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Home » News » Business

Tuesday, August 12, 2008

Georgia clash imperils Europe's fuel flow

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soxconn

This is a wake up call for the U.S. and the EU. Russia is creating the perfect energy as a weapon storm. Behind the facade of protecting their citizens, they are moving to isolate to control of energy to the EU. Whether they control or disrupt the BTC pipeline does not matter, all of the options are in their favor. Why? If Israel attacks Iran, they will threaten the Straits of Hormuz. Russia has just closed a huge weapons deal with Venezuela, enhancing Chavez confidence. If Chavez supports Iran, they will cut off oil to the U.S., the market in China is just as lucrative. The majority party in the Congress will not allow drilling or exploration, even if it drags the nation down with it. A potential presidential candidate has an energy policy that is an environmental policy, a foreign policy that relies on "principled diplomacy" and is willing to draw down the strategic oil reserves to get elected. All of these roll up to one strategy to Putin, an opportunity to strengthen is energy intimidation hold on the EU because the U.S. will not be able to help the EU with energy. I would not expect a missile shield for the EU in the near future and I would seriously rethink our NATO strategy.
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