Russia Loses the Battle, Oil Wins the War

Right now, Russia’s chief export is chaos. Its biggest import? Cash from desperate nations. [Energy and Capital Header] Practical Investment Analysis for the New Energy Economy Russia Loses the Battle, Oil Wins the War Luke Sweeney | Jul 13, 2022 Right now, Russia’s chief export is chaos. Its biggest import? Cash from desperate nations. [What do you think Vladimir Putin is doing right now? - Quora] Putin’s sudden ousting from the global energy market triggered a massive energy panic, forcing both Russia and its former customers into an incredibly uncomfortable position. In Russia’s case, the economy is showing significant damage. Sanctions have practically wiped out all other export revenue. Putin is paying his bills almost entirely with oil and gas money. That money is either coming from countries like Sri Lanka that don't have the luxury of switching energy providers or from opportunists like China and India. In 2021, right before the invasion, Russia’s state-controlled oil giant Gazprom made a record $29 billion in profit. Until European oil sanctions take effect, that money is just going to keep rolling in. [Chart: Russia Makes More Money on Fossil Fuels Than One Year Ago | Statista] After all, high prices and desperate customers are a textbook recipe for soaring profits. The “Lithium Crisis”: A HUGE Opportunity We’re facing a national emergency... Because China controls 70% of the world’s lithium supply. All of our military vehicles, weapons, and aircraft are dependent on lithium. And it gets worse, because every electric vehicle, wind turbine, and mobile device also needs lithium... And since the USA gets nearly ALL of its lithium from China, they've got us in a chokehold. Beijing could cut off our lithium supply any time they see fit. That’s why the Department of Energy is funneling $200 million into domestic battery technologies. This creates a [highly profitable opportunity](. Because I found a tiny company that’s rolling out a lithium-free battery right now. This could be the investment of the decade. [Check out my free report on this potential millionaire-maker.]( To prevent that money from funding Russia’s war machine, the G-7 is planning the first retaliation with some actual political teeth. It’s a direct shot at Putin’s last source of revenue. Under the new agreement, Russian oil will be capped somewhere around $40–$60 — approximately half the current price. Any tankers found in violation will face immediate revocation of their insurance. Since most shipping lanes forbid uninsured travel, that would be a death sentence. No respectable company would take such a hefty risk. At least, that’s what the G-7 is banking on… I’m Not Saying It’s Impossible, But… Let’s be realistic. If the Russian debacle has taught us anything, it’s that energy is just as critical as water, food, and medicine. If a nation is threatened with a shortage, morality and politics take a back seat. Providing citizens with critical necessities is the ultimate priority. That’s why Russia will always have customers. A huge portion of the population is not capable of completely reorganizing their energy infrastructure at a moment's notice. Yes, against better judgment, the world admittedly got hooked on dirt-cheap Russian oil and gas. But it most likely wasn't a decision that was made lightly. Take Sri Lanka, for example. Protesters just successfully overthrew the government after years of mismanagement, but now they're facing the same financial trouble. It turns out running a country is harder than it looks. [Sri Lanka: understand the crisis that led to the invasion of the presidential palace and the overthrow of the government - S Chronicles] In his final weeks as president, Gotabaya Rajapaksa purchased 90,000 metric tons of Russian crude to restart Sri Lanka’s single refinery. When that runs out, the new leadership will most likely buy more. After all, what else are they supposed to do? The country needs fuel. And potential sellers are limited considering Sri Lanka’s skyrocketing debt of $51 billion and counting. From up on its high horse, the G-7 sounds like a wealthy suburbanite advising inner-city residents to “just buy a better house.” New Robot Has Tech Execs Scrambling You might not believe this is even real, but I assure you this video has been left unedited. Nearly every tech company in the world is scrambling to get its hands on this tech. And investors are set to profit handsomely. Get the details on [our Top 3 Stocks Picks here.]( And thanks to COVID, the impending recession, high inflation, wage stagnation, and too many other variables to even mention, Sri Lanka isn't the only country in a difficult financial position. Meanwhile, China and India are taking advantage of the diminished demand for Putin’s oil. The two countries are responsible for the vast majority of Russia’s income right now — most of which Putin is currently dropping on Ukrainian shopping malls. So after all that, the world’s boycott hasn't even put a dent in Russian oil profits. Gazprom is still on target to make billions in profit during 2022. If the G-7 is planning something drastic, now might be the time. Reality Has Officially Set In Whatever the world’s leaders decide to do, Russian oil has still disappeared from most of the world. That hasn't gone unnoticed, particularly in the U.S. Global supply took a significant hit. Supply became balanced with demand in the second quarter of 2022 at 98.3 million bpd. Analysts weren't expecting this to happen until at least the fourth quarter. [World Oil Market Balance Scenario] We also saw back in March, as the invasion was just picking up steam, that the combined output of OPEC+ was 1.5 million bpd below target, the lowest undershot since 2020. Naturally, oil prices continued to rise. For consumers, that unfortunately means higher prices on just about everything petroleum-related. But for U.S. oil companies, it means an ongoing bull run of epic proportions. The #1 Company to Jump-Start a New Era of Nuclear Power There’s a brand-new type of fuel that’s about to usher in the next generation of nuclear energy... And the demand for it is HUGE. Because an entire fleet of smaller, safer, and cleaner nuclear reactors are coming online right now... And they can’t operate without this specific fuel, which is the only kind potent enough to power our electric grid 24/7... The U.S. government granted one company the ONLY license to produce it here in America... [Read more about the sole U.S. company producing this fuel right now.]( Skyrocketing prices means Big Oil has made windfall profits so far in 2022. It even forced our climate-friendly president to abandon his principles and sell out the Gulf of Mexico for offshore oil drilling... You know, the same drilling he recently blasted for making Exxon “more money than God.” [4] All the nations that signed ambitious green energy commitments in the past few years are getting a major dose of reality. The world can't ignore it anymore: This is the summer of oil. If you're interested in getting a cut of Exxon's or BP’s ungodly profits, [read more about the industry here](. There are a few things every investor obviously should avoid when diving into the oil and gas sector. Keith Kohl, our senior editor over at Energy Investor, breaks down exactly where and when to invest in this year's most lucrative market. [His free presentation was just released.]( Make sure you follow his advice to the letter. To your wealth, Luke Sweeney Contributor, Outsider Club [Fb]( [Li]( [Tw]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy [here](. Energy and Capital, Copyright © 3 East Read Street, Baltimore, MD 21202. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info [here]( including our privacy policy and information on how to manage your subscription. If you are interested in our other publications, please call our customer service team at [1-877-303-4529](tel:/18773034529).