American Fracking Debilitating to Russia

By Jens Lambert @ Shutterstock.com

What is most important to Russia?

Advancing Russia’s interests in the world through high prices for oil and gas.

Thanks to the American fracking revolution, oil and gas prices have collapsed, which have contributed to the dramatic weakening of Russia, Francis Menton argues.

… even the modest adventure in Syria has strained Russian military resources to the breaking point … there just isn’t enough money to fund any of the basic needs for the army, navy, or air forces.

Everything else about dealing with Russia is of minor significance by comparison.

Democrats Suppress Oil and Gas Production

Yet the heart of Democratic Party energy policy is the suppression of oil and gas production and/or transport, designed intentionally to drive consumption down by increasing prices. During the Obama years, the administration tried to force down production by refusing permission to drill on government lands; but the frackers beat that by doing their drilling on private land where the government couldn’t stop them.

When the Obama administration couldn’t stop production, it then resorted to blocking pipelines so that the oil and gas could not get to market.

Trump has reversed that policy, although he continues to face resistance from adverse court decisions, let alone from state environmental regulators in blue states who use their own local environmental laws to block pipelines.

GND Would Reduce or Eliminate Fossil Fuel Energy Production

Meanwhile, the Green New Deal — endorsed by essentially every candidate for the Democratic nomination for President — would do everything possible to reduce and eliminate U.S. fossil fuel energy production.

Two Competing Policies for Dealing with Russia

1. Trump: Remove artificial government restrictions on fossil fuel drilling and on pipelines, and let our capitalist system of private investors go out and achieve “energy dominance” without further government assistance. The prices of oil and gas drop and remain low. Russia is deprived of funds, and sinks to insignificance on the world military stage.
2. Hillary and the Democratic presidential candidates: Impose endless artificial restrictions on drilling and on pipelines, with the purpose of driving up the price of oil and gas. If we want heated homes in the winter, let alone reliable electricity, we’ll just have to buy oil and gas from Russia at inflated prices. Meanwhile, claim to be really concerned about the threat from Russia, and to combat it, advocate for doing more and still more investigations to stop Russia from “meddling” in U.S. elections.

It Don’t Make No Sense

Dick’s Dad worked for Cleveland, OH’s Al Weatherhead back in the 1950s. Through the years, G. Richard Young – he lived to be an energetic 99+ year old – was fond of quoting a colleague from Weatherhead: “It don’t make no sense.”

So which is sense and which is nonsense concerning Russia? You be the judge.

Much more from Francis Menton here.

More on energy and government here:

• Hillary, Obama, Trump—the Russian Connections
• Trump Lets the Energy Market Pick the Winners
• Obama/Clinton’s Energy Hypocrisy
• The Saudis and Turks Are Doing Us No Favors

• Author
• Recent Posts

Debbie Young

Debbie, editor-in-chief of Richardcyoung.com, has been associate editor of Dick Young’s investment strategy reports for over three decades. When not in Key West, Debbie spends her free time researching and writing in and about Paris and Burgundy, France, cooking on her AGA Cooker, driving her Porsche Boxter S through Vermont and Maine, and practicing yoga.

Latest posts by Debbie Young (see all)

• The Oddly Overlooked Logic Behind the Toilet Paper Crisis - April 7, 2020
• Are Ventilators a Bridge to Nowhere? - April 6, 2020
• In the Age of Coronavirus –Separating the Political Wheat from the Chaff - April 3, 2020