History is being made this month and not in a good way. Whether you’re a Republican, Democrat, or Independent, you can’t be happy with the State of the Union and the state of the world as it stands today. Russia has invaded a sovereign nation at the behest of a maniacal dictator bent on etching his name in history. The US economy is in disarray with inflation at a 40 year high and interest rates that are about to increase on a quarterly basis which will likely trigger a recession.
Could we have avoided the current situation?
In my opinion, most of it could have been avoided. First, let’s tackle the Russian invasion of Ukraine. Why would Putin in whatever state of mind he’s in decide to do this? After watching the withdrawal of US forces in Afghanistan, whatever thoughts he had of flexing Russian muscle probably increased by an enormous percentage. The fact that the Biden administration killed the Keystone pipeline while greenlighting the Nord Stream pipeline sent a signal. Russia already provides between 40 and 80% of natural gas to Germany, Austria, Hungary, Poland, etc. The list is long. Russia produces energy and as much of it as possible and therefore has leverage over Europe and even the US to a certain extent. They’re your energy buddy until they decided they want to bomb you into submission.
The Climate Change activists have put the US and Europe in a bad position. They’re so smitten with “Going Green” and the elimination of fossil fuels, that they’ve driven us into the arms of bullies and dictators. This administration and its minions don’t know how to use leverage. Instead of using our leverage as the world’s largest energy exporter, we’re now in a pitiful position of going hat in hand to dictators around the world to shore up our own energy needs. That’s not leadership. It’s dangerous. No amount of embarrassing speeches by Biden and Harris changes that equation.
Now let’s tackle the ball and chain in the US. Inflation. Inflation is not caused by too many workers as has been uttered by Pelosi and Biden. It’s too many dollars chasing too few goods and services. This one is self-inflicted as well. Fiscal spending by this administration is reckless at best and criminal in my opinion. Flooding the US economy with government dollars only exacerbates the problem. Federal debt as a % of GDP has gone from 54% in 2000 to 122% at the end of ’21. $29 Trillion is the number right now. That’s what we owe. Venezuela is currently at 200% of GDP. Google Venezuela interest rates and prepare to be frightened.
America could supply its own energy needs as well as much of Europe’s. Until it’s unleashed, bad actors on the world stage will continue to have leverage – on everyone. The American oil and gas industry stands ready to provide leverage. Will its leaders listen?
Our guest contributor Eric Hawkins Co-Founded MayHawk Energy, LLC in 2007, and is a local to Norman, OK, and a veteran in the oil and gas business.