Once upon a time, some European countries changed their energy production policies. Coal and nuclear energy were to be replaced by renewable sources. Hydrocarbons would be phased out as soon as practically possible. The problem with such calculations is that renewable energy production does not come close to that of traditional hydrocarbon-based sources. Local environmental concerns were appeased by shutting down “polluting” energy production in Europe. The energy deficit was to be covered by countries like Russia, which is not concerned about any environmental issues and brings other problems, such as energy dependency on the whims of a war criminal. The United States appears to be following a similar path.
The shale boom quickly made the United States the world’s leading energy producer. However, a decline in oil prices and environmental concerns halted investments in the sector. Well before the Ukraine invasion sent prices soaring again, the U.S. shifted its energy policy from fracking to renewable energies. Active drilling platforms have been in a constant decline since 2012. Currently, it is difficult to find any appetite among American banks and other funding sources for allocating new capital investments to the sector.
This policy gives influence to dictators like Vladimir Putin and Nicolás Maduro. It is absurd that despite all the rhetoric about strict sanctions against Russia, many European countries continue to meet their energy demands from Putin’s taps. The Netherlands, Italy, Poland, Lithuania, Croatia, Denmark, France, Romania, the UK, Sweden, Germany, Estonia, Finland, Belgium, and Bulgaria collectively purchased $3.7 billion in oil from Russia in the first three weeks of March, according to TankerTrackers’ export data.
U.S. entities bought nearly $214 million in the same period, and again according to TankerTrackers, “… are still trying to secure Russian crude before the import curtain closes on 2022-04-22.”
The fact that Europe and the U.S. continue to purchase oil from Russia, even after the events in Ukraine, indicates that beyond all the rhetoric, realities still dictate actions.
Hoping that Venezuela, for instance, will replace Russia in global oil markets is as realistic as expecting renewable energy to suddenly offset what is needed in terms of energy. President Biden’s recent attempts to engage with Maduro are another example of misguided and frankly foolish policy.
The Western world is virtually extorted by petro-states. It may pretend to hold the advantage, but the reality is that energy dependence on tyrannical criminals (such as Putin, Maduro, MBS, or the ayatollahs) is merely the natural consequence of unrealistic, unattainable, and counterproductive policies, the formulation of which falls squarely on our shoulders. Instead of giving prominence and elevating to an iconic status individuals like Greta, political leadership should focus on how to end dependence on Putin and his cohorts. After all, what Putin has done and will continue to do has been financed by the West.