Europe Needs Russian Energy. What Happens When Europe Loses Access?
When President Biden took office, one of the first acts of his administration was to effectively stop the Keystone XL crude oil pipeline by canceling the border crossing permit of the pipeline’s sponsor. The pipeline has long been a target for environmentalists. Energy experts noted that the cancellation would increase oil dependency from foreign sources. The impact of oil and gas dependency will soon be felt across Europe, as Russia is a significant energy producer. One of the sanctions imposed on Russia is the halting of the Nord Stream 2 pipeline. Nord Stream 2, worth $11 billion, is a primary natural conduit from Russia to Germany. Sanctions against a bad actor are certainly appropriate, but what happens when those sanctions affect energy prices and energy access? How will energy-dependent countries manage? Will sanctions be used in the United States as a pretext to push further towards renewable energy sources, regardless of the need to secure oil independence in the interest of national security?
Hal Van Hercke and William Travis of Knights Bridge Research join Kim to discuss the strategic importance of oil and gas independence and Russia’s invasion of Ukraine in segments three and four of today’s broadcast.