Tag Archives: energy

Weakness

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Russia is continuing to withhold a free flow of natural gas to the EU, holding the flow down in order to elevate prices inflicted on the EU’s citizenry and to restrain Europe’s industrial capacity.

Gas prices have soared in Europe in recent months due to low inventories and a recovery in demand as the economy rebounds from the pandemic. The price surge has taken a toll on energy-intensive industrial activity while consumers face a steep rise in energy bills as the winter heating season begins.

Those prices are five times the level of just a year ago—before Biden surrendered to Putin on the Russia-sponsored hacker shutdown of Colonial Pipeline by unblocking the finishing of Russia’s Nordstream 2, which unblock also was in furtherance of Merkel’s demand for Russian natural gas via that cross-Baltic Sea pipeline.

Officials and analysts say that Moscow is using Europe’s energy crunch to gain geopolitical leverage.

Well, of course Putin is. He’s not an idiot.

And

In another sign that Russia isn’t about to significantly boost supplies to Europe, Ukraine’s gas transmission system said Sunday that it hasn’t received any additional requests from Gazprom and the gas transit remained below capacity.

This is the outcome of outgoing German Chancellor Angela Merkel’s and newly arrived American President Joe Biden’s (D) enthusiastically pursued energy policies coupled with Biden’s overt timidity in front of Putin. First, demonstrate Europe’s weakness. Only after that, exploit that weakness.

It stretches credulity beyond breaking to believe two such heavily intelligent people didn’t anticipate this.

Biden’s Attack on Our Oil and Gas Industry

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President Joe Biden’s (D) and his Progressive-Democratic Party syndicate’s hatred of our oil and gas production industry is well known, and he wants to include $6 billion in additional taxes, fees, and fines on those industries in their reconciliation bill.

But those penalties also will explode the cost of a myriad products Americans use, and destroy the availability of too many others—all beyond such petty uses as fuel for our getting to and from work, or heating our homes in winter and cooling them in summer.

Here’s a partial list of those other uses to which our oil and gas production is put. The full list would run to some 6,000 products.

  • asphalt and road oil
  • components for producing chemicals, plastics, and synthetic materials
  • electronics
  • luggage
  • office supplies like ink and pens
  • computer chips
  • paint and paint brushes
  • floor wax
  • safety glasses and regular eye glasses and contacts
  • linoleum
  • caulking
  • roofing
  • curtains
  • electricians tape
  • fertilizer
  • insecticides
  • tires
  • mops
  • rugs and carpets
  • toilet seats
  • pillows (down-filled are much more expensive)
  • upholstery
  • refrigerators
  • dishwasher parts
  • rubbing alcohol
  • aspirin and other medicines
  • heart valves and other medical devices
  • bandages
  • anesthetics
  • surgical masks (never mind their claimed need for Wuhan Virus protection)
  • dentures
  • antiseptics and hand sanitizers
  • antihistamines
  • cortisone
  • artificial limbs
  • clothes
  • hair tinting and dying
  • perfume
  • sunglasses
  • lipstick
  • purses
  • shoes
  • roller skates
  • shampoo
  • deodorant
  • toothpaste and soap
  • balloons
  • tents
  • fishing rods
  • footballs
  • football cleats and helmets
  • golf balls
  • parachutes
  • telephones
  • cameras
  • candles
  • drinking cups

Of course, Progressive-Democrats know all of this. They also know that wind, solar, even nuclear sources will produce none of these.

This Pretty Much Says It All

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At a Pennsylvania State House Consumer Affairs Committee hearing, solar industry representatives decried the level of State interest in solar energy production relative to more traditional sources of energy production.

[T]he potential for the industry to flourish still exists, said the Solar Energy Industries Association (SEIA), if only the state revamped some of its policies to incentivize more investment.

And this from SEIA’s Mid-Atlantic Senior Manager of State Affairs, Scott Elias:

Some states have more aggressive goals. Even 2.5% by 2030 would increase the demand in Pennsylvania.

If only the state revamped some of its policies to incentivize. That attitude clearly illustrates solar energy’s dependence on Government for its growth.

When solar energy becomes an actually viable source of energy, the industry won’t need government “incentives;” the free market will drive interest and facilitate industry growth.

The Biden Oil Price Spike

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President Joe Biden (D) has killed the Keystone XL Pipeline, is blocking oil production from Federal lands, killed oil production in northern Alaska, is working to kill fracking altogether, is working to kill American oil (and natural gas) production, and has given the go ahead to Russia’s Nord Stream 2 pipeline. In sum, he’s actively working to kill American energy independence.

All of that is driving up American citizens’ energy costs, and that is reflected in the market’s anticipation of spiking oil costs. Here are a couple of graphs illustrating that. They illustrate the expectation that oil will soon cost $100/barrel, after several years of $50-$65/barrel. The first presents the spike since the start of the year in the number of West Texas Intermediate $100/barrel futures contracts against a current $70 price.

This graph reflects the price of a $100/barrel call option on WTI for delivery in December this year and next.

The expectation of actual market pricing of $100 is rising, also, sharply enough to drive up the price of the option.

This is what expert traders (some of whom are trading on the trends themselves and not on underlying oil prices, to be sure) are seeing as the future price of oil for our citizens. Even if oil settles out at its current price of $70 or just a little higher (and the anticipations turn out to be overstated), this current price represents a sharp increase over the last several years, when Government wasn’t moving so zealously to restrict our nation’s oil supply.

This is what Biden has wrought for our nation’s energy supply and cost of energy.

Nord Stream 2 and Joe Biden

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President Joe Biden (D) likes to present himself as talking big. Unfortunately for the rest of us, and for our nation, he acts small. In the latest example, he said that he

lifted sanctions on the Russia-to-Germany pipeline Nord Stream 2 “because it’s almost completely finished.”

He also said, after having agreed with Russian President Vladimir Putin to lift sanctions on and stop blocking Russia’s Nord Stream 2 natural gas pipeline,

I’ve been opposed to Nord Stream from the beginning…they know how I feel[.]

And “they” don’t care. “They” showed how little they care when Putin allowed Russian hackers to shut down a critical part of our own fuel distribution infrastructure.

Here’s Biden again, on the same pipeline:

It’s not like I can allow Germany to do something or not….

It’s not like Biden would have been allowing Germany to do anything or not. Our government was denying Russia’s ability to increase Germany’s—a European economic powerhouse and key NATO member—dependency on Russia. Until Biden gave up.

“Almost completely finished” means not done and no natural gas flowing and no benefit—or money—flowing to Russia. “Almost finished” were the easy parts of the pipeline; the most difficult 90 miles were what was left.

No, Biden “opposed” the pipeline until it became inconvenient to him to do so.

Now, with his meek…acquiescence…Russia gains firmer hold on the economies (and so the nations) of central Europe, most especially the erstwhile strongest economy, Germany’s. And it comes promptly after Putin ran his demonstration of what would happen to our own energy infrastructure if we continued our interference with Russian extraterritorial activities.