The tone and facts of this article are incorrect. Europe is already responding to Trump by accelerating the deployment of renewables. They have recognized that the problem isn’t Russian gas, it’ gas – from anybody. Only renewables provide true energy freedom. It will take a few years, but Europe will be able to shrug off American threats. They can also buy gas from other countries to mitigate Trump’s threats.
glibsonoran on
This will drive oil “rent” cash flow (operating expense) that was denominated in dollars and spent in oil producing countries like the US and OPEC., to China as much more efficient commodity purchases (capital expense) of commoditized solar panels, batteries, and controlling electronics that are amortized over decades. To some extent Europe can also redirect this to European countries that produce wind generators.
This will pull the rug out from under the dollar’s “reserve currency” status, which will make US exports cheaper and more desirable, but threaten to throw the US debt situation into a crushing crisis.
As the world exits the paradigm where oil rent-seeking is a major driver of international politics and finance, old dependencies will break down.
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The tone and facts of this article are incorrect. Europe is already responding to Trump by accelerating the deployment of renewables. They have recognized that the problem isn’t Russian gas, it’ gas – from anybody. Only renewables provide true energy freedom. It will take a few years, but Europe will be able to shrug off American threats. They can also buy gas from other countries to mitigate Trump’s threats.
This will drive oil “rent” cash flow (operating expense) that was denominated in dollars and spent in oil producing countries like the US and OPEC., to China as much more efficient commodity purchases (capital expense) of commoditized solar panels, batteries, and controlling electronics that are amortized over decades. To some extent Europe can also redirect this to European countries that produce wind generators.
This will pull the rug out from under the dollar’s “reserve currency” status, which will make US exports cheaper and more desirable, but threaten to throw the US debt situation into a crushing crisis.
As the world exits the paradigm where oil rent-seeking is a major driver of international politics and finance, old dependencies will break down.