In a dramatic stroke of luck for the Kremlin, this morning there is hardly a person in the world who is happier than Russian president Vladimir Putin because overnight state-run run OAO Rosneft announced it has discovered what may be a treasure trove of black oil, one which could boost Russia’s coffers by hundreds of billions if not more, when a vast pool of crude was discovered in the Kara Sea region of the Arctic Ocean, showing the region has the potential to become one of the world’s most important crude-producing areas, arguably bigger than the Gulf Of Mexico.” – Zero Hedge
Imagine that. So surprised. Who would have guessed there was oil under the Arctic. Oh, so maybe that’s why they re-established that abandoned military base up there. Yawn. Duh.
Next up… continued world divisions and moves away from Petrodollar. Got seat belts?
I’m relieved that the natural gas conflit is being resolved. But now that Europe and the markets have had a taste of the danger so much reliance on Russian gas brings… it looks like the Russians are going to be the ones paying. The market value of gas recently dropped and Europe is looking for alternative energy sources. It’s an interesting lesson… if you hold a trump card… sometimes it’s wiser to hold it and not play it… at least if you want to win the game… and not just one hand. Here’s the article that triggered that comment.
The pressure has just been turned up to get off Russian natural gas and find alternative sources of energy. I’m sure everyone in Europe has seen the light now. Those of us in North America should take heed and take a look at our own dangerously reliant position on foreign energy too. It seems far to dangerous to be so dependent on outside fuel. It seems like this should be our number one national security focus. Can you imagine the additional effect on our fragile economy if fossil fuel supplies were cut? Here’s a news story on the latest development in Europe and how they are moving to other energy sources.
I was amazed to see this in the news this morning… “Gas emergency declared across Europe.” Does Russia think turning off the gas supply to Europe is going to help get the folks in the Ukraine to pay their bills? Sounds like it… but is it worth some people in Europe freezing to death!? The three big take-aways for me on this are:
- Russia is taking a very aggressive posture with the rest of the world which just seems incredibly dangerous, and…
- This another example of how the economic trouble is going to escalate real trouble, and…
- Each of us should take this moment to remember that foreign dependence on anything as critical as fuel to heat your home is a very bad position to be in. Unfortunately we’re all in the same boat. My heart goes out to those in the cold in Europe right now. I hope this gets resolved as quickly as possible.
I don’t know about you… but I’m thinking about getitng ready to hang on tight. I think we’re really in for a bumpy ride.