by Jorge Vilches for the Saker Blog
The EU catch-22 conundrum involves many incongruous and conflicting issues each one of which must be solved first before solving any of the others in a context of constant change and dozens of mutually exclusive moving parts.
Simply put, the European situation is ultra-complex, far from enviable, and getting ever worse by the hour. Possibly a Rubik´s cube may represent the problem, but two of them would do it better. Still, you can easily google the solution for Rubik´s cube, but you cannot do that for the European conundrum. And as impossible as it may seem, I tried my best to convince the EU leadership to reverse their foolish decisions. Now, the big news is ( just as unbelievable…) that the Western collective brainos in charge are changing the MSM tune proposing that “a deal must now be made” as if orchestrated by top D.C. communication experts. And it probably is, why not ? Furthermore, most emphatically the living Henry Kissinger persona has boldly proposed the idea to the Davos crowd in.their.face.
fool me once…
But HK is not alone and there must be some strategically huge thinking going on. Now even “The Guardian” tries to pivot realizing that “The perverse effects of sanctions means rising fuel and food costs for the rest of the world”. No kidding. ”Sooner or later, a deal must be made “. Congrats for such brilliant idea. And others also join the choir.
- Ref #1 https://www.theguardian.com/commentisfree/2022/jun/02/russia-economic-war-ukraine-food-fuel-price-vladimir-putin
- Ref #2 https://www.rt.com/russia/556523-sanctions-failure-media-ukraine/
- Ref #3 https://archive.ph/MLpSm
- Ref #4 https://www.theguardian.com/commentisfree/2022/may/30/eu-forget-sanctions-russia-ukraine-food-energy-prices
- Ref #5 https://www.nytimes.com/2022/05/31/opinion/us-ukraine-putin-war.html
- Ref #6 https://www.foreignaffairs.com/articles/ukraine/2022-06-01/ukraines-best-chance-peace
- Ref #7 https://www.theatlantic.com/ideas/archive/2022/05/ukraine-war-russia-putin-end/629890/
pax Russiana
The problem with “a deal must be made” is it contradicts history, and Valdai Director Timofei Bordachev for one. There cannot be any “deal” in the Ukraine conflict simply because Russia wins and it´s way too late to negotiate anything after plenty of destruction and bloodshed and with no Ukranian or European intention of ever complying with Minsk 2. So Western credibility has reached negative values in the Russian collective mindset. What should take place though is a unilateral withdrawal and full capitulation of Western military support coupled with Ukraine´s unconditional surrender with voluntary regime change and even with a ´pax Russiana´ way beyond Minsk 2. Think US public opinion re Japan 1945 and the Pearl Harbor specter roaming in their minds, nothing less.
the EU conundrum
In an age were securing energy sourcing and ensuring strategic semiconductors is essential, Europe has dug for itself an ugly Catch-22 ditch that will directly hinder the livelihood of 800 million Europeans. Most dangerously, by picking a needless confrontation with Russia and banning the purchase of its oil, Europe has now unilaterally set itself up for an unmanageable outcome with assured negative consequences. This includes severe financial instability derived from
(1) disqualifying higher prices of seaborne risked, batched, necessarily variable and troublesome non-Russian crude oil feedstocks which will turn European products, services, and labor costs utterly expensive and non-competitive.
(2) unnecessarily sacrificing the energy security enjoyed during decades through cheap and reliable Russian Urals blend for yet unknown non-Russian vendors which in the best of cases will never ever match Russia, already a fully vetted, solid, experienced, close-by provider of unlimited quantities of very specific and high quality, door-to-door oils.
(3) spending a monumentally large amount of euros that Europe does not have nor should print while simultaneously risking project non-performance through the necessarily partialized, probably interrupted, postponed or aborted, and well-known trouble full reconversion investments now required for refineries, chemical processing plants, and every logistics infrastructure throughout European industry and trade. And all of this supposedly in 6 months time when 6 years would not be enough, meaning that non-compliance will be rampant by January 2023. Worse yet, having many half-finished, half-baked, half-tested facilities will mean the European energy & fuel matrix will stand flat-footed neither reconverted to yet unknown non-Russian oils nor processing the traditional and fully proven Urals blend (!!!)
The real ultimate EU problem is ´negotiating´ from a position of extreme weakness it has dug itself into and should have always avoided. But at the same time, Europe cannot be anywhere independent from Russia. So the above will affect current and future European production of fuels to fertilizers and everything in between, from kerosene to diesel to gasoline affecting cars, trucks, buses, plastics, pesticides, agricultural, mining and industrial machinery, foodstuffs, water quality and availability, pharmaceuticals, ships, inks, airplanes, polymers, medical and industrial gases, sealing rings & membranes, power transmission, transformer and lube oils, etc., etc., etc., etc., etc., etc., etc., etc., etc., etc.
Attempting to execute the above under the described terms – and others not mentioned but technically even far more demanding – would be outright engineering and economics madness. But simultaneously attempting many impossible projects as now required throughout Europe within an ultra-narrow 6-month time-frame and everybody at the same time is sheer nonsensical stupidity, doomed to fail. Why do it then ? Because it´s mandated by the prevailing post-Brexit-US-Anglo-Saxon Russophobia that now hypnotized European leadership foolishly and irreversibly endorses.
Davos failed
Henry Kissinger knows it, but do they?. Naturally, the EU leadership has made mistakes all along the 21st century, both technical and political, as fallible humans cannot avoid it. But the captains of the European ship this time around are going a long step further by unbelievably forcing its sailors to run around the deck like a bunch of beheaded chickens with no sense of purpose in rapidly approaching shallow waters in what seems to be a deliberate suicidal attempt. This has never happened before in recent history as the European success we all know was always based on superb and cheap Russian energy. The plan and policies were led by former German Chancellor Gerhard Schröder who thought it out bottom-up, top-down, sideways, from left to right, from right to left, crossways, you name it. Until finally in the late 1990s reached the conclusion and convinced the European family of nations that Franz should marry Natasha. And so they remained happily married with many healthy and ambitious children until 2022 whereby the post-Brexit US Anglo-Saxon axis achieved the unthinkable by turning Europe against Russia yet again for the third time in a century as Prof. Michael Hudson has correctly observed. Meanwhile, absurdly enough, Poland is now proposing yet additional sanctions against Russia as if they did any good
wrong policy
Mike Whitney at The Unz Review reported how Henry Kissinger nailed it at Davos when claiming that “The EU policy is wrong… and must be changed immediately…or the damage to the US and its allies will be severe and permanent. Negotiations need to begin in the next two months”. So the Davos crowd heard it directly from a very famous horse´s mouth – the still most powerful former Establishment’s Voice – as he splashed ice-cold water at their staring eyes for concocting the current EU suicidal policy. Kissinger told the Davos messenger boys to their faces “you got it wrong” guys so report to your bosses that hurting US allies and US interests must stop immediately, right now. Of course, let´s recall that the real Davos puppeteers never bother to show up anywhere public in their “rules-based order” narrative, let alone at Davos proper. Furthermore, Whitney explained in no uncertain terms that “the basic strategy to weaken and isolate Russia by severing Russia’s economic ties with Europe and goading them into a long and costly quagmire in Ukraine” just pushes Russia and China to their mutual warm embrace. Thus, the West is making both the US No.1 and No.2 top rivals even stronger (unbeatable maybe ?) against US strategic interests. So “ the world’s manufacturing powerhouse (China) and the world’s second biggest producer of hydrocarbons (Russia) just got a helluva a lot better (together) because of Washington’s counterproductive war in Ukraine.” And forgot to add that Russia would also be the world´s topmost nuclear power with flight-ready hypersonic vector delivery capabilities. So already very much with us are supply line disruptions, food and energy shortages, with high inflation rearing its ugly head and worldwide unstoppable deglobalization. But more is coming with massive migrations and unemployment that will necessarily follow as Ukraine calls Germany´s policy “a disgrace”
energy insecurity
Obvious to any clear-thinking and reasonably informed mind, Western energy security is not secure anymore thanks to the EU policy vis-á-vis Ukraine thus placing Western livelihoods and wellbeing at stake. So Russia now has been forced to pull a 180 on the West while successfully focusing on China, India, and the remaining 85% of the world´s population, not NATO´s 15%. Meanwhile, European mismanagement stupidly ensures no possible rewinding for such a trend while Russia can freeze and starve Europe to death anytime it wants as humans are only a few meals away from survival. By the way, Russia has just limited the export of noble gases, a key ingredient in the manufacture of semiconductor chips. So, for example, no neon means no chips which would prolong a worldwide semiconductor supply crisis already wreaking havoc for a wide swath of EU industries. Or just a bit less of Russian natural gas means deep problems for Switzerland which would have to cover its electricity import needs from its other neighbors Germany, Austria, and Italy. Yet, the power export availability of those countries would heavily depend on the available fossil fuels, mostly Russian natural gas to be paid, of course, in nothing else but Rubles.
- Ref #11 https://www.unz.com/mwhitney/kissinger-nails-it-for-once/
- Ref #12 https://www.rt.com/news/556371-europe-demarcation-growing-conflict/
- Ref #13 https://www.rt.com/news/556097-henry-kissinger-ukraine-conflict/
- Ref #14 https://www.zerohedge.com/geopolitical/russia-hits-hobbled-chip-market-limiting-export-noble-gases
- Ref #15 www.zerohedge.com/energy/switzerland-risks-power-shortages-next-winter
- Ref #16 https://www.rt.com/business/556639-german-industry-warning-gas-embargo/
- Ref #17 https://www.rt.com/business/556646-gazprom-subsidiary-sanctions-germany/
rubber meets road
The world oil market is finite one and the same. What you buyeth, someone else selleth. If the declared intended goal is to deprive Russia of oil revenue, that would mean that all exportable Russian oils — or a very important fraction thereof – would stay in Russia wherever (even subsurface) but not sold to anyone. That would necessarily mean that approximately 35% of the world´s currently imported oil would have non-Russian vendors. Now there´s no mystery here, so who would that be? Iran and Venezuela would not for different but still well-known technical reasons. So would it be Oman? Let alone whether Oman would have the right quality base blend oil, but still how much constant quality oil can Oman export to the EU? Would Norway suddenly supply all Europe?
(1) So, every refinery in Europe would not possibly be modified and tuned up for, say, a blend based on Oman spot crude. So which ones would and which ones would not? On what basis? Would there be EU infighting for vendors?
(2) such modifications and tuneups would be done all at the same time and with a tremendously strict deadline.
(3) is there enough deliverable surplus Oman or Norwegian blend base oil (or equivalent) to substitute for all current EU consumption of Russian Urals? What percentage then? 10% ? 20 % ? what about the remaining 80%?
(4) What about the added complication of seaborne batch delivery and still missing inland logistics infrastructure?
(5) Thousands of yet unknown people are needed to execute all of these projects with yet to be defined job descriptions, yet to be interviewed, hired, trained, teams put together, deployed, etc. etc. Current operational and maintenance + staff & field personnel would probably demand being switched to other jobs… or will drag their feet… or would simply resign thus necessarily compounding the problem to unchartered depths. New, young, inexperienced hands do not help under these circumstances. Many oldies will be called back from retirement. New managers and all sorts of office & field personnel from logistics to IT contractors, welders, etc. will not even be hired by the end of 2022
humpty dumpty
The EU Russian oil ban means that the UK and others in the continent will find that they now suddenly have spanking new fully unexpected competitors – Germany and Poland and many others too – per European countries bidding for what used to be THEIR vendors, their oils, including “Norway´s or Oman´s” which, of course, have finite supply capacity and will end up exporting a bit more to their traditional European countries and that´d be IT. Same for Middle East producers that besides negative geopolitics are not stupid enough to increase production in this senseless and most probably not sustainable temporary vaccuum of sorts now created by the EU. That leaves the random boutique hit-and-miss “beach front bazaar” oil suppliers, so lots of good luck with that. True enough, the UK and others in Europe have imported non-Russian oils before but in far smaller quantities and still perfectly matched & mated to only a few processing plants and refineries which would now be hundreds all throughout Europe.
no diesel no glory
At least 50% of cars and almost 100% of trucks in Europe are diesel-powered. So, most European refineries are currently finely tuned to distill humongous tonnage from the “diesel special” Russian Urals blend in theory no longer available unless cheating prevails, of course. Venezuelan and Iran oils are way too heavy for diesel fuel production.
In turn, sweet Middle East oils are clearly not bidding for whatever reasons, even geopolitics. That eliminates the only three possible large enough providers of constant quality oils. So then the trick would be to find crude oil blends from “somewhere” that would be most similar to Russian Urals with a Nelson Complexity Index refinability of 9.8. Of course, this always assuming that European refineries will be rapidly fined-tuned to process such crude blends without problems, something which should be seriously doubted. The fact remains that refineries in the EU still are currently set up to distill diesel from a well-known Russian crude, and switching them over to a different blend would normally take many months if a single refinery were to be modified. Reconverting all refineries and processing plants in Europe simultaneously is an unheard-of experiment with most probable terribly adverse results.
Matching the Urals oil grade in theory is technically “possible” (sorta) by blending oils from different sources, BUT maintaining the blend specs and volumetric physical flow requirements to meet refinery capacity/specs is very difficult.
- Ref #18 https://www.spglobal.com/en/
So, now not having available Russian Urals blend, exactly which “diesel special” crude oil blends — from where? — will European refineries process in order to distill massive amounts of high-quality diesel needed by the European transportation market? Not from Venezuela, and not from the Middle East. Maybe a little bit from Nigeria? Same as the Urals, the final supposedly constant high-quality homogenous non-Russian oil blend has got to have light-intermediate API gravity and low sulfur content. So what percentage of Russian Urals would any of these new blends replace? Anywhere near 100%? If not, how would Europeans manage with the enormous missing difference? The refineability of these non-Russian oil blends is risky and thus requires careful constant testing of all-around refinery modifications adapting internal processes to new yet unknown oil blends required to remain constant for at least 30 years, preferably 50 years. Of course, switching these European refineries over to different and varying types of non-Russian crude blends will take an enormous effort and time. But they better produce tons and tons of diesel. And it is not only a “refinery modification problem”. It´s rather a “refinery modification problem vis-á-vis a given feedstock blend, with guaranteed FIXED & CONSTANT composition, for decades, always unchanging with continuous reliable delivery despite the batch-only nature of seaborne sourcing.
quantity
Russian Urals oil is unlimited, smooth, on-demand, door-to-door, either by pipeline or from nearby Russian ports.
For unknown new oils, chances are that there is not enough volume available, not even in Africa.
The problem is also finding non-Russian oil suppliers with possible future “incremental” export volumes beyond current production for two main reasons: one would be potential growth in EU demand and the second is that no vendor will leave traditional customers abandoned high & dry just because the EU has now launched itself to an impossible project. Furthermore, these possible future European contracts might all turn out to be short-term ephemeral unsustainable ´purchases of convenience´ with no future. If Europe were not receiving timely, large enough, and well-delivered quantities it´d mean degraded European livelihoods and a failing economy, with shut down plants and refineries affecting everything. Price would also go way up, of course. The problem is that increasing source oil-field production is a fantasy stifled by the realities of labor shortages, increased drilling costs due to inflation, and temporary or permanent lack of raw materials caused by supply chain disruptions. There is little chance that worldwide production without Russia´s EU-specific blends will ever be able to match EU demands. Meanwhile, Russia is finding new Asian markets real fast as India in 2022 has increased its purchase of Russian seaborne oil by 25 times, that is 2500%…
- Ref #20 https://www.rt.com/business/556345-russian-oil-exports-jump-india/
- Ref #21 https://www.rt.com/business/556696-india-wants-more-russian-oil/
weaker West
So, by banning Russia, its primary and already well-established crude oil import source which satisfied all its energy requirements, Europe will now have to laboriously find it elsewhere with far less supply bidded. So the West will be paying higher prices – possibly much higher – while China, India, and others will be taking advantage of solid, constant, on-demand supplies and discount prices from Russia. Some suicidal EU strategy no?
So, from 2023 Europe will pay very dearly for its energy, thus having much higher non-competitive costs all around. This will affect the internal cost of living and most probably will ruin its export-based business model. “The current energy crisis could be one of the worst and longest in history and European countries could be hit particularly hard”, said the head of the International Energy Agency, Fatih Birol, in a public statement. But it could be even worse.
no game in town
Europe may find itself not only paying much higher prices for the energy it requires. It may end up not even finding it at any price, period. At least not the right type at the precise time that any just-in-time economy requires thus leading to massive unemployment and massive migrations. So you either have it as you should or you actually have nothing at all. The current “just-in-time” world would obviously not function without proper and constant “just-in-time” deliveries of the right type of oil blends.
Europe has just drastically reduced the supply side of its economic equation by not allowing itself to access Russia, the world’s largest oil exporter, the world’s largest natural gas exporter, and a major supplier of coal. This means a self-inflicted severe limitation simply because not oil blends are the same (!!!) And Russia´s Urals oil may not have substitutes anywhere in the world large enough and compliant enough to satisfy European current and future needs.
Actually it´s not a “refinery problem” it´s a joint “refinery + oil blend problem”. Because the refinery is matched and mated for a given (and constant !) oil blend. Refineries do not refine just any oil. It is not plug & play, nowhere near that. So it´s a “specific refinery – specific oil blend” coupling that marries happily ever after for many years to come.
The refinery is always dependent on the input grade of the crude while following the output market requirements.
Right now the EU doesn´t even know what oil blends it will find in enough quantity, quality, and type for whichever of the hundreds of refineries and processing plants involved. That will not be known until both the right oils are secured in the required amounts and terms of delivery while whichever refinery adjusts to it, something not always possible. The much-needed end result has got to be a CONTINOUS supply of a highly SPECIFIC & UNIFORM quality oil blend in ENORMOUS quantities with the right delivery format. No occasional dating but rather a faithful MARRIAGE.
So a given plant or refinery for all practical purposes would pretty much FOREVER be fed with one and the same CONSTANT oil blend of the right formulation and specs. Repeat: it is not “plug & play”. Russia is the T-Rex supplier of a European troglodyte crude oil consumer. The problem is that Europe has just set itself up short of the QUANTITY of the right constant QUALITY of the oil blends it requires from a trustworthy and proven supplier.
Achilles heel
Finding non-Russian substitutes for Russian Urals blend will be hard enough to find and expensive enough to pay for. Constant uninterrupted physical delivery of such will be a whole new challenge which may end being the weakest link, same as yet unthought of human resources as partially explained hereinbefore.
So the process involves lots of previous lab testing trying to find the right reservoirs ( which exactly ? ) with the right type of blend base oil, with the right time window for oil-field production, the right seaborne delivery plus internal logistics and loading port capabilities, availability of the right vessel freight fleet yet unknown plus today non-existent capabilities at unloading ports, and the right land logistics for delivery per end-user requirements. This requires lots of coordination of thousands of the right people, lots of time, lots of the right policies and expertise in place, and tons of money. Russia has always complied with all of that — and even more — at cheap prices. Where will Europe find that in 6 months?
In a nutshell, the world wasn´t anywhere nearly prepared for an EU ban on Russian oil… or other Russian fuels…
market blues
Approximately 50% of the world´s total oil imports are from Japan + South Korea + Australia + New Zealand + Canada + US + Europe. Supposedly, none of these will now be buying any oil from Russia, so they will buy non-Russian oil competing among themselves. In the case of Europe, it´s 36% of their oil imports that they now have to substitute. Obviously a huge amount and not just of any oil. So which oil-exporting countries will now replace the missing Russian oil for these “unfriendlies” to buy? For example, will they have the right quality and enough quantity to substitute Russia´s previous oil export volumes to Europe and other places? In order to substitute for Russian oil, these oil-exporting countries will have to either (a) suddenly increase their production (?) and how would they do that exactly (??) or (b) disregard their traditional clients by suddenly cutting them off high and dry to sell to Europe.
In that case, where would their traditional clients find an exporter to buy the right quality oil from? It´s a single planet Earth market no? So, by now not having Russian Urals blend available because of the EU ban, exactly which crude oil blends — from where? — will European refineries adequately process enough in order to distill MASSIVE amounts of high-quality diesel fuel needed by European cars and trucks market and still render other required distillates…?
refineries nightmare
The fuel supply crisis will continue increasing sharply worldwide as the 2022 summer demand season kicks in while refineries everywhere keep running at an unsustainable rate. Still, refineries will not undergo major revamping & upgrades such as European refineries would now require because of new non-Russian crude oil feedstocks. Only very limited budgets would be approved for refinery modifications in the EU as the normal investment payback is 40 to 50 years, while, in the near future, fossil fuel consumption will supposedly be plummeting sharply. No incentives nor any subsidies will be awarded in any way shape or form. This year, China is expected to overtake the United States as the world’s largest oil refining country meaning it will import ever-larger amounts of crude oil, including Russia´s, so prices will go up accordingly despite any discounts. Meanwhile, the US continues to normally import Russian heavy oil on its own while telling Europe not to. There has been no announcement of any US Russian oil import reduction let alone an outright ban. I guess this piece of information makes it clear who is really running this show.
- Ref #24 https://www.nakedcapitalism.com/2022/06/the-oil-industrys-downstream-nightmare-is-here-to-stay.html
- Ref #25 https://mei.edu/publications/somethings-brewing-chinas-teapot-refineries-and-middle-east-oil-producers
ports
Each and every European port will require modifications adapting to new handling, unloading, storage, and additional delivery requirements of non-Russian oil from whichever tanker fleet is found, yet unknown, if any. This means designing and building new dedicated facilities per specific consumer and tanker needs (supposedly fixed and unchanging) in order to match the processing foreseen and executed until today with necessarily different non-Russian oils. An EU Russian seaborne oil ban will shrink the number of vendors and the volume of oil offered to Europe very significantly thus ruining the supply side of the EU oil price equation. The much lower the supply, the MUCH higher the price. With Russian seaborne oil banned, the potential European supply is much smaller both in number of vendors and/or of the volume available for bidding. An unnecessary procurement mess and a very harmful self-inflicted policy. No feasibility studies have been made as there has not been enough time to do any in 3 months.
Ever larger migrations will be one of the prominent indicators of Europe in the very near future while Ukraine officials exchange insults with Hungarian government officers.
Jorge, for heavens sake get yourself a professionally-competent text editor, to wean you away from saying the same things over and over again in slightly different formulations; in each of your articles.
It would cut their excessive length by 50% easily, maybe even 80%. And it would make your – undoubtably correct – analysis so much clearer.
It is, however, very effective from a selective reinforcement aspect for the thick skulled within empire who obviously still don’t get it.
McDuff (nice name there !) I´m also convinced of the “selective reinforcement” required by the many ´thick skulled´ currently in charge ! Thanks for your support McDuff it helps me. Cordially – Jorge
Rhisiart Gwilym, thanks for your comment which, although extremely rare, still is very helpfull and well taken. You´d be surprised though, because even in the recent past I have tried already what you suggest many MANY many times, to no avail. So I listen veeery carefully to every opinion out there, but please be advised that the current format will not change simply because of its outright success (ehem, cof cof…) and overwhelming readership in what is considered by all to be an extraordinarily arid subject that most readers simply run away from. The explanation I have found so far — and please help me out in case of having a deeper and insightfull analysis — is that commentariati read, possibly a lot, possibly about different subjects, possibly on the run… and most are definetly not technically inclined folks. For example, politicians everywhere, who we should both agree matter oh so much that if it weren´t for them we wouldn´t find ourselves in the current situation no ? So not many — possibly none — have the time, the interest, the previous knowledge and specific context… and the focussing capability… to retain what is being said in such an all-important topic. I am referring not only what was said in previous articles but what has just been said in the very same article only a few paragraphs before. Maybe you are the exception Rhisiart and in that case please accept my sincere apologies. But 99.5% do not, trust me. So I´m willing to bear with your objections in benefit of the audience who are definetly very expressive and thankfull regarding the above. And per your specific suggestion it´d be even far simpler by cutting it down to 6 short words “Just.Buy.The.Bloody.Russian.Oil”.
By the way, these articles of mine are being massively RE-published and referenced / quoted by other “famous” blogs reaching many hundreds of thousands of active readers quite happy with my style, some of whom specifically and favorably refer to it as “lively & colorfull” and “attractively sarcastic” and “clear despite complexity” etc., etc.
In closing, a couple of these “other” famous blogs are so enthusiastic about this that they have offered me to pen paid articles for them. To which I have replied shortly and sweetly “no way, don´t waste your time”. The Saker is my home and I´ll happily remain right here with my two excellent editors Andrei and Amarynth.
Jorge, All Power to You. Please continue as you are doing quite fine.
esskumar my friend, only a politician (not me) would love to have “All Power” (ahahahhh) but still thanks for saying it guy, it´s nice to hear the idea I guess. Respectfull koala bear hug to you from Jorge
Agreed…no problem here with length or format (for people that can read, that is). If people find it too long, they can always go to youtube for a 5min ad.
Brilliant analysis. The “rest” seem to be noticing, with the west still in denial (5 stages of grief. Half of South America’s leaders didn’t show up for the “Summit of the Americas”, with only the president of Mexico justifying himself. the rest just didn’t pitch. Africa?…anyone notice how there are more “problems” lately for leaders that support Russia? (even thoght most of their problems are in fact self-inflicted).
Johan
Johan. many thanks for the solid encouragement here.
I truly appreciate your much-needed comments and info input.
Cordially, Jorge
“Just.Buy.The.Bloody.Russian.Oil”.
LOL! Cheers, Jorge. You’re certainly right that the basic idea needs hammering: that converting to fly-by-night spot suppliers of, well, all kinds of oil is a crazy idea that can never be got to work in time, if ever.
That truth needs hammering again and again, to get it into the fanatical skulls of such as Holz and von der Layen, and more importantly, into the heads of the common-citizen Europeans who will eventually bundle them out of office. Style is indeed less important than content. Keep hammering in any case, bro. Power to your arm! :)
Thanks my friend, I´ll keep trying hard, as always !
And I sure hope that my reply above was as well interpreted as it was meant.
Cordially- Jorge
As an archiver/blogger who doesn’t write many articles except for occasional connect-the-dots summaries, a few weeks I learned a shocking statistic from Vox Day – only about 5 of every 100 readers is subject to reading anything outside of their already presumptuous presuppositions and of those, only 2 of the five actually will follow up to prove or disprove the legitimacy of the article’s claims.
In other words, we are effectively writing to only one out of fifty readers – the rest are chaff!
I can certainly vouch for that fact personally among my contacts…..to them I’m just the crazy conspiracy nut, as they still believe in American exceptionalism 100%.
Crush Limbraw, what a helluva a hard task writing articles is !
I knew that it´d be hard to get reader´s attention but not THAT hard !
Congrats for the objective data you input Crush !
Take care – Jorge
Hi Jorge, a few ideas to reader and commentator “problems”. I find your article excellent in substance and depth with references and links.
1. But I see often the inexperienced public trying to impose their special comfort zone to not only the author but also the site owner and moderator.
This is a common wrong doing also politicians do experience from voters, “you make MY day”.
2. But, there is a little truth in it, as we all have limited time to go in depth with the massive wave of info from thousands of sources. I could suggest what we learned in high school to make a summery/conclusion first or last in the article as scientists often do. This could satisfy some of “the problem” and make it easier to access both for the benefit of the author and team, and at the same time close the mouth on Homer Simpson.
All the best to everybody.
Tommy thanks for the suggestion that I will consider in depth. Sometimes I spend lots thinking the title of the article in the belief that the it summarizes the idea well enough at wizz-bang speed. You propose an Executive Summary up front instead, so lemme think about that. But, for example, in the case of this article with Rubik´s cube and Catch-22 as the main idea, I would have a very hard time summarizing it better than what I already did in the first sentence and first paragraph (Executive Summary of sorts ?) . Still, thanks again. Cordially – Jorge
Thanks for feed-back. Yes I know its not that easy.
But you know Ritter has 1-1,5 hrs video, Andrei 1 hr, Gonzalo 1 hr, AmericaFrontDoctors also 1 hr video, every day plus the articles, and all of them have useful facts somewhere inside their videos, plus we the readers have a huge variation of needs and levels.
It is something I learned from professional life. The CEO’s or CFO’s are always looking first for the conclusion/summary of the report. If this conclusion/summary tells something important, they will start asking into the background or basis for this info.
Your article is easy accessible, so its just my 2 cents. All the best :-).
Thanks to you Tommy, I´ll still try my best. Of course, I do know all abut Executive Summaries and their importance in the corporate world. But one of my many concerns is that by having to summarize thus necessarily (over) simplifying things their very nature and importance will be degraded or lost, possibly forever. For example, readers reacting like saying “oh yeah, yet more on the Ukraine conflict I really can do nothing about” or equivalent. Another concern is the diversity of the audience reading this. Politicians are one important decision-making breed of course but technical people are also needed on-board to influence politicians etc, etc. sort of like in a “chicken and the egg” cycle. So then technical people require a minimum level of detail without which they just say “this guy isn´t telling me anything I didn´t know” etc — which is not the case at least because of my ´integrated´ perspective without the blind-folded tunnel vision which they always have etc. otherwise they would not be “technically worthy” people amongst their peer group at least hahahh. Did you know that many/most chemical engineers do not know or do not care about freight logistics ?
So basically my strategy has been to make my case however I best can and obtaining the required importance of the topic — which would lead to reading my articles in full length and more than once — from current events and fron-page titles, not my Executive Summary. The idea being people (whoever) will read my articles very thoroughly simply because the importance of the subject matter has been given from outside sources be it MSM or professional colleagues, or just regular people at large smart enough to realize what´s going on. If, instead, I try to do that ALSO all by myself I´d fail. The idea being people should have plenty of reasons to read my articles and I should just stick to explaining stuff clearly, in broad terms yet with a specific perspective warning about the coming failure of the new brain-dead European energy non-strategy. Cordially, Jorge
Excellent analysis. I’m not sorry for the time spent reading it. Thanks.
Steel Rat, and thanks for your patience. It´s another longuish article of mine, 6 pages solid.
Thanks for your favorable comment. Your encouragement helps me lots, I need it, it gives me a sense of purpose. Cordially – Jorge
I read through. Very instructive. Thank you for aiding my understanding of the oil ban.
Will, if I made a difference to you it justifies the effort by a longshot. Firm hand shake from Jorge
Fear not old mate.
The article is just fine, ask the everyday man and women who seeks to understand what the hell is going on.
Not everyone is an expert. Not everyone has read your previous detailed and factual posts. Detractors may like to ponder if you are directing this article to American audiences. Repeat three times. Repeat rise and repeat then add soaker so the goldfish get a vague idea of the facts.
One thought you may like to consider: German captains of industry don’t need to read you excellent assessment. They all ready know and are having nightmares. They also know the German Government could be gone in 6 days not 6 months so forget the 6 years. This applies to France and Italy. Finance rules Europe as long as “Industry Benefits.”
The question of our times is, “Which way will the Grey Cat jump?” Because jump it will when the Ruhr Heart Land, gives the board room nod.
Jorge remember, “oils ain’t oils.”Just ask Castrol Australia.
PS
All is well on the Western front, but not going so good on the Eastern flank. LOL
Aaron, good food for thought there as Germans would ( pretty much as always in modern history) once again hold the keys to Western Europe´s future. The only problem I foresee is that Germany could / would resolve this crisis if and when it stays within the realm and limits of traditional confrontational economic-financial competition and even warfare… but NOT beyond… as I explain further below. Still, I just loved your comment re ” ask the everyday men and women” who cannot follow let alone understand what the hell is going on for Crisssake ! As you say — and I fully share and feel — “… not everyone is an expert that has read detailed and factual posts…etc etc etc ” .
Aaron, one of my serious concerns though that will end up negatively affecting the whole wide world really (with no exceptions) is that things have gone too far, too deep for anyone to rewind or accept defeat. Russians are fed up and willing to break away from untrustworthy Westerners led by post-Brexit US Anglo-saxons. But Russians are winning in all fronts, right ? Even Western leadership pretty much is ready to admit such in public. So after all the stupid bullying and sheer crimes that the Russians have suffered (what for ???) the only reasonable and acceptable outcome if for full Western capitulation as suggested in my very first paragraph of this article, nothing less. Russia wins, period. The collective West loses. Welcome to the REAL 21st. century
Now then, will the West in general — and specifically Anglo-Saxons — accept such defeat … or will instead raise the stakes to direct nuclear confrontation ? Because the only feasible outcome for NON-nuclear confrontation is Russia-take-all methinks. And Western leadership is at a complete loss on such possibility having cheated and mislead the base convincing Joe-Six-Pack and his sister that “supposedly” Ukraine and the West are ´winning´ (not)
Please continue as You comfortable .
Jorge’s vilches, if I am allowed to add to the first comment to the first comment by Gwilym, the Russians and the Chinese and many more see all that.
Yes,the west have lost the sanctions war and will disintegrate. But there is an actual war that takes precidense and Russia will soon win this too.
It is quite clear to any unbiased mind that running around with more sanctions everyday, and having holes in them shows the ignorance & futility. In fact, a desperation from a paid controlled herd called Europe.
People explain facts to support their dying financial Mafia empire, backed by a fool’s believe in their military super power. Neither of them will survive.
Russia can and will sell everything to the East and the west will be summarily kicked out of Syria and Iraq. Despite renewed efforts in Africa by the racist west, they will turn to Russia and China as well as South America.
Logistics and economics is only a part of this war. It is who got the most modern and capable firepower, and that happens to be Russia and China.
There is a rude awakening coming.
Good Lord! What a comment. But we have a solution. Three of them in fact …
1. Stop Reading and Move On!
2. Saker authors present their opinion. What others make of it is their problem and not the problem of the writer.
3. If you can do better, I’ll be waiting for your text.
Now, now amarynth. Temper, temper! :)
Jorge’s articles are repetitious—yes, he is hammering home a “suite” of complementary ideas and facts concerning the world oil industry, an arcane subject matter encompassing oil chemistry, transportation, ways that an advanced economy is utterly dependeng on oil. Russian oil. Understanding these intertwined factors has become crucial to grasping the depth and extent of the madness of the Europe’s leaders. If only they would read along . . . Perhaps they are, and that is why they are suddenly thinking, “Oh, s—,”
I can skim the articles, realizing that I have now taken on board most of the important facts.
But still looking for updates, newest links, funny phrasings, etc.
Today’s opener is funny!
It defies credulity that these jokers are serious in their “virtue” posturing of calling a timeout on war that they started. Jorge nails this delusional absurdity.
Trying to get a deal when you rejected reasonable deals and negotiations for years, assuming you were in the driver’s seat forever, and now that you are losing your butt, thinking that you can order your adversary, “it’s now time for negotiations.”
I call this the Scarlett O’Hara Gambit.
Totally narcissistic West still thinks it can sweet-talk its way out of the mess it has created for itself and change the rules of the game to suit its own losing position—and get Russia, and its oil, back—by self-righteously announcing “Game over!”
What game did they think they were playing? Pachesi?
Didn’t they know they were playing Poke the Bear?
Frankly, my dear, Russia doesn’t give a damn.
Dear Taffy,
(A) Regarding your first paragraph, I couldn´t have said it any better myself. Thanks guy !!!
(B) Regarding your second paragraph, that´s exactly what I aimed for, that´s exactly what should be done.
(C) Taffy, you may now better understand why this “The Saker” comments section is home to me. I couldn´t write my articles without your input guys, as simple as that. PLEASE keep up your excellent good work, keep your input coming with constructive criticism most welcome. Regards from Jorge
You kinda redeemed yourself with your follow up comment ‘Just.Buy.The.Bloody.Russian.Oil’, but that’s one of Jorge’s points. Does Russia even wish to sell its energy/other resources to America/Europe? If they do, the quantities are bound to be far less as well as more, much more expensive, yet still, cheaper than the West can buy anywhere else.
Also, once American theft of another sovereign’s energy resources cease, and it will, there’ll be an even bigger crisis.
Being the 1st to comment, it often sets the tone for the comments to follow. In your eagerness to highlight ‘your’ own minor criticism ahead of Jorge’s abundance of detailed practicalities and their impact on the global energy/commodity markets going forward is at best slightly disingenuous; again a similar posture, a sense of frustration in pointing out the obvious, Just.Buy.The.Bloody.Russian.Oil
Fingers crossed that boat has sailed and Russia sticks the knife in and twists it.
Guys, how about my next article being entitled “Just.Buy.The.Bloody.Russian.Oil” ?
Good idea WTFUD ?
I mean, that IS the real only message we have and it should just make everybody happy no ?
Except of course EU politicians who would have to resign “in masse” poor them.
Accordingly please just briefly re.visit our “The Saker” article ´Dear Ursula, you are dead wrong´…
Just sayin´
Agreed chum! That after Europe has lifted ‘all’ its sanctions on Russia/Allies, opened NS2 and sent the Americans packing with their Missile Defence Systems in Europe (maybe -UK ).
We plebs here in the UK will fight Russia alone, to our last ELITE. Once rid of the bad eggs, we’ll apply to Russia for a voice at the big table.
When HRH Elizabeth II goes, I hope she holds on long enough to signing a treaty between UK & Russia, because what comes after her is a real cesspool of mediocre misfits and grifters.
Or you could title your next essay “Don’t Play Scarlett O’Hara! This is not Gone with the Wind (hahahahah) ” ((:-))
Who is “we?”
Aaron, to answer your question “we” is me (Jorge) plus the influence that you all guys and gals here in the comments section have upon me. I have always explained it in very clear terms and hope to be believed. Many things I describe and explain and think of arise from this Comments Section right here right now. True enough I write, but you people inspire me with your comments, objections, etc. etc. Your influence affects what I finally end up writing. Just think about the possibility of following the very first poster´s advice of this Comments Section (please scroll all the way up) and entitling my next article “Just.Buy.The.Bloody.Russian.Oil”. Would you like that Aaron ? And it would not just be the title per se, it would be the whole article pim-pum-paf-pof Batmaaaaan, you follow ?
Jorge Vilches
Thousand apologies for the confusion.
I consider your contribution an education.
The “who’s we.?” Comment was to someone else, it just popped down the long the line.
That would be my fault. Reading and typing in bed, still not an excuse.
I enjoy the Saker so yes the “Just buy the bloody oil,” sound perfect. And turn the tap on Nordstream 2 for German families. Suffer not the little children in the coming winter.
High five noisy clap and best to you Aaron !
Cordially Jorge
Western credibility has reached negative values in the Russian collective mindset This exactly the point, Western credibility has reached negative values for most regular folks in the West as well! This why the Western leaders are so dangerous right now and must be dealt with in haste.
Depends very largely on how and among whom one gauges credibility. Popular acceptance of “created realities”, notably including arbitrary designations of “good guys” and “bad guys” and “woke” political correctness, doesn’t seem to be much diminished in today’s Western societies themselves so far as I can see. In fact, I would venture to suggest that gullibility and the absence of rational critical thought is more prevalent currently in Western societies than ever before so far as this “old geezer’s” experience and recollection can be relied upon. And I’m doubtful that the primary wielders of real power and influence really care much about any other kind of credibility.
Europe, UK and the USA cannot be trusted with any agreement that they sign. The Ukraine is even worse. Medvedev even said it point blank about the Europeans. The Russians now believe that the West cannot be trusted when signing anything. The USA, UK and Europe have stolen hundreds of billions from Russia and their citizens or dual citizens. I am not an oligarch fan but you don’t just steal people’s property. Those $200 million yachts and expensive jets created jobs for Europeans and Americans to build those yachts and jets.
Russia is now on a roll and I think Russian people understand this. These people hate us, they demonize us and belittle us. Russians thought possibly they could be friends or as Putin says “partners” with the West. The West has shown the Russian people how dishonest the West is. Any attempts by Trump to have constructive discussions with Russia and Putin caused the left to create fake narratives that Trump was a Russian agent. These lies and disinformation has been exposed much of it created by Hillary Clinton.
Russia and Putin pretty much hold all the cards on food, energy, resources, petro-gold-nat gas ruble, top of the line cruise missiles and ICBMs. Russia is not financially bankrupt like the USA, UK and Europe. I think the Russians and Putin are also careful and will not let their success go to their head.
Dangerously porous borders, too many insane people with guns, religious fanaticism/hypocrisy, rabid racism, too many different races all in one space, predatory capitalism, drug addiction, public representatives who are in it for money, governments of warlords, etc,. Such places on earth are bound to go off the rail tracks..
Thank you Jorge. Most comprehensive and sobering.
Thanks for reading the article and for your favorable comments, much appreciated. Cordially Jorge
Maybe postpone travel to Europe for a while, while it gets its head examined.
On the other hand, maybe go now!
While the $ is high, the weather is warm, and you can get a pass to travel anywhere on the Deutsche Bahn for just 9 euros for a whole month.
This deal is valid for June, July, and August.
It is obvious that things are going south big time in Europe.
IMO the economic “sanctions based” scenario derailed from the planned trajectory and is going in an unknown/unpleasant direction.
This means that the entire braindead preprogrammed leadership of EU is currently without script and they are forced to improvise. Of course, not being real politicians but simple puppets they are failing here too.
If you ask yourself why nobody is hearing anything about pandemics, Nuremberg type vaccinations, population control through various green certificates, etc…. the economic scenario failure is the cause(not the Ukraine conflict).
All oil-based rethoric means exactly nothing, everybody knows it, including the high rank talking heads who are actually waiting for the narrative switch allowing to survive politically, conserve their positions and continue with a new and revised 2.0. “how to screw the entire world in three easy steps and build back better like in Afghanistan/Iraq”.
Any advancement in the direction of a russian oil embargo will trigger a gradually stronger and aggregated response from more and more european countries and I am afraid that if US will continue pressuring EU in this direction, they will diminish in importance even in Eastern European countries, traditionally Russophobic, where more and more people begin to realize that not only did John Wayne die a long time ago, but also that Obi-Wan Kenobi had recently passed to the eternal lands of hunting together with the values that used to charm the citizens of the communist countries before the iron curtain fell.
European countries need to find their own future out of the Anglo-Saxon hegemony. That hegemony developed and expanded for four centuries and it has killed the cultural spirit and diversity that were the strength of the Western countries. This is a multi-generation challenge and the Rubik cube type of challenge will not be solved before Asia has won over the Anglo-Saxons in the task of shaping the next World order. I have been both in China and the US and there is no way the US can stay relevant to our collective future.
Richard, just my .03 cents.
(a) let´s follow Mackinder
(b) Europe is an Eurasian peninsula
(c) 85% of world population excludes NATO
West is not freedom. But compared to China West is heaven.
So how long have you lived in China?
Have you ever lived in the USA?
In China?
What do you actually know about life in the USA v. China?
I am curious.
EU doesn’t need Russian oil, it’s going green/renewables. Therefore this is not a problem, it’s a benefit. “IE it’s not a bug, it’s a feature”.
I say this tongue in cheek they believe this on some level.
Seriously, though, Europe going pastoral again, complete with horse and buggy and firewood to heat home and hearth, may actually turn out to be a blessing for Europe. In any case, why on earth does Europe need to remain industrialized? The Germans and French are natural farmers and should do well reverting to that role. If only the Russians would assist Europe in going back to the pre-industrial age!
How would de-industrializing Europe be of any benefit? If anything it fulfills the USA’s desire of destroying an economic competitor – is this what we want? Could Russia be next in the chopping block?
If Russia had switched off gas at the very beginning, the EU would not have had the ability to supply lethal weapons to the Ukies. And a deindustrialized EU defangs NATO: what will they then fight with, with hoes and riding on horses and buggies? The enemy = US + EU. Make EU = 0, then work out the equation for yourself.
To visitor
Russia has not turned off all taps to Europe for two simple reasons:
a) they still have current, ongoing, signed contracts to fulfill and
b) Russia is a nation based on Christian values, unlike the West. They do not do DELIBERATE harm to fellow human beings, because they understand the pain that would cause. Like no one else! Centuries of fighting off hords of these trying to harm you teaches you that. They know the pain..
The BIGGEST mistake the West does time and time again (lessons never learned) is in thinking that it can conquer Russia!
Regarding your two main points:
(1) Commercial contracts are not more important than life and death struggles. In times of war it is a crime to trade with the enemy. Ask any British, American, or European person, their countries have laws against it.
(2) Kindness and non-violence are very fine human values but survival comes first. If you are dead you will neither be Christian nor kind, you will only be dead. After repeated death and destruction at the hands of the West, it is about time Russia learnt how to preempt such violence against it. As they say, “Fool me once shame on you, fool me twice shame on me”.
Forgive me if I stated my views rather bluntly, but we are on the same side of the battle even if our views on tactics and strategy differ.
Then that leaves the USA – the same US which calls the shots from the other side of the Atlantic ocean and has thousands if not millions of military personnel installed on European soil. How will a defanged Europe defang the US?
Russia’s economy doesn’t need any outside inputs, as it has mineral and natural resource of economic or military value within its borders. Since Russia doesn’t NEED imports, it doesn’t NEED exports. Russia exports only to be able to buy foreign luxury goods, and some tropical fruits.
What I said there was more in the lines of the US wanting to destroy the Russian economy just as much as it is destroying/attempting to destroy that of the EU.
Visitor:
I see! The Europeans, who developed a significant portion of the world’s advanced industrial/machine/chemical/electronic technology in the first place, should now become the world’s Amish!!
First of all, what is wrong with being Amish? In a money-money-money age they live a simple, traditional life in sync with nature. Secondly, of course the Europeans have been a hugely successful people, no one denies it. The problem is with the way they have wielded their technical and military power. Since there is no evidence that they are going to change their cruel ways, it might be best if they were made to revert to pre-industrial life. The world will be spared much bloodshed, destruction and bombs that are claimed to bring peace, prosperity and democracy.
Nothing wrong with the Amish.
As a preteen, I was so culture-shocked at leaving our farm to live in town that I firmly decided I would “go to the Amish” just to stay old-fashioned.
However, it is one thing for you to decide to change your way of life and quite another for an ill-intentioned power-hungry entity to decide that a sophisticated, developed country should “go to the Amish” so that the power-hungry entity can steal all that the second country achieved while telling the latter “it is better for you!—we are just thinking of your well-being!!”
Yeah, right.
Go join the Amish if you want to or otherwise drop out and become a day laborer on a farm so that you can enjoy the simple life.
No one is stopping you!
I am sure many besides me will await news of your progress.
Europe doesn’t have enough firewood. The entire subcontinent would be denuded of all trees in less than 2 years.
An unconditional surrender of the Ukraine, but without the insult to the ordinary Ukrainian people. The EU had surrendered already, even if they don’t see that yet.
“The EU had surrendered already”.
To whom?
“During the summer training period, we will pay special attention to new ways of conducting combat operations based on the experience of the special military operation and other armed conflicts, army tactical shooting and first aid on the battlefield.”
What’s troubling me though is there is no seriously bad GDP projection for any of the EU countries. Germany are saying that a total ban on importing Russian natural gas would result in only a minus 3% recession for the year.
Russia for this year is expected an 8-12% recession, followed by a much smaller recession in 2023,and back to growth a year later.
If what Jorge is saying is true, then where are the projected double-digit percentage recessions for Germany, Poland, Estonia and the rest of them? Any recession they have will be felt much worse by Russia?
Thanks for your extremely valid comment Jock. The problem is the GDP definition formula. Jock, the more fiat “money” you print (which is NOT ´money´, mind you) the higher the GDP. This is an important part of what Russian leadership calls the ´Empire of Lies´. GDP is a misleading parameter that we should call a “lie”, period. This very week, Putin, Lavrov and Medvedev have insisted in what you mention Jock and have invoked the above explanation for the supposed Western GDP “success” (not). Furthermore, the Western press — and “bipartisan” think tanks hahahhh — are unredeemably ´captured´ by the unified political class who with very rare exceptions such as Ron and Rand Paul will drown themselves in their own lies before admitting any of the above.
Bingo!
EOL calculates GDP based on consumption. Not what it produced in the last calendar year.
Meaning whatever it can manage to import and consume in exchange for “funny money” is taken as it “Domestic Product”. EOL believes in Pax Americana that is products and services produced by other peoples sweat and blood is considered its own.
Thankyou Jorge.
Too many of us in the west are just sheep, unfortunately. I do believe however, that for Russia’s policies to work, Poland and the Baltics have to disproportionately feel the affects the worst. Germany, France and the UK should at the very least have layers of “insulation” from economic shocks, but irrelevant and the most russophobic countries like the Baltics and Poland have to experience double-digit unemployment. their service sector even more crippled than their industrial one and true and big GDP loss.
They’re lying, are you surprised?
– Russia for this year is expected an 8-12% recession,
Russia annual growth 3.5% (?)
Something is terrible wrong with Russia. Maybe 2 years ago interest rates for Russian farmers doing investments was 20%, while 2% in EU. I would sack Elvira Nabiullina for less than that.
Maybe their GDP predictions are crap.
The problem is that Jorge did mention a few articles back, that in Germany, annualised Producer Price Inflation is running at over 35%, so GDP per se might not be that useful a metric.
If the cost of materials to manufacturers is increasing so rapidly, this will be passed on to the final consumer, so if this is already the case, German products are on the way to pricing themselves out of markets where effective substitutes exist. Once people change, they don’t change back unless there’s a advantage (usually price).
An unbelievable story.
https://www.mintpressnews.com/uk-propaganda-nina-jankowicz-biography/280899/
If I got it right, English-language Ukrainian anti-Russian propaganda videoes is actually created by Brits.
That tells me London = the center of the nazis
Jorge does the critical thinking so we don’t have to.
quasi_verbatim yes, I do try my best to think critically, of course. But your critical thinking is most welcome and necessary as it makes all of us here obviously THINK much better. And as a matter of fact, it´s clear to me at least that many of my articles are developed and thought out in function of what we all discuss, debate, and reveal right HERE. Commentariati input is exceptional at “The Saker” blog. I badly need it and it´s an important part of why I feel at home here with you guys. So keep thinking critically, the more the better. My critical thinking is definetly not enough by any means. Your comments count, the more critical the better it´d be ! Cordially Jorge
While being wrong is common among the “Commentariati” and article authors, I cannot say that about Jorge Vilches.
kjell108, thanks guy. True enough, I do try very hard, my real very best always checking and double-checking and triple-checking both my sources and even my own thoughts !! I mentally visit and re-visit constant “what if” scenarios always to be challenged as terribly hard as possible.
And as your favorable comment makes a whole lot of difference to me ( BTW this is a very lonely task my friend, so I need it ) I´ll let you in a secret which probably already shows: I am, by far, my worst own critic, almost cruel with myself and… don´t laugh now… now pushing 75 and having literally nothing to lose I believe that´s the only way to get the best out of me which is something I also personally enjoy watching. Otherwise how would I know who I really am and know.
Still, pleeeease do NOT overestimate me or my capabilities. I am definetly and gratefully fallible and always against any “transhumanistic” attempt to hack (!!) the fabulous human mind as WEF proposes and important people listen to idly.
I have zero help from anyone and only represent myself. No staff, no secretary, nothing. I can´ type very well (only with a few fingers) and when my 3-year-old grandson visits my 2-room apartment we both silently struggle for keyboard control. I have no help from anyone in any sense of the term. My articles are not a source of any income, just headaches and sleep deprivation. But as retiree I do have time to be invested in writing out what I think I know about if it helps any. Thank you yet again kjell108 !!
Davos = WEF and most of the European, Baltic and American politcians are controlled by WEF=Klaus Schwab-Soros-Rothschilds. Orban in Hungary appears to not be WEF. At the start of the Russian “operation” Nathaniel Rothschild screamed at British politicians that Russia and Putin must be stopped.
The USA-NATO-WEF will fight to the last Ukrainian and fight until every European and American is in poverty.
You mention “when the rubber meets the road.” Gonzalo Lira stated the obvious that the time the rubber meets the road is October. This is when old man winter starts setting in. October is really just around the corner. 3 weeks left in June, July, August and September. It is not that far away. Even before October, real panic is going to set in about energy and food.
Putin and Medvedev came out and said it. Dimitry Medvedev said it very directly that Russia cannot trust any agreement the Europeans sign. I would argue that the USA is even worse. I do think Trump would be better and would discuss it moe with Russia versus insane Biden.
The Russians know any agreement with Europeans and Americans are worthless. See Minsk Agreements. The Ukrainians are even worse than the Europeans and Americans. I think Europe could be better if they some day throw off the yoke of NATO-USA-Rothschilds-Soros. I am not sure when that may happen but it could if Europe faces financial ruin and extreme poverty for their people. This may be coming and it will not be pretty.
Aren’t India and other third-parties buying Russian hydrocarbons and simply reselling them to EU, at a very big markup? To what extent will third-party sellers be able to make up the EU’s shortfall?
casey, it could very well be that third parties are currently selling to the EU at least some XX volume we can´t know about as it´d be “under the counter”. The extent up to which third-party sellers will make up for the EU´s shortfall (i.e. the “XX” volume) depends upon how much, if any, Europe is willing to admit about it´s plain outright CHEATING. If by year´s end European ports continue to be very busy unloading oil it´d NOT be Russian proper as it is banned and it´d probably have to be third parties no ? Unless a major front page headlines announcement is made regarding a blah blah yadda yadda “exceptional” oil vendor has been found somewhere we had never heard of before that will supply Europe with non-Russian oil very similar — almost identical hahahah- to Russian oil.
The topic was approached right here in my previous column at /europe-now-cheats-or-suffers/ which I suggest you revisit where it says
” Option 1 (VERY expensive) cheating
Europe would plain cheat, still hurting itself badly by buying the very same Russian oil it says it´d be banning (not) but actually paying for it to third parties through “triangulation” which is far more EXPENSIVE. That´d mean that Russian oil would be sold to third parties as many times as needed so that the original Russian source can no longer be traced thus declaring it to be non-Russian and delivering it at European ports. This may also include STS or Ship-To-Ship transfers. Actually, even before being downloaded to the very first tanker somewhere in Russia, the now EU banned Russian oil could already be sold at least once, maybe more times. Of course, with each pass of hands, some mark-up is added to justify the investment…and the risk of being caught red-handed somewhere along the line. So the very same excellent Russian oil would get to Europe with at least a 35 to 50% higher price which would defeat the purpose of the EU Russian seaborne oil banning decision. Additional cheating could also include mixing Russia´s Urals oil with other third party blends of different origin OR tapping the South Druzbha pipeline branch into Hungary et al so better keep a close eye on that also. Still, whatever the cheats would still be FAR more expensive.
Private refiners of India are adding salt to the injury by selling refined products(of Urals crude) to Europe and EOL. :) One EOL client commented that there is no way to determine if the products came from Urals crude.
https://www.reuters.com/world/india/indian-private-refiners-profit-cheap-russian-crude-state-refiners-suffer-2022-06-01/
Great information and view of the complexities involved probably not considered by the majority of consumers. Thank you !
I’m reminded, You can deny reality, but cannot deny the consequences or results of reality.
It’s going to be a rough ride back to reality for some. Buckle up.
Chriz thank you, and I agree. Europe should know much better and the outcome will be most unfortunate methinkx. Cordially Jorge
Fools playing politics when Russian nuclear weapons prevent the matter from being resolved in the usual way.
latest headlines to you.
LIVE
7 Jun, 2022 11:56
HomeBusiness News
Ukraine looks to import American LNG – Naftogaz
The energy company says Kiev wants to replace Russian natural gas supplies bought from European countries
Ukraine looks to import American LNG – Naftogaz
© Getty Images / bfk92
Ukraine is in discussions with the United States on purchasing and financing supplies of liquefied natural gas (LNG) instead of pipeline gas, which the country receives from Europe, Naftogaz CEO Yuriy Vitrenko said on Tuesday.
Kiev is currently buying reverse gas supplies that EU countries resell, after buying from Russia.
The head of the Ukrainian company told Bloomberg TV: “We would need to import gas worth up to $8 billion for the next heating season. And that’s exactly what we were discussing here in the United States, some financing for the US LNG that can replace pipeline gas that we have been traditionally buying in Europe.”
Vitrenko noted that Ukraine stopped direct purchases of Russian gas in 2015, increasing imports from Europe instead. “But since we are lobbying for a full embargo on Russian gas, we believe that US LNG is the best alternative that we are trying to buy at the moment,” he said.The Naftogaz chief added: “In our case, US LNG can cover all our needs for imports. But if we look at a wider European situation, it cannot replace realistically in the short-term supplies from Russia.”
and
Serbian President Aleksandar Vucic said on Monday his country has incurred significant losses due to EU sanctions against Russia, particularly on oil supply.
“Only by imposing sanctions on Russian oil, they [the European Union] directly took $600 million from our pocket!” he said on national television, stressing that the money was taken from the people of Serbia.
Vucic pointed out that Iraqi Kirkuk oil is currently $31 more expensive per barrel. “They took $600 million from us, and we still have to invest additional money in gas,” he said.
The Serbian president noted that the situation in the global energy sector is becoming more complicated. “We have de facto, but not formally, declared a state of emergency,” he said, adding that energy issues are being “resolved on a daily basis.”
via rt
” “We would need to import gas worth up to $8 billion for the next heating season. And that’s exactly what we were discussing here in the United States, some financing for the US LNG that can replace pipeline gas that we have been traditionally buying in Europe.””
Yah, well, whaddabout the US’s needs for its own natgas?
If Ukraine hadn’t been such a scheming twit of a country they would still be getting a gush of natgas from Russia.
Having screwed that up, now they want ours.
I say no.
To Taffy
What you are hearing is the usual verbal farts from the pathetic ukie so-called “politicians”, who will soon be gone.
But what is really amusing is that this twat did not think to explain as to how exactly they are going to get this American gas to what used to be Ukraine and which will not have ANY access to ANY ports. Pipe from the sky?
“But what is really amusing is that this twat did not think to explain as to how exactly they are going to get this American gas to what used to be Ukraine and which will not have ANY access to ANY ports. Pipe from the sky?”
Good point.
I suppose the gas could come ashore in Rotterdam, or Bremen, or something, and travel “backwards” via a fantasy pipeline.
But then where will they turn it back into gas? I don’t think there are so far any terminals for unliquefying the gas.
Details details details!!
Ukraine looks to import American LNG – Naftogaz
The energy company says Kiev wants to replace Russian natural gas supplies bought from European countries
Ukraine is in discussions with the United States on purchasing and financing supplies of liquefied natural gas (LNG) instead of pipeline gas, which the country receives from Europe, Naftogaz CEO Yuriy Vitrenko said on Tuesday.
Kiev is currently buying reverse gas supplies that EU countries resell, after buying from Russia.
The head of the Ukrainian company told Bloomberg TV: “We would need to import gas worth up to $8 billion for the next heating season. And that’s exactly what we were discussing here in the United States, some financing for the US LNG that can replace pipeline gas that we have been traditionally buying in Europe.”
Vitrenko noted that Ukraine stopped direct purchases of Russian gas in 2015, increasing imports from Europe instead. “But since we are lobbying for a full embargo on Russian gas, we believe that US LNG is the best alternative that we are trying to buy at the moment,” he said.The Naftogaz chief added: “In our case, US LNG can cover all our needs for imports. But if we look at a wider European situation, it cannot replace realistically in the short-term supplies from Russia.”
and
Serbian President Aleksandar Vucic said on Monday his country has incurred significant losses due to EU sanctions against Russia, particularly on oil supply.
“Only by imposing sanctions on Russian oil, they [the European Union] directly took $600 million from our pocket!” he said on national television, stressing that the money was taken from the people of Serbia.
Vucic pointed out that Iraqi Kirkuk oil is currently $31 more expensive per barrel. “They took $600 million from us, and we still have to invest additional money in gas,” he said.
The Serbian president noted that the situation in the global energy sector is becoming more complicated. “We have de facto, but not formally, declared a state of emergency,” he said, adding that energy issues are being “resolved on a daily basis.”
via rt
JJ valid and timely input. Still, please be advised that most of the article and news presented ( except at the very end regarding Serbia and the Iraki oil price ) refer to natural gas, not oil nor oil blends etc. etc. which are by far Russia´s main source of revenue much larger than nat-gas as important as it is. Oil is Russia´s cash cow milked promptly every morning and that´s the EU´s fuzz about it because it means tons of money for Russia.
I still reckon that the news presented are nevertheless about hydrocarbon fuels, but the context is a bit different for natural gas. Actually, although it means far less revenue for Russia when compared to oil, it is far FAR far worse from the European survival standpoint… but also bear in mind that from Russia´s perspective nat-gas in practice cannot be stored so it has to be wasted / vented / flared. But still, Russia has oh so much nat-gas it could vent it for years and still have plenty left to still be acknowledged as having the world´s largest natural gas reservoirs able to export to Europe for many decades to come.
hiya…sorry posting twice
bit extra
🇪🇺🇷🇺European carriers make a mockery of anti-Russian sanctions, writes the Independent.
The volume of transportation of Russian oil by European companies has only doubled since February 24, the publication reports, citing experts.
For example, tankers from Greece, Malta and Cyprus exported about a third of oil from Russian ports, and in May — more than half.
The sixth package of EU sanctions provides, among other things, for the gradual introduction of an embargo on oil imports from the Russian Federation.
plus thought had read today how much extra money Russia had recieved…huge amount….
Russia on Friday said it expects to earn an additional 393 billion rubles (nearly $6.3 billion) in June from oil and natural gas exports.
The country will pocket a total of 656.6 billion rubles (approximately $10.7 billion) through oil and gas exports in May and June, the Finance Ministry said in a statement.
Back in April though
Russia’s current account surplus hit $58.2 billion in the first quarter of 2022 — a three-decade high.
Russia’s revenues oil and gas export surged while imports plunged on the back of sweeping sanctions.
Russia will earn $321 million from energy exports in 2022 — 36% higher on-year, per Bloomberg Economics
and
⭕ Russia enjoys 50% jump in oil revenues so far this year compared to same period in 2021.
According to a recent report by the International Energy Agency, Russia has earned 50% more in revenues so far this year compared to the same period in 2021. Russian Foreign Minister Sergey Lavrov said on Saturday that Western sanctions would have no effect on the country’s oil exports and predicted a big jump in profits from energy shipments this year.
keep the articles coming…excellent reading.
The EU will just import their substitute oil from Greece ;)
Hi Andreas ! I´ve just replied to casey on this very same aspect. Please scroll up just little and find my response to casey along the very same lines. Cordially Jorge
Any port in a storm. The Plan –
So EmpireUSA still buys RF oil, leaves it on the boat, or in the pipeline, & sells it to the EU with the cost no object, y’a know WallSt does it best, markup, mrs 20%.
Problem solved, easy peesy & the empire makes a buck saving face – The Europeans? Roll on Vicky’s fuck the EU, it was always an expensive place to vacay.
Jorge, very well argued points! Thanks for the insights. I wonder, would Europe take the path of sourcing the refined products required by them from India, China etc while they are busy with making the necessary modifications to their infrastructure? That would cushion some of the social distress that you foresee. Ramping up production capacities in industries in a short period is something the large Indian industrial houses are familiar with.
esskumar, thanks for your valid analysis. For starters, nobody should want to be in European shoes right now as politicians there — and elsewhere also — still keep erroneously thinking that (a) one full third of the world´s oil market supply can be taken away and NOTHING will happen… just the Russians not collecting their previous revenue hahahh we ´sanctioned´ the stupid Russians hahahah… which is market economy ignorance 101 and (b) any oil blend is an oil blend is an oil blend just “plug & play” it just buy it from somewhere else plenty of happy vendors waiting in line to sell it to you and if not delivered by door-to-door pipeline it´s just the same to have it batch delivered at un-prepared ports hundreds of kilometers away.
So, as long as these TWO dead wrong premises are stubbornly maintained Europe will remain a basket KFC fried chicken case.
Now then, yes, Europeans might import “some” little batch volumes of distilled products from India or somewhere else awaited at the European docks by European Karens waiving and smiling at the incoming freight vessels every time their ETA is announced by public MSM but (1) not anywhere enough volume could be imported (b) probably not anywhere same BMW or Mercedes required quality Europeans are spoiled to (c) not anywhere cheap enough price as freight fleet is also way smaller to make any difference (d) under current war-time circumstances China and India or whomever might NOT be willing or interested in solving any problem now affecting a very sick Eurasian peninsula such as Europe (e) logistic distribution for finished products in Europe is conceived, designed, built and executed logically as from European REFINERIES so such distillates would first have to be unloaded at unprepared ports and only then safely shipped to far away REFINERIES and only then from there to consumer destinations (e) in sum a hellaceous scenario with winter not THAT far away. Cordially Jorge
China and India will be the main beneficiaries from this self inflicted Euro madness
Jorge,so a win win for them in terms of reliable supply quality and price,what
perfect symmetry.
That kind of scale up would require new plants that too huge ones. Not possible. Little scale up utilizing the turnover ratio and little more products diverted from the domestic market. That is the extent of export any country can manage right now. Nobody else will invest their money to help out europe and setting it up will take many years.
Back to square one.
Bottom line is that there is no solution to situations coming out of idiotic actions
You are right. But, Indian and Chinese businessmen would have their noses sniffing at the delicious aroma of a fabulous opportunity cost. India is an example of a country that has been managing inland transport of distilled petroleum products throughout a country much larger in size than Europe for several decades. If push comes to shove, it would not be beyond imagination that top honchos of Indian petroleum industry offer to provide distilled products at the point of consumption (a petrol pump or an airport for example) in addition to supplying whatever quality of product they specify. Indian tycoons must be having their own substantial fleets of top of the line Mercedes benz cars and they sure fill them up at the local petrol pump. Imagine these guys approaching EU leaders with long sympathetic faces and offering to manage their petroleum sourcing and logistics for the duration of their transition away from Russian fuels at a “very reasonable cost”. This would be a dream opportunity of a lifetime. I am thinking of asking my broker to buy me shares of petroleum companies.
Jorge, I’m going to ask a specific question and I’d be very happy if you could answer (I’ve noticed you’re very active in the comment section of your articles). If not I would understand, there is no time for everything.
Finland’s major export is refined oil. The government has the lion’s share of the biggest companies, so when the war broke out they quickly (within a month) substituted almost all of their Russian crude oil imports with Norwegian ones. I believe Russian crude was over 90% of the imports, and they switched already around 85% of it. Yes, light oils import from Russia actually tripled, but it is comparatively a smaller import than crude oil (at least in terms of volume).
I was wondering how could they do it so fast. If the crude is so different between Russia and Norway how were they able to pull it off? Maybe they were preparing for it and just jumped at the chance to? Could other countries (e.g. Netherlands) do the same switch as easily?
I know, lots of questions, but I can’t reconcile this lightning-fast switch with what I read in your articles, and I don’t know enough about this subject
Fennovoima, in a nutshell I agree with you 100%. Still, I´ll try to guesstimate what could possibly be going on.
And please let´s be suspicious as prima facie it´s VERY fishy (rhyme not intended) or, in other words, it stinks. But maybe the Finnish are really exceptional, nothing less. We shall see soon enough, I promise.
(1) I declare myself fully ignorant on Finland´s economy and oil-related activities, figures, capabilities, etc. etc. So I´ll just think out loud on the basis of what you are telling us here right now. For example, I would have never guessed that Finland´s “major export” is refined oil. Actually per official sources the major 2021 Finnish export items are ” electrical and optical equipment, machinery, transport equipment, paper and pulp, chemicals, basic metals; timber and specialized furniture”. Still, this doesn´t change one bit the nature of your most valid questions which of course are also applicable to third parties all of which constitutes an excellent example of the muddy road ahead for Europe.
(2) One quick and dirty reply would be that Finland is “disguising the truth” or not saying the whole truth and nothing but the truth, or plain lying and cheating. For example, all what you describe has resulted in highly unefficient outcomes and not everything is smooth as before with Russian crude oil blends. This includes the quality and the quantity of the final refined products now produced with Norwegian oils. If engines do not perform as well as before with Finnish-refined Russian oil, besides the unnecessary risks and added costs, breakdowns, possible injuries and downgraded performance of everything fueled (…think about it…) people and businesses will complain and will definetly add these to yet other new sets of unforeseen costs besides the higher cost of the Norwegian crude itself. This would mean enormous additional NEW costs to be added to the European catch-22 nightmare now with the contribution of a Finnish export product which let´s admit it at least exists thanks to Finland´s smart and quick reaction on its tip-toes to first grab some marginal barrels of oil that Norway still had available for export and which, by the way, may not have any additional drop to export to anyone, Finland included.
I rest my case regarding “quality” although there is even more to it than just that. But now talking about QUANTITY does Norway have any additional crude to export to Finland or anyone else ? Possibly some more yes ? no ? but DEFINETLY not the unlimited amounts that T-Rex Russia has available to whomever anywhere. Furthermore, are Finnish refineries today as efficient as they were when processing Russian crudes ? Are refining costs exactly the same as before ? Are there any sustainability issues which mean new and unexpected refinery downtimes / repairs with Norwegan oils, definetly far more expensive than Russian oils of course ?
(3) Asumming that (2) is NOT the case, then there are several possibilities open, namely
(a) Finland had anticipated the current situation — something not that difficult to do nor really surprising either — and had lined up its ducklings accordingly by, just as an EXAMPLE, having 1 (one) or 2 (two) refineries already running on Norwegian oil so that now, by CARBON COPYING modifications and tune-ups already made to a couple of refineries they would rapidly in just only one single month apply them to IDENTICAL (or pretty much identical) refineries that had previously been running on Russian oil. So BEWARE we have two very important premises here namely that Finland (#1) had already been refining Norwegian oils in one or two refineries and (#2) that Finland had pretty much other (85%) of refineries IDENTICAL or almost identical to the couple of “Norwegian oil” pilot refineries which could also have been just one single “Norwegian oil pilot refinery” and that have thus successfully carbon-copied equipment and procedures and obtained results with the same excellent efficiency, up-times, sustainability, quality, etc etc etc obtained with Russian crude oil.
(4) The fact that, as you mention “light oils import from Russia actually tripled” would definetly suggest that in Finland now they are trying to mix / blend such lighte oils with heavier oil from, say, Norway.
(5) Even assuming the Finnish people are exceptional I can hardly conceive success in such a short time with so many “ifs” the most unbelievable of which is having pretty much all identical refineries all absolutely ready to be switched over to Norwegian oils wizz-bang-Superman in one month with plans, drawings, specs, crews, staff, equipment, testing, permitting, commissioning, etc. etc. etc. I would suggest / insist you and your team re-read my previous 5 “The Saker” articles on this very same subject matter I can supply the link to very easily if you so require it.
(6) A key sentence that comes to mind ( there are plenty more ) is not actually mine although I fully agree with it 101%. The genuine author is a ´The Saker´ poster right here in this comments section of previous articles of mine that goes by the nick-name SKovacs most helpfull person I attest with 30+ years of first-hand + hands-on staff experience in oil refineries which states ” Matching the Urals oil grade in theory is technically “possible” (sorta) by blending oils from different sources, BUT maintaining the blend specs and volumetric physical flow requirements to meet refinery capacity/specs is very difficult.” I rest my case and remain at hand for any further discussion or questions or comments or objections which keep me sharp minded and learning lots.
For example, I wouldn´t be surprised if in the near future we all really learn the actual truth of what´s going on in Finland with Norwegian substitution of Russian oils now definetly on my radar screen exclusively thanks to you Fennovoima !
Jorge, there’s no team, only me, and I’ve read all your other articles with great interest and trying to school myself in yet another subject I know far too few of.
Your answer is very much appreciated, and it explains a lot.
I had meant to say that refined oils are one of the major exports (5th/6th I believe, 7% of exports), it’s good to point it out more clearly.
Going by numbers, I think the crude import from Russia was around 500/600 thousand tons lately, and lately fell to 200 (hardly the % claimed by Neste, the oil company, but still a hard decline). Light oil went from 20 to 90 thousand tons. Adding to that there is a major player (Teboil) which is basically owned by Russian Lukoil, and they are also cutting imports from Russia (oh, the irony).
If the % of Russian crudes on the total reported imports was actually so high, I find it hard to believe that they were so lucky to have a significant number of plants configured for Norwegian oil, and were able to replicate the process. And you raise significant and interesting points on the continuity of the alternative supply and the quality of the outputs of the process.
To this I can only say that, with so many other things (e.g. their military and NATO application) this could have been a move planned from long ago and just waiting for the right excuse to happen.
another example of delusion in the west: the typical oiltards in the western half of canada immediately saw an opportunity (typical of their dead-eyed caveman cunning) and started bleating about how the US should get its oil from the tar sands.
yes…let’s rely on the dirtiest form of oil that has a roughly 3:1 net gain to processing ratio. and takes about 3 barrels of water per 1 barrel of oil to refine.
the collective industrialized world has had decades to come up with alternative solutions (imagine what the ~$1 trillion/year overall “defense” budget of the US could do if put toward R&D) and hasn’t. you’d think the “oil shock” of the 1970s would have been a wake up call, but not so much. they’ve made their oily bed now they can lie in it.
The perfect solution to the EU’s problem is for Uncle $hmuel to send his U.$ Wind Force
KC10 tankers, loaded with crude, to the Euroweenies. Don’t laugh. When Uncle $hmuel is
desperate, “all options are on the table.”
I’ve noticed all on line betting, book-makers and “prediction markets” have been forbidden from posting any odds on who wins the war in Ukraine (back when it was allowed, odds were 7 to 1 in favor of them Rooskies)
Odds on whether Russian tanks take Kiev is the only crowd sourced thingy allowed ( futuur dot com )
Why the powerful decision makers behind the Old World Order/Davos/Biden administration aren’t turning up cold, in mysterious yatch sinkings and small plain crashes, I chalk up to Russian ineptitude and inability to understand exactly who is ultimately pulling the strings
Jorge, pelo fato de você ser chileno e eu brasileiro, vou abandonar o tradutor automático para o inglês e permitir-me escrever em português acreditando que você talvez possa me compreender. Leio regularmente seus artigos neste blog e agradeço pela postagem, mas por favor não interprete mal o primeiro comentário desta coluna (Rhisiart Gwilym). Embora eu não o conheça, pude compreender que ele quis apenas fazer uma sugestão, jamais uma crítica destrutiva, e que é tão grato por suas informações quanto qualquer um de nós que somos seus leitores. Mas eu mesmo, ao ler o artigo, pude ver a mesma informação diversas vezes, embora isso não desmereça em nada o seu trabalho. A sugestão foi apenas no sentido de evitar as redundâncias e tornar a leitura mais fluida. Sua contribuição é sempre valiosa, espero que perdoe a liberdade de um ou outro leitor relatar uma opinião amiga na intenção de ajudar.
—————
Google-translate fro, modL
Jorge, because you are Chilean and I Brazilian, I will abandon the automatic translator for English and allow me to write in Portuguese believing that you may understand me. I read your articles regularly on this blog and thank you for the post, but please don’t misinterpret the first comment from this column (Rhisiart Gwilym). Although I do not know him, I could understand that he wanted to make a suggestion, never a destructive criticism, and that he is as grateful for his information as any of us who are his readers. But myself, by reading the article, I could see the same information several times, although this does not disregard your work at all. The suggestion was only to avoid redundances and make reading more fluid. Your contribution is always valuable, I hope you forgive the freedom of one reader to report a friendly opinion with the intention of helping.
Marcius7, eu voi intentar scriver a vocé direitmente com meu defetuoso Portuñol pra ficar linguisticamente beim mais perto okay ? Pappo comentarios feitos por vocé som bein interpretados meu bom amico Marcius7. Eu fico de acuerdo como vocé e mesmo com Rhisiart Gwilym tambeim. Mais problema e satisfazer a tuda uma muito amplia a grossa audiencia com una materia muito muito tecnica muito dificil de lembrar. Eu aceito plenamente la critica construtiva da tudos vocés pra aprender las coisas que teim impacto mental aunque non siam favoravles, tudo beim Marcius7. Eu interpreto la situacion e alcunos poucos teim preferenza por sintesis mentras gram mayoria tem preferencia por analysis e explicacions repetitivas da coisas que ellis nao comprenden. Muito obrigadissimo a vocé !!!
Marcius7, your very kind and most considerate comments are well taken. I fully understand and I´ll try my best to satisfy and enormous audience of mostly non-technical folks. I´ll confess right now to you that deep inside my chest I harbor the possibility of influencing the political class which, rest assured, require the repetition of
arguments which they can only retain in their minds for very few minutes, if not seconds. By the way, I do get their warm positive feedback and praise of my explanations as repetitive as they may be. Particularly from high-profile members of the European Parliament which I certainly influence a little bit at least. Cordially Jorge
PS: I love Chile and have a couple of excellent Chilean friends, but I am not from Chile though
Jorges V
I appreciate your efforts very much.
I suspect we live in an age where many want to have information reduced to bullet points. I remember hearing a university lecturer – and this was more than ten years ago now – recounting how students were now complaining about having to read texts. They were doing English literature and didn’t want to have to read the books !!
Another lecturer explained that university students now often need remedial classes in English and Maths despite fulfilling all entry requirements. It’s another aspect of dumbing down – attention spans have become miniscule, best suited to flicking through phones.
Anyway Jorge, I am sure your work is much appreciated here ( certainly by me ) and elsewhere. Keep it up !
sandinED thank youuuuuu !!! And, yes, I agree, this happens even (or maybe most specially ?) in my own family where the generational contrast is overwhelming. Them younger ones want “light soundbites” and I emphasize “LIGHT” because some soundbites are not THAT “light” and then they just hate them or look another way. Sometimes in the very same Sunday noon lunch we all sharethem instead of talking just swap Whatsapp messages all along, you figure ? aahahahahah
Hey sandinED your favorable comments are much appreciated and make all the difference to me so please step right in and sit with us all here and share a cold beer or warm coffee with plenty of sugar maybe ? … or better with artificial sweetener so the ladies don´t complain…ahahahhhahh
The fact that your article is absolutely pertinent does not negate the fact that Rhisiart comments about its form are also pertinent. And the fact that you are read so massively speaks volumes about your content, not necessarily your method of delivering it. It is indeed repetitive, there is no question about it.
Jorge – you should also know that the effects of “the craziness” are already being felt in health care. There are already significant shortages in many EU-produced medicines (I’ve mentioned Oxybutynin before, but now Targin (Oxycodone / Naloxone) has joined the “problem crowd”).
One major problem is that Morphine, Hydromorphone, Tapentadol and Tramadol are all German-sourced products, and these are pretty front-line analgesics. The German pharmaceutical giant Grunenthal (infamous for Thalidomide incidentally), is a major global supplier.
Add in other EU Countries (Spain, or rather Barcelona is the principal sterile fluids manufacturing source for all the Fresenius-Kabi IV solutions range), and we’re facing interesting times already.
It is going to get FAR worse before it even starts to get better.
Many thanks and please keep up the precise info Phil S.
Regards from Jorge
Jorge
Please keep doing what you are doing. Yes, there are redundancies but when learning something new, and all this technical side to the oil refineries is new to me, redundancies help cement the new in place.
What I completely fail to understand is what were the European leaders thinking? If you have it right, and you do make a convincing argument, then they were dead wrong, and Winter is just around the corner.
Hal Duell, yes, your comments are quite pertinent my friend, so thanks for provoking a decent answer !
For starters, those “new” to this subject are most probably above 99% of readers. So welcome aboard Hal and don´t feel “ignorant” please because you may end up knowing FAR more and becoming MORE important than anyone else around, including myself. So I decided to focus on “new” folks, explaining this way, that way, repeating stuff but with a different pitch to it, slowly, in carefully sub-divided parts, and always in a lively manner to focus their attention and obviously permanently adding new things to further enrich the analysis. But you can´t expect people to start reading — and understanding — chapters from college chemistry books, most specially when all they get to read and hear and watch from MSM is “leaders worldwide agree that blah blah yadda yadda …” (!!!)
BTW, with redundancies the reader confirms that the topic has been well understood and that he or she is on top of things. Also, while drafting this it just dawned on me that the 1% is the key to crack this matter wide open, but not because of what they know. Rather for what they do not know that do not yet know. Please let me briefly explain…
The 1% would ´supposedly´ know far more… but quite often not nearly enough. For example, the “knowledgeable” 1% pretty much always ignore logistics, or politics for that matter. Or human resourcing, or the unexpected impact such as simultaneous plans for the Rostock-Schwedt pipeline upgrading & revamping nightmare just to mention a few. There are many other similar examples which, strangely enough, are better understood by those who (supposedly) are “new” and don´t know much. The 1% also have the problem that, knowledgeable as they might possibly be regarding a given PART of the problem, they are convinced there is not much more to it, which is not true. By the way, 95% compliance is not enough to produce a single drop of diesel okay ? So under current EU circumstances and 2022 deadlines until you´ve got 100% you really have NOTHING. So in my opinion the 1% should be humble as many are, pay far more attention as many do, listen and read better and repeatedly, and accept the many factors involved including how to convince the 99% who may not know much yet but directly or indirectly still are deeply involved in the decision-making process !!
Hal, European leadership is perpetrating suicide at plain sight hypnotized by post-Brexit-US-Anglo-Saxon directives which I can´t also make any sense of. All my four excellent grandparents were Europeans
Kissinger suggests that the US review its strategy towards Russia. This means that in a future Trump administration there will be an attempt in this direction. But we ( friends of Russia ) must not be deceived ! Trump is just another arm of imperialism with the same purpose of weakening Russia!
I’m very often in Trieste. There is a port for importing crude oil. There are allways ships at anchor there and i often like to look where they are from. There are some ships from Novorosijsk (Russian oil) some from KTK oil terminal (Kazakh oil), some from Botas Turkey (azerbaijani oil), some from Libya. There are also sometimes from United states and from Egypt and Algeria. So allways a whole mix of oil is imported through Trieste port. (a pipeline goes to Germany from there). There has been a lot of ships from Novorosijsk there and only a few from United States. So this will be the main change. United States will increase their export instead of russian one. Now there are two ships waiting for unloading from US. These ships were not so frequent visitors previously. There is also longer travel from US. It takes 3 weeks from US instead of one week from Russia. So transport costs will increase also and availability of ships. There can be 2 loads a month from Russia and two in three months from US. It is also possible that Russia and Kazakhstan will mix their oil and exported it as Kazakh. They are currently two ships waiting in Trieste from KTK.
United States will be the main winner in oil market in Europe. For Trieste the closest oil producing country is Libya. I don’t think that they are able to quickly increase productivity. Next is Azerbaijan, Algeria and Egypt and then is Russia. From all these ports there is maximaly one week of travel or even less. As i sais before: three weeks from US. There also LNG ships from US in Adriatic now. US just want to sell their products by force. Libya was destroyed, Algeria is unstable, Russia should be stopped. And US will sell and earn a lot of money. This is their view.
Very interesting, Topol.
Trieste is a most interesting place, whose existence is often forgotten.
It was the home port of the Navy of the Austro-Hungarian Empire, giving that basically land-locked empire an access to the sea. N
Germany is the problem in Western Europe.
Wherever Germany leads the rest follow, Germany needs a revolution to shake off the American yoke, the U.S.S.R was removed as a factor in 1991 now its time to remove the U.S part again.
Maybe a cold winter without gas might shake a few Germans out of their stupor?
Whatever happens this winter will be interesting, if the Germans do overthrow the U.S control then they must make a democracy that works for Germans not criminals.
Germany needs to shake off the yoke in their own minds. They’re probably the most brainwashed country in Europe.
A great read Jorge, you keep surpassing yourself. My only worry is that your setting the bar so high will mean even more stress on yourself to maintain those standards; burn out.
I mentioned in a previous comment that Greenspan, remember that sly old elf who ran the Federal Muppet Show prior to Bernanke & Blunder Boy Geithner Timid, boasted of having 2000 PhD’s/Mathematician’s at his disposal , and yet, not one could see the trees for the forest.
You require 2 secretaries, preferably one bilingual Russian who do all the editing and admin stuff while you sit feet up with your dictaphone (brandy/cigar optional ). Copies forwarded to all European Departments of Energy/Others. Think of all that waste in these elected/unelected parliaments, tens of thousands of civil servants spewing nonsense, nothing of value, and there’s you, a one man band ( not to forget The Saker Family ) producing first rate material on a shoestring.
Dear WTFUD, of course, thanks for all your considerate thoughts and also please rest assured that I will not burn out. I actually need this ( I guess it shows, doesn´t it ? ) and in my own private way I enjoy it immensly if making a difference to anyone, however few.
Now then the hard part is the rest, meaning getting ´The Powers That Be´ informed (just in case) and forcing them to act accordingly. There I fail miserably and I reckon how ´politically incorrect´ I surely am. So it´d all depend on — yet again — someone powerfull and connected enough reading us right here right now. It may actually happen you know… and one way of checking on that is finding wording used here but reflected elsewhere powerful, such as the European Parliament some members of which are definetly following these “The Saker” articles as being the third quarter and Europe is losing 28-0. So I need to check on this further, but former President of Italy Silvio Berlusconi now a MEP yesterday made some comments which — after checking out the Italian he used — suggest that he may be referencing stuff from “The Saker” articles. I´ll keep you posted on this.
Changing subject, way above at the very beginning of this Comments Section I thought of the idea of entitling my next article right here as ‘Just.Buy.The.Bloody.Russian.Oil´… so whatta you think about it WTFUD ? Does it make any sense ?
It’s a good title, but a tad presumptuous Jorge. Yes it would save all the bother, but things can never go back to where they were. The whole point of everything here is that Russia couldn’t even get a guarantee on their security. Too much to ask for! How perverse, contemptable, that bankrupt over rated jumped up pipsqueak countries believed they could dictate terms & conditions for Russia’s very existence.
Do you understand this complete failure of Western Governments/Elites to get a grip on reality? Scares me!
I wouldn’t sell a tank full of diesel to people who wage war on me unless my life depended on it.
Keep pushing comrade.
One minor objection/question. You talk about Iranian and Venezuelan oil. And I read a headline about EU getting the OK from USA to buy from Venezuela.
The question is simple. Why on earth will Venezuela or Iran sell to EU? And in what coin? What? Have them pay in Euros or Dollars, stored in the Fed or ECB servers, ready to be confiscated/frozen at a later date?
It doesn’t make sense for either of them.
Erlindur, thanks for your input / question etc.
Yes, I do “talk” a tiny little bit about the existence of the required large amounts of Venezuelan and Iranian oils, but I do not mention either as any possible solution to anything, do I ?
My take is that politics and kabuki theater go hand in hand.
The US now plays “good guy” and ´allows´ Venezuela to sell its heavy oils (good for what ??) to the EU.
That ´permission´ does not mean that Venezuela will end up selling anything to the EU, it´s just a ´permission´. And as you rightly say in that case payable in confiscatble dollars or euros, so… ?
Now then Venezuelan oil is mostly very heavy API gravity and high sulfur content and thus requires very specific refinement which the EU does not and will not want to develop or ever have as modifications payback require 40 to 50 years. Please do read the very last paragraph of my article above entitled ” refineries nightmares “. Still such Venezuelan oil true enough would have the advantage of being available in large quantities s required by Europe but only if and when geopolitics allows Venezuela to help Europe out, no ? Still, all alone the Venezuelan oil is only really good for heavy distillates such as black heavy sticky greases, so it would require a mixing blend with lighter sweeter oils in LARGE quantities also sold to Europe for such purpose by …… ??? Whom, exactly ???? Middle East ??? Really ??? The fact of the matter is that both Venezuela and Middle East despite politically induced declarations still continue to be absolute enemies of the West which should not want to even dreaming of having either as vendors upon which their whole economy would depend on.
Erlindur, do you now follow my Rubik´s cube analogy ?
The world oil market is finite one and the same.
Please re.read the paragraph entitled ” no diesel no glory ”
Europe needs MASSIVE amounts of the right oil blends to substitute for the MASSIVE amounts of Russian Urals blend it has just banned itself of. Yes, needless suicide indeed.
Thanks for this piece. I work in the energy business (natural gas and electricity). This very good summary (in details smile) of oil I learned a lot from it ”conncection the dots I read about in the past. I read a few articles that each made a point (max 2) over the years of many more what is written about in this piece.
Before reading further, all I offer is some thoughts and questions on the energy market from a non oil pov.
My conclusion since for almost 20 years. Energy is the economy. Without it, there is no economy. Hence I started to work in the energy business. The geo politics, money etc angle I came aware about quite soon after. So here I sit. An natural gas and electricity analist vs an oil analist (and probably more)
But to return the favor let me give you some insight in what I know about that. I will only share what it in the public domain in the Netherlands aka Holland.
On the gas front. Almost all here warm their houses with what we call ”low calory gas”. This natural gas was mostly won in the province of Groningen. It was shut down in a strange, very short duration of time. Speculation on why this well was shut down and still could supply, Germans, among others, with our natural gas but not the native Dutch……
We, as Dutch, also have a high callory gas network. That feeds our industry and also our green houses since they are a relevant electricity producer. Holland is the nr 2 food provider for food for the world (maybe a bit lower now) but yes, energy and food are connected here.
The idea in short, the residual heat from burning gas to heat the plants so they grow better in cold times. This while producing electricity when needed. The CO2 produced by burning gas will also be ”fed” to the plants since the grow way, way better when having more CO2 (thus produce more yield).
The big question I dont know is the high calory stuff. You really think Hoogovens is here, ignoring all enviromental rules, and still around since because of ”market forces” (smile). They are there for
No, it makes great metals, specialised in steel. Oil cannot burn as hot as high calory gas. When you make quality stuff, you make it with high calory gas. You run it on oil.
Last thing on natural gas. The high calory stuff needs blending for the individual customer. A green house operator (farming is now a part time thing of that business, just as food is and CO2 rights) needs a different ”blend” vs a steelmaker or vs a glass maker. Replacing all of that equipment is also a challenge. I am sure not as big of a challenge vs the oil refinery adjustments needed. Just to point out another energy bottleneck on Europe with its energy ”policy”
Then we have electricity. The European electricty grid is unstable. Around 2 years ago Romania (or another country in that region) send out a wrong frequency on the EU wide electrical grid. Add to that that countries cannot get rid of their over produced ”green” electricity since summer, windy and sunny for example. Now ”pricing schemes” are there to not produce electricity (and shut down from delivering to the grid even if they want to pay the price). Heaven for
So the conclusion I draw, after these thought snippets I cannot tie together fully but hopefully helps you get new things to explore on the energy front. Teaser, lets see what you can find about Holland, Italy, abitrage and if you want to go conspiracy, Gladio. (smile)
One thing is for sure, Europe is going for an intentional energy crisis of its own making. Industry collapsing, massive imigrant waves. Mr. Medvedev, I believe, was saying that the ”four horses of apocalips are riding”
Let me quote you
Of course, let´s recall that the real Davos puppeteers never bother to show up anywhere public in their “rules-based order” narrative, let alone at Davos proper.
So what is the intentional collapse of the EU going to achieve? Davos is mostly EU. It took 80 years to achieve it. (not to be confused with Europe via NATO lines makes it confusing to say the least and that is intended). So many dots, I can go on but geo politically this is too weird. Why is EUrope committing economic suicide? The politicians and experts know what we share and more.
If you made it this far, thanks for reading. It was ment as a question piece. Much food for thought and beware that say they can answer all your questions and have to do their bidding!
Regars,
Hugo
I think the EU/UK/US plan was two-fold:
Plan A-By military and economic means destroy Russian resistance and steal its natural resources.Hence,there is no need for alternative supply lines.
Plan B- The West is so strong,magnificent,omnipotent,righteous, superior, intelligent and lgbtq supportive that there is really no need for Plan B.
What could possibly go wrong?
“Meanwhile, the US continues to normally import Russian heavy oil on its own while telling Europe not to. There has been no announcement of any US Russian oil import reduction let alone an outright ban. I guess this piece of information makes it clear who is really running this show.”
No, it’s because American voters are already hopping mad at the greenie Democrats. If Biden outright banned Russian foreign oil Americans would start hunting Democrats (and their voters) down in the streets.
It’s not like Germany where support for the Treend actually went up as the war dragged on.
*Greens
Para questões de conteúdo, todos, repito, todos os artigos no Saker são muito importantes. Dão uma visão geral da loucura psicopata das elites dirigentes do ocidente.
Mas em TERMOS PRÁTICOS, estes artigos do Sr Jorge Vilches são…. O TERROR!!!!
Por força das circunstâncias, em sites como este e afins, tornei-me um especialista (de poltrona) em geopolítica e geo-economia. Comparado com a cegueira de 99,99% dos políticos, empresários, engenheiros, historiadores e população, sou sábio pois, como dizem, em terra de cego quem tem um olho é rei.
Mas um rei que não sabe o que fazer não serve pra nada.
Na última grande guerra mundial, pelo menos 73% da população do Brasil, onde nasci e moro, era residente em área rural. As cidades e vilas eram abastecidas de quase todas as necessidade alimentares, lenha e outros suprimentos de sua redondeza rural, quase sempre em carroças puxadas por cavalos, mulas e bois Hoje tudo depende de petróleo. O Brasil é autossuficiente em petróleo mas quase não tem refinarias. Desde a revolução colorida de 2016, o Brasil direcionou quase toda sua necessidade de importação de diesel combustível ( 23% do consumo ), para fornecedores dos EUA .
Enfim, será que sou um catastrofista?
Esta política energética russofóbica ocidental, sendo tiro no pé ou inteligente ( great Reset maltusiano? ) plano malévolo da elite da elites ocidentais, não importa, está indo mais e mais em direção ao ponto sem retorno.
For content purposes, all, I repeat, all articles on Saker are very important. They give an overview of the psychopathic madness of the Western ruling elites.
But in PRACTICAL TERMS, these articles by Mr Jorge Vilches are…. THE HORROR!!!!
By force of circumstances, on sites like this and the like, I became an (armchair) expert in geopolitics and geo-economics. Compared with the blindness of 99.99% of politicians, businessmen, engineers, historians and the population, I am wise because, as they say, in the land of the blind, the one-eyed man is king.
But a king who doesn’t know what to do is useless.
In the last world war, at least 73% of the population of Brazil, where I was born and live, lived in rural areas. Cities and towns were supplied with almost all the food, firewood and other supplies of their rural surroundings, almost always in carts drawn by horses, mules and oxen. Today everything depends on oil. Brazil is self-sufficient in oil but has almost no refineries. Since the 2016 color revolution, Brazil has directed almost all of its diesel fuel import needs (23% of consumption) to US suppliers.
Anyway, am I a catastrophist?
This western Russophobic energy policy, whether it’s shot in the foot or clever (Malthusian Great Reset?) malevolent plan by the western elite, it doesn’t matter, is heading more and more towards the point of no return.
Alexandre Marques, amigo do Brazil. Eu penso que meu artigos som posivelmente dois coisas dois: (1) O TERROR certamente + (2) A VERDADE tambeim. Em hipotetico casou que vocé pensar diferente por favor deixa-me saber pra falar-lo no maior profundidade. Eu penso iguais que vocé o dezir corretamente na situacao “está indo mais e mais em direção ao ponto sem retorno” ta ? Obridassimo Alexandre
Alexandre Marques, friend from Brazil. I think my articles are possibly two things two: (1) THE TERROR certainly + (2) THE TRUTH too. If you think otherwise, please let me know so I can talk to you in greater depth. I think like you got it right in the situation “it’s going more and more towards the point of no return” ok? Thank you Alexander
I used to think that God is dead because Henry K is alive . . . perhaps they lost his files up there . . .or perhaps they’re waiting for an appropriate vacant spot in hell where Dr. Hen, trying hard now to redeem himself at Davos, will bring his own fire…soon enough, after all.
I apologise if my last post was over the top. As far as the Amish go, they seem to have a more fulfilling life than most Americans. When asked why they didn’t suffer from covid, they said because they don’t have TV. Maybe Europeans will become adept at horseshoeing again. And blacksmithing. Look at it as a way to commune with nature once again. Maybe bring back the Conestoga.
Killinger has never, ever been concerned about humanity. His focus is singular: Zion. His goal: how the USA can attain and maintain global control. His message is simply to inform US and EU the tactics of today will backfire, and the risk is the US will lose some control. The situation in EU is not complicated: it is very simple. The EU leaders have been bought by the Zionists and handed the EU on a silver plate to the US. Like Gorbachev before them, the EU leaders will fail and retire to US with $bn in cash accounts. What EU loses, China gains. Killinger is really saying the EU should merge with US to attack Russia will full force and spectrum, while the US/EU have still a chance of winning. Killinger is a Bolshevik: the Bols destroyed Russia in 1920, and they want to do so again. Thereafter, China. Just wait; you aint seen nothing yet.
No, war mongering Kissinger sees the west losing and wants to hold on to any semblance of Zion supremacy. Your USA/ NATO stated repeatedly that fighting Russia was not in the cards.
What is it that some people don’t get? How foolish will you look when reality sets in? Rely on soundbites from MSM to tell you how you won, just like in Afghanistan, and keep bleeping your superiority propaganda mantra.
You ain’t winning nothing except a much harder life that you can’t even contemplate, much less understand.
“What is it that some people don’t get?”
Most things, and some often “hold these truths to be self-evident” and then seek comfort from various opiates including blogs, like Mr. Hamlet deciding it was nobler in the mind to suffer the slings and arrows of outrageous fortune, rather to take arms against a sea of troubles, and by opposing end them, whilst harbouring the illusion that reading/writing of/in blogs constitute taking up arms, thereby facilitating the moderated sustainability of seas of trouble where change is a constant.
That has utility not restricted to those seeking to sustain seas of trouble where change is a constant, but also to those obtaining comfort from various opiates prior to entering seas of warzones, wherein those with compromised perceptions tend not to enjoy continued well-being, or well, being.
This whole EU’s March of Folly clearly speed up process to future where 70-80% of global trade is in China-India axis Global South.
Oil blend problematic is the answer to question why not all oil is same. Actually they are very different. The fact they seldom talk in media.
Yep, I fully agree with you there Matías !
Cordially, Jorge
The day Putin agrees to some “favorable” deal regarding “only” Ukraine he will be deposed by the Russian masses: The history-changing “decision” of the 24th. of February is existential for the Russian civilization and its metaphysical wiring.
Yep, agreed !
Cordially, Jorge
The article and analysis makes sense and is as I also understood it.
However, there is one question that does not fit the narrative.
So India has now imported more Russian oil, significantly. How come they do not have the same problem of modifying their refineries? How can they process Russian oil as is?
If the Indian refineries did not require modification, then the same argument can be made against modification of European refineries… ok …. not all of them … but still ……
Any explanation?
Piet, valid question of yours. Of course, it´s strategically important for India to keep their oil processing and refinement a deep secret. So we cannot know what´s REALLY going on in India or China for that matter.
(1) Yes. Russian oil export volumes to India have increased considerably, close to 2500% if memory doesn´t fail me. But as a percentage of the total oil processed and refined in India such volumes are still extremely low. So many things could be happenening, the first one of which is that India has now increased the volume of Russian oil MIXED with other well-known oils per traditional formulation so that India is now just doing and having “more of the same” so to speak. Before they processed XX volume of blend containing Russian oils and now they have 25 times that being processed at the very same refinery or possibly at other refinierieSSS. So nothing changed, same blend formulation is processed or distilled, just much more of the same. MAYBE this procedure has a top limit and if India wishes to keep importing Russian oil to be mixed per whatever formulation with OTHER non-Russian oils they may have to surely modify the Indian refineries accordingly which will mean something similar /equivalent to what Europe will have to necessarily do but with an enormous difference…
(2) The ESSENTIAL difference beween India (or China for that matter) and the situation at Europe… is very European indeed. The difference must be that India obviously has a VIABLE plan.
Europe has a plan also, but what they don´t know and really do not want to know is that it´s a CRAZY plan a NON-viable plan and just a back-of-the-envelope wishfull hissy fit of sorts, not a “Plan” or anywhere near it.
The EU leadership just wants to make favorable headlines saying ´we did this´ and ´we did that´, etc.,etc. And so far they ARE making those headlines allright, but the problem is in the near future they´ll be making TERRIBLE headlines although not aware yet so for now just all smiles and photo ops and press releases with pim pum pam we hit Putin here and there yadda yadda paf pof as in comic books.
Now then, what plan does India have ? Well, as I said above I honestly dunno, really. But it must have some of the following, or otherwise they´d have the same problems as Europe will have basically improvising (badly) as they go along.
INDIA — or whomever — must be different in that
(A) Everything takes place with the command of a single country authority in charge: India´s national / federal authority, not a bunch of Eurocrats trying to make favorable headlines while losing their stupid war.
(B) That´s very different from the EU´s funny system of overlapping bureaucratic jurisdictions whereby decisions are made by 27 unanimous votes while limiting or even opposing decisions are made by individual countries. In other words, command & control is VERY different in India from the EU. And command & control matters LOTS here no room for dilettantes okay ?
(C) Seaborne deliveries: for whichever reasons we would both probably guess, India must have already got worked out the seaborne logistics with deep ports for large Suez vessels, the right berths, the right docks, the dedicated handling equipment and the dedicated storage and systems terminals required for anything from feeding pipelines (if any) to transferring the received oil wherever needed. For example a refinery sitting right there next to the docks meaning that the imported oil does not move and stays still only a short time right before being processed. Indians are smart and hard working people, no nonsense allowed…Europe has NONE of the above logistics in place as they import 25% of their oil through door-to-door delivery from the Druzbha pipeline
(D) India could also have 1 (one) or 2 (two) or just very very few plants farther away now receiving the Russian oil thus having to modify internal processes (possibly simple, not complex modifications thanks to ad hoc lab work) in order to match and mate the CONSTANT quality Russian oil with (or to) a single GIVEN refinery or plant. Marriage, not promiscuous occasional dating, clear enough ? Mathematically it´d be a 2 x 2 matrix, NOT a sixilion by sixilion EU matrix as a result of yet unknown highly variable “fly-by-night” providers. And by federal decision that plant or refinery in India will FOREVER be fed with one and the same CONSTANT Russian oil, not a “beach-bazaar” hodge podge mix of non-Russian oilssssss with an “sssss” meaning changes variability whatever… or plain discontinuity because because (the article explains it clearly…) sorry we can´t deliver the same oil as last time but we can get you some so don´t worry. Get the picture ? It is NOT plug & play. It is NOT dogfood. Russia is a proven, vetted, seasoned, reliable, trustable vendor that delivers a top quality CONSTANT oil in unlimited quantities, exactly what Europe needs…. Instead, the EU now will have a hard time finding (a) anything similar to a Made In Russia top quality and CONSTANT oil in unlimited quantities it badly needs (ask Schwedt) and (b) anything similar to Russia itself as a reliable and responsible vendor which will benefit India and China and Asia at large.
(4) OR India could just do thorough lab work with Russian oil samples and decide to have it as base stock to be mixed with whatever other CONSTANT reliable vendor they may already have from the Middle East (or wherever) but by mixing with Russia´s oil at 30% DISCOUNT everything works out right because the also very constant ME oil is compatible with the very constant Urals Russian oil …and both together in a given certain proportion already worked out at the labs also constitute a CONSTANT mix which happens to be compatible (or nearly compatible with minor processing modifications) at a GIVEN refinery with a GIVEN compatible process for such mix, for example. OR maybe they do have to modify — but only ONCE — a given refinery to be fed with a CONSTANT mix of oil containing 50% of Russian oil … or maybe 100% of Russian oil. I can´t know and the Indians will not tell us no matter how many times we ask. But it´s common chemical / physical sense. The scenarios are almost infinite same as the possible combinations. Still what really matters has been explained above pretty much
Piet, now on your own compare the differences with the EU today, doing AAAALLLL the refineries and processing plants modifications at the saaaaaame time throughout Europe in 6 months — not even 6 years would be enough — modifying EVERYTHING from docks to refineries and everything in between (LOTS) not even having the CONSTANT chemically and physically viable source oil as the new EU vendors are fully unknown today. See the sixilion by sixilion matrix now ? By the way, because of market tightness the EU could very well find itself with NOT enough vendors offering enough oil… Ever thought about that possibility ? Like the EU finds itself in the middle of a paint job with the bloody paint running out…
In sum, India has the enormous advantage ( a requirement really) of having a constant source of the very same and excellent Russian oil. So that´s something that Europe does not have any more, only a mix of unknown vendors and oil types. India may also have to modify refineries but ONE at a TIME … not AAAALLLL the refineries in Europe at the same time without even knowing what to modify for if the source oil is not known (!!!) and even when known it may still very well be constant allright but non-viable (Venezuela´s for example) or not available (Middle East) or not constant and then the modification would be for every single batch while the refineries break down miserably in pieces and deliver NOTHING to the market !!!! And when they do deliver it´d be all slightly different. Will BMW and Volkswagen like that ? How about Terex mining trucks ?
Piet, we can both think of many scenarios. I don´t know what India has been doing but (a) it must be WAY different from this messy contagious EU mess and (b) it must be working otherwise they would not have increased purchases of Russian oil by 2500%.
Please keep up the valuable input and questions and comments and objections. I love responding to objections because doing it convinces many skeptics that are now surely reading this but not participating
Outstanding Jorge,
Your subject matter knowledge & style comes across very well, all credit for that.
Also, and when you’re ready, accepting payment for your level of craftsmanship is recognition of your talent and time, the only currency one really has.
All the best.
Hmmm… I´m not sure about ´payment´ recognition…
Now don´t get me wrong as I do understand, agree and need the “recognition” part, but I get that in abundance right here already like you have just done, so…
Maybe pushing 75 has something to do with my perspective ?
Still, many thanks Wildsilver for your favorable comment and outreach which I most certainly appreciate and welcome. Cordially – Jorge
I have read, long ago somewhere, that Venezuela was the source for the particular grade needed to refine into diesel in the U.S., and that only after that embargo did the US turn to Russia for a similar grade. That analysis said they were the only two nations from which that grade was available. The link provided following that comment, referring to Venezuela not being a suitable source of refinable crude, was not at all sufficient or specific to the comment. Recently her Majesty the US has changed policy on Venezuela somewhat, certainly not allowing Citgo back into the US or delivery of any free gas or oil to the E. coast from Venezuela per their previous charity, but allowing increased export from Venezuela to other 3rd parties, so I suspect that will be one source of filling the gaps, however inadequate.
One other comment on the above article, I would argue that what is happening to Europe is not a suicide, but a deliberate murder, perpetrated by the same banditos who are torturing and murdering all the rest of the West, our dear Davos and Bilderberg boys, as they game out on their super computers implementing their plans for their NWO. The world wide fake Pandemic hysteria was a very good and effective step in their plans and the Ukraine provocation was again masterfully carried out with the witless Joe Biden huffing and puffing all the way the required non sense. The movement now from one Crisis to the next is seamless, and gee I can hardly wait to see what follows the war in Ukraine. Monkey Pox does not seem to be taking hold, although the US has 120 million doses of a very dangerous and unnecessary vaccine all queued up for the injecting, as the Pigs at Pfizer wallow in their dough.
edwardi, fine post of yours. Below please find a very pertinent answer I have just read elsewhere.
…” Saudis are light sweet crude, good for car and aviation fuel; Venezuela is like Mexico, a heavier and more sour (higher sulfur) mix, which is better as base blend for diesel and such if adquetely mixed with other “right” oils. And each kind gets its own set of refineries that can process it.
The point is, if you have already spent decades streamlining certain parts of your supply lines and refining chains to work off Saudi crude (just as an example) you cannot just snap your fingers all of a sudden and swap in Venezuela. If you look at US import export data (https://www.eia.gov/dnav/pet/pet_move_wkly_dc_NUS-Z00_mbblpd_w.htm), you can see that the US specifically is net importing oil and net exporting product, so it’s the whole refining chain you have to think about.” . The world market is finite, what someone buyeth someone else selleth and between both they taketh such specific volume away from the market. …So it is the WHOLE REFINING CHAIN you have to think about…
“Russia ramps up oil exports to Asia” – Reuters
https://www.rt.com/business/556794-russia-oil-exports-asia/
“Asia outpaces Europe as top Russian oil buyer “– Bloomberg
https://www.rt.com/business/556189-asia-buys-more-russian-oil/
Say no more…
” Russia-Turkey trade doubles” – Turkey´s Minister of Economy
https://www.rt.com/business/556800-turkey-russia-trade-doubles/
” Ukraine to halt coal and gas exports to everyone in Europe ” – Volodymyr Zelenskyy
https://www.rt.com/business/556801-ukraine-halts-coal-gas-exports/
” Oil ban exposes US hypocrisy “– Moscow
The supply of Russian crude to the US has almost doubled despite Washington’s claims…
https://www.rt.com/news/556802-oil-ban-biden-volodin/
“Analysts warn of fall-out from Russian oil embargo” – Der Spiegel + Bruegel think tank
https://www.rt.com/business/556600-analysts-warning-russian-oil-embargo/
Excellent! Excellent! Thank you for such as amazing and point on analysis. The EU, thanks to their un-elected leadership, has gone down a path of economic suicide. The impact will have global implications potentially for decades.
I fully agree with your conclusion. Thanks for sharing your favorable comments Earl.
Cordially Jorge
…” Redirecting all Russian oil and products volumes from Europe to elsewhere may not be possible due to infrastructural limitations, buyers’ self-restrictions and logistical complications, such as potential restrictions on providing insurance for cargos carrying Russian oil. As a result, about 2MMbpd to 3MMbpd of Russia’s oil exports, or about a quarter of the country’s oil production, may disappear from the global market by end-2022”.
So, 25% of Russia´s current oil exports would NOT be possible and Russia´s physical oil export volumes will shrink. Despite the above, the PRICE of oil will increase accordingly (Law of Supply and Demand) and Russia will not lose a cent, possibly INCREASING its oil export revenues.
Instead, Europe will pay much higher prices for its oil + higher freight costs from wherever + higher internal European port and inland logistics + much higher refinement and processing costs. In sum. Russia wins some, Europe loses a LOT + runs energy security risks. Clear enough ?
https://oilprice.com/Energy/Energy-General/The-Biggest-Reshuffle-Of-Oil-Flows-Since-The-1970s.html
With discount and all, the more oil sold and payed for only in Rubles the higher the revenue that Russia perceives. ” Moscow is pumping more crude to the continent than before sanctions, data shows ”
https://www.rt.com/business/556816-eu-buying-russian-oil/
One thing that REALLY needs to be looked at in all of this:
How much of the actions of the collective west are being driven by:
1: The American Neoconservatives, and their utterly insane level of hatred towards Russia
2: The World Economic Forum
and
3: How much of the WEF are co-ethnic with the American Neocons?
And is it not true that the WEF has a goal of reducing the world’s population, especially that segment of the population which uses the most resources (regardless of the fact that it’s also the most productive, or at least it was before the WEF-types sold out their own society by shipping off so much industry to China)
Of course, we all know the simple answer and the one that is being set up now.
Greek tankers will pick up the crude oil from Russia, reflag and rebrand it and deliver it to the same refiners at much higher prices.
Everybody knows this but will just go along with the whole farcical endeavour and all the time reciting the same pitiful mantra of “sticking it to Putin”.
Jorge, your articles are very helpful and educational and I always look forward to your articles. I didn’t know anything about the oil markets and what problems will arise from the West’s idiotic embargo on Russian oil (and gas etc.). Everything is going to happen badly for EU as you outlined in your analysis. A good example is a huge Slovak refinery Slovnaft in Bratislava. This refinery had been built specifically to process and refine the Urals oil via the Druzhba pipeline. Slovnaft is a dominant supplier of fuel in Slovakia and it also produces and exports various other important oil products to Czech Republic, Poland and Austria. Now Slovnaft will be facing its utter destruction. It is the 7th largest company in Slovakia and its demise will be a catastrophe. Because Slovnaft will not be able to export anything and because supplying just the domestic market will be not profitable enough, it will be cheaper to close down the whole refinery. I quote the Slovak refiner “A forced reduction in output at the 124,000 barrel per day refinery will cut refining below the technological minimum, making it also impossible to supply the domestic market.” And that is what awaits Slovnaft as a consequence taken by the treacherous government, a vasal to Brussels. This is how the engineers from Slovnaft describe this situation – ” It is not a matter of a month or two. It must be remembered that the pipeline cannot be expanded when it is in operation. It’s as if you were driving on the highway in a car and wanted to change the oil while driving,“. They were given essentially 8 months for the adjustment, which is laughable, they say they need minimum 3 years, just to retrofit the refinery, let alone getting the logistics done etc…precisely the stuff you warned about in your articles. Everybody expects huge social revolts now, when lot of people will lose jobs at Slovnaft and overall the whole country will feel the massive negative impact of these sanctions.
Yes indeed Kate, unfortunately you are most correct. I wrote about Slovnaft a bit already comparing the impact to be suffered in Slovakia with the Schwedt refinery in Germany next to the Polish border. At any rate the situation is as serious as you point out, unless it´s all a Big Lie (nothing unusual) and nothing really changes other than the HUGE price to be paid for the very same Russian oil except that it´d be purchased to intermediary third parties through “triangulation”. My piece on ´Europe now cheats or sufffers´ addresses that possibility. I will very soon be publishing an article on social unrest throughout Europe
Kate thanks for your support and encouragement. Posts like yours give me a sense of purpose to keep writing about all this. Take care, Best from Jorge
Hey guys, I´m very proud to say we made it yet again and have been RE-published this time around by The Automatic Earth. Others such as Zero Hedge, Naked Capitalism, and Prime Economics may still follow as they have done in other past occasions. Congrats to you all and to both Andrei and Amarynth our brilliant editors here. And please let´s keep up the good work as I can also attest to the fact that we are being read and widely distributed in the European Parliament where dissent is finally rearing its head. Maybe they learn something there for a change.
https://www.theautomaticearth.com/2022/06/debt-rattle-june-9-2022/
Obrigado Jorge. Na atual situação, em que qualquer lufada de asas de uma borboleta pode acabar com tudo ou tudo continuar… Acho que vou ficar com a sabedoria de uma lenda (ou ” lenda “) atribuída a São Francisco de Assis … e um discípulo de São Francisco, ao vê-lo por dias a carpir para plantar, lhe pergunta: – Mestre, se o mundo fosse acabar amanhã, o que você faria?
Ao que São Francisco respondeu: – Continuaria a capinar a horta (!!!).
Que cada um faça o seu trabalho. E que o bem prevaleça.
Thank you Jorge. In the current situation, where any flutter of a butterfly’s wings can end everything or everything continues… I think I’ll stick with the wisdom of a legend (or “legend”) attributed to Saint Francis of Assisi… and a disciple of San Francisco, seeing him for days hoeing to plant, asks him: – Master, if the world were to end tomorrow, what would you do?
To which San Francisco replied: – I would continue to weed the vegetable garden (!!!).
Let everyone do their job. And may good prevail.
After having read your quite interesting article, thank you, I propose to go the cheapest way to get Europe back on track and make normal connections with Russia. By changing the CEO and Board of Directors of the EU corporation in Brussels is the best way.
For Europe to survive there is no time left and We The People must take immediately action, otherwise it is all over, means: “We The People will own nothing anymore, for sure, but if we will be happy I doubt it very much. More angry might be the case afterwards.
DarkEyes, agreed.
I´ll follow your advice. My next article coming this week-end will be entitled ” pitchforks soon in Europe ”
Cordially Jorge
As the mess is getting bigger and wider every moment, one question arise. Who will trust whom when eventually the statement “sorry we made a mistake,” comes.
There is no trust left!
https://philosophyofgoodnews.com/2022/06/10/sorry-we-made-a-mistake/