Petroleum:Largest Consumer Bans Largest Exporter

If I’m not mistaken, I do believe domestic producers just gained a pretty structural premium.

Once this is signed into law, and it will be, there’s the mother of all regulatory moats. If only I knew of a corporation that owned, through some combination of shares and warrants, 1% of the world’s petroleum supply. Hmmm…

World’s Largest Petroleum Consumer Bans World’s Largest Petroleum Exporter

https://www.cnbc.com/2022/04/07/senate-passes-ban-on-russian…

“The Senate passed the legislation in a 100-0 vote earlier Thursday. The House then approved it in a 413-9 vote and sent it to President Joe Biden’s desk to sign into law.”

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World’s Largest Petroleum Consumer Bans World’s Largest Petroleum Exporter

Though it’s nice to see, the headline is a bit misleading.
The world’s biggest exporter doesn’t ship much stuff to the world’s biggest consumer.
Because of that, it’s a bit of a damp squib as news announcements go.
Nice and all, but not material except symbolically. (a cynic might note that that’s perhaps why it passed so easily)

From my point of view, what matters is

  • Europe banning coal, oil, and gas. In that order in time frame, reverse order of importance.
  • Building constitutional chains around those bans to make them last a century no matter what happens in future.

I just signed a contract to replace my gas fired water heater with an electric one.
The power comes from France, so I guess it’s to a large extent nuclear powered.
The current unit works fine and the new one will cost a lot to run. That’s not the reason.

For my dacha, I’m looking at a cool new heat exchanger.
Produces very high temperature (60-75C) water suitable for taps and radiators. It uses CO2 as the refrigerant.
And, and the same time and all year, it produces 7C chilled water for air conditioning.
So one can run air con and pool heater and hot tap water at the same time at extraordinary overall efficiency.

Jim

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I like your electric water heater idea. I do things all the time that make me feel good about helping the environment, but don’t make sense economically. Some call it virtue signaling, but I don’t care. It’s not hurting anyone if I want to do it.

For instance, I recently installed a solar powered mini split unit for my garage for the crazy hot Texas summers. I’m always out in the garage working on stuff, but instead of a window unit I installed this. I get a kick out of the sun powering my AC, and it also has a heat pump for the winter.

https://www.hotspotenergy.com/solar-air-conditioner/HotSpot-…

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Great idea-- going to steal the idea if you don’t mind. Wonderful for along the coast in Orange County, CA.

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