Looks Like Russia is Breaking that Oil Barrier Down…

It was less than a year ago I was trying to explain to everyone about Russia and her efforts to enter the gas and oil markets of America. The one thing that I was insistent about is that Russians plan long term and are patient. Well finally it is starting to pay off…

Oil refineries spanning the area between the Puget Sound in the Pacific Northwest and greater Los Angeles have been quick to try out oil that is landing in tankers sent from Russia’s eastern coast. Imports have gone from zero to an estimated 100,000 barrels a day in a matter of months since a pipeline bringing crude from deep inside Eastern Siberia came online.

This article by WSJ is interesting because “no one”, I mean “no one”, likes to admit that Russia is working her way into the oil and gas business of the USA. These same “no ones”, have also been caught by surprise because they sat back and only thought that Russia only cared about the hyper Asian markets for oil. Then while they snoozed, Russia knocked on the door with a bunch of full oil tankers. You see Russia has also been building extra capacity and is shipping the same to the Asia market…

Why has this opportunity for Russia come up?

Well that is a good question and has to do with a combination of things. One is that oil from Mexico has been on a huge decrease as of late and that seems to be going to stay a downward trend. Two is that the USA is trying to diversify her sources for oil. Three is that Russian oil is cheaper than the oil that we get from our own pipelines in Alaska. (Yes Cheaper!)

Also contrary to all popular belief, the usage of oil is not going to decrease and only going to become higher in demand. Russia has created a gateway to supply Siberian oil to America at the same time increasing oil flow to Asia. The USA knows that they better get on the band wagon because Asia will take all the oil that can be sent by Russia and leave the USA out in the cold…

So now you are going to be driving your car on not just Middle Eastern oil but Russian oil now also…

Windows to Russia!

• Russia-To-Asia Pipeline Takes Detour to U.S. (online.wsj.com)