Russia, the US and Oil

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For the last twenty years Russia has had to put up with barely being a smidge above being written off as a third world country with nukes. They are a massive country which historically has suffered from an inferiority complex and not-unfounded paranoia. 
If it weren’t for oil [and soon natural gas] their economy would tank. They miss being a major player on the world stage. The USA has rubbed their noses in their relative irrelevance for two decades, moving with virtual impunity into spheres of influence once considered vital to Russia’s security and projecting American military power right up to Russia’s doorstep. 
Now, just as in the Cold War, any diminution of American influence or prestige is greeted with glee, not just by the Russian leadership, but by most of the Russian people, even those who like Americans and wish their country was more like the USA. This elation is especially pronounced when the setback for American policies or influence takes place due to Russian maneuvering or is accompanied by concomitant increase in Russian influence and prestige in a critical geo-political area such as the Middle East. 
Edward Snowden and Bashir al Assad have both provided Russia a platform to crow upon.  But keep in mind that they have a single commodity economy, and Russia is worried.

Saudi Arabia bribes (contributes to the campaigns of) American politicians with unabashed enthusiasm because the US is the 800 lbs gorilla in the room. If it wasn’t for people like Barack Obama, reducing US drilling and working diligently to reduce US oil refining capacity by shutting down refineries, the US could be petroleum independent within a few years and remain oil independent – while exporting as part of a new North American Cartel (US/Canada). 
Barack Obama has expressed that drilling for oil in the US would not make an economic difference. You can’t help but wonder whose side he’s on.
(Fox News) That’s simply not so—drilling for more oil in the United States could make a big difference. 
Under Mr. Obama’s stewardship, the U.S. economy is not recovering as it should. As per usual, the president distracts public attention from poor policy choices by blaming and ridiculing others. 
An oil independent US would not need to worry overly about Middle East policy and despite ham handed management of foreign policy, the Saudis would rather have the US there and engaged than just a distant observer. 

(CNN/MoneyThe United States will overtake Saudi Arabia to become the world’s biggest oil producer before 2020, and will be energy independent 10 years later, according to a new forecast by the International Energy Agency.

Being able to turn or off the tap will mean that the US/Canada will be able to effectively set the price of world oil, and will have huge sway over the profits that Russia will —- or will not make, in the same way that the Saudis have done.

7 thoughts on “Russia, the US and Oil

  1. Can you imagine young Barack running a lemonade stand? He does not get the most basic details of business..

  2. He'd steal the lemons from a neighbor's tree, shoplift the sugar from a local store and then urinate in the mix — and try and sell it for $50.00 per glass.

  3. LL – you couldn't have said it better, because that's exactly what he'd do. If people complained about the taste, he'd blame the Republicans.

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