Ukraine crisis puts energy independence on the front burner

The Ukraine crisis points to the importance of energy independence.  Much of the world’s strife can be attributed to the distribution of natural resources.  The givers control; the receivers are at their mercy, chained to them by supply line tethers.

 Oil has always driven much if not all  of US military and foreign policy. US’s entanglement in the middle east; its devastating invasion of Iraq; the first Gulf War  are just a few examples.  We are already approaching energy independence in this country with our ability to tap onto our vast natural gas reserves and our increase in oil production.  The Ukraine crisis points to the need for Europe to get itself independent of imports from Russia.

Columnist Thomas Friedman, writing in  the New York Times March 4, opined  Russian  Pres. Vadimir Putin  “ prefers to turn Russia into a mafia-run petro-state…all the better to steal from” and contends we should hit him where he hurts, forcing down energy prices with our own exports of liquefied natural gas (LNG) ,  crashing the Russian economy which is pumped up  now on oil revenues..Undermining Putin’s petro revenues is better than going to war.

 The threat of Russia shutting off their energy supply is a powerful reason for allies like Germany  that gets 30% of its gas from Russia and other  European friends in a similar pickle  to resist joining us fully  in modifying Russia’s behavior. . Russia controls their shutoff valves .

Russian pipelines supply petro resources from one end of Western Europe to the Balkans (including as far south as Croatia). Their pipelines  crisscross the Ukraine, making control of it strategic to both Russia and Western Europe.

A couple of years ago I was traveling through Romania, a former Soviet satellite, and now a member of NATO and the EU.  Rusting  oil storage tanks and refineries dotted the landscape to remind us of its former importance as an oil producer.  However, we saw  a huge pipeline propped up above ground. I asked our guide where the oil was coming from now.  He said Russia. Why, I asked? Is the oil field dried up? No, he said, it is cheaper to get it from Russia than to drill it ourselves. Romania and the rest of Europe are addicted to Russian energy ..

Supplying western Europe with another source of natural gas from the US  is not a short term solution and it is controversial. Friedman contends just  to threaten and begin that process would have an  effect on Putin’s calculations immediately.

 To make good on the threat, we  need to change our laws that now  limit the amount of natural gas exports.  Terminals and certain processes  need to be built to handle LNG exports. Government approval needs to be streamlined .  Rep. Cory Gardner (R-CO)) and Sen. Mark Udall (D-CO)support reforming the process; other senators oppose(.http://www.bloomberg.com/news/2014-03-07)

 Some fear our energy costs would rise.. . Exporting oil  and natural gas means more fracking and the Keystone pipeline completion. Both are  fought by environmentalists. Friedman suggests  imposing  carbon taxes and raising our own gas tax  would  force world petro prices down.  My thought:  This trade off could  encourage alternative energy development   in the longer run. If anything, the Ukraine crisis will serve to put this public policy debate on the front burner.

A version of this blog ran as a column in the Sky Hi Daily News...www.skyhidailynews.com...March 28, 2014