MCViewPoint

Opinion from a Libertarian ViewPoint

My Energy is Your Problem – The Birth of a New Europe

Posted by M. C. on April 25, 2022

No amount of financial wizardry, pathetic virtue signaling about Climate Change, malinvestment into inefficient and unsustainable ‘renewables,’ or military threats would ultimately change the outcome of this story.

The birth of a new Europe is one where the currency risk is now all on the importer of commodities, not the exporter of commodities. I’ve been saying for years that Europe always thought that its huge share of Russian energy exports would give it monopsony power over Russia. That, they thought, without Europe as a buyer, Russia would be at their mercy.

“Energy makes energy anyhow
So spend yourself and get rich right now”

— Marillion “Rich”

Tom Luongo

This day has been a long time coming. From the moment, more than a decade ago, when it was finally admitted that Europe was destined to be an energy importer, we were going to see the climax of the showdown between the West and Russia.

Europe as energy importer always meant that time was on Russia’s side. All it had to do was draw the conflict out long enough, survive long enough, to force Europe into submission. Russia has the energy Europe needs, no one else can supply it, therefore the final decision will be to accept this fate.

No amount of financial wizardry, pathetic virtue signaling about Climate Change, malinvestment into inefficient and unsustainable ‘renewables,’ or military threats would ultimately change the outcome of this story.

Output off the North Slope has fallen off and Groningen’s gas fields are drying up faster than Hillary’s va-jay-jay with each twist of John Durham’s investigation into RussiaGate.

Every gambit to secure energy from Ukraine (Donbass coal, gas fields in the Sea of Azov) and the Middle East (Syria, EastMed Pipeline, Iran) have also failed.

This is the basic problem the EU faces in its quest for political hegemony. How does it get around this basic fact without fomenting 1) a political crisis at home and 2) a war with Russia and the rest of the Global South who support her, it cannot win?

Force Majeure

Since the start of the war in Ukraine, a conflict created by EU complicity in NATO’s long-standing war on Russia, the EU has tried to play the victim of US/UK aggressiveness while happily going along with it for their own purposes.

That purpose is to advance their agenda of erecting a total surveillance state under the guise of a radical response to Climate Change. Their problem is they have no viable replacement for Russian energy, be it oil, coal or gas, that is capable of sustaining them in the interim.

All of their refusals were met with Russian intransigence. After gleefully going along with the theft of Russian foreign exchange reserves, as well as forcing the abandonment of Russian state assets like seizing Gazprom’s subsidiary in Germany, Europe still tried to say Russia had no legal right change the terms of payment for Russian energy.

It was hilarious to watch as EU sycophants tried to argue Russia had no legal right to claim to force majeure after the EU prohibited Gazprom from spending the euros they would be paid for its gas.

The Russian government responded with a demand for payment for all exports to legally-defined ‘unfriendly countries’ in either gold or Russian rubles. And the howls were heard all around the world.

Even though acts of war, including sanctions, are a typical clause in all Gazprom supply contracts:

See the rest here

Be seeing you

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