Sunday, January 16, 2011

The anti oil attitude of this administration coming home to roost

US left wounded as Putin seals BP deal

The fingerprints of Russia's Prime Minister are all over the agreement between BP and Rosneft. But what does it mean for the future of oil?


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It is the news that BP is pushing forward in Sakhalin and not in Alaska that will be causing the biggest chill in the White House, according to Gal Luft, director of the Institute of Analysis of Global Security.

"There will always be the traditional cold warrior types that get jumpy about anything Russia does. What I do think will cause some commotion is not the deal itself, but its purpose," he says. "The US does not have a fully crafted policy on the Arctic. Russia seems to be moving ahead of everyone. The real story here is that the US is asleep at the wheel when it comes to furthering its interests in a place that could hold 25pc of the world's oil and gas reserves. The US does not see energy as its main tool of national power. Russia does, which is why they are so much more aggressive."

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