The Global South (Non G7 countries) i.e. countries aligned with Russia (AKA our "enemy") hold the following:
• 70% of the world's crude oil reserves.
• 80% of the world's natural gas reserves.
• 43% of the world's coal reserves.
As far as I can see, the price of G7 based energy companies isn't reflecting this risk i.e. in the form of a premium.
Everyone got to live. No way that Russia’s friends (that’s a stretch!) are going to cut their noses off to spite their face. Everyone got to live…even Russia…which is why it subverts rules and still exports as much as it can…and ‘the west’ turns as much of a blind eye as it can
Well the point about reserves has some validity. But it would also be a good idea to think about the opposite point of view as well. What about the sanctions that the democratic world is applying to Russia? What about the fact that unless the world massively reduces carbon dioxide emissions then there is no future for us? This explains why a lot of the big energy company shares are looking rather cheap.
Facts state that sanctions aren't biting as intended due to support from Putin's friendly nations, and there are a lot of them.
Saudi Arabia just joined the SCO (Shanghai Cooperation Organisation) moving even further away from the petrodollar...
• Saudi cut output by 500,000 b/pd from May
• Iraq, decided to a “voluntary oil production cut” of 211,000 b/pd as of May till year-end.
• Kuwait “voluntarily” cut production by 128,000 b/pd also from May.
• Oman, followed with a “volutantary” 40,000 b/pd cut from the beginning of May.
• The UAE cut 144,000 barrels of the stuff from May, too.
• The "evil" Russians will also cut 500,000 gallons of production this year.
So 1.5 million b/pd of oil supply is coming off the market next month. That's a collective two fingers up to the the collective west.
Really. So how do you explain say India's recent Rosneft deal? Russian sales of crude to India jumped 22x last year.
“India has been the biggest buyer of Russia's benchmark Urals grade crude in March.
Deliveries to India are set to account for more than 50% of all seaborne Urals exports this
month, with China in second place”
"What about the sanctions that the democratic world is applying to Russia"
What is this democratic world you speak of? The G7?
"What about the fact that unless the world massively reduces carbon dioxide emissions then there is no future for us?"
Who said there was no future for us? Some one with a fine arts degree working in government? I'm a physicist, well I have a degree in physics, I see no technology right now that will replace oil. It is pie in the sky stuff at the moment anyway.
Less oil equates to less food. Modern food production is merely a function of fossil fuels (oil mainly).
For example, pesticides are made from oil and just about all farming equipment runs of diesel. Oh and fertilizers are made from natural gas...
If you actually look at the Net Zero proposals, very little of it makes any sense (see below UK Government FIRES Project data). Frankly anyone going along with it deserves to be strung up. For example,
"All airports except Heathrow, Belfast & Glasgow to close by 2030.
NO FLYING at all by 2050.
No new petrol/diesel cars by 2030; by 2050 road use restricted to 60% of today’s level."
Year 2030 - 2049 are my favorites:
•"Beef and Lamb phased out, along with all imports bot transported by train; fertilizer use greatly reduced""
•"All shipping declines to zero"
•"fossil fuels completely phased out"
mojogoz is correct when he says "everyone has to live".
My point is that oil prices are demonstrably controlled by countries that are no longer aligned to the west (read: petrodollar) system. Therefore something like the 1979 the Arab Oil Embargo, which drove oil up prices 4 fold, could easily happen again - we don't control much of the supply so it is out of our control.
Hi Alphaflight. I agree with you on a couple of points. 1) Sanctions against Russia may be ineffective. 2) We still need to use / burn plenty of oil.
But the world does need to reduce the burning of fossil fuels to reduce the production of CO2. If we don't do this then the effects of climate change are likely to be catastrophic. And it is unwise to rely upon our enemies for our energy supplies, because they will use such dependency against us.
Hi Alphaflight . Thanks for the link to the Govt. FIRES document. I have just quickly skimmed through it. It certainly gave me pause for thought. I would recommend that anyone that is interested in the future of the planet should have a look.
