“The principal direction is the creation of a complete line of ships and equipment to extract and transport oil and gas from offshore deposits,” said Mr. Putin. “This includes drilling platforms, ice-class gas carriers and icebreakers.”

Building new ships to develop Russia’s offshore resources was the FIRST item on the agenda of the FIRST cabinet meeting of the new Medvedev government.

Russia will leverage its long and proud tradition of building exceptional vessels for its navy and commerce fleet. The maritime-industrial decline of the post-Soviet era is coming to an end. “Priorities have been decided,” said Deputy Prime Minister S. Ivanov, “We have enough money.”

Ah, music to one’s ears… “We have enough money.” When was the last time anyone in the US heard a politician make such an affirmative, purposeful declaration?

And to learn of these developments you have to read about them in the Sakhalin Times, not the New York Times or Los Angeles Times. U.S. news media, of course, have other things to cover — like motorists whining about the price of gasoline.

Each nation has its different priorities, I guess. What you see depends on where you stand. So where does the US stand on “energy?” While Russia is developing, the US is ignoring events. The political class, and its media enablers, rush headlong towards the energy-equivalent of the Little Big Horn.

More on the topic here.

Until we meet again,

Byron King

Note: Byron King is a frequent contributor to the free e-letter Whiskey & Gunpowder. To receive daily insights into energy, oil, commodities and other natural resources sign up here!

Source: Russia: Energy Priority #1

As I said on Friday, Congress just passed a US$57 billion alternative energy plan – that promises to do little but make the headlines.

Meanwhile, in another chamber of Congress, executives of big-oil firms were called on the carpet to account for recent sky-rocketing crude oil prices.

Congress wants to know why crude oil is soaring past US$135 a barrel – double the price of last year! Hmm… more demand than supply maybe?

Of course Congress just doesn’t get it! As the CEO of ConocoPhillips correctly points out, “The fundamental laws of supply and demand are at work.” We are getting squeezed by oil exporting nations that are “managing demand for their own interest,” and severely restricted access to energy reserves both at home and abroad.

Today, the International Energy Agency said that a major supply crunch is looming unless the world’s oil majors can ratchet up production by 12.5 million barrels a day within the next seven years. Uh… don’t count on it.

Decades of underinvestment in new energy exploration and development, and a seismic shift in who controls access to new energy deposits means sustainable high prices for years to come. Fossil fuels are a dead-end for American big-oil firms – it’s time to embrace an alternative energy future!

MIKE BURNICK, Senior Editor & Global Markets Analyst

Source: Congress Doesn’t Understand $135 Oil