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| Russia's Energy Clout Is Waning, Weakening Its Global Influence -- WSJ | |
| 2023-01-22 | |
Western sanctions, falling prices for Russian fossil fuels and strategic miscalculations are hurting the country's oil-and-gas industry while the war in Ukraine is poised to stretch into a second year. Ultimately, the strain will erode Moscow's status as an energy superpower, according to analysts and former energy officials and executives. Russia hoped cutting off natural gas would cause Europe to freeze and weaken its support for Kyiv, officials on the continent say. Warm weather and ample supplies from other producers have derailed that effort so far, sending energy prices down to prewar levels. The Russian oil industry, meanwhile, is having trouble adapting to a European Union embargo and a U.S.-led price cap on its crude. A Kremlin threat to cut supplies in response failed to boost prices and hasn't materialized, showing Russia's weakened hand. Russia has diverted much of the oil that went to Europe, but in doing so it has replaced an array of buyers with two big importers: China and India. Refiners there command low prices, in part because delivering farther afield raises shipping rates. With gas, Russia needs to build huge pipelines eastward to sell all the fuel that used to head to Europe. That would take years. And in the long run, lost access to technology and Western know-how will likely undermine production potential as Soviet-era oil-and-gas fields dwindle. All these issues will potentially be magnified when a fresh round of sanctions goes into effect next month. | |
| Posted by:Thruter Gloluger6393 |
| #1 Someone Dale talked to says soon only Russia will be selling oil. |
| Posted by: M. Murcek 2023-01-22 09:06 |