Western countries are planning to impose a price cap on Russian oil. But this is deeply unserious idea. If such ‘magic beans’ tactics worked, they would have been used by oil consumers against OPEC long ago.
A lesser known reason for the high price of gasoline is lack of refining capacity. And restoring that takes time. So even if oil production rises, the price at the pump is unlikely to fall dramatically any time soon.
Contraction of the net energy supply has been driving inflation for years. Printing trillions to pay people to sit at home is throwing fuel on the fire. 'Net Zero' axing of high density hydrocarbons is adding gunpowder.
To meet its climate goals, the EU needs to make new investments in renewable energy. But to transition away from Russian oil, it needs to upgrade its fossil fuel infrastructure. Either way, energy will cost more.
Telling African countries to stop developing their economies by banning cheap, reliable fossil fuel is little more than an eco-imperialist dream. It was never going to work.
The EU has announced a complete embargo on Russian oil. But buying less oil from Russia will mean buying more from Saudi Arabia – a country that's been bombing civilians in Yemen for the last seven years.
Britain has today followed the U.S. and banned Russian oil imports as drivers started queuing for fuel after being hit by the steepest weekly hike in fuel prices in more than 18 years.
