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Obama’s Stupid Sanctions Give Putin New Oil Bonanza

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Oil and Sanctions

US President Barack Obama, or at least the warhawk neo-conservatives pushing him to war everywhere, are beginning to get hit with the boomerang of their stupid economic sanctions against Putin’s Russia. A few days ago, Russia’s largest oil company, state-run OAO Rosneft, headed by close Putin ally, Igor Sechin, announced discovery of a giant new oil field in Russia’s Arctic north of Murmansk. The stupid part comes from Obama’s decision to agree to impose sanctions on Sechin and his company and to prohibit US companies from doing business with them.

On September 27, in a joint announcement, Rosneft and US oil giant, ExxonMobil announced discovery of a huge new oil deposit, the Universitetskaya-1 well in the Kara Sea. For more than two decades Russian oil companies had dreamed of tapping what they believed were huge oil deposits in the Arctic. In 2011 the CEO of ExxonMobil, the largest of the US giant oil companies and the heart of the original Rockefeller oil group, signed a joint venture agreement with Sechin’s Rosneft to drill in the Russian Arctic. Universitetskaya-1 flow data suggests a discovery of between 750 million and one billion barrels of high-quality sweet, light crude oil, worth between 7.5 trillion and 10 trillion dollars at today’s price.

The Kara Sea find is only the first in a region that experts say has the potential to become one of the world’s most important crude-producing areas, bigger than the Gulf of Mexico. Estimates are that the exploration region of Rosneft in the Kara Sea, Universitetskaya, the geological structure being drilled, is the size of the city of Moscow and large enough to contain more than 9 billion barrels of oil. The first well was the most expensive in ExxonMobil history, costing some $600 million to drill. In a great understatement, Sechin told the press, “It exceeded our expectations. This discovery is of exceptional significance in showing the presence of hydrocarbons in the Arctic.”

Discovery of huge oil reserves in Russia’s Kara Sea northeast of Murmansk give a major boost to Putin’s energy geopolitics and a huge defeat to Washington and ExxonMobil

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