Inflation Super Storm Warning
Some 20 years ago Europe (and the “West”) had the North Sea, which produced as much as Russia and the US. Today, the North Sea is a shadow of its former self. And if US shale continues to disappoint, it won’t be long before Russia becomes the world’s biggest oil producer “beyond reasonable doubt”.
By Capital Thinking • Issue #1053 • View online
The pundits are rushing to tell us that the way to stop Russia’s aggression is by hitting the Russkies where it hurts (i.e. their oil and gas).
Our view is that any sort of blockade of Russia’s exports will only lead to an inflationary super storm.
Russia: Careful what you wish for – OWTW
CapEx Team | Capitalist Exploits:
Our view is that any sort of blockade of Russia’s exports will only lead to an inflationary super storm.
Now, before you accuse us of peddling “pro-Russia” talking points. Nothing of the sort. What we are trying to do is point out how Russia is way more critical to the world economy than it was some 20 years ago.
Some 20 years ago Europe (and the “West”) had the North Sea, which produced as much as Russia and the US. Today, the North Sea is a shadow of its former self. And if US shale continues to disappoint, it won’t be long before Russia becomes the world’s biggest oil producer “beyond reasonable doubt”.
Do you think that Rosneft, Lukoil, or Gazprom are in trouble of being sanctioned when they supply some 36% of Europe’s oil needs?
And natural gas (not that this is unappreciated).
Furthermore, there are probably a couple of commodities that few have given any thought to, coal in particular.
CapEx Team