(Article by Susan Duclos republished from AllNewsPipeline.com)
A recent quote from Energy Secretary Jennifer Granholm highlights the sheer suicidal nature of the sanctions against Russia on the part of America, after the Russia/Ukraine war began.
“As you know, gasoline comes from oil,” Granholm told “Fox News Sunday.” “Oil is traded on a global market. So we are at the whim, if you will, of what happens globally.”
Globally Russia is the world’s third largest oil producer, and “plays an outsized role in global oil markets,” which means anything related to Russian oil in the global market, affects the entire world’s energy costs.
Natural gas prices has already spiked to a 14-year high, and in Europe that is approximately seven times higher, according to CNN.
Analysts say Europe’s natural gas crisis is contributing to the higher natural gas prices in America, although it’s not the main driver.
The point here is that we have allowed ourselves to become so interconnected with the international community, that anything that effects them eventually ends up affecting Americans.
On August 8, 2022, it was reported that Goldman Sachs forecasted gas prices would once again rise back to an average of $4.35 a gallon.
Gasoline prices are set to rise back to roughly $4.35 per gallon by the end of the year, Goldman Sachs analysts said in a report.
Prices will continue to climb next year as well, rising to an average of $4.40 in 2023, according to the report.
By August 16, others were making the same predictions, as reports were warning Americans that “After falling 9 weeks straight, experts say gas prices may rise again.”
BITING THE HAND THAT ‘HEATS’ YOU
Flash forward to Monday, September 5th, and we see that European nations, which joined America in sanctioning Russia over the Russia/Ukraine war, have just seen the rest of their gas supply from Russia, whom they depend on for heat during the upcoming winter, cut off.
European gas prices rocketed higher again on Monday (September 5).They were up as much as 30% in early trade. The jump came after Russia shut off supplies via the key Nord Stream 1 pipeline.
It says it’s found a leak that will put the facility out of use until further notice. Europe says Moscow is just weaponizing energy supplies in retaliation for Western sanctions.
Nord Stream 1 used to transport about a third of the Russian gas exported to Europe, though it’s recently been running at just a fifth of its usual capacity. Russian gas supplies via Ukraine, another major route, have also been reduced. It all leaves Europe scrambling to find alternative sources before winter.
Several states have triggered emergency plans that could lead to energy rationing.
Think about that.
Russia supplies European countries with the majority of their supply, and because said countries led by the United States, decide to “punish” Russia with sanctions because they don’t approve of Russia’s behavior regarding Ukraine, they are now “scrambling” to find alternative sources, while the markets are “rattled” and prices across Europe are now surging.
What did they expect to happen?
You do not bite the hand that feeds you, or in this case that ‘heats you”, and expect them to simply continuing offer the supplies, in this case, gas.
All those warnings about how gas prices will be going up again, without decreasing to what they were before Biden started occupying the White House, and now this.
BIDEN PRICE HIKES
As Joe Biden continues to claim the rise in gas prices are “Putin’s price hikes,” in a speech on June 22, 2022, Joe Biden admitted the following:
We could have turned a blind eye to Putin’s murderous ways, and the price of gas wouldn’t have spiked the way it has.
In other words, had Biden, on behalf of the United States of America, minded our own business, since there was no national security interests for America to justify inserting ourselves into what was happening there, we wouldn’t have seen the price hikes.
Or so he claims.
In reality, our butting in where we did not belong simply made the matter worse, but did not create it. The gas price hikes started before the Russia-Ukraine conflict.
In March 2022, the Washington Times asked and answered the following question: “Who caused the gas price increase, Putin or Biden?”
What do the facts show? The last full month former President Donald Trump was in office, December 2020, the average retail price of gasoline in the U.S. was $2.20 per gallon. Mr. Biden, upon taking office in January, immediately declared war on the fossil fuel industry — as he said he would. He shut down construction on the infamous Keystone pipeline during his first week. His administration took away drilling permits and leases on federal land, denied permits for other pipelines, discouraged banks from lending to the petroleum industry, and held up permits for new or expanded LNG terminals to make exporting LNG more difficult and expensive, among other things.
By contrast, the Trump administration had a series of pro-oil and gas production policies to make the U.S. self-sufficient and even an energy exporter. The numbers show the Trump administration met its goals and then some.
Putin was to be Biden’s scapegoat in order to abdicate his own responsibility for declaring war against the gas industry and forcing Americans to pay outrageous gas prices.
As Biden manipulated the price of gas by releasing 1 million barrels a day from the Strategic Petroleum Reserve (SPR), which depleted the reserves to their lowest level since 1986, meaning that “fix” which was nothing more than slapping a band-aid on a gaping wound, is unsustainable, especially since Biden has also been exporting more than 5 million barrels of oil from the reserves to Asia and Europe.
Now that Russia has cut some European countries off totally, citing the sanctions, with the claim that sanctions are preventing them from the maintenance needed to start supply them again, they are seeing the consequences of their own action.
The Europeans aren’t the only ones that will suffer, as even before this latest hit on the energy sector in Europe, U.S. gas prices were expected to rise almost to where they were before Biden attempted to manipulate them downward with the SPR releases.
Read more at: AllNewsPipeline.com