Biden's Ukraine Response Is Mired in Barrels of Russian Oil - Bloomberg
Category: News & Politics
Via: moose-knuckle • 2 years ago • 42 commentsBy: Liam Denning (Bloomberg. com)
S E E D E D C O N T E N T
With sanctions blocking imports of Venezuelan crude, the U.S. has come to rely on supply from Russia.
The U.S. uses a lot of Russian oil.
Photographer: Andrey Rudakov/Bloomberg By
Liam Denning
+Follow February 22, 2022, 5:11 PM UTC
When it comes to the Ukraine crisis and energy, we are less in a war of attrition than one of asymptotes.
Russian President Vladimir Putin has recognized two breakaway statelets in eastern Ukraine. Not to downplay the importance or drama of this move, but like so many before it, it is another calibrated step toward the edge. In response, German Chancellor Olaf Scholz suspended approval of the Nord Stream 2 gas pipeline from Russia — but held back from killing it outright. Broader Western sanctions came Tuesday, though not the most severe ones, because Putin's latest move doesn't yet meet the vague definition of a full invasion.
If you want a simple reason for this incrementalism on the part of Washington and various EU capitals, it’s that Russia has energy that the West needs. This extends beyond Europe’s dependence on natural gas flows to the U.S. itself.
Even though the U.S. has become a small net exporter of oil, it still relies on foreign flows. 1 The U.S. imported almost 8.3 million barrels a day of crude oil and refined products in the week ending Feb. 11. While others obsess over energy independence, oil refiners choose the most economic barrels to use, not just ones with stars and stripes on them. And roughly one in 12 of those imported barrels comes from Russia.
The big uptick in those imports has resulted from another international spat — with Venezuela. Oil imports from Venezuela, dwindling for years as that country’s oil sector collapsed , were zeroed out altogether in 2019 when the U.S. imposed sanctions meant to put pressure on President Nicolás Maduro to step down. Venezuela produces heavy oil that’s suited to the sophisticated refineries dotting the U.S. Gulf Coast. While the bulk of Russian oil imported to the U.S. is refined already, we’re not talking high-quality gasoline here. Rather, it’s a gooey, intermediate product that can be refined further, taking the place of those Venezuelan barrels.
In theory, if the U.S. were to impose sanctions on Russian oil imports — or if Moscow were to unilaterally stop them — those barrels would end up somewhere else, freeing up some other source. Indeed, that’s what the big U.S. refiner Valero Energy Corp. pointed out on its last earnings call when asked about about its exposure to the Ukraine crisis. Chief Commercial Officer Gary Simmons said that whichever refineries take Russia’s barrels, “they'll kick out feedstocks and make it available for us to run.”
In practice, though, the sudden disruption of roughly 700,000 barrels a day would come with some friction. And with oil closing in on $100 a barrel, more friction is hardly needed. Ordinarily, Saudi Arabia and the United Arab Emirates might be expected to supply similarly heavy barrels. But with relations between Riyadh and Washington cool and Russia a key member of OPEC+, that can’t be taken for granted.
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While we all want to wean our economy off of Fossil fuels, it comes with a heavy cost, one we just simply cannot afford right now. The American left needs to reverse course and put together a 20 to 30 year plan to do so. Slowly over the next couple decades the infrastructure and foundation for a fossil fuel free economy can be constructed without corrupting our foreign policy and bankrupting our working class.
In the meantime we need to admit our mistakes, and increase domestic oil production.
The left ever admit it made a mistake? They will blame Trump, Republicans, alt far right fascists, and Fox News forever- rather than take a shred of responsibility.
Utterly ridiculous comment.
You just proved my point.
Name one damn thing the left has taken responsibility for when they fucked up.
We are already the top oil producer globally, increasing our production will do little to nothing to lower fuel prices without to cooperation of other oil producing nations such as those in OPEC. The oil we pump goes into the global market with all the rest, unless you are suggesting that the US government itself purchases the oil being pumped (at below market prices, or then turns around and sells it to Americans at below market prices) or just flat out nationalizes oile production in the United States.
Global economics means that "drill baby drill" isn't a solution to much of anything. Drill yes, but while also investing heavily into the transition away from fossil fuels as quickly as possible. If anything this should be a wake up call.
Russian TV is running loops of Trump praising Putin.
Link??
The Biden administration asked the enemy to sell us more oil and you want to point fingers? Surely there are those that disagree with the facts who can better articulate why on this site?
Please offer something other than a but but but quip. We are actually looking for well supported discussions, hence why i seeded a center left source.
This article is a yawner.
The reason that the U.S. is constrained as regards Russia invading Ukraine is because we don't have a treaty that requires us to defend Ukraine. In 1939 England and France were obligated under treaty to defend Poland by declaring war on Germany when it invaded Poland. No such situation exists today to protect Ukraine.
The current administration curbed domestic energy production and then asked despots to produce more for us. We don't need a history lesson, we need an explanation from a Biden supporter on why this makes sense?
Once again Biden asked Russia for oil when his own constituents complained about oil prices.
US energy is dramatically cleaner than Russian energy or Middle Eastern energy. How does that prevent climate change? How does this appease environmentalists?
We environmentalists are still big on solar and wind power.
Anything else is just racial suicide.
Gee, too bad we don't have access to Canadian oil. But Biden did need to pander to his left flank. Environmentalists won the pander Bingo and, as usual, the country has to pay for it.
The world has been suffering under the fossil fuel industry for many, many years.
It's way past time for a change to cleaner technology.
Pro fossil fuel propagandists will likely bring on the end of humanity.
There's just too much money involved.
Those still trying to recoup from bad investments in biotech will obviously jump on any bad bet. Once a sucker, always a sucker. Don't worry, the eviro-wankers have all the answers.
Don't hold any candlelight vigils for Ukraine. Carbon kills, doncha know.
Pretty sure that investing in biotech is a smart thing.
Only fossil fuel fools think differently.
What the hell does Ukraine have to do with anthropogenic global warming?
There is some access to Canadian oil, but it could been a lot greater access if the XL pipeline had not been cancelled after having agreed to it and then screwing Alberta for the $9b cost. Not a nice thing to do.
Fuck the XL pipeline. A horrible idea from the start.
Okay Putin.
Putin loves fossil fuel. He's killed enough people to prove it.
Biden loves Putin's dirty fossil fuels, that's why America is sucking 12 million of his barrels a day.
A self proclaimed environmentalist who supports an Administration curbing cleaner US production in favor of dirty oil from a despot isn't much of an environmentalist.
Yeah, screw that pipeline, democrats love Russian pipelines though.
Not my idea. But better than burning all of Americas natural resources.
We'll likely need them before long.
Funny how so many on this site seem to be Russian bots.
Fuck all far right wing fascists!
Of course he does. Anti-fossil fuel and anti American energy production have given Putin the power he does. It's why he works so well with the American left.
"Russian-sponsored agents funneled money to US environmental organizations in an attempt to portray energy companies in a negative way and disrupt domestic energy markets.”
Here's another one:
"RT, a Russian international television network funded by the Russian government, "runs anti-fracking programming, highlighting environmental issues and the impacts on public health. This is likely reflective of the Russian Government's concern about the impact of fracking and U.S. natural gas production on the global energy market and the potential challenges to Gazprom's profitability."
Nope, that is not correct at all. The expansion of existing pipelines more than make up for the oil that XL would carry when complete.
Additionally in 2020 a 2021 the US imported record level of oil from Canada.
BTW, the US is the largest producer of oil in the world, about 3 to 4 time what Canada produces.
Top 10 oil producers in 2020
Cleaner US production?
Did you actually mean to tell a joke?
Studied a few years in a college to earn degrees in environmental science.
Hardly "self proclaimed".
Someone doesn't understand how global economics works...
This is such a childish discussion, I can't even...
I am a first gen Russian immigrant to the US, as of 30 years ago. An ethnic Russian with half my family being Ukrainians in Ukraine. I am shaking with fear and indignation today, at Putin's bombing of babushkas and babies in Ukraine. And this is all y'all have to talk about? Biden? Trump? PIPELINES???
so childish and myopic
My mother was born in Kiev, and I'm sure I must have family there but I have never known them. This war could so easily have been prevented. I'll bet Russia would not have taken any steps into the Ukraine more than it already had before all this started, and things would have remained no different than the last few years if the Ukraine had just said no to NATO. But damn it all, everybody just HAD to show how big their balls are. So now people die and destruction is happening.
After Baker promised Russia back when The Wall came down that this would NOT happen, now it did, and I just can't help comparing this situation with the Cuban missile crisis. Was America okay with the Russians planting missiles in Cuba?
I know, Buzz
If Ukraine said they'd be like Switzerland - neutral - NONE of this would've happened.
I sit here and weep at what's going on over there. Half of my fam are in the Rostov region, the other half are in Donetsk and Odessa. ALL of them hate this war, and they equally blame Putin and the US.
I ... I've been having nightmares, not sleeping, not eating. But who cares, right?
This war is as just as distant as Iraq or Afghanistan were. When President Bush said: "Go shopping, America!" as he invaded Iraq.
American values for you
The Americans on NT don't agree with me - to them war is just everyday business and if one isn't going to happen, then provoke it like this one was provoked - everyday business just like gun murders. As long as the arms manufacturers are kept busy, the economy will be okay, and everybody's happy.
It seems that you haven't been listening to Putin. NATO is just a red herring. Putin would have moved against Ukraine even if NATO didn't exist. He explicitly stated that Ukraine is historically Russian and has no right to exist as an independent country.
"That is another reason" Captain Louis Renault (Claude Rains) replying to Rick Blaine (Humphrey Bogart) in Casablanca,
That may be so GG, and he may have wanted to do that for a long time, but I think that the NATO threat was the straw that broke the camel's back. It gave him, in his mind perhaps, the impetus to put desire into action. Anyway why was he willing to negotiate if he intended to invade? I'll stick with my opinion that if Zelenskyy agreed with no NATO, I think Putin would have withdrawn.
Putin wasn't actually willing to negotiate anything. That was a smoke screen.
I understand that Russia and Ukraine are discussing having talks somewhere on the Ukrainian border. It's understandable that Ukraine vetoed new negotiations in Belarus and Russia vetoed locating them in Hungary. However, I can certainly understand why NATO in Ukraine is a non-erasable red line for Russia, for the very same reason Russian missiles in Cuba would have been a non-erasable red line for the USA.
G, the problem is - Putin has gone full psycho. A friend of mine in Switzerland who's dating a daughter of a Russian oligarch is saying his GF is telling him that the oligarchs think Putin is having a psychotic break. Because he [Putin] is breaking "their pact", which was: the oligarchs keep Putin in power, and Putin lets them extract money from Russia - and keep it.
So, now Putin's war brought on the most crippling smackdown on the oligarchs, who are now losing their yachts, losing their villas, even their Swiss bank accounts are now frozen!
So, yeah, a man who does this is a total psycho. Therefore, when you hear his psychotic talk like the one he did about Ukraine that you are referring to - know he's not all there.
On the bright side, the oligarch's daughter thinks it's only a matter of time until the oligarchs stage a coup and depose the crazy MF.
Same here, Buzz. Why is it that people just can't believe it? It'd be like Cuba declaring itself neutral after the Revolution - wouldn't Americans welcome it? I don't get it
That's all anecdotal and fine.
The fact is that Putin's recent comments about Ukraine are no different than what he has said for years. His political doctrine regarding Russian supremacy and Ukraine are derived directly from the early 20th Century Russian fascist philosopher Ivan Ilyin. Putin often quotes from Ilyin and has made Ilyin's works required reading among the Russian leadership.
I have provided a link to a lengthy but very instructive article by an expert in this topic. If you read the entire article you will see a more detailed explanation of my comments. For an even more in depth analysis you should read the article's author's excellent book "The Road to Unfreedom" which was published in 2018. I have read the book several times and have begun reading it again because it is so informative and relevant to the current situation.
You are both, of course, entitled to your opinions, but understand that you are not correct as the evidence is clearly to the contrary.
Typo correction:
"His political doctrine regarding Russian supremacy and Ukraine is derived directly from the early 20th Century Russian fascist philosopher Ivan Ilyin."
My folks came from Ireland and Russia (they met in a midwestern college).
I worry about anthropogenic global warming (the destruction of a whole planet).
My concerns are not "childish and myopic".
My concerns are long-term global survival and not just the political topic of today.
P.S. Putin needs to be taken down hard! A poison tipped umbrella would be appropriate.
Yeah, I know, CJ
I wasn't talking to you or about you. I have the same concerns.
But there is a time and a place to talk about global warming - and when you see your great aunts and uncles huddling on the stairs in the Kiev subway, that kind of resets the urgency, you know what I mean?
It's not theoretical for me - it's my home and my family. Thus, my raw bitching. Nothing personal