Julia Fanzeres and David Westin, Bloomberg News
NEW YORK
EnergiesNet.com 02 24 2022
Russia is an energy super-power, but that “position has been blunted” by the development of liquefied natural gas markets, particularly U.S. LNG, said oil historian Daniel Yergin.
Yergin’s comments come a day after the Biden administration refrained from sanctioning Russia’s energy products, as it would not only negatively impact Russia but Europe as well. Instead, U.S. President Joe Biden has sanctioned the country’s sovereign debt as well as families and individuals.
“What the markets are saying is sanctions are not a surgical instrument, they’re a blunt instrument, and you’ll see people over comply,” said Yergin in an interview on Bloomberg Television’s “Balance of Power With David Westin.”
Sanctions that would disrupt the flow of oil and gas that Europe depends on could “send oil prices, not $100, but by accident to $150,” Yergin said.
A possible way for Russia to avoid sanctions would be to go through China, as both countries have now built up an LNG business together. China has become “Russia’s big back door” to global markets, Yergin said.
bloomberg.com 02 23 2022
