U.S. Top Energy Man Says Russia Can’t Complete Nord Stream Alone

US Energy Secretary Dan Brouiletta is not only deluding himself but he will be forced to eat his words on Nord Stream 2. He has to reckon with Vladimir Putin.

The Americans thought that the intrusive sanctions they imposed on Russia in 2014 will cripple the Russian economy. Not only did Russia under Putin’s inspiring leadership withstood the sanctions, it has decimated them and flourished registering an economic growth rate of 2.5% in 2019 compared with 2.1% for the United States. Furthermore, the rouble has clawed back its losses against the dollar and the Russian Treasury has amassed more than $550 bn in hard currency.

The Americans thought that the sanctions and ExxonMobil’s withdrawal from its joint oil exploration venture with Rosneft in the Arctic will put an end to Russia’s exploration there. On the contrary, the Arctic has become Russia’s WILD WEST. To that end President Putin has spared no money in supporting Russian oil and gas companies’ exploration in the Arctic and also the development of a home-grown state-of-the-art Arctic exploration technology. Putin wanted to demonstrate that US sanctions won’t deter Russia from Arctic drilling. Russia is reported to have more than $8 trillion worth of untapped oil and gas in its sector of the Arctic.

The Americans boasted that Bashar Al Assad’s regime will collapse. But with Putin’s help more than 97% of Syria has been liberated with the American oil pirates soon to be kicked out.

Putin will ensure that Nord Stream 2 is unstoppable. While the sanctions may delay the completion of Nord Stream 2 by a few months, this will not affect Russian natural gas supplies to the EU. Russia could continue its gas shipments to the EU through Ukraine particularly after the recent agreement with Ukraine to settle their differences regarding the amount of Russian gas that will pass through Ukraine on its way to the EU and the transit fees that Ukraine will earn.

And despite claims by the United States that Nord Stream 2 undermines Europe’s overall energy security and stability, the overwhelming majority of Europeans see US opposition to the gas pipeline as a crude attempt to force them to buy US LNG at the expense of Russian piped natural gas supplies.

The reality of the 21st century—as President Putin sees it—is that energy is a political instrument. Political alliances and the rise and fall of the international importance of particular countries will change in accordance with the energy supply routes.

Dr Mamdouh G Salameh
International Oil Economist
Visiting Professor of Energy Economics at ESCP Europe Business School, London