American Elephants


Foreign Policy At Work, Improving the World by The Elephant's Child

Russia has ample supplies of natural gas and oil, and has used that abundance as a political weapon. Poland wants to reduce its reliance on Russian energy and last week the Polish state-owned oil and gas company PGNIG, signed its first five-year deal to buy American liquefied natural gas. Our energy boom from the fracking revolution is serving American national interests and deterring the grasp of dictators abroad.

Gasprom. the Kremlin-owned energy company currently provides more than two-thirds of Poland’s gas, and other European nations also rely heavily on Russian energy. Putin has used that dependence as a weapon, and threatened to cut off supplies, and on some occasions he has cut them off.

In 2015, Moscow cut off gas supplies to the Ukraine. That year the United States surpassed Russia as the world’s top natural-gas producer and by February 2016, shipments of LNG from the US hit the export market. Poland announced that it did not intend to renew its long-term agreement with Gazprom.

Under the deal announced, Poland will receive as many as nine cargoes of LNG or roughly 30 billion cubic feet for their citizens consumption. It’s not a huge delivery, but is likely the first in a series of contracts. It will increase energy security in the region, and cuts back a little on Russian domination.

Sounds like a very good deal, that will benefit all concerned. It will even be good for Russia. Free market competition is good for everyone.

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