Russia’s Dirty Oil Crisis Is Worse Than Almost Anyone Predicted
The pipelines are run by Transneft, headed by Nikolay Tokarev, a former KGB pal of President Vladimir Putin. Much of the oil is supplied by state oil company Rosneft, run by the Kremlin power-broker Igor Sechin.
Other than the geopolitical consequences, there are severe environmental consequences as well. None of the details that are coming out of Russia are giving enough clarity on the impact that this is going to have.
When externalities bite they bite hard. I imagine this is making a lot of pricing algorithms dizzy.
The Russian oligarchs are forcing the price of oil higher? Anything is possible, could they be trying to end the oil embargo in Venezuela? Expect the U.S. to start doing similar nasty things under Trump’s “reign of terror”.
Its unlikely that an oil field turns sour unless it's a new well or more plausibly as many have commented that its origin is else where.
This could wind up being a significant story, I think. The source/cause of contamination remains unclear although the area is identified. Oil shortages have significant geopolitical consequences.
Significant ecological/environmental/economic consequences -- minimal news coverage:
This story reminds me of the arguments of last year when Germany was building a pipeline for crude directly into Germany from Russia. Now the oil is tainted and the price is rising. The could have significant consequences for Europe.
Wonder this could be one of the reason Russia so interested in helping Venezuela.
Energy wonkery we all need to look at.
Wait till Russia's customers start purchasing crude elsewhere and the increased demand jacks up the price of crude and its byproducts, including gasoline. We're all going to pay for this mess.