Despite sanctions, Russian fuel is still selling — here’s who’s buying

“Petroleum shipments are still relatively stable for Russia, as nations like China and India have picked up some slack from EU countries weaning themselves off oil, and Russia still has LNG, coal, and nuclear energy to help the economy float, too.

In order to make petroleum products more appealing to customers like India and Indonesia, Russia has offered fairly steep discounts — an average of $30 per barrel — against Brent crude oil, which has also been a benefit for Sri Lanka, Pakistan, Bangladesh, and Cuba, all emerging economies struggling with inflation, as Business Insider reported. Although according to S&P the discounts on Russian crude oil are decreasing, some analysts believe they’ll persist, making Russian crude oil imports highly palatable for poorer countries.”

“Countries like China, India, and Turkey are proving eager partners for the Russian fuel industry, with Turkey doubling Russian oil imports this year and vying to become a hub for Russian LNG transfers into Europe after damage to the Nord Stream pipelines.”

“Even with the Nord Stream 1 pipeline out of commission — and setting aside the transfers to China, now Russia’s biggest natural gas buyer — European countries are importing record amounts of Russian LNG at market prices, according to Bloomberg. France has purchased about 6 percent more Russian LNG between January and September of this year than it did all of last year; Spain has already broken its record for Russian LNG imports this year, and Belgium is on track to do the same.

The stakes for natural gas imports are somewhat different than they are for Russian petroleum, in a number of different ways; for one, the EU hasn’t imposed sanctions against it as it has against petroleum products, though the bloc does intend to eliminate its reliance on Russian fossil fuels by 2027. Second, Russia has already used Europe‘s reliance on its natural gas as a weapon; Russia cut access to many European countries which refused to pay for LNG in rubles, and cut total output to Europe by 60 percent in June and by 80 percent in July, Reuters reported last month.”

“Russia continues to invest heavily in its nuclear technology, and nuclear facilities in many nations are dependent on Russian technology and cooperation to function, even if they’re not directly importing Russian nuclear fuel, according to a report by Robert Ichord for the Atlantic Council.”

“Russia has several illicit strategies to evade western sanctions on its energy products and financial system. Because these transactions are, by their nature, often difficult to track, it’s hard to know how effective and how widespread they are — not to mention how much the Russian economy is benefiting from them.”

Manchin rails against ‘revenge politics’ on permit plan

“Sen. Joe Manchin on Tuesday railed against what he called “revenge politics,” as liberals in the House and Senate team up with Republicans to oppose his plan to speed permits for natural gas pipelines and other energy projects.

Manchin, a West Virginia Democrat who chairs the Senate Energy Committee, secured a commitment from President Joe Biden and Democratic leaders to include the permitting package in a stopgap government-funding bill in return for his support of a landmark law to curb climate change.

But in the weeks since Biden signed so-called Inflation Reduction Act last month, Democrats and environmental groups have lined up to oppose the permitting plan, calling it bad for the country and the climate. Climate hawks such as Vermont Sen. Bernie Sanders and Massachusetts Sen. Ed Markey, along with dozens of House members, say the permitting plan should be excluded from the must-pass spending bill.

Many Republicans agree. Wyoming Sen. John Barrasso, the top Republican on the Senate energy panel, called the permitting deal a “political payoff” to Manchin, whose vote on the climate bill was crucial to the law’s passage.

Manchin’s actions on the climate — including secret negotiations with Senate Majority Leader Chuck Schumer, D-N.Y. — “engendered a lot of bad blood” among Republicans, Sen. John Cornyn, R-Texas, told reporters. “There’s not a lot of sympathy on our side to provide Sen. Manchin a reward.”

At a news conference Tuesday, Manchin expressed bewilderment at such sentiment, saying he’s “never seen” such an example of “revenge politics,” with Sanders and the “extreme liberal left siding up with Republican leadership” to oppose his plan.

“It’s revenge towards one person — me,” Manchin said.

“I’m hearing that the Republican leadership is upset,” he added. “They’re not going to give a victory to Joe Manchin. Well, Joe Manchin is not looking for a victory.”

While legislative text of his permitting plan has not been made public, Manchin called the bill “a good piece of legislation that is extremely balanced” and does not “bypass any environmental review.″ Instead it would accelerate a timeframe that can take up to 10 years for a major project to win approval.”

Sorry, Biden, Gas Stations Can’t Just ‘Bring Down the Price’

“More than half the gas stations in the country are single-store operations run by an individual or a family, according to the Association for Convenience and Fuel Retailing (NACS), a trade association representing the stores that sell more than 80 percent of the

4 factors that could determine if gas prices will keep falling

“Several factors have pushed gas prices down, including a drop in oil prices as recession fears grow and a smaller-than-expected impact from Western sanctions on Russia. Supply has also improved relative to demand, which has slightly fallen in recent weeks and remains at levels lower than a year ago, according to data from the US Energy Information Administration.”

WHAT CAUSED THE 2021/2 INCREASE IN GAS PRICES?–Video Sources

How Much Of The Gasoline Price Surge Is President Biden’s Fault? Robert Rapier. 2022 3 13. Forbes. https://www.forbes.com/sites/rrapier/2022/03/13/how-much-of-the-gasoline-price-surge-is-president-bidens-fault/?sh=31618bce7c8b 4 reasons high gas prices aren’t Joe Biden’s fault—and one critical way he’s adding to the problem Will Daniel. 2022 6 8. Fortune. https://www.yahoo.com/video/4-reasons-high-gas-prices-090000545.html

Blame High Gas Prices on Red Tape

“as CNN pointed out not long ago, oil companies used to respond like other businesses to rising prices by increasing supply. Burying their industry in red tape and choking off access to capital has been a very effective signal to rethink their entire business strategy. Oil industry insiders may coast along and enjoy the profits from existing capacity, but they’re unlikely to invest in facilities to meet demand for gasoline, and offset soaring prices, until they’re certain their industry will be allowed a future.”

The Gas Tax Makes Sense. Biden Considers Canceling It.

“Fuel taxes paid by motorists are collected in the federal Highway Trust Fund, which is then spent building and maintaining the roads and bridges those same drivers use. The federal gas taxes, excluding the tax on diesel, make up about 60 percent of tax revenue dedicated to the Highway Trust Fund.

Fairness demands charging drivers for the roads. The only alternative would be to require nonmotorists to subsidize driving infrastructure for them.

A user fee-like fuel tax also keeps road spending in line with demand for roads. It’s harder to fund bridges to nowhere if people’s fuel consumption, and the taxes they pay on it, aren’t generating enough revenue for new projects.

Suspending the gas tax, therefore, makes road spending less fair and less efficient. It would also be fiscally costly. Road construction and maintenance don’t become free just because gas prices are high. Suspending the gas tax only gives road users a break from paying for it.”