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How U.S. Energy Independence Was Shaken by the Russo-Ukrainian War

While OPEC has increased production to satisfy a growing global thirst for energy as the Covid pandemic recedes, Saudi Arabia has rejected calls by the Biden administration to increase production further. Even as demand for fossil fuels continues to grow, investments by major Western oil and gas companies in oil and gas exploration and production have lagged in recent years due to the economic downturn. pandemic and investor pressure to divest from fossil fuels and return profits to shareholders.

In addition to what sanctions on Russian oil and gas will affect prices, there is also the fear of retaliatory cyberattacks. One such attack from a Russian criminal group crippled Colonial’s vital oil pipeline just last year, spawning new gas lines and panic buying across much of the Southeast.

“A kind of amnesia about energy security has developed,” said Daniel Yergin, energy historian and vice president of IHS Markit, a research firm. “That dementia is going away now.” However, he is optimistic that expanding US oil and gas production has put Washington in a much stronger position in the face of Russia. “Europe would have to give in,” he said, “if it weren’t for the U.S. supply of liquid natural gas.

All that gas, however, is hardly a security blanket for Europe. Domestic gas prices quadrupled this winter, partly due to reduced shipments from Russia. It would have been worse if U.S. gas exports to Europe hadn’t nearly doubled between November and January last year, but it’s those exports that have helped push gas prices in the U.S. higher due to inventories. domestic stock decreased.

Exporting more gas is a powerful foreign policy tool, but fossil fuels are intrinsically relevant. growing problem of climate change.

“If you drill and mine America first to get more fossil fuels in the country, you’re still burning them,” said Daniel F. Becker, director of the Safe Climate Transport Campaign at the Center for Biology. carbon will end up in the atmosphere. Diversity. “The more we drill, the more wildfires we have, the more severe droughts and storms we have, the more we are exacerbating them because global warming is a direct result of fossil fuel burning. “.

Electrification of vehicles can be helpful, but electric vehicles need batteries that contain important minerals such as lithium, cobalt, copper, nickel and rare earths commonly found in unstable countries. China has a dominant position in refining many of those minerals and could easily become a leading energy competitor in the future.

Jason Bordoff, head of Columbia University’s Center for Global Energy Policy, says the world needs to promote cleaner energy to deal with climate change, but that change does not guarantee a world. more peaceful world. “The old politics of oil and gas will stay with us and become imperative and at the forefront of clean energy politics,” he said.

https://www.nytimes.com/2022/02/25/business/ukraine-russia-us-oil-gas.html How U.S. Energy Independence Was Shaken by the Russo-Ukrainian War

Fry Electronics Team

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