Despite what seems, the U.S. in a much better position than Russia after Putin’s Crimean adventure – by John Ivison (National Post – March 26, 2014)

The National Post is Canada’s second largest national paper.

President Barack Obama threatened Vladimir Putin with “broad-based” sanctions that would target the energy and financial sectors, if Russia continues to gobble up the territory of its neighbours. Mr. Putin, who knows that western Europe relies on his $160-billion in oil and gas exports, was probably not quaking in his boots.

At a press conference in The Hague Tuesday, Mr. Obama was asked if the threat was hollow, coming from an America whose influence is declining. The tone of much of the commentary is that a resurgent Russia is thumbing its nose at an impotent and waning United States.

But, according to one of the world’s foremost energy experts, the map of world energy is being redrawn in front of our eyes — and not to Mr. Putin’s advantage.

Daniel Yergin, the Pulitzer Prize winning author of The Quest – Energy, Security and the Remaking of the Modern World, said the energy revolution in the United States has created a “new dimension” to American foreign policy, while “the bloom is off the rose” of Russian energy production, in part because of the flight of capital in the wake of Mr. Putin’s Crimean adventure.

“I think it [cheap domestic energy] bolsters U.S. power by making the U.S. more competitive in the world economy,” said Mr. Yergin, the founder of the consulting firm IHS Cambridge Energy Research, who was in Ottawa on a speaking engagement.

“Putin right now will not worry about U.S. LNG [liquefied natural gas] exports — it won’t affect his decision-making about Ukraine. But it will affect markets half a decade from now.”

While the U.S. economy is benefitting from low-cost, domestic shale gas and tight oil — Mr. Yergin estimates $114-billion in new investment in the U.S. manufacturing sector in the next five years because of cheaper energy — the Russian economy is likely to suffer from a chill in new capital.

“One of the consequences of this is going to be that European and North American businesses will recalculate their risk, in terms of investing in Russia,” said Mr. Yergin. “Russia was relying on foreign investment to bolster its economy, but you can just imagine the discussions in boardrooms when you say you want to invest in Russia.”

For the rest of this article, click here: http://fullcomment.nationalpost.com/2014/03/25/john-ivison-despite-what-seems-the-u-s-in-a-much-better-position-than-russia-after-putins-crimean-adventure/