Make no mistake Biden is no Putin and he shut down Nord Stream 1 for several reasons. Getting Nordstream 2 approved is one of them. What do you think?

Biden is no Putin
Spource: Republic World

Biden is no Putin. With this wild week of divisive, threatening speeches from Biden with a questionable backdrop to Putin not turning the Nord Stream 1 back on. The difference is that Putin knows what he is doing. He has been planning this move for well over 15 years, and the UK and EU followed along with their “Greener” agenda. And the talk of the G7 trying to put a cap on Russian energy experts is hilarious. If the stories are true about all of the biological weapons labs in Ukraine funded by the United States, you almost cannot blame Putin for invading.

Bloomberg published today: “JPMorgan Sees ‘Stratospheric’ $380 oil on worst-case Russian Cut.”

Global oil prices could reach a “stratospheric” $380 a barrel if US and European penalties prompt Russia to inflict retaliatory crude-output cuts, JPMorgan Chase & Co. analysts warned.

The Group of Seven nations are hammering out a complicated mechanism to cap the price fetched by Russian oil in a bid to tighten the screws on Vladimir Putin’s war machine in Ukraine. But given Moscow’s robust fiscal position, the nation can afford to slash daily crude production by 5 million barrels without excessively damaging the economy, JPMorgan analysts including Natasha Kaneva wrote in a note to clients.

For much of the rest of the world, however, the results could be disastrous. A 3 million-barrel cut to daily supplies would push benchmark London crude prices to $190, while the worst-case scenario of 5 million could mean “stratospheric” $380 crude, the analysts wrote.

“The most obvious and likely risk with a price cap is that Russia might choose not to participate and instead retaliate by reducing exports,” the analysts wrote. “It is likely that the government could retaliate by cutting output as a way to inflict pain on the West. The tightness of the global oil market is on Russia’s side.”

A conservative estimate would lead to a $150 to $190 range rather than the $380. But Russia would still make money and even increase its already record-breaking revenues. There is a lot of talk flowing around social media and news outlets. “Oh, if we fill up our natural gas reserves to 100%, we can get through the winter” in a word: Wrong. The storage of natural gas systems only allows for a buffer in flow pressure and is between an estimated 35% to 45% of the required natural gas. That is only if conservation efforts are put into effect, limiting many companies’ production and still forcing many smaller companies to go out of business.

Putin has done a brilliant job creating new markets, working with BRICS, and setting the stage to move oil from the U.S. Dollar standard. The sanctions actually helped his revenue from energy, and based upon his geopolitical chess playing abilities, it would not surprise me if it was not part of his plan.

CNN published “Russia cuts off gas exports to Europe via Nord Stream indefinitely.”

“On Friday, Russian state energy giant Gazprom said it would not resume flows through the pipeline on Saturday as planned because it had detected an oil leak at its Portovaya compressor station. The pipeline has been shut since Wednesday for maintenance. 
It didn’t give a timeline of when exports might resume.
“Until the issues on the operation of the equipment are resolved, gas supplies to the Nord Stream gas pipeline have been completely stopped,” Gazprom said in a statement.”
Nord Stream 1 and 2

The article goes on to say that energy prices from Russia have risen 38% this year since August. Putin requested the Nord Stream 2 line be certified and his request fell on deaf ears. The back door sales channels have been in place for Russia, and the United States has turned a hypocritical blind eye and kept buying oil from sanctioned countries for years. Sanctions only hurt consumers.

We have yet to see if the Biden administration will “Pig Pile” on this potentially bad decision by the G7 and ban exports. That would only exacerbate energy prices in the world markets. Things will change when Putin gets his Nord Stream 2 pipeline approved. Biden has already approved it, so why not the EU?

As I said in the beginning, Biden is no Putin. But at this point at least Putin knows where he is, and where he is going.

About Stu Turley 3230 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.