Showing posts with label oil prices. Show all posts
Showing posts with label oil prices. Show all posts

Saturday, October 12, 2019

Fall-Winter 2019-2020: Please Drive Less

Why, you may ask.  Well, you may have noticed that gas prices have been on the rise here in the U.S.  However, my reasons for asking you to drive less extend a bit beyond trying to save you some change.  My reasons actually extend into the realm of geopolitics, as you might have guessed.  Here are some geopolitical reasons for you to chew on:

First, Russia is largely a petro-state whose economy depends to an excessive degree on exports of raw materials.  This means that the stability of the Putin regime depends on a high price of oil and other exported extractive resources.  The high price of oil between 2007 and 2012 allowed Putin to make a sort of bargain with the Russian people: allow Putin to be an autocrat in exchange for "stability", "order", and "prosperity."  Low oil prices and sanctions have undermined this bargain - hence Putin's attempt to deflect attention from Russian domestic woes by his invasion of the Ukraine and his military operations in Syria.  (Indeed, his intervention in Syria was meant to distract Russians from the failures of his operations in the Ukraine.)

Second, the unraveling of the Russian economy has provided the Russian opposition to Putin with a huge window of opportunity.  The economic stagnation (nay, even contraction!) which Russian society has experienced from 2014 onward has exposed the hollowness of the bargain which Russian citizens were enticed to make with Mr. Putin.  As a result, resistance against Putin has spread like wildfire - especially from 2017 until now.  Russians are increasingly experiencing "cognitive liberation", with the result that the attempts by the Russian government to use harsh punishment to quell public protests have instead made an increasing number of Russians even more determined to protest.  This is a prime example of the dynamic of "backfire" at work in a civil resistance struggle.  Once backfire starts to happen in a sustained way in an oppressed population, the oppressor or autocrat is in dire straits!

Third, it is quite possible that recent events related to the rise in oil prices may be an attempt by Putin to scrape together enough cash to re-instate his "bargain" with his own people.  Consider the drone attack against Saudi oil production facilities a few weeks ago.  Some blamed "Houthi rebels" while Trump blamed Iran.  I certainly do not claim to have the proof needed to tell you exactly who did it.  But I do know that Saudi oil production facilities experienced a cyberattack in 2018, and that that cyberattack originated from the Russian "Central Scientific Research Institute of Chemistry and Mechanics".  It is also known that Russia has initiated cyberattacks against Ukrainian power distribution infrastructure and other Western targets.  And it is known that Russia and Saudi Arabia are oil production rivals.  The 2018 cyberattack was not the first against Saudi oil facilities.  It seems that whoever wants to knock Saudi Arabia out of the oil exporting game has gone from throwing electronic signals at them to throwing bombs and bullets.  And this past week an Iranian oil tanker was attacked off the Saudi coast.  These are the reasons why oil and gasoline prices have been climbing lately.  High oil prices might prop up Putin's regime a little longer.

Fourth, whatever we on the outside can do to deny Putin what he wants helps to remove from the earth a threatening regime that wants to take over the world.  This reason should actually have been first on the list.  Don't like Putin (or his familiar spirit, Aleksandr Dugin)?  Then walk, bike or take public transit to the places you need to go.  Save a few bucks (and the world) in the process.  By the way, for every finger I point at you, there are three pointing back at me! If I get up early tomorrow (contingent on getting to bed early tonight), I can bike to work...