Russia reduced westward flows of natural gas through pipelines across the Ukraine last week citing greater domestic demand because of the extreme cold. Gazprom, owned by the Russian government, provides about 25 percent of Europe’s gas. In contrast, U.S. home heating oil prices are climbing due to export demands. In this case, Russia takes care of their domestic needs first, the United States does not.
Nationalizing U.S. energy assets offers the potential for affordable domestic energy prices by controlling supply and demand, especially during periods of hardship. It is noteworthy that 94 percent of the world’s oil assets are in the hands of national oil companies (Statoil of Norway, Petrobras of Brazil, etc.), and not the international oil companies (e.g. BP, ExxonMobil, Shell, etc).Tags: BP, ExxonMobil, Gazprom, Home Heating Oil, Nationalizing U.S. Energy, Natural Gas, Shell, Supply and Demand