Following on from my last blog post about electric cars, the oil sanctions that Biden has put on Russia doesn’t seem like a win-win at all.
And, at the end of the day is it really worth it?
Pull up the horse and let me finish.
I’m all for putting the squeeze on Putin, but the way I see it, all it’s going to do is ramp up oil production elsewhere. For example. One thing you can be certain of, the US oil industry will start producing more as Biden starts looking for ways to plug the gap.
I’ve even heard they’ll get some of the shortfalls from Venezuela and Iran – both countries currently heavily sanctioned by the US.
But I’m sure it won’t stop the ongoing sanctioning of these countries; just the oil trade will open up. Let’s trust that they will get paid for the oil, and if they do, it will be a win for them.
It appears this crisis has been a bit of a dig at the EU to smarten its act up regarding its dependency on oil and gas. They announced they’ll reduce their reliance on Russia by the end of the year. Great. But no doubt they’ll just shop elsewhere. However, there was talk of increasing renewable hydrogen production and improving energy efficiency in households. I won’t hold my breath there will be any huge developments in those areas, going by past results. But, hey, I’m always open to being proved wrong.
It’s a wait and see.
So why do I think that the oil sanctions on Russia are not a win-win? Russia is the world’s third-largest producer after the US and Saudi Arabia. By my reckoning other oil-producing countries will have to ramp up production putting more pressure on the environment. I’ll almost guarantee more licences will given out for exploration and drilling. The rich will get richer, and the poor will keep bearing the brunt of the increased costs to the pocket and environment.
Simply my opinion.
STAY IN THE LOOP