India and China have increased their purchases of fossil energy from Russia, neutralizing most sanctions. As the West bets on renewables (and thus fails to persuade when it asks new partners to ramp up oil and gas production), the East aims for much longer transitions — and without loopholes.
India And the China
increase their purchases of fossil fuels from Russia, Especially the oil.
L ‘India’s most evil
And imports at a rate of about one million barrels per day from Moscow. Even ten times the amount of oil Delhi imported from Russia a year ago, when India purchased just 100,000 barrels a day.
China too Increased imports from Russia
. The two Asian giants are storing Russian fossil energy and In this way, they nullify many Western sanctionsSo much so that the total Russian oil production is rising, at 10.55 million barrels per day, according to the International Energy Agency.
Compared to what Russia produced before its military attack on Ukraine, the level is still 7.5% lower. for Thanks to higher prices, revenue from Russia also goes up$20 billion for oil sales alone in May, up $1.7 billion from April.
on me Western Front All governments struggle with the same paradox: how to make environmental commitments compatible with The harsh reality of our dependence on fossil energies.
L ‘European Union a memorandum of understanding with Egypt And the Israel To encourage an increase in gas supplies from these two countries which are rich in offshore fields and which are well connected to the countries of the northern shore of the Mediterranean. In a note to Brussels representatives they felt the need to specify that gas will only play an important role in electricity production until 2030. A short eight-year horizon, for those who want to motivate other countries to ensure stable supplies of natural gas. Investments in factories usually require a long horizon in this sector.
The same problem is fraught with dangers Joe Biden. The US president wrote a hot letter to the oil giants: BP, Chevron, ExxonMobil, Marathon, Phillips 66, Shell, Value Energy. Accusing them of spending money Historically high profits from refineries, exacerbating the harm to consumers.
Biden says in the letter that owners of refineries – where crude oil is converted into gasoline – are not increasing their production capacity. After downsizing refineries at the start of the pandemic, they are now failing to adapt to rising demand. So they create scarcity, which High prices stand out at the pump, increase the profits of oil companies and impoverish consumers. It’s all true: Compared to 2019, US refining capacity is down 6%. The same also happened in Europe where refining capacity fell by 5.7%. But this happens because Western oil companies got the message: The West wants to get rid of fossil fuels as quickly as possibleThere is no comfort in investing in this sector.
Federico Rampini publishes the global newsletter every Saturday: just subscribe click here
Who thinks otherwise? Asian producers. While refining capacities have shrunk in America and Europe, in the Middle East it has increased by 13% over the past three years. Asian producers seem to have learned the hard lesson of the summer of 2021, when the North Sea turned off the winds and England suffered a blackout. Even assuming a sharp increase in the use of renewable energy – which is desirable – will go along with it For a long time with fossil energy consumption It should fill in the holes. or with one Nuclear rehabilitationof which there is no trace in the West, with exceptions such as France.
The wind and the sun do not generate energy 24 hours a day or 365 days a year. until they interfere Technological leaps in the ability to conserve energy (new generation batteries) as well as solar and wind energy Gas will be needed.
The East seems intent on managing the transition without the nasty loopholes and surprises that vexed the West.
Jun 16, 2022 (change on Jun 16, 2022 | 17:25)
© Reproduction reserved
“Infuriatingly humble social media ninja. Devoted travel junkie. Student. Avid internet lover.”