There are many reasons that the United States should care about the issues in Ukraine, and more importantly, the entire EU. The primary reason is the impact on the consumers in New England. Even though that seems like it would not be connected to Putin’s power grab to become the “Energy Czar” of the world, … Continue reading “Why does the crisis in Ukraine matter to the United States? – The U.S. consumer’s energy prices are going through the roof.”
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February 3, 2022
There are many reasons that the United States should care about the issues in Ukraine, and more importantly, the entire EU. The primary reason is the impact on the consumers in New England. Even though that seems like it would not be connected to Putin’s power grab to become the “Energy Czar” of the world, it is.
The “Greener” movement, ESG investment institutions, and politicians have placed their energy decisions and policies into play without thinking through the unintended consequences. In the EU the energy crisis was started years ago and Putin turned it into a chess match. There will not be an invasion into Ukraine as he only needs to get the Nord Stream 2 pipeline approved for natural gas shipments to start. This will turn his current stranglehold of 70% of the EU’s natural gas supplied by Russia to over 90%. Russia has published the growth in their countries energy exports to grow from 35% to 37% GDP. High prices and increased leverage will ensure that these goals are met.
In my article published on January 25, 2022, the importance of the Nord Stream 2 pipeline is to the energy game being played out. This show of force and threat of invasion is for control of the natural gas supply to Europe and the ability to control prices. Natural gas reserves have been discovered in Russia to supply the EU for over 100 years.
Russia USA Chess Geopolitics Energy Game. Putin will win the title “Energy Czar” of the world when the Nord Stream 2 pipeline is pumping gas. Source: ENB
That same “Greener” movement alive in the United States has also lost the chess match to Putin. The anti-fossil movement has banned pipelines from Pennsylvania with some of the largest natural gas fields in the world to New England and forced purchasing LNG from other markets. Those countries include Russia and Norway. So the consumers in New England are paying over $180 Equivalent for natural gas while the rest of the country is paying around $5.00. So if ESG is the excuse for not building pipelines, why are we buying oil and natural gas from the ‘Energy Czar” of the world? We know that Gazprom does not follow any of the best environmental practices that get in their way of a profit.
Hypocrisy has a price, and the United States New England consumers get to pay that price with money placed into Putin’s pockets. With a huge negative impact on the world’s environment. So if you think Ukraine is on the other side of the world, check your bank account as you pay through the nose for energy.
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Jay R. Young, CEO, King Operating
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