"Russia may cut off oil supplies to the West"

Discussion in 'Current Affairs, News and Analysis' started by Contrarian, Aug 29, 2008.

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  1. http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/08/29/cnrussia129.xml
  2. The Russian tough-guy stance may end up driving the developed world to alternative energy supplies in a big hurry and investment in non-energy sectors out of the country.

    In the end it may turn out to be the stupidest foreign policy stance of the early 21st century, even compared to Bush in Iraq.

    Just as needless as well.
  3. agreed virgil. it also highlights how stupid labour has been in growing our dependance on russian resources while simultaniously drastically reducing our defence capabilities. worring times ahead.
  4. No doubt the headless chickens will rush to the oil futures and send the price back up again. :roll: War bonds anybody?
  6. Think about it

    Cut off the oil supplies = cut off all the income from those supplies

    The west would suffer big time but would survive. What would the lack of oil / gas income plus the following economic sanctions do to Russia?

    They are nowhere near self sufficient and need the West more than we need them
  7. Which is why this story is almost certainly bollocks. It's irresponsible as well, because it gives the traders an excuse to drive energy prices up yet further.
  8. Maggie and Ronnie warned “the West” against increased dependency on Russian/Soviet oil. Guess no one was listening, not to mention former Chancellor Schroeder is working for LUKOil/Gazprom and getting rich flogging Russian oil to Germany.

    This move by Putin was expected, is called economic blackmail. Hey west you go along with us or we cut off the oil, causing your people to pay more for all goods and services

    Putin doesn’t care about losing a few bucks from the west, he’s banking on the fact that it will be a short term short fall as the west will capitulate and toe the Russian line.

    Is a risky move and may blow up in Putin’s face, but what else does he have left?
  9. 99% BS story, the Russian's, as pointed out already , need our cash more then we need their oil and gas, (they account for what about 30% of our oil and slightly more then that in gas?)....oh dear decreased flight's to Antigua and less Land rover's being sold to solicitor's in cities :p
    there oil and gas recovery and exploration is already falling apart/or not happening, there are some studies that their oil production may peak (if it has not already) in the next decade, after that it's down hill, gas may last a little longer, but doing something like restricting Europe's supplies will only increase the search for alternatives , which are even now speeding up, they'd kiss their market goodbye in less then 2 decades...is Ivan that reckless?

    one of the funny thing's I found out is, that the Russian's buy their oil back off European countries after processing because they don't have the refineries themselves....
  10. Not to mention no western finance house lending them money for exploration, and after the BP fiasco most of big oil will look elsewhere for exploration opportunities, where the politicians are pliant and easily bribed so they won't get dicked out of their investment.
  11. All this talk about alternatives is nice but a pipe dream. If someone was able to produce a viable alternative to the internal combustion engine (hydrogen, CNG, etc...) today it would be at least 10 years before they would become commonplace and useable.

    First the existing stock of diesel and gasoline powered vehicles would need to continue to be supported, until they are phased out. That means the “traditional” filling stations would need to continue to exist and need to be supplied.

    Second new filling stations or existing filling stations would need to be built or modified for the “new” fuel. This costs money and at least here in the US most are owned by small businesses and that is an expense outlay most can’t afford. FYI major oil companies are closing or divesting existing filling stations.

    Third a new distribution system would need to be developed including production plants, fuel dispensers, etc...

    Of course all this can’t happen overnight or at the same time.

    Hybrids are a short term solution, as they use traditional fuels, yet extend mileage.

    Our economy is oil based, and not just to heat homes or fuel vehicles. Byproducts from the refining process are used to build roads, create medicinal remedies, plastics, building materials, etc…

    In short oil is with us for years to come and no alternatives will be able to change that anytime soon. Putin for what it’s worth has the West by the balls! 30% is no small amount, especially when you consider that transportation via a pipeline is significantly cheaper and more efficient then bringing it in by ship.

    Not sure about Russia but I know that Iran does the same, that is buy back the refined product as they have no refining capacity.
  12. Soon we'll have to burn corrupt politicians for heat, just like we did in the good old days.
  13. That's going to be a hell of a bonfire, then.
  14. Right, penciling that in for November 5th as we speak.
    Only appropriate really.

    Or we could burn them slowly and create a new form of sustainable renewable energy!