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Saturday, January 13, 2007

Russia Between a Rock and Hard Place

It was reported yesterday that "Crude oil fell below $53 a barrel, after US demand for fuel plunged to its lowest in more than 19 months. The news that Russia had restarted pumping crude oil to Europe also pulled prices down further. In US crude oil was 75 cents lower at $53.27 a barrel, after dipping under $53 for the first time since June 2005. In London, Brent crude dropped 46 cents at $53.23 a barrel."

US demand is down because of unseasonably warm temperatures across the country, perhaps due to global warming. Here we have a fascinating phenomenon: Russia needs oil prices high, but global warming, to which polluting Russia is a major contributor, is driving them down. The US is an even bigger contributor to global warming, and apparently doing so is helping it to stave off the advances of Russian energy imperialism. What's more, Russia can't restrict its output in order to try to artificially increase prices, because it's too dependent on its income stream from oil, especially if the price is dropping.

If we couple the effects of (a) global warming with (b) a concerted fossil fuel conservation effort and (c) a dedicated search for alternative sources, Russia's only vestigial basis for international influence will simply disappear (as it will ultimately do in any case when it simply runs out).

2 comments:

Robert Dupuy said...

Your profile says you are trying to save Russia.

You know I think that Russia can improve too.

But this post says:
Russia's only vestigial basis for international influence will simply disappear (as it will ultimately do in any case when it simply runs out).


I don't think you are trying to save Russia, you sound like you hate Russia.

I don't think Pushkin was about oil. I think Yuri Gagarin was a pioneer for all humanity. I don't know why you decided that all international influence should end for this country. I think someone really dedicated to Russia, would want an improved Russia to offer its many talents to the world, not disappear from it.

well lets face it, I mean...you have some kind of problem.

La Russophobe said...

ROBERT:

I'm not trying to save Russia by increasing its international influence. Maybe you think that imperialism is the way for a nation to be sucessful and improve, but I disagree. And this is especially not useful when Russia's government is controlled by a malignant clan of KGB spies. I want to REDUCE their influence as much as possible, and believe that only by eliminating it entirely can Russia be saved.

Meanwhile, it's odd that you find it necessary to comment on two of my posts, since you claim they are not interesting.