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Russia and China Just Signed An Energy Deal. Why You Should be Scared.
Heritage Foundation ^ | May 31, 2014 | Stephen Moore

Posted on 05/31/2014 6:39:03 AM PDT by 1rudeboy

Is anyone else scared to death about this week’s announcement out of Beijing that China and Russia have agreed to a 30-year natural-gas deal? The agreement means the building of hundreds of miles of pipelines to feed cheap Siberian gas to China. President Xi Jinping of China and President Vladimir Putin of Russia met in Shanghai to ratify this treaty in person, thus announcing to the world this is a big, big deal — a game-changer.

These two countries were our adversaries in the Cold War, and remain our greatest economic and foreign-policy rivals. While this energy pact isn’t quite as threatening to the world as the Nazi–Soviet non-aggression pact was in 1939, its security and economic ramifications over the next quarter century could be very serious indeed. Russia is already doing more than saber-rattling in Eastern Europe, and China’s expansionist ambitions in the Far East are no secret. China also has been boasting that it will soon replace the U.S. as the world’s economic superpower — and this energy deal may represent a big step forward toward that goal.

To respond to this stunning economic development by shrugging and moving on, as if nothing had happened, would be a grave mistake. When LeBron James and Kevin Durant sign with the same team, you’d better start doing an urgent talent upgrade, or prepare to get buried.

The right response is to get serious about forming a monster deal of our own: to unite with our neighbors and allies in Canada and Mexico to connect North America’s energy bonanza from shale oil and gas and oil sands to every area of the continent — from Alberta to Mexico City — and then build the infrastructure to export it to our allies in Western Europe. Stop pretending, Mr. President, that we are going to power our $18 trillion economy with windmills and solar panels. This isn’t a time for pixie dust.

So step one is obvious: Get going immediately on building the Keystone pipeline. This is now an economic and national-security issue of the highest order.

Step two: Let private industry build out the construction projects — pipelines, transmission lines, liquefied-natural-gas (LNG) terminals — so we can export our 500 years’ worth of natural gas all over the world. Repeal federal laws that prohibit exporting petroleum.

Step three: End the war on coal, or at least call a truce. We are the Saudi Arabia of coal. Why would we want to stop production — especially as coal plants have become much cleaner in the past decade?

Step four: Start issuing permits and leases for drilling on federal lands. It’s long past time to tap into our trillions of dollars of energy assets.

Energy is known as the master resource for good reason. Everything else our nation produces is a derivative of energy. Energy, therefore, is power — for our economy and our military. Can we please stop forcing the Pentagon to waste billions of dollars every year on biofuels — at a time when defense dollars are already scarce? National security is not a welfare program.

The good news is that we have a lot more energy than China and Russia combined. We can out-compete them both on the energy and technology front. But they have an advantage: They don’t have a left-wing, anti-development EPA and State Department holding up vital domestic energy projects. Don’t expect the Russian environment department to veto the Russia–China pipeline, and don’t expect Vladimir Putin to tell the Russian people that he still needs to determine whether that project is in the national interest (as Barack Obama declared when he delayed Keystone several weeks ago).

All of which is to say that, this week, the world shifted on its axis. The geopolitical center of power on this planet repositioned itself in the direction of our greatest rivals. That is the real story of this blockbuster $400 billion deal. Mr. President, stop worrying about the melting of the polar ice caps and the world temperature a half century from now, and deal with the dangerous world as it is today. We need a big-boy response to the Russia–China alliance, so let us hope this White House is up to it.


TOPICS: Business/Economy; Editorial; Foreign Affairs; Russia
KEYWORDS:

1 posted on 05/31/2014 6:39:03 AM PDT by 1rudeboy
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To: 1rudeboy
The right response is to get serious about forming a monster deal of our own: to unite with our neighbors and allies in Canada and Mexico to connect North America’s energy bonanza from shale oil and gas and oil sands to every area of the continent — from Alberta to Mexico City — and then build the infrastructure to export it to our allies in Western Europe. Stop pretending, Mr. President, that we are going to power our $18 trillion economy with windmills and solar panels. This isn’t a time for pixie dust.

What part of "the crazy people are in charge" don't Americans understand?

2 posted on 05/31/2014 6:41:18 AM PDT by kiryandil (turning Americans into felons, one obnoxious drunk at a time (Zero Tolerance!!!))
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To: 1rudeboy

That’s one coalition that could destroy our nation no doubt especially with the severely crippled military we have now. I’m surprised we haven’t has a Red Dawn moment yet.


3 posted on 05/31/2014 6:43:56 AM PDT by jsanders2001
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To: 1rudeboy

Energy independence and American manufacturing will shift the balance back. Make the world need us more than we need them and we win.


4 posted on 05/31/2014 6:46:52 AM PDT by Bryanw92 (Sic semper tyranni)
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To: 1rudeboy

These are all steps that would help America; why would Obama want to do any of it?


5 posted on 05/31/2014 6:47:35 AM PDT by Truth29
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To: 1rudeboy

This article is spot-on and someone in the administration should step back and take it seriously.


6 posted on 05/31/2014 6:51:03 AM PDT by Portcall24 (aer)
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To: 1rudeboy

Fear mongering headline.

The four steps are solid points though.


7 posted on 05/31/2014 6:51:11 AM PDT by EEGator
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To: 1rudeboy

I’d like to see official conservative mouthpieces stop telling US we should be scared.

Alarmed, yes. Scared, no. Having the American culture redefined by the Left is bad enough but hearing and reading the words of people who should know better, reinforce this attempted character shift, is beginning to annoy me.


8 posted on 05/31/2014 6:51:47 AM PDT by MurrietaMadman
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To: 1rudeboy
All aboard!

click the pic for Ozzy's interpretation of America's "energy policy"...

9 posted on 05/31/2014 6:52:07 AM PDT by kiryandil (turning Americans into felons, one obnoxious drunk at a time (Zero Tolerance!!!))
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To: 1rudeboy
We need a big-boy response to the Russia–China alliance, so let us hope this White House is up to it.

The White House? Yes...its current Occupant....NO




10 posted on 05/31/2014 6:53:53 AM PDT by MeshugeMikey ( "Never, never, never give up". Winston Churchill)
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To: jsanders2001
I’m surprised we haven’t has a Red Dawn moment yet.

.


11 posted on 05/31/2014 6:55:23 AM PDT by Jeff Chandler (Conservatism is the political disposition of grown-ups.)
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To: 1rudeboy

Steps 2 & 3 are backwards.

Export the coal and the clean coal technology.

Produce more natural gas and clean technologies for it domestically.


12 posted on 05/31/2014 6:57:11 AM PDT by mac_truck ( Aide toi et dieu t aidera)
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To: 1rudeboy

How about putting paid to the globull warming hocus pocus.

There could be worse things for China and Russia to get involved with than bread and circuses.


13 posted on 05/31/2014 6:59:37 AM PDT by HiTech RedNeck (Embrace the Lion of Judah and He will roar for you and teach you to roar too. See my page.)
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To: mac_truck

We are acting as if our lunch is getting eaten.

If it is, it’s getting eaten by wasteful bureaucrats, or an alternative way to look at it, is that we are throwing away our own lunches then begging to the world for them.

We have no reason to be “scared” by world prosperity per se. There’s a big God out there and in here, and He can bless in ways that don’t need a “mama may I” from the USA.


14 posted on 05/31/2014 7:03:11 AM PDT by HiTech RedNeck (Embrace the Lion of Judah and He will roar for you and teach you to roar too. See my page.)
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To: 1rudeboy

We are 2.5 years from taking any steps in the right direction. Obama wll not back down on his insane ideology.


15 posted on 05/31/2014 7:11:49 AM PDT by Georgia Girl 2 (The only purpose o f a pistol is to fight your way back to the rifle you should never have dropped.)
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To: 1rudeboy

Bookmark.


16 posted on 05/31/2014 7:19:35 AM PDT by moovova
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To: 1rudeboy

This is the end result of liberalism. I’m so sick and tired of our side being so passive in attacking the lefties that are dragging us down. Position papers and op-ed pieces are useless.


17 posted on 05/31/2014 7:21:58 AM PDT by dowcaet
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To: 1rudeboy
so we can export our 500 years’ worth of natural gas all over the world.

Yeah, I don't know about that one.

I think it's time to pull the plug on the freakin "global market" AND the tactic of not requiring oil speculators to take physical possession of any particular energy commodity.

We need to develop and consume our own energy stocks and enact principles that allow a decent return for domestic producers and affordable prices for consumers.

There should be nothing to keep the exploration/fracking/horizontal drilling experts from making the big bucks, by helping certain nations develop their own untapped resources.

Drilling leases?

There shouldn't be such a thing as "federal lands",

18 posted on 05/31/2014 7:26:10 AM PDT by ROCKLOBSTER (Celebrate "Republicans Freed the Slaves" Month.)
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To: 1rudeboy

“Who rules East Europe commands the Heartland;who rules the Heartland commands the World-Island;who rules the World-Island controls the world.”(Halford Mackinder. “The Geographic Pivot of History”))

Russia + China = a pretty big pivot in the center of the world-island.

But for the next big conflict, throw in the two powerful blue water navies of the heartland powers, Russia and China

Of course the Clinton-Rodham-Kerry strategic geniuses in the US State Department are sure Russia and China will never ally because they are rivals, that’s what their Ivy league armchair geopolitical strategists taught them.

That, and being accommodating to Iran will encourage the emergence of a “moderate” regime (been hearing that one from liberals since 1979.


19 posted on 05/31/2014 7:29:35 AM PDT by silverleaf (Age takes a toll: Please have exact change)
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To: 1rudeboy

Scared? No, I find it funny that both parties will be sucker-punched by the other with Russia pretending to send good gas and China paying with pretend money.


20 posted on 05/31/2014 7:50:00 AM PDT by X-spurt (CRUZ missile - armed and ready.)
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To: 1rudeboy

A coalition between Russia and China with a candy-a$$ed administration like we have now and are likely to have again if Hillary is immaculated spells total disaster for the west and civilized society.


21 posted on 05/31/2014 7:50:56 AM PDT by Don Corleone ("Oil the gun..eat the cannoli. Take it to the Mattress.")
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To: Jeff Chandler

A sure thing if hitlery gets in.


22 posted on 05/31/2014 7:52:18 AM PDT by X-spurt (CRUZ missile - armed and ready.)
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To: Truth29

Not just 0bama but the whole Democrat party. The lot of them are bad for America.


23 posted on 05/31/2014 8:02:44 AM PDT by A message
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To: 1rudeboy

To look at this with fear alone is foolish. At least the tiger won’t be as hungry for food.


24 posted on 05/31/2014 8:08:25 AM PDT by Carry_Okie (The tree of liberty needs a rope.)
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To: HiTech RedNeck

Spiritual revival going on in China, too.


25 posted on 05/31/2014 8:31:51 AM PDT by huldah1776
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To: 1rudeboy
There is little reason for the US to view the new Russia-China pipeline as a threat and it may well, on the net, prove to work toward our benefit.

First of all, the new pipeline will take many years to build, and of its capital cost of $55 billion, some $30 billion is to be raised by Gazprom. This will strain both Gazprom and the Russian treasury and limit what other projects and mischief they can undertake.

Moreover, the inevitable delays and corruption that attend such projects will test and may sour the Russia-China relationship. Similarly, Russia is inclined to use energy exports as a political weapon and tends to be heavy handed about it. This is likely to antagonize the increasingly proud and prickly Chinese.

Finally, the project will supplant oil that China now imports from petrostates in the Mid East. Since Iran is first on that list, the new pipeline does not token well for the Iranian regime.

26 posted on 05/31/2014 9:14:24 AM PDT by Rockingham
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To: Rockingham
Finally, the project will supplant oil that China now imports from petrostates in the Mid East. Since Iran is first on that list, the new pipeline does not token well for the Iranian regime.

Also considering the US will soon be a net exporter of oil, the entire OPEC organization is going to be seeing demand heading south with a bullet. Which just breaks my little heart. /s

27 posted on 05/31/2014 9:18:23 AM PDT by catfish1957 (Face it!!!! The government in DC is full of treasonous bastards)
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To: catfish1957

The US import over 7,500,000 barrels of oil per day. We are not going to be a net exporter of oil anytime soon.


28 posted on 05/31/2014 9:42:18 AM PDT by jpsb (Believe nothing until it has been officially denied)
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To: 1rudeboy

Tyler Durden at zerohedge.com had some story re the trading deal stipulates that payment will not be in U.S. dollars.


29 posted on 05/31/2014 9:45:57 AM PDT by First_Salute (May God save our democratic-republican government, from a government by judiciary.)
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To: jpsb
Maybe I should have been a little more clear around this point. I meant energy instead of crude. And as you can see, we are probably a net exporter by about 2018. I have also seen API articles which guess this event will take place more like 2020. I guess it is how you define "soon"

In any case, we are already putting a serious dent in the bottom line of OPEC, so my premise stands.


30 posted on 05/31/2014 2:39:42 PM PDT by catfish1957 (Face it!!!! The government in DC is full of treasonous bastards)
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To: catfish1957

There is also a technological wild card in the works in the form of a small, practical “cold fusion” device known as an E-Cat. Supposedly, E-Cats use a metal catalyst and low energy nuclear reactions to convert dollops of electricity and hydrogen into a large quantity of heat. Although much doubted, E-Cat technology is being intensively researched and developed by several companies, with a US venture capital fund backing the most prominent design. Who knows, but a simple and impossible device may bring our era of fossil fuels to a close.


31 posted on 05/31/2014 3:34:05 PM PDT by Rockingham
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To: EEGator

I think the headline is pretty subdued given the deal between China and Russia is far more reaching than the piece of paper Hitler and Stalin plaid on.


32 posted on 06/01/2014 12:07:00 AM PDT by lavaroise (A well regulated gun being necessary to the state, the rights of the militia shall not be infringed)
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To: silverleaf

I see that deal as a matter of mutual economic survival, not conquest.


33 posted on 06/01/2014 12:33:45 AM PDT by Gene Eric (Don't be a statist!)
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