Energy, and the Lack Thereof

 

Energy, and the Lack Thereof

The energy non-debate contains several elements that we used to call 'strategic.' First is the availability of components and the second is who provides them.

Germany consumes the most natural gas of any EU country, the majority of which comes from Russia. 77% of natural gas exports from Russia’s Gazprom go to the EU. Of the over €286 billion worth of natural gas imported by the EU from Not Free countries between 2005 and 2019, almost €165.3 billion worth, or nearly 58%, came from Russia. In an act that might be called a suicidal gesture by others, Germany recently decided to shutter three of its six nuclear power plants in the middle of winter.

The Americans have cut back on petroleum exploration and refining to the degree they have gone from net exporter to net importer. Like Germany's weird nuclear decision, they have done this on purpose.

China controls about 85% of global cobalt supply, including an offtake agreement with Glencore, the largest producer of the mineral.

According to the International Energy Agency, China processes about 90% of the world’s rare earth elements, along with 50 to 70% of lithium and cobalt.

The United States is 100% import-reliant on 13 of the 35 critical minerals the Department of the Interior has classified. They include manganese, graphite and rare earths. According to Market Intelligence data, the majority of critical minerals imported during the second quarter of 2021 came from South Africa (41.4%), with 7.9% shipped from China.

In a world that still runs on oil, how free are Western nations, when they depend on the good graces of places like Russia, Algeria and Saudi Arabia, for their oil and gas?

And, in the strangely planned post-petroleum world, how independent will the U.S. be when they are wholly dependent upon the kindness of China for the basic materials of EV?