Global Energy Market

For most of history, nations have managed their own affairs internally. When problems doing this occur, they seek other nations’ help to solve their own problems. International trade grew to meet this need. Buying and selling goods and services not available, or not in good supply, in one nation automatically creates a demand for those goods and services where they are available. Swapping goods and fair value is the basis of all international trade.

What is normal is often challenged by differing values and beliefs. Some trading nations withhold their goods from some customers because they substitute price for power. Russia has done this for many years in the energy markets of Europe. Energy is not in huge supply in Europe. Energy is not much created in Europe. It is created in the Middle Eastern nations and places like Russia. And China as well, but China has its own towering demand particulars and must buy energy externally to meet its current needs.

Russia, however, has plied economic markets for political power. Building natural gas pipelines from its vast resource fields to supply Europe’s hunger for energy, has been a staple of commerce for Russia. However, Russia has played their energy strength to gain power over European nations by shutting down pipelines when it harms customers the most. Ransoming supply artificially is the Russia's technique.

International energy markets abound. Imbalances of supply and demand abound. Europe’s energy demand is a challenge to fix. Some of the problem is technical, some resource related, while the balance resides in inventing long term solutions. It is the latter that poses the largest challenge.

Pooling resources will go a long way in addressing challenges. Whether energy, transportation, healthcare, climate change or research and development, nations working together can and will solve complex problems. Resources joining forces is not just money; it is also know-how, education, research, creativity and a host of others.

Supply chain issues has always been a component of supply and demand. It becomes a problem to overcome when persistent imbalances occur. How should they be addressed and repaired for the long term? That is the critical question in need of an answer.

I have no doubt we can find the right answers working together. That unity of purpose builds friendships and partnerships. It also builds peace. It does double duty by weakening the political strangle hold wielded by unfriendly nations.

Something for Russia to ponder: your abundant energy resources hold little economic value without customers. Reliable supply makes for reliable customers. Mess that up and you lose the long term objective.

November 3, 2021