By last week, the evidence of a new and sustained attack against a crucial part of Russia’s economy was impossible to ignore. On Wednesday, a drone hit the Tuapse oil refinery in southern Russia on the Black Sea. Flames from the burning refinery were visible above an inky skyline. Nearby, the airport in Sochi – Putin’s favourite resort, famed for its pebble beaches – was forced to close.
So far this year, Ukrainian drones have struck at least four Russian oil and gas terminals across the country. The attacks are part of a growing asymmetrical campaign by Kyiv to cripple the industry and to deprive Moscow of the billions of dollars in global revenue it uses to fund its war. About half of Russia’s $420bn export earnings last year came from oil.
This is a common misconception - we’re already the oil producing gorilla. Oil, both unrefined and refined, have been the top exports of the US for years now - well over a decade. We are the largest global producer of oil - by a huge margin - and have been for years. In 2022 we were almost 19% of the global supply - producing 50% more than each #2 Saudi Arabia and #3 Russia, and more than the next 4 countries combined.
The conservatives in the US like to say that we have to drill in an attempt to become energy independent, but we send much of our product to higher paying markets outside of our own border. Our only imbalance is in the mix of refinery capability and domestic supply type (light/heavy/sweet).