. Russian oil is an alternative in this case. As of now, it is difficult to say to what extent the oil deliveries will be economically justified. The matter of the fact is that the first tanker with Russian oil has covered a rather long way: originally, the oil was loaded onto the tanker in the port of Novorossiisk, then by the Black, Aegean, and Mediterranean seas, it was delivered to Houston. On the other hand, the route from the Persian Gulf is also rather long.
President of YUKOS, a Russian company that performs oil deliveries to the USA, Mikhail Khodorkovsky announced recently the intention to make oil supplies economically rational, one barrel of Russian oil is to cost $25 at least. It is to be taken into consideration that Russian oil is of a lower quality than the Mideast oil. And, consequently, its price on the world markets is much lower than $25.
On the other hand, if the project continues, Mideast countries will have no opportunity to threaten the USA with the cessation of oil supplies. Therefore, Washington is getting more chances for therealization of its Mideast policy, and the USA appreciates this fact very much.
The beginning of the oil supplies is also very important for Russia’s economy as well. If they become regular, Moscow can look at OPEC from a considerable distance. OPEC, as is known, is not remarkable for its unity of opinions; the increase of quotas for oil sales has been discussed for several months already.
And what is more, unlike the Middle East, Russia has no reason to blackmail the USA with cessation of oil supplies, and no reasons are likely to appear in the future.
On the whole, time will tell to what extent the project turns out to be economically justified. This is just the first shipment of oil from Russia.
Vasily Bubnov
PRAVDA.Ru
Pournelle?
I read recently that only 15-16% of our oil comes from the middle-east these days.
Kristol & Kagan: The Bush Doctrine Unfolds
I had to drop the s on "Unfolds" because the system only accepts 20 characters!
It hasn't been all that active but it has a nice collection of posts!
True, I agree with you... but there is that 30 - 50% of people walking about in a daze that will hear the spin and buy it. FoxNews is great, but they can't undo the damage that the Rathers/Jennings(bootboy)/Perkys can do in one segment of Network Coverage.
It seems to me that for the time being US and Russian interests coincide to some degree. To what degree, and for how long, remains to be seen. Perhaps I am just an unregenerate cynic, but I do believe the Bear bears watching.
So if Ivan is selling oil to us, it will be much less trouble to sell it to the EU, which does not involve a long sea route. If this happens the results will be interesting. At the moment, as has been pointed out, the EU gets most of their oil from the Middle East. It seem to me, therefore, that to a great extent OPEC/Arabia has them by the b@lls, consequently their hearts and minds readily follow. Where will they turn, I wonder, should that grip relax?
I don't see that as a long term negative to preserve our domestic oil. With proven reserves of liquid oil of about 40 years, Oil in the ground in year 2050 will be worth a hell of alot more than it is today.
Maybe nuc power and wind and solar power will reduce dependency on fossil fuel, but its still going to be tough to fly a plane with a long extension cord.
Puh-LEEEEZE!! I'm no Rose-ColoredGlassesWearer, but our improving relationship with Russia is only to be expected, and applauded, IMHO.
"It seems to me that for the time being US and Russian interests coincide to some degree. To what degree, and for how long, remains to be seen. Perhaps I am just an unregenerate cynic, but I do believe the Bear bears watching.
LOL...who stopped watchin' the Bear?!
"So if Ivan is selling oil to us, it will be much less trouble to sell it to the EU, which does not involve a long sea route. If this happens the results will be interesting. At the moment, as has been pointed out, the EU gets most of their oil from the Middle East. It seem to me, therefore, that to a great extent OPEC/Arabia has them by the b@lls, consequently their hearts and minds readily follow. Where will they turn, I wonder, should that grip relax?"
That grip shan't relax, my Newbie FRiend...MUD
Wouldn't this be cool? There's only about 8 miles between the Diomedes. Of course, getting it to that point would probably be the hard part...although...They built the Trans-Alaska pipeline in about 4 years: 800 miles of some of the roughest terrain in the hemisphere. I think it could be done. And it would boost the Russian economy like crazy. When we lived in Valdez during the construction of the TAP, there was SO MUCH MONEY being made it was ridiculous. The town went from 700 to 11,000 overnight. It had more banks per capita than any town in the US. Those construction stiffs and welders would come into a bank, cash a check for 7 12-hour shifts at about $35 per hour, and send all of it but about $100 to their families "Outside." Made the Alaskans mad, but it sure boosted the national economy for a while...
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