use pretty much in an economic tailspin right now because of the use own sanctions on its russian energy supply. and it also has the u. s. of course. that's what they're arguing in these articles. germany has the u. s. but tom then why shoulds running off to paris to meet with french president, a manager in mac hall last month in order to figure out how to counter the u. s. sticking it to europe with protectionism, specifically through biden's inflation reduction acts which is being peddled as a virtuous solution to inflation and climate change. the german business community doesn't seem to be buying these politicians, excuses for the pivot away from china. 8 of the countries taught chief executives wrote in a german newspaper recently a warning against withdrawal from china and underscore that china is key to germans competitiveness. the same could also have been said about jeremy's relationship with russia before berlin. just sat back and let the u. s and eat you sanction.

it's russian gas supply that enable it to compete with the u. s. industrially around the world. in a case, it looks like any such pragmatism from german businesses has a real uphill battle when up against political dogma, an ideology that prevails in europe these days were, you know, richer one on one of the points i just wanted to ask about was when olaf sholtes, as you were saying, touched on for 11 hours in china, he came out next as aging thing to make a statement to the press. and he said, one of the reasons i'm here is because the power centers of the world have shifted eastwood's. this is the birthing of a new multi poto. well, he lit truly quoted vladimir putin as he made that statement there in beijing. rachel marsden at the see, you will see you again soon. thanks for joining us here for a program, for most of this is asking international we're back of the talk with

with so what we've got to do is identify the threats that we have. it's crazy confrontation, let it be an arms race is often very dramatic. development only personally, i'm going to resist. i don't see how that strategy will be successful. it's very difficult. i'm time to sit down and talk ah, energy prices are storing and it's not just oil. natural gas, that's 700 percent since the started last year. and it's quickly becoming the driving force that shape geo politics. today. i'm christy i and you're watching the

cost of everything. today. we'll take a look at why the cost of oil is soaring around the world, and what it will take to finally bring prices back down. natural gas used to be a sleepy commodity, but now many countries have actually turned to natural gas as a part of a transition to cleaner energy. 44 countries imported l n g last year, almost twice as many as a decade ago. and the rising cost is one of the main reasons why inflation just hit a fresh record in europe. germany had to cut natural gas consumption and instead increase the burning of coal in recent months as gas prom, russia's gas firm, even before the northern stream sabotaged, announce that it was cutting gas supplies to the north stream one pipeline due to technical problems. so in order to make up the shortfall in its energy supplies,

jeremy restarted coal plants and they aren't the only ones. austria, italy, and the netherlands are all resurrecting coal as gas supplies dwindled. so despite europe, finger wagging a china and india for not cutting carbon emissions enough, they're actually now in the same boat as clean energy tech is simply not mature enough to supply all of the excess demand. coal usage is now up 51 percent from a year ago in europe. so the pot calling the kettle black, seeing as europe was so quick to condemn china and india at the paris agreement for not cutting, cold, aggressively age. on the other hand, is now becoming the default market for russian oil without western buyers. russia has been forced to crop their prices significantly and cut deals in order to move it oil, and then tori and who doesn't love a good deal? yes, asian buyers have been the main beneficiaries of the conflict in eastern europe, china and india. they've taken a record amount of russian crude after the u. s. u k, and the

e. u rolled out sanctions against moscow. so let's talk about china, where china's crude imports from russia sword and may lifting purchases to nearly 7 and a half $1000000000.00, which is double the amount of a year ago. displacing saudi arabia as the top supplier customs data show that the oil was purchased at an average price of $93.00 a barrel last month, which is about $17.00 cheaper than the imports from saudi arabia during the same time period. meanwhile, and india is also talking to russia about ramping up its oil purchases at a considerable discount based on current who'd prices it would represent about a 20 percent discount. india imports a to 85 percent of its oil. so discount like this would be a huge win. and with today's government of india it's motivations are more economic them political. so the benefits of cheap oil outweigh the pressures from the west. but remember, when it comes to the cost of oil,

none of this is natural. it's all self sanctioning. there isn't an oil shortage from a commodity standpoint. it's simply people not picking up oil and banks not providing credit because they don't like the country selling it. they don't want to buy from russia because the west is trying to punish moscow economically. but sell sanctioning is a double edge sword, and consumers and businesses in the west are feeling punishment of higher prices. oil prices are now around 80 percent higher than they were a year ago. so let's go deeper on this and bring in bob i, a chino co founder chief market strategist at past trading partners. so bob, you have your opinions turning back and refining coal plants again to plug up the shortfall in energy these days. how big is the short fall in energy and why can't renewable energy take its place? well, it's a combination of things. first of all, renewable energy is nowhere near ready to take the place of the energy needs and

the you are really anywhere else for that matter. for example, take germany according to most reports, they've pledged to roll out renewable energy at a much more aggressive rate than a lot of the other countries in the u. their natural gas usage, however, only fell by about 6 percent from 2020 to 2021. now that's not as aggressive as you might think, from the rhetoric coming out of germany. by some estimates. russia accounts for 35 to 80 percent of the natural gas that goes into germany. so obviously the disparity there is between the seasons right? between somewhere between heating homes, some estimates say that 50 percent of homes get heated in germany with russia natural gas. so the short ball is not only a matter of the transition being too quick, but obviously with the so might say, unforeseen conflict between russia and ukraine. this is a bigger shortfall than it otherwise would have been. but the transition to green

energy is really the reason for the core of the problem. so do you think that renewable energy will ever be as cost efficient as traditional fossil fuel? or are we still a long ways off from that? why yes, the answer to that is, yes, it will eventually be as cost efficient as fossil fuel. any answer is also yes, we're a long, long way from that. even electric vehicles, for example, replacing internal combustion engines in the us, you would not have the percentage of the market taken up by electric vehicles. had it not been, or government subsidies. some people might say that's the government giving you back your own money to buy a better technology, but it's not even really a better technology. for example, if you were to drive from florida where i am to chicago, where i am from it, which is $4.00 to $5.00 days in the highest performing electric vehicles versus a day and a half in an internal combustion engine. so while those are some of the more

advanced green sort of products that we have out there, you're still not matching fossil fuel products and fossil fuel vehicles. so from that perspective, when you're looking at renewables, it is likely the future one way or the other. but we are a long way from a being an affordable future from us consumers. it seems like absolute hypocrisy actually went just a few months ago. europe was berating china and india for being non committal with their carbon pledges. so now that europe has back tracked, are we seeing any backlash on them? well, i guess it depends on who you ask. if you think about the backlash, the group of people that whose main priority is to reduce the effect of human carbon emissions on climate change. that group with larger when gasoline prices were at $250.00 a gallon. and when natural gas prices were back in their normal, acceptable, reasonable range, as those prices go up, that block of people who again,

that is their number one concern shrinks and it shrink significantly. and it shows you again how comfort in your day to day life and kind of breed this all truism. so when you look at it from that perspective, yes, there's backlash to you, but it's probably not as large as it would be. had the prices been at what people again considered to be more of a reasonable rate. and this is again the problem with the fast transition and you might not even call it fast when you look at some of the estimates, the i. e out of paris basically said that they're going to reduce the global communities, are committed to reducing carbon emissions by about 20 percent. but when you look at the individual government targets, it only reaches about 11 percent. this is by 2030, so the backlash has been there, but probably not as strong as it otherwise would have been. other than that, our other sources of fuel going to see the light of day it france relies heavily on nuclear energy will nuclear c, a resurgence in europe?

so i guess i have to answer that, that number one, i hope so, is my 1st answer. and number 2, it really depends on the sort of political commitment to an actual, concise and comprehensive energy strategy. not just in the u. s. not just in the you, but globally, to me, when you look at the makeup of nuclear energy, it's probably the perfect transition fuel. if you want to get off carbon and onto green as green technologies, fully green as green technologies get better and better and better. and that will happen, you know, technological advances happen very slowly, and then all at once we've seen that over the decades. so from our perspective that nuclear is probably the perfect solution because it's clean. some people perceive it as dangerous. it's been on the decline since the let's call it a disaster and ashima. but really, some of the technological masses in nuclear make it a lot more possible used to have somewhere in the range of

a 15 to 20 year lead time on nuclear power plants because of some of the smaller plants that are being built. now that shrunk from more to 7 to 10 years from that $15.00 to $20.00, but it's going to take government commitments to purchase that energy to purchase that nuclear power driven electricity. if companies don't get that commitment, they won't commit the capitals building these things. so unfortunately, getting to nuclear is a public, private achievement if it were to happen and the public has to get behind it and that needs a comprehensive energy policy which we haven't seen in many of the major economies in quite a long time. that's bob. i tino co founder, chief market strategist, a power train partner. thank you so much for joining us today. when we return, even though there is a push for renewable energy, the reality is green energy is not even close to being ready to power is a real world. fossil fuels are here to say,

we'll have more after the break. ah. oh, when i was wrong, when i just don't hold any world, yes, to shave out this day becomes the advocate and engagement equals the trail. when so many find themselves worlds apart, we choose to look for common ground. oh boy, is this the best of both? no issue my for the mobile, when you vision annual g d p per capita is about 4000 euros. the la garza, we've got drugs of well are you in a mold or mildew with a wash wash there?

personally, i was off of land or primary consti sealed from corpus rooney, chipotle munoz presently crucial for animal belong to come out. nature lead laws thought they're the sort of thought of unemployment is off the charts. moldova territorial integrity and sovereignty. are we respect of the country which enjoys financial support from the u. s. envy you is constantly robbed by political and corruption scandals. oh, but old didn't stop mo, google obtaining you candidate status in 2022. ah ah, in needs to come to the russian state. oh, never. i've stayed as anton and the northland scheme div, asking him the knocking holes. i'll send send up for

a week within the 55 when. okay, so mine is gonna be the one home with we will van in the european union, the kremlin. yup, machine. restate on crush up to date and sports or t sports net, given our video agency, roughly all band to on youtube with me. i welcome back. when we talk about the cost of energy, there is one critically important fact that to keep in mind, every nation relies on energy not just to expand,

but simply to exist while we measure gdp. today we look at things like the number of cars sold or the number of air trucks, people make, corporate world, new construction, etc. all of that still relies on energy, whether it's thermal renewable oil. so setting politics aside, fossil fuel is here to stay, at least in the intermediate future until renewable energy becomes more reliable and readily available. so let's dive deeper with dr. richard wolf, professor of economics, professor wolf, how do you think africa can transition to clean energy when they are already suffering from energy poverty, with many, still not even having access to a modern grid? well, you know, there are many examples in history where a society deemed economically less advance was able to catch up because it could jump over intermediate steps. i remember once

talking to a friend of mine in italy who explained that they never went through a modern really well developed postal system. they just don't jump from their under developed postal system, right up into email and one half and all the other electronic ways of communicating . and they are by caught up if you like. and even in the sense over took other parts of the world. and it's a kind of borrowing from one part of the world to another. but for africa is the issue. they have access to the sun. a lot of the solar energy for them can move them up in the realm of, of energy, accessibility, energy availability, and also cost because enormous advances in solar energy have been going on and continue to go on. so while i agree with you,

that fossil fuels are not something you can do away with overnight, and indeed are things that modern society provokes the need for. it is also true that other forms not fossil fuel based, are available, are becoming more accessible, more affordable. and i think africa will be in a position to take advantage of that. if they get the finances to make that possible. and now countries are all trying to rain in the rising cost of energy. the u. s. is once again trying to push legislation down the no peck act as an answer to opec. do you think this has any legs and what are the possible repercussions by the oil market? well, and my guess is it won't. and i, and the reason for that is because i believe a good point of the political logic around the war in the ukraine is

aid displaced form of oil politics um oil and gas politics if you want. and that the benefits that have accrued from the war for oil and gas companies. and the i recently took a look at the just the share price of x on mobile. you know, it's doubled in the last year a lot less than a year. ok. it's a wonderful time to be in the oil and gas business around the world. the lesson of that is lost on absolutely no one in that business. and given the tensions rising in the world, given the role of the growing bricks, part of the world that does rely on fossil fuels and is not about to make a shift that has their side effect, of making them in a poor position because they're not as far along in the transition to renewables, etc, etc. i think you're going to see

a continuation of relying on fossil fuels and a very hard row for any activity in any country that under cuts that i it will be offset by other developments because the forces that make that possible are still strong enough to do that and do you think that the interest and rex from a lot of the developing nations does not have anything to do with their interest in access to cheaper source as a fuel and is the 3rd world repelling against the green agenda? i think there's elements of that rebellion we've seen that for years of india and china have had a solidarity around those questions that is older even than the bricks. ment, i think the recent information we're getting that bricks is about to expand on the list of countries is remarkable. not just iran, as you might have expected, but saudi arabia,

but also countries like turkey and argentina. the growing interest in rigs means that's all of the energy politics that used to have to do with the advanced west. and china and india are now going to see a very important growth. if these countries that i just mentioned joined the brick that will be more than half the population of this planet and no amount of india logic goal propaganda is going to change the fact that the whole center of gravity around all of these questions is in the process of being changed and the irony, if i can return for a moment to it, is that the ukraine, which was supposed to be a war, i mean there are supposed to be some sort of holding on to something that existed

before is in fact, like other wars having the unintended consequence, at least in the last unintended of solidifying the growth and the emergence of what simply is another center of the world economy. professor richard, well, it's always a pleasure. thank you so much for your time. ah, when it comes to the cost of energy, there will always be winners and losers. and while we spend most of our time today discussing higher oil prices, let's not forget that the market is a 0 sum game and one person's loss is another person's game as much as we hate to admit it. so who wins when the cost of n is? hi. well, you has a global oil, a giant recording, some of their best profit figures in decades. and at the very top, saudi aramco, the world's largest oil company, reported more than an 80 percent growth in its profit in the march quarter. oil

majors like exxon chevron shell, petro china, have all reported year over year earning growth of 80 to 250 percent. and the other big winner here are shipping transports and container carriers. these guys, in the 3rd quarter of 2021 reported an average operating profit margin of over 56 percent up from just 3.7 just 2 years earlier. so the logistics industry is currently experiencing the highest constant peak increase cost and with the ongoing conflict with ukraine and rising oil prices, the price of bunker fuel is expected to search, possibly driving up freight rates again in the coming months. and the meanwhile, the biggest loser is unfortunately are the citizens of these countries, such as germany and belgium, who are now turning to wood as the heating source this winter as gas applies, remain tight. but unfortunately, the price of firewood has now risen from $40.00 euros and 2021 to around

a 150 year olds and thumb region. so why does that leave us? where will we be 3 to 4 months from now? i really don't see any resolution here, as i think the oil market will continue to remain tight. my prediction is that by this winter we will see the price of oil around $125.00 to $130.00 a barrel. and thank you for watching. i'm christy. i a see you next time for the cost of everything. ah ah ah a little with

center of chicago. lots of them will be with the so priest the semester. ashley with you? yes. do share. he's off. yeah. you national another a? no, but i live on doin, there's a new job. we'll look at least the the newest sheet on when you hit them. my review, my and i bought. yeah. which in that usually a score to us? no. with oh no. oh yes.

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a, a, a, with a personal number. you have that with a look forward to talking to you all. that technology should work for people. a robot must obey the orders given by human beings,

except where such order to conflict with the 1st law show your identification. we should be very careful about artificial intelligence. at the point obviously is too late truck rather than fear. and with artificial intelligence, real summoning with a robot most protected phone existence with a 1st time in history, an entire country's culture has been cancelled. the very modern weapon cancelled culture really desert. wonderful. i was just a little in wembley from here, just me sitting there with the phrase now particularly refers to counseling russian

culture. yet them know what to create a few oral school because it's convenient, my fuel, which will be all that is chill out of it. so that go with them most of the separate yolanda, the them we what rushes created over the past 1500 years. there's no question. ashley condemned, reviled and rejected. his sort of like a bill of bill. there's a lot closer on a whole bunch. thank you said a little small the list. joining total condemnation grows daily and now enclosed does de escalate to cascade shostakovich that i need to you a quick tour left. but yes, you see that with the time will you do obama lee? you're not going to do that a little bit more. ah,

ah, with a headlines or not he international, as one civilian is killed. another one wounded off the report. so if you craney, an army shelling of houses and apartment buildings, you can see right there causing heavy damage and they've gone yet to republic. also in this i was program african solving their own problems. and the mass then was caused by the global not with the ongoing un, a climate change conference addressing issues. for example, rising pollution levels. a western countries are coming under 5, using africa. look at those pictures right as a dumping ground gob.