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The West’s Green Energy Delusions Empowered Putin

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This article submitted by Michael Shellenberger

While we banned plastic straws, Russia drilled and doubled nuclear energy production.

How has Vladimir Putin—a man ruling a country with an economy smaller than that of Texas, with an average life expectancy 10 years lower than that of France—managed to launch an unprovoked full-scale assault on Ukraine?

There is a deep psychological, political and almost civilizational answer to that question: He wants Ukraine to be part of Russia more than the West wants it to be free. He is willing to risk tremendous loss of life and treasure to get it. There are serious limits to how much the U.S. and Europe are willing to do militarily. And Putin knows it.

Missing from that explanation, though, is a story about material reality and basic economics—two things that Putin seems to understand far better than his counterparts in the free world and especially in Europe.

Putin knows that Europe produces 3.6 million barrels of oil a day but uses 15 million barrels of oil a day. Putin knows that Europe produces 230 billion cubic meters of natural gas a year but uses 560 billion cubic meters. He knows that Europe uses 950 million tons of coal a year but produces half that.

The former KGB agent knows Russia produces 11 million barrels of oil per day but only uses 3.4 million. He knows Russia now produces over 700 billion cubic meters of gas a year but only uses around 400 billion. Russia mines 800 million tons of coal each year but uses 300.

That’s how Russia ends up supplying about 20 percent of Europe’s oil, 40 percent of its gas, and 20 percent of its coal.

The math is simple. A child could do it.

The reason Europe didn’t have a muscular deterrent threat to prevent Russian aggression—and in fact prevented the U.S. from getting allies to do more—is that it needs Putin’s oil and gas.

The question is why.

How is it possible that European countries, Germany especially, allowed themselves to become so dependent on an authoritarian country over the 30 years since the end of the Cold War?

Here’s how: These countries are in the grips of a delusional ideology that makes them incapable of understanding the hard realities of energy production. Green ideology insists we don’t need nuclear and that we don’t need fracking. It insists that it’s just a matter of will and money to switch to all-renewables—and fast. It insists that we need“degrowth” of the economy, and that we face looming human “extinction.” (I would know. I myself was once a true believer.)

John Kerry, the United States’ climate envoy, perfectly captured the myopia of this view when he said, in the days before the war, that the Russian invasion of Ukraine “could have a profound negative impact on the climate, obviously. You have a war, and obviously you’re going to have massive emissions consequences to the war. But equally importantly, you’re going to lose people’s focus.”

But it was the West’s focus on healing the planet with “soft energy” renewables, and moving away from natural gas and nuclear, that allowed Putin to gain a stranglehold over Europe’s energy supply.

As the West fell into a hypnotic trance about healing its relationship with nature, averting climate apocalypse and worshiping a teenager named Greta, Vladimir Putin made his moves.

While he expanded nuclear energy at home so Russia could export its precious oil and gas to Europe, Western governments spent their time and energy obsessing over “carbon footprints,” a term created by an advertising firm working for British Petroleum. They banned plastic straws because of a 9-year-old Canadian child’s science homework. They paid for hours of “climate anxiety” therapy.

While Putin expanded Russia’s oil production, expanded natural gas production, and then doubled nuclear energy production to allow more exports of its precious gas, Europe, led by Germany, shut down its nuclear power plants, closed gas fields, and refused to develop more through advanced methods like fracking.

The numbers tell the story best. In 2016, 30 percent of the natural gas consumed by the European Union came from Russia. In 2018, that figure jumped to 40 percent. By 2020, it was nearly 44 percent, and by early 2021, it was nearly 47 percent.

For all his fawning over Putin, Donald Trump, back in 2018, defied diplomatic protocol to call out Germany publicly for its dependence on Moscow. “Germany, as far as I’m concerned, is captive to Russia because it’s getting so much of its energy from Russia,” Trump said. This prompted Germany’s then-chancellor, Angela Merkel, who had been widely praised in polite circles for being the last serious leader in the West, to say that her country “can make our own policies and make our own decisions.”

The result has been the worst global energy crisis since 1973, driving prices for electricity and gasoline higher around the world. It is a crisis, fundamentally, of inadequate supply. But the scarcity is entirely manufactured.

Europeans—led by figures like Greta Thunberg and European Green Party leaders, and supported by Americans like John Kerry—believed that a healthy relationship with the Earth requires making energy scarce. By turning to renewables, they would show the world how to live without harming the planet. But this was a pipe dream. You can’t power a whole grid with solar and wind, because the sun and the wind are inconstant, and currently existing batteries aren’t even cheap enough to store large quantities of electricity overnight, much less across whole seasons.

In service to green ideology, they made the perfect the enemy of the good—and of Ukraine.

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Take Germany.

Green campaigns have succeeded in destroying German energy independence—they call it Energiewende, or “energy turnaround”—by successfully selling policymakers on a peculiar version of environmentalism. It calls climate change a near-term apocalyptic threat to human survival while turning up its nose at the technologies that can help address climate change most and soonest: nuclear and natural gas.

At the turn of the millennium, Germany’s electricity was around 30 percent nuclear-powered. But Germany has been sacking its reliable, inexpensive nuclear plants. (Thunberg called nuclear power “extremely dangerous, expensive, and time-consuming” despite the UN’s International Panel on Climate Change deeming it necessary and every major scientific review deeming nuclear the safest way to make reliable power.)

By 2020, Germany had reduced its nuclear share from 30 percent to 11 percent. Then, on the last day of 2021, Germany shut down half of its remaining six nuclear reactors. The other three are slated for shutdown at the end of this year. (Compare this to nextdoor France, which fulfills 70 percent of its electricity needs with carbon-free nuclear plants.)

Germany has also spent lavishly on weather-dependent renewables—to the tune of $36 billion a year—mainly solar panels and industrial wind turbines. But those have their problems. Solar panels have to go somewhere, and a solar plant in Europe needs 400 to 800 times more land than natural gas or nuclear plants to make the same amount of power. Farmland has to be cut apart to host solar. And solar energy is getting cheaper these days mainly because Europe’s supply of solar panels is produced by slave labor in concentration camps as part of China’s genocide against Uighur Muslims.

The upshot here is that you can’t spend enough on climate initiatives to fix things if you ignore nuclear and gas. Between 2015 and 2025, Germany’s efforts to green its energy production will have cost $580 billion. Yet despite this enormous investment, German electricity still costs 50 percent more than nuclear-friendly France’s, and generating it produces eight times more carbon emissions per unit. Plus, Germany is getting over a third of its energy from Russia.

Germany has trapped itself. It could burn more coal and undermine its commitment to reducing carbon emissions. Or it could use more natural gas, which generates half the carbon emissions of coal, but at the cost of dependence on imported Russian gas. Berlin was faced with a choice between unleashing the wrath of Putin on neighboring countries or inviting the wrath of Greta Thunberg. They chose Putin.

Because of these policy choices, Vladimir Putin could turn off the gas flows to Germany, and quickly threaten Germans’ ability to cook or stay warm. He or his successor will hold this power for every foreseeable winter barring big changes. It’s as if you knew that hackers had stolen your banking details, but you won’t change your password.

This is why Germany successfully begged the incoming Biden administration not to oppose a contentious new gas pipeline from Russia called Nord Stream 2. This cut against the priorities of green-minded governance: On day one of Biden’s presidency, one of the new administration’’s first acts was to shut down the Keystone XL oil pipeline from Canada to the U.S. in service to climate ideology. But Russia’s pipeline was too important to get the same treatment given how dependent Germany is on Russian imports. (Once Russia invaded, Germany was finally dragged into nixing Nord Stream 2, for now.)

Naturally, when American sanctions on Russia’s biggest banks were finally announced in concert with European allies last week, they specificallyexempted energy products so Russia and Europe can keep doing that dirty business. A few voices called for what would really hit Russia where it hurts: cutting off energy imports. But what actually happened was that European energy utilities jumped to buy more contracts for the Russian oil and gas that flows through Ukraine. That’s because they have no other good options right now, after green activism’s attacks on nuclear and importing fracked gas from America. There’s no current plan for powering Europe that doesn’t involve buying from Putin.

We should take Russia’s invasion of Ukraine as a wake-up call. Standing up for Western civilization this time requires cheap, abundant, and reliable energy supplies produced at home or in allied nations. National security, economic growth, and sustainability requires greater reliance on nuclear and natural gas, and less on solar panels and wind turbines, which make electricity too expensive.

The first and most obvious thing that should be done is for President Biden to call on German Chancellor Scholz to restart the three nuclear reactors that Germany closed in December. A key step in the right direction came on Sunday when Vice-Chancellor Robert Habeck, the economy and climate minister, announced that Germany would at least consider stopping its phaseout of nuclear. If Germany turns these three on and cancels plans to turn off the three others, those six should produce enough electricity to replace 11 billion cubic meters of natural gas per year—an eighth of Germany’s current needs…

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Obama Dropped Over 26K Bombs Without Congressional Approval

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Armstrong Economics

By Martin Armstrong

@miss_stacey_

Biden, Clinton, Obama & Harris on Iran #biden #clinton #obama #harris #trump #iran #nuclear

♬ original sound – Stacey

Iran has been the target for decades. Biden, Harris, and Clinton—all the Democrats have said that they would attack Iran if given the opportunity. It appears that Donald Trump is attempting to mitigate a potentially irresolvable situation. As he bluntly told reporters: We basically — we have two countries that have been fighting so long and so hard that they don’t know what the f‑‑‑ they’re doing.”

A portion of the nation believes Trump acted like a dictator by attacking Iran without Congressional approval. I explained how former President Barack Obama decimated the War Powers Resolution Act when he decided Libya was overdue for a regime change. The War Powers Act, or War Powers Resolution of 1973, grants the POTUS the ability to send American troops into battle if Congress receives a 48-hour notice. The stipulation here is that troops cannot remain in battle for over 60 days unless Congress authorizes a declaration of war. Congress could also remove US forces at any time by passing a resolution.

Libya is one of seven nations that Obama bombed without Congressional approval, yet no one remembers him as a wartime president, as the United States was not technically at war. Over 26,000 bombs were deployed across 7 nations under his command in 2016 alone. Libya, Afghanistan, Syria, Yemen, Somalia, Iraq, and Pakistan were attacked without a single vote. Donald Trump’s recent orders saw 36 bombs deployed in Iran.

The majority of those bombings happened in Syria, Libya, and Iraq under the premise of targeting extremist groups like ISIS. Drone strikes were carried out across Somalia, Yemen, and Pakistan as the Obama Administration accused those nations of hosting al-Qaeda affiliated groups. Coincidentally, USAID was also providing funding to those groups.

Trump Obama Neocon War Bombs

The 2001 Authorization for Use of Military Force (AUMF) was initially implemented to hunt down the Taliban and al-Qaeda after the 9/11 terrorist attacks. Obama broadened his interpretation of the AUMF and incorporated newly formed militant groups that were allegedly expanding across the entire Middle East. The Bureau of Investigative Journalism believes there were up to 1,100 civilian casualties in Pakistan, Yemen, and Somalia. Thousands of civilians died in Syria and Iraq but the death toll was never calculated. At least 100 innocent people died in the 2016 attacks in Afghanistan alone.

The government will always augment the law for their personal agenda. The War Powers Resolution was ignored and the AUMF was altered. Congress was, however, successful in preventing Obama from putting US troops on the ground and fighting a full-scale war. In 2013, Obama sought congressional approval for military action in Syria but was denied. Obama again attempted to deploy troops in 2015 but was denied. Congress has to redraft the AUMF to specifically prevent Obama from deploying troops in the Middle East. “The authorization… does not authorize the use of the United States Armed Forces on the ground in Syria for the purpose of combat operations.” Obama attempted to redraft the AUMF on his own by insisting he would prohibit  “enduring offensive ground combat operations” or long-term deployment of troops. He was met with bipartisan disapproval as both sides believed he was attempting to drag the United States into another unnecessary war.

The United States should not be involved in any of these battles, but here we are. Those living in fear that Donald Trump is a dictator fail to recognize that past leadership had every intention of sending American men and women into battle unilaterally without a single vote cast.

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The Oil Price Spike That Didn’t Happen

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From the Daily Caller News Foundation

By David Blackmon

What if they gave an oil price spike and nobody came? That is admittedly kind of a lame play on an old saying about parties, but it’s exactly what has happened over the two weeks since June 12, when Israel launched its initial assault on Iran.

At that day’s close of trading, the domestic U.S. WTI price sat at $68.04 per barrel. As of this writing on June 24, the price stands at $64.50. That’s not just the absence of a price spike, it is the opposite of one, a drop of 5% in just two weeks.

So, what happened? Why didn’t crude prices spike significantly? For such a seemingly complex trading market that is impacted daily by a broad variety of factors, the answer here is surprisingly simple, boiling down to just two key factors.

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  • Neither Israel nor the United States made an effort to target Iran’s refining or export infrastructures.
  • Despite some tepid, sporadic saber rattling by Iranian officials, they mounted no real effort to block the flow of crude tankers through the region’s critical choke point, the Strait of Hormuz.

Hitting Iran’s infrastructure could have taken its substantial crude exports – which the International Energy Agency estimates to be 1.7 million barrels per day – off the global market, a big hit. Shutting down the Strait of Hormuz, through which about 20% of global crude supplies flow every day, would have been a much bigger hit, one that would have set prices on an upward spiral.

But the oil kept flowing, muting the few comparatively small increases in prices which did come about.

Respected analyst David Ramsden-Wood, writing at his “HotTakeOfTheDay” Substack newsletter, summed it up quite well. “Oil is still structurally bearish. U.S. producers are in PR mode—talking up ‘Drill, baby, drill’ while actually slowing down. Capex is flat to declining. Rig counts are down. Shareholders want returns, not growth. So we’re left with this: Tension in the Middle East, no supply impact, and U.S. production that’s quietly rolling over. Oil shrugged.”

There was a time, as recently as 10 years ago, when crude prices would have no doubt rocketed skywards at the news of both the commencement of Israel’s initial June 12 assault on Iran’s military and political targets and of last Saturday’s U.S. bombing operation. In those days, we could have expected crude prices to go as high as $100 per barrel or even higher. Markets used to really react to the “tension in the Middle East” to which Ramsden-Wood refers, in large part, because they had no real way to parse through all the uncertainties such events might create.

Now it’s different. Things have changed. The rise of machine learning, AI and other technological and communications advancements has played a major role.

In the past, a lack of real-time information during any rise in Middle East tensions left traders in the dark for some period of time – often extended periods – about potential impacts on production in the world’s biggest oil producing region. But that is no longer the case. Traders can now gauge potential impacts almost immediately.

That was especially true throughout this most recent upset, due to President Donald Trump’s transparency about everything that was taking place. You were able to know exactly what the U.S. was planning to do or had done just by regularly pressing the “refresh” button at Trump’s Truth Social feed.

Tim Stewart, President of the D.C.-based U.S. Oil and Gas Association, has a term for this. “The Markets are becoming much better at building the ‘47 Variable’ into their short-term models,” he said in an email. “This is not a Republican Administration – it is a Disrupter Administration and disruption happens both ways, so the old playbooks just don’t apply anymore.  Traders are taking into account a President who means what he says, and it is best to plan for it.”

Add to all that the reality that a high percentage of crude trading is now conducted via automated, AI-controlled programs, and few trades are any longer made in the dark.

Thus, the world saw a price spike which, despite being widely predicted by many smart people, didn’t happen, and the reasons why are pretty simple.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

(Featured Image Media Credit: Screen Capture/PBS NewsHour)

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