Joe Biden decided on Tuesday March 8 to ban the import of Russian oil and energy production, accentuating American sanctions once morest Moscow following the invasion of Ukraine. “The United States targets the main artery of the Russian economy”the president announced during a speech at the White House, signing an executive order as Congress prepared to vote on a similar measure.
The United States will give companies 45 days to terminate Russian energy supply contracts, the White House has said. The executive order prohibits new US investment in Russia’s energy sector and prevents Americans from financing foreign companies that invest in the sector. The impact of the measure on oil groups like TotalEnergies which have not withdrawn from Russia remains to be clarified. Many American companies like Exxon withdrew spontaneously at the start of the conflict.
Joe Biden’s announcement is a strong signal, which caused a rebound in crude prices, the barrel listed in Texas exceeding 125 dollars. This unilateral decision taken without the European allies, under domestic political constraint, puts additional pressure on the Old Continent to give up Russian energy, on which it is massively dependent, with the notable exception of the British who followed suit. not to Americans.
“Take that step where others can’t”
Mr. Biden had to admit that “many of our European allies and partners may not be able to join us. The United States produces much more oil on its territory than all European countries combined. So we can take that step where others can’t.” The president clarified that he was working with the Europeans “to reduce their dependence on Russian energy”. The solution, which would play into the hands of the United States oil industry, involves in part deliveries of American liquefied natural gas. But in the short term, it comes up once morest the lack of infrastructure, particularly in Germany, for offloading the gas.
The American strategy was the miracle of exploitation by hydraulic fracturing, which in ten years made the country the world’s leading producer of hydrocarbons, ahead of Russia and Saudi Arabia. The technique was not developed in Europe because of its damage to the environment. As a result, today, American hydrocarbon exports slightly exceed imports, thanks to an annual local production of 6 billion barrels.
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