RE:RE:RE:Energy: A New World OrderPlease , never go there . The NEP was an unmitigated disaster for many years and resulted in many suboptimal investment decisions. Hardly what we need to bring energy costs down for the future. As far as a new world order goes Russia and China are at opposite ends of the energy spectrum. Are we really going to see cargoes of Ural Crude going to China passing Cargoes of Saudi Crude going to Europe ? If so , then I would highly recommend investing in shipping companies as the backhaul profits will make them very rich indeed
Experienced wrote: NPCexe wrote: All russian energy will go to China. Every single drop. Just like iran managed to survive a sanction environment. I think this is the beginning of a permanent Russo-Chinese independence
MigraineCall wrote: If you read one article this weekend, read this.
A fantastic read and analysis on the new energy situation we now face going forward.
Starved of capital, resources, and expertise, Russian production will struggle to grow and is likely to settle into terminal decline.
Gone will be ambitions to eclipse all other OPEC+ members as the global oil producer. Best to dial down expectations. Think Venezuela, not Saudi Arabia.
https://viscosityredux.substack.com/p/the-week-that-everything-changed?utm_source=twitter&s=r
Will take time for this to happen but YES.
End result?
Russia becomes a vassal state of China along with pretty much most other countries.
Why?
The difference between playing the long game and the short game. Capitalism is all about making the next Q report numbers not long term sensible decisions.
At my age I doubt I will live long enough to see this happen but I do fear for future generations.
IMHO - the poor and the middle class are screwed from the inflationary impacts we are seeing driven by the rising oil price and gas prices and other things like food. Rich people will prosper in this environment and the income distribution will be increasingly skewed as time goes on and this in itself is a prescription for social unrest.
While this will sound as a heretic especially on a Board such as this and despite my conservative roots and disgust for Trudeau, Trudeau should, given the energy situation in Canada, roll back/freeze energy prices in Canada and place an excess profits tax on Canadian oil companies until the current situation calms down.