Oil and Natural Gas

Vladimir, you’re living in the past, and it’s costing you a fortune to realize your “time machine” vision, but I also understand where you’re coming from… It’s complex!

In his 22-year career as the leader of the Russian Federation, Vladimir Putin wanted to manifest one primary objective: to restore Russia’s power.

Putin never conceded to the result of the Cold War, and his dream is to reestablish the Kremlin’s position of control over the shattered pieces of the broken USSR.

When the USSR fell apart, Russia became the de facto leader of the region as the area split into 15 independent countries and 1/6 of its landmass was cut off from Russia.

During the era of the USSR, Russian ethnics were purposefully disbursed throughout the empire. After the breakup, millions of Russians were living in the newly formed independent nations, not in the motherland.

About 40% of the USSR’s GDP wasn’t part of the Russian Federation that Putin was the head of, and even its nuclear capabilities were on Ukrainian territory, among other things.

Russia became a gas station masqueraded as a country. It is the largest exporter of natural gas and the 2nd-largest exporter of oil in the world, after Saudi Arabia, so without energy resources, which are the literal foundation of its economy, Russia is nothing.

50% of its government’s budget comes from the sale of energy. 30% of its GDP and the buyer of these natural gas and oil treasures is mostly the European Union.

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    The dependency of Germany, for example, on Russian exports, is almost absolute because Russia supplies 20% of the E.U.’s energy needs and gets a third of its income from it.

    The reason Russia is such a huge trading partner of the E.U. is because of the way its ports and access to the world’s open oceans are set up. Russia simply has problems accessing Europe by sea, but not by land, so it built pipelines to reach its customers. After the USSR split up, those ran through the new sovereign countries that demanded transfer fees, among other things.

    Think about Vladimir Putin, a man convinced that America was the cause of the fall of the Soviet Union and whose NATO army was strengthening the confidence of the nations that formed in the aftermath, allowing Western oil companies to strike deals. He was seeing his beloved empire crumbling and his oil and natural gas reserves going into the pockets of other countries, further emboldening them to never seek help from Russia.

    Between Kazakhstan, Azerbaijan, Turkmenistan, and Uzbekistan, those four countries sit on the Caspian Sea, the largest inland body of water in the world, reported to have natural gas and oil in its bedrock to the tune of billions of barrels.

    Think about seeing these riches, which you consider to be yours by right, and now their governments are letting Exxon, Chevron, BP, and Shell come in. It must have driven Putin mad!

    His obsession with the past, not adjusting and adapting to the present and reality, made him move into Georgia. After the Ukrainians discovered immense amounts of oil in Crimea and Donbas, he just couldn’t stand still and watch this anymore.

    He attacked… after all, if Russia can’t make money by selling oil and natural gas to Europe and monopolizing that trade, it will become even less relevant, especially after Norway’s discovery of abundant offshore natural gas!

    What Putin wants to do is landlock Ukraine, not occupy and control it. He wants to make it so that Russia takes over its oil, natural gas, and coal, and the Ukrainian people can have the rest…

    Putin’s “whatever it takes” approach only speeds up Europe’s determination to seek carbon-neutrality, produce more uranium, and import from Azerbaijan, which doesn’t help Russia at all.

    We’re fighting over natural resources, not over “freeing people.”

    We believe Putin has only aggravated the Europeans, who see that he will go to any lengths to hang onto the past instead of facing reality and reconstructing Russia for the future.

    We’ll keep monitoring this, and we’ll see what’s next!

    Best Regards,

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