What’s REALLY Pissing Off the Russians

Written by Jason Simpkins
Posted August 25, 2017

It’s clear now that Russia never really let the Cold War go, but things weren’t always this bad.

At one point, the icy relationship between Washington and Moscow seemed to have thawed.

George W. Bush looked into Vladimir Putin’s soul. Hillary had a reset button. There was a chance for cooperation.

Not anymore.

The expansion of NATO, the invasion of Ukraine, the sanctions that followed, interference in the election, the expulsion of diplomats, threats and intimidation… It’s all led us to the lowest point in U.S.-Russo relations since the fall of the Berlin Wall.

But do you know what really pisses Russia off? More than anything else?

It’s the one thing that threatens the country’s way of life, its economy, its world standing, and Vladimir Putin’s stranglehold on the government.

It’s fracking.

Fracking is a bigger threat to Russia than nuclear war.

Long before Russian agents launched a covert effort to sabotage our democracy, they were secretly working to undermine the U.S. fracking industry.

Why?

For the same reason OPEC tanked oil prices: Because it erodes the cornerstone of the Russian economy and the government’s chief source of income.

If you’re not sure what’s been going on, here’s how it works…

Russia’s Paid Renegades

Over the past decade, the Russian government has poured billions of dollars into anti-fracking activism. It’s funded phony environmentalists and media campaigns in both the United States and Europe.

For example, in 2012, Bulgaria issued a shale-gas license to Chevron. Activists pounced immediately, staging protests and pushing false claims about pollution. The Bulgarian government caved and banned fracking entirely.

Shortly thereafter, Gazprom, Russia’s state-run energy company, swooped in with a 20% discount on a 10-year natural gas deal.

It happened in Lithuania, too. And a year later, in Romania, Chevron showed up with a briefcase full of cash ready to frack. But again, well-organized, well-financed protests immediately sprung up.

The mayor of Pungesti, one of the few locals who sided openly with Chevron, was run out of town.

“I was really shocked,” he later told the New York Times. “We never had protesters here and suddenly they were everywhere.”

Of course, it didn’t take long to get to the bottom of it all.

“Everything that has gone wrong is from Gazprom,” he says.

NATO’s former Secretary General Anders Fogh Rasmussen agreed.

“Russia, as part of their sophisticated information and disinformation operations, engaged actively with so-called nongovernmental organizations — environmental organizations working against shale gas — to maintain dependence on imported Russian gas,” he told The Times.

The reach of that operation extends well beyond Europe, too.

On June 29, Republican representatives Lamar Smith and Randy Weber wrote a letter to U.S. Treasury Secretary Steve Mnuchin demanding an investigation into a Russian shell company that’s financing American environmental groups.

“Entities connected to the Russian government are using a shell company registered in Bermuda, Klein Ltd. (Klein), to funnel tens of millions of dollars to a U.S.-based 501(c)(3) private foundation, the Sea Change Foundation,” the letter read. “This money appears to move in the form of anonymous donations. Sea Change then passes the money originating in Russia to various U.S. 501(c)(3) organizations such as the Sierra Club, League of Conservation Voters Education Fund, and others. These funds are dispersed as grants that will be used to execute a political agenda driven by Russian entities.”

This little pet project is obviously very important to Russia. And for good reason.

Oil and gas sales account for two-thirds of the country’s export revenues. They provide three-times more money than Russia’s domestic sales. And they account for more than 50% of the government’s budget.

They also give the Kremlin a tremendous amount of political leverage over Europe — especially former Soviet states. In all, Russia supplies a third of Europe’s oil and gas. And that figure is dramatically higher depending on what country you look at.

Bulgaria, for example, gets 89% of its gas from Russia. Hungary gets 80%, Slovakia 84%, and Latvia gets 100% of its gas from Russia. And when Russia wants political favors from these countries, it jacks up prices, calls in debt payments, and even cuts off supplies in the dead of winter.

But again, the U.S. fracking industry jeopardizes all of that. It’s a huge threat that’s already taking a toll.

U.S. oil and gas production, driven by fracking, has turned the world’s supply shortage into a supply glut. Its emergence has cut oil and gas prices in half, and robbed OPEC and Russia of their monopoly.

Worse, from Russia’s perspective anyway, the U.S. is now competing directly with Russia to supply Europe with gas via LNG exports.

U.S. Power and Fracking 2.0

In June, Cheniere Energy (NYSE: LNG) delivered Lithuania its first liquefied natural gas cargo from the United States.

In two years' time, the U.S. will be the third-largest gas supplier in the world, serving up to 30% of the global market. And not long after that, it will become the world’s top natural gas exporter, bar none.

The sky is the limit.

Especially since a new fracking technology (Fracking 2.0 if you will) has found a way to increase energy while simultaneously cutting carbon emissions.

This is a huge scientific breakthrough that some are describing as “emission-free oil.”

It’s more efficient than traditional fossil fuels and emits no CO2.

This trend is so big, so influential, that our own Nick Hodge personally made a trip out to the middle of Texas to see it firsthand. He met with corporate executives and industry insiders of all stripes. He even took an up-close look at the product.

And now that Nick’s returned home, he’s released a full report on his findings.

This report tells you everything you need to know about Fracking 2.0. But more importantly, it includes the details of the company Nick visited and all accordant investment information.

So be sure to check that out if you haven’t already.

Because while the Russian energy industry is howling in pain, U.S. energy investors are popping champagne bottles.

Fight on,

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Jason Simpkins

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Jason Simpkins is an Editor of Wealth Daily and Investment Director of Secret Stock Files, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's page. 

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