In my opinion, Putin will take care of Russia first and will do whatever it takes at any cost to bring Russia forward. And that means running over anyone in his way. That being said, Europe has brought this energy crisis on itself over the last several years with its energy policies. But, unfortunately, the energy policies did not include a smooth transition to renewable energy but rather rushed through without proper planning. Moreover, Russia has exercised its energy exports in the past for its geopolitical gains.

Putin said on a televised interview earlier this week, “Today it has become pronounced that this policy is erroneous,” Putin said. “As a result, now the gas price has broken all historical records and today it’s already striving to 2,000 dollars per 1,000 cubic meters.”. He refers to the EU’s refusal to negotiate long-term contracts with the actual thought process of not needing natural gas regularly.

In many of my interviews, I have used “Putin is licking his chops to fill any oil and gas the world oil companies can’t produce because of lack of capital.” I will add to that quote that he will use his geopolitical power to increase his energy export market share while increasing the price for oil and gas. 

This crisis is going to backfire against the environmental impact on the world. While we should migrate to renewables, we need to have a plan based upon a smooth transition that delivers the lowest kWh to the consumers with the least impact on the environment. The amount of CO2 emissions from the world energy crisis is going to erode any gains that were made during the Covid lockdowns and subsequent reductions in demand.

This is the 4th commodities boom we are entering in the history of the world. It will be the most dramatic impact we have ever seen in wealth creation and a devastating blow to the lower and middle class of the world’s population.

Buckle up, get your delta wing flight suit on, we are in for some interesting times ahead. 

Send me your thoughts and I would like to hear from you about your thoughts on the current market. 

Jay R. Young, CEO, King Operating

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