Much of Russian oil production is going offline and is never coming back anyways. Since the fall of the USSR they haven’t been training engineers at a rate to maintain their own infrastructure. Many of the engineers they do have are nearing retirement age.
As a result don’t have the technical expertise to maintain their own infrastructure oil fields in Siberia. Those fields require oil to flow constantly otherwise the oil will freeze and expand and burst the pipes. The last time this happened was during the fall of the USSR and those well heads took 20 years to come back online and required Western expertise to repair.
They’ve depended on Western companies to build out and maintain those tracts ever since. When those go well heads go offline either through lack of maintenance or through Ukraine attacking storage centers where this oil is kept before its shipped, they won’t come back on again. They will still have tracts of oil fields in the Western part of the country that they can pump, but they will permanently loose a lot of capacity. Your likely to see a Venezuela style gradual drop off in production over the next ten years if they don’t change course and bring back Western expertise.
It doesn’t really matter to the US, we produce a ton of oil domestically and have been switching over our refineries to process it. Europe, China and India will be the ones to really feel the squeeze when Russian oil goes offline.
I agree what you wrote, but I have problem with this paragraph:
It doesn’t really matter to the US, we produce a ton of oil domestically and have been switching over our refineries to process it. Europe, China and India will be the ones to really feel the squeeze when Russian oil goes offline.
While it is true that US produces enough oil domestically to have enough for itself the price for oil is global.
US has option to of course close its exports and not be affected by it, but in the process it will lose its allies who will suffer even more by that (this sounds more like that trump would do, as it would piss off allies which we need and it could be sold internally as protecting Americans)
The other option would be to keep market open, but then the price hike would affect us but it would be smaller, because it would be shared among everyone.
Much of Russian oil production is going offline and is never coming back anyways. Since the fall of the USSR they haven’t been training engineers at a rate to maintain their own infrastructure. Many of the engineers they do have are nearing retirement age.
As a result don’t have the technical expertise to maintain their own infrastructure oil fields in Siberia. Those fields require oil to flow constantly otherwise the oil will freeze and expand and burst the pipes. The last time this happened was during the fall of the USSR and those well heads took 20 years to come back online and required Western expertise to repair.
They’ve depended on Western companies to build out and maintain those tracts ever since. When those go well heads go offline either through lack of maintenance or through Ukraine attacking storage centers where this oil is kept before its shipped, they won’t come back on again. They will still have tracts of oil fields in the Western part of the country that they can pump, but they will permanently loose a lot of capacity. Your likely to see a Venezuela style gradual drop off in production over the next ten years if they don’t change course and bring back Western expertise.
It doesn’t really matter to the US, we produce a ton of oil domestically and have been switching over our refineries to process it. Europe, China and India will be the ones to really feel the squeeze when Russian oil goes offline.
I agree what you wrote, but I have problem with this paragraph:
While it is true that US produces enough oil domestically to have enough for itself the price for oil is global.
US has option to of course close its exports and not be affected by it, but in the process it will lose its allies who will suffer even more by that (this sounds more like that trump would do, as it would piss off allies which we need and it could be sold internally as protecting Americans)
The other option would be to keep market open, but then the price hike would affect us but it would be smaller, because it would be shared among everyone.