…….events in the Crimea have now added another question: why shouldn’t America use its new-found energy reserves as a weapon? It would be easy enough to do. If Barack Obama were to export more of this gas, he could send world prices to the floor – hurting not just the Kremlin, but the oligarchs who support Putin. Of all the weapons in America’s arsenal, its new energy power is perhaps what the Kremlin fears most.
Russia is, in effect, a giant gas company with a military attached to it. Moscow’s interests are synonymous with that of its state-owned gas concerns, which explains much of its bizarre foreign policy. Why should Putin have protected Bashar Assad when he was gassing his own people? We were reminded of the answer on Christmas Day, when Russia signed a 25-year deal with the Assad regime, handing the state-controlled energy firm Soyuzneftegaz a chunk of the Levant Basin. In this way, Assad’s Syria has joined Putin’s virtual empire.
This is why hawks in Washington are not content with Obama deploying F-16 fighters to Poland, and are urging him to retaliate with robust pipeline politics. A Texan congressman, Ted Poe, yesterday introduced a Bill that would speed up the delivery of American gas to Ukraine and other threatened regions. John Boehner, the Republican Speaker of the House, is telling Obama his prevaricating over gas export licences has helped Putin “to finance his geopolitical goals”. The fuel hawks are clear: energy has strategic value, and Obama’s failure to use it has emboldened the enemy.
Another weapon the president might deploy is approving the Keystone XL pipeline, which would take oil to coastal refineries, ready for export. Then he could lift the ban on exporting crude oil, which has lingered since the crisis of the Seventies. He could fast-track the 15 gas export terminals still waiting for planning approval, to send supplies to America’s allies. All of these demands have been made, for years, in the name of cheaper energy. The Greens protested, as did those who feared exports would make fuel pricy again. But only now does exporting energy seem like an essential tool of American statecraft – a weapon in a new cold war.
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