We all know the USA also has rich oil reserves, but Big Oil cannot and refused to produce more oil. Oil giants in the USA are not going to invest huge sums of money to extract more oil to flood the market. They prefer to keep production low, keep prices high and reap all the profits. Europe is a gold mine for USA Big Oil today. The USA Government could do nothing to help Europe. Otherwise Biden would not have to crawl to MBS to beg for more oil, and even feigning to cosy up to Maduro, backtracking over some of the sanctions against Venezuela. Shameless doggie?
Big Oil in the USA knows that even if they flood the world with more oil, cutting their noses to spite their faces, OPEC+ is not going to stand by and see oil prices falling and affecting their revenue. OPEC+ will likely cut production to compensate and USA oil reserves will be exhausted much faster. Oil is not an inexhaustible resource. It is a security issue that the USA Government is not willing to take as they prefer to exhaust Middle Eastern and other country's oil reserves first. The USA Government therefore will do nothing about this. After all, the US$ hegemony is all backed by oil.
The energy problem is one that Europe cannot solve today, tommorrow or thereafter. Even going back to nuclear energy needs the raw materials which Russia controls in a big way. Going back to coal is not a solution in the long term, although they are back at it. Europe is toast and the only way back is to back down to Russia. But Russia today is in a stronger position and has more bargaining power than two years ago. Russia will probably not sell energy as cheaply to Europe as before. We still read about the hubris on some social media sites claiming that Russia is collapsing and Putin is 'Finnish' from Finland. No he is 100% Russian. LOL
We can see that Russia takes pains to plan its move well before the shit hits the fan. Russia had already been given eight long years to engage with China, building 'Power of Siberia' pipeline towards China, doing more trade with China and building alliance and co-operation with China. A second pipeline, 'Power of Siberia 2' is under construction, also leading to China. There are also massive plans to build highways linking China and Russia.
All energy sales previously to Europe will now mostly be taken up by China, India and of all countries, Saudi Arabia. Does the oil price cap work? Well, just look at oil prices today.
Anonymous
The Americans spread the lie that all the roads and railways built by China were to help China to invade all the countries.
ReplyDeleteAll the countries simply ignore the American lie and continue to build roads and railways to link the whole of Asia with Europe and Africa to facilitate trade and business.
Only one country in Asia believes in the American lie and did not want to participate in the BRI, did not want to connect India with the rest of Asia, Europe and Africa. India is in a way isolating itself from the continent of Asia and Africa, like the Americans isolating itself from the rest of the world by refusing to join the BRI.
India's refusal to join the BRI should be taken as a blessing in disguise for China and the rest of the BRI countries. India is a member of QUAD and that spells problems if they join.
ReplyDeleteAlready, we have seen what just one HSR did for Laos and Cambodia, with trade picking up and massively benefitting them, providing agricultural and other produce the ablity to reach China fast and easy, and linking their economy with the rest of Central Asia. Vietnam saw the advantage that is unfolding in Laos and Cambodia and is changing their rail system to join up with China. Smart move by the Viets.
The fact that all these countries are linked by one huge land mass is of great advantage to all. Ease of connectivity is one great benefit, with China's proven building capabilities providing the confidence that pulls countries into the BRI.
By the way, how and in what way is Biden's US$600 billion infrastructure going to compete with China's BRI is a mystery? How is USA going to link Asia with USA over that stretch of ocean? Build a bridge across the Pacific? Anyway, that US$600 billion infrastructure plan is gathering dust and will never take shape. Realistically, the USA could not even afford to renew their falling infrastructures at home, needing almost US$6 trillion until 2029, and wants to brag about providing infrastructures abroad. Just nothing but hot foul air.
The Americans can built a bridge to India and have their own BRI. They can trade among themselves. The Americans can sell fighter aircraft and Apple mobile phones to Indians.
ReplyDeleteDunno what India can sell to America other than top Indian talents to replace American talents.
Hi Anon 11.06
ReplyDeleteUAssA don't have the technology and monies to build bridge to India lah
Can only build wooden pranks to Cuba.
Cheers