Global Majority nations are de-dollarizing trade with Panda Bonds and African banks
Inside China Business | December 13, 2024
Top African banks are key in the BRICS push to do more trade outside the US Dollar, and especially outside Western systems. By setting up branches inside China, African banks are able to borrow and lend in renminbi, the Chinese currency. This allows for cross-border trades to be settled in local currencies and RMB, instead of through USD-denominated letters of credit or debt markets. Panda Bonds are another tool, rapidly gaining in popularity and usage. Pandas are RMB bonds, sold to investors in Mainland China who want to diversify their fixed income investments to global borrowers. To borrowers, Panda Bonds offer lower interest costs than USD- or Euro-denominated debt, while also allowing for repatriation and currency swaps that are common in USD loans. Africa’s biggest banks, including those owned by African governments themselves, have set up in Mainland China and are increasingly integrated into China’s financial and industrial sectors. And large Chinese banks are heading the other way, investing heavily in Africa’s raw materials industries, and providing liquidity for Africa’s rising consumer class.
Resources and links:
Substack, for video transcript and direct links https://open.substack.com/pub/kdwalms…
South China Morning Post, African banks set up shop in China as Beijing pushes for yuan to eclipse US dollar https://www.scmp.com/news/china/diplo…
Statista, China’s African Trade Takeover https://www.statista.com/chart/26668/…
Africa’s Top 100 Banks 2024: Going global https://african.business/2024/09/fina…
S&P Global, Three Minutes In Panda Bonds: Why Issuance Is Surging https://www.spglobal.com/ratings/en/r…
Trump is a nightmare for the EU in more ways than one
With its submissiveness to the US and contempt for its president-elect, the bloc’s set itself up for a perfect storm of punishment
By Tarik Cyril Amar | RT | December 14, 2024
For a man his age, incoming US president Donald Trump has a knack for cultivating a bad-boy image. Refreshingly direct to the point of rude honesty, or dishonesty, as the case may be, he has no time for polite circumlocution. His threats are harsh, his demands unvarnished, including toward Washington’s so-called allies in Europe, which really are, at best, clients, and, more realistically, just vassals. In that spirit of candid, no-frills domination, Trump already has a long record of threatening NATO, which he sees – plausibly – as a scam in which European members fleece the US to free-ride on its insane (but that’s a different story…) military spending.
Or, in the genteel English still cultivated at The Economist, “through NATO, America is the guarantor of the continent’s security.” Yeah, right, by firing missiles at Russia… The problem with Trump is that he is uncouth enough to know the real relationship is much more like Don Corleone “protecting” your funeral parlor. And he behaves accordingly: Even during his first term in the White House between 2017 and 2021, he started scaring other NATO members into higher military spending, while never allowing them to feel safe about his commitment. Art of the tough deal: Keep ‘em guessing, keep ‘em on their toes. And it worked, too: the European spongers began to pay more. So, there will be more of that, rest assured. If, that is, there will be a NATO to speak of.
Even less noticed is the fact that the new old US president – and thus capo dei capi of the West – is not much kindlier disposed toward the EU. And yet there it is: Trump’s frank, open, and long-standing dislike for that strange bureaucratic behemoth that is about as democratic as the former Soviet Union, less efficient than the Habsburg Empire, and so full of its global “norm-setting” mission that even American “indispensability” looks oddly old-fashioned by comparison.
As early as the beginning of 2017, when the great American bruiser gate-crashed the White House for the first time, The Economist warned its European readers to “be afraid” of Trump, a man harboring “indifference” and “contempt” for the EU. Really? How unheard of! The raunchy-tycoon-turned-peremptory-president, the British establishment Pravda of neoliberalism and Russophobia explained, would seek to shatter the EU by playing “bilateralism.” That, of course, is Euro-babble for respecting individual countries’ governments by taking their sovereignty more seriously than power-grabbing delusions of grandeur in Brussels. And – oh, horror! – he might even try to talk Russia. (Spoiler: back then he did not – big mistake.)
That, however, was 2017. Now, things have moved on. Even before Trump won his second presidential election by crushing his Democratic opponents, The Economist admitted that “’Trump-proving’ Europe” is a notion doomed to fail, which means EU leaders may well become “geopolitical roadkill.” How so, you may wonder?
Well, first of all there is Russia. Regarding Moscow, Trump seems ready to talk, and in a substantial manner we have not seen since the end of the Cold War: He has publicly signaled that he does not believe in trying to coerce Moscow by further escalation; his freshly appointed advisers Mike Waltz and Keith Kellogg, though known for ambiguous signals in the past, will fall into line, as they should as public servants. And if not, they’ll be fired, Trump-style, fast and without remorse.
To say the least, Trump no longer feels as restrained by Washington’s deep-state, deep-freeze Cold War re-enactors as during his first term. Sure, it’s the US: there is always the possibility someone might try to murder him, again. But if he stays among the living, which is likely, then it’s payback time: Talking to Russia now is one delicious way in which he will dish out well-deserved retribution for both the media-lawfare circus of Russia Rage (aka ‘Russiagate’) in which his opponents weaponized slander and disinformation against him. And, more importantly, Russia has been winning the war in Ukraine, not only against Kiev but also, in effect, against the West. In sum, Trump has less reason to be afraid of his own backstabbers at home, and Washington has more reason to be much more careful about Russia.
Moscow, meanwhile, has made it clear repeatedly that any new agreements would have to be mutually beneficial. The time of Gorbachevian naivete will never return. Yet, at the same time, Russia does seem open to – serious – talks: The Russian leadership does not merely carefully watch Trump, as you would expect. It also sends back calibrated pings that signal cautious appreciation of his overtures, as recently over his criticism of firing Western missiles at Russia.
Hence, nightmare number one for the EU: Trump is serious about ending US support for the failed project of inflicting a geopolitical demotion on Russia via a proxy war in Ukraine. That will leave not only the regime of Ukraine’s past-use-by-date leader Vladimir Zelensky high and dry but remaining fanatics in the EU as well. In the best-case scenario, the US will leave the European vassals with the cost of the postwar, whatever shape that may take. Trump has already said as much. In the worst-case scenario, EU elites could try going it alone. That is, worst-case for them, in every (un)imaginable way: economically, politically, and yes, militarily, too.
And behind Trump’s willingness to make good on his election promise to end the American cluster-fiasco in and over Ukraine, lurks the possibility of a much larger turn toward – wait for it! – diplomacy in the US-Russia relationship. Perhaps it is early days to mention that other long-forgotten D-word – and it would also take two to tango, of course – but a phase of détente cannot be excluded. If it were to take place, America’s European vassals would come to regret burning their bridges with Moscow to please Washington.
Then, nightmare number two, there is the economy. The US-EU relationship is the single largest trade connection in the world, worth about $11 trillion per year. That, you may think, constitutes a lot of common interest and thus reasons for treating each other if not gently then, at least, cautiously. Nope, that’s not how this works, because the relationship is lopsided, and Trump is furious about it. For him, the EU’s trade surplus with the US is yet another way in which shifty Europeans have been milking America. His weapon of choice to retaliate and rectify the situation are, of course, tariffs, the higher the better. Even before his re-election, Goldman Sachs warned that his rule could cost the EU as a whole a full percent of GDP. And yes, that’s a lot, especially for a continent already largely economically depressed, demographically declining, and with badly squeezed public finances.
What can EU leaders, those sadly submissive vassals about to be abused even worse than usual by their hegemon, do now? Frankly, not much. It’s already too late: They have made themselves dependent as never before on whoever happens to win the strange event Americans call “elections” and gets to mess with the world from the White House. And that is not at all Trump’s fault, by the way. (No, and not “the Russians!” either…).
Take, for instance, the EU’s wannabe despot Ursula von der Leyen. Building her own power grab – like Stalin, as it happens – on a mix of executive apparat overreach, crony networking, and ideological bigotry, she has made one serious mistake that may cost her dearly: She has cozied up so shamelessly to the outgoing Biden administration that, serious rumor has it, Trump cannot stand her. So, alternatives are in demand: Maybe he likes Italy’s Giorgia Meloni better? Or originally the Netherlands, now NATO’s Mark Rutte, who is constantly praised for his alleged “Trump-handling” skills?
But here is the problem with that, frankly, silly approach: Trump is not an idiot. Attempts to “handle” him are insultingly obvious and, if he tolerates them temporarily, then it’s only to handle his would-be handlers back. And then the irony is, of course, that the only EU leaders Trump respects, such as Viktor Orban of Hungary, are outcasts among their own: Good luck recruiting them now to make up for how much he disrespects all the others. Maybe they’ll even help, a little, Ursula, Olaf, and Emmanuel. But it’ll cost you, because they will – rightly – set their own conditions and gain great leverage.
What about Danegeld perhaps? Danegeld, you must know, was what the hapless inhabitants of the British Isles paid the seaborne Viking marauders in the Dark Ages. The system was simple: pay up or be plundered and slaughtered. You think that sounds a little primitive for today’s sophisticated Europeans? Never underestimate how low they will stoop. Ursula von der Leyen has already suggested that one way to mollify Trump might be to just buy even more perversely expensive LNG from the US. Christine Lagarde, head of the European Central Bank, has gone even further, pleading for a whole ‘Buy American’ program, including – surprise, surprise! – arms to assuage Trump’s ire.
Desperate? You bet. Humiliating? Obviously. Yet what’s worse, it’s not going to work. Here’s why: Even if Trump condescends to accepting such tributes from his European subjects, he will never lose sight of the one thing that really interests him (apart from his own money, power, and fame): American advantage. Whatever the Europeans will offer and however low they will kowtow, in the end, any deal will be good only for one side, the US. That’s ironic, because Russia, for one, and possibly China as well can expect the minimum of respect that makes mutual benefit at least possible. That’s because they have stood up to American bullying. For the Europeans, though, it’s a Catch 22 now. One way or the other, they will pay even more dearly than before for their historic failure after the Cold War: When they should obviously have emancipated themselves from the US, they sold out worse than ever. And without need. To paraphrase a past master of politics: It’s worse than a crime, it’s self-abuse.
Tarik Cyril Amar is a historian from Germany working at Koç University, Istanbul, on Russia, Ukraine, and Eastern Europe, the history of World War II, the cultural Cold War, and the politics of memory.
Can Europe be saved?
Professor Glenn Diesen interviewed by Dimitri Lascaris
Glenn Diesen | December 11, 2024
I was interviewed by Dimitri Lascaris about the future of Europe. I argue that Europe’s decline derives from its inability to adjust to a multipolar international system. Europe can become one of several centres of power by pursuing collective bargaining power based on common interests, diversifying economic partnerships to avoid excessive dependence on the US, and overcoming the Cold War legacy of zero-sum bloc politics.
The Europeans have done the exact opposite. The European security architecture has been built on the premise that expanding a military alliance ever closer to Russian borders would create peace and stability. Relations with Russia have subsequently collapsed and Europe is losing a costly proxy war against the world’s largest nuclear power. Countries in the shared neighbourhood (Ukraine, Georgia and Moldova) are destabilised and their democracy undermined to ensure pro-West/anti-Russia governments take power. These deeply divided societies have become the battleground for drawing new dividing lines in the new Cold War.
European economies are deindustrialising as they cut themselves off from the Russian market, and are also pressured by the US to decouple from the Chinese market. The US Inflation Reduction Act offers subsidies to what remains of struggling European industries if they relocate to the US. Excessive reliance on the US means that Europe cannot even criticise the US for destroying its energy infrastructure after the attack on Nord Stream. After centuries of a Europe-centric international system, the Europeans have not realised that they have been demoted from a subject to an object of security.
Governments that do not represent national interests will eventually be swept away, yet the political elites become increasingly authoritarian to keep their power. In France and Germany, their political opposition is pushed aside with undemocratic means. Hungary and Slovakia are punished by the EU for failing to fall in line. The election results in Romania were overturned after the electorate did not vote for the right candidate.
The continent desperately needs course correction, yet power structure and ideology prevent necessary changes from being implemented. More aggressive means to control the narrative also result in declining freedom of speech.
EU has failed to cut energy ties with Russia – commissioner
RT | December 12, 2024
The EU has failed to overcome its dependence on Russian energy, and needs a new plan to wean itself off Moscow’s supplies, the bloc’s new energy chief told Politico on Thursday.
In his first interview since taking the post, Dan Jorgensen highlighted the growth in Russian liquefied natural gas (LNG) purchases.
The share of Russian LNG on the EU market reached 20% this year, according to the Agency for the Cooperation of Energy Regulators, despite Brussels’ pledge to stop consuming Russian fuel by 2027.
“It’s obvious to everybody that something new needs to happen because… now it’s beginning to go in the wrong direction,” the EU Energy commissioner said, while pledging to present “a tangible roadmap that will include efficient tools and means for us to solve the remaining part of the problem.”
The new measures will target “gas primarily, but also oil and nuclear” and will be formulated by mid-March, Jorgensen said, noting that five EU countries still rely on Russia for nuclear fuel.
The EU declared its intention to end its dependence on Russian energy supplies following the escalation of the Ukraine conflict in 2022. Supplies of higher-cost US fuel have replaced much of the cheap pipeline gas that was previously delivered by Russia.
However, efforts have stalled in recent months, and the EU continues to buy billions of euros’ worth of Russian gas each month. In 2024, the bloc is expected to import 10% more LNG from Russia than in 2023, according to energy analytics firm Kpler.
Politico noted, however, that any plan to sever energy ties with Russia in the next few years would be strongly opposed by EU members that are still heavily reliant the imports, particularly Hungary and Slovakia, whose leaders Viktor Orban and Robert Fico have resisted energy sanctions on Russia.
Jorgensen’s proposal is also likely to come just weeks after a long-term contract for Russian gas transit via Ukraine is set to expire, on December 31. The EU still receives around 5% of its gas from Russia via Ukraine’s gas transit network, according to the latest data.
Last month, Bloomberg warned of an imminent energy crisis in Western and Central Europe due to the latest US sanctions against Russia’s Gazprombank, the primary bank for energy-related transactions. The outlet said that rapidly depleting gas reserves and potential supply cuts from Russia threaten to exacerbate an already difficult situation.
Merkel Testing Public Opinion With Recent Praise of Russian Gas, German Politician Suggests
Sputnik – 12.12.2024
The head of the German Council for Constitution and Sovereignty, Ralph Niemeyer commented on national politics in the light of governmental crisis.
Former German Chancellor Angela Merkel’s recent remarks about the benefits of past gas supplies from Russia could have been an attempt to test public opinion on the possibility of resuming such supplies under a future government involving the Christian Democratic Union (CDU), the head of the German Council for Constitution and Sovereignty, Ralph Niemeyer, told Sputnik.
Merkel said on Tuesday that she did not consider the years-long gas imports from Russia to Germany a mistake, noting that the arrangement was mutually beneficial.
“It is possible [that the statement was a test of public opinion]. A good quality of Friedrich Merz [CDU leader and chancellor candidate] is pragmatism. If he sees no other way forward, he quickly changes his approach,” Niemeyer said.
Merz could pragmatically disregard earlier promises to Volodymyr Zelensky and work to rebuild relations with Russia, he added.
The German government collapsed in early November after Chancellor Scholz fired Finance Minister Christian Lindner, the Free Democratic Party (FDP) leader, citing his unwillingness to greenlight new proposals for the 2025 budget and more aid for Ukraine.
As a result of the government split, February 23 has been set as the potential date for a snap general election. Scholz will submit a written request for a vote of confidence to parliament on December 11, with a vote to be scheduled for December 16.
If Scholz survives the vote of confidence, he will enter coalition talks with rival parties in a bid to prop up his minority government, which consists of the Social Democrats and the Greens. This scenario is considered unlikely due to a near-universal agreement in parliament on the need to hold an early election.
Seizure of Frozen Russian Assets: Is EU Setting a Legal Trap for Euroclear?
By Ekaterina Blinova – Sputnik – 11.12.2024
Valerie Urbain, CEO of Euroclear which holds $200 billion in frozen Russian Central Bank assets, told Bloomberg that if the European Union (EU) decides to confiscate the money, the financial services company should be exempt from any liabilities.
What are Euroclear’s concerns?
Urbain suggests Russia’s frozen money may be seized if incoming US President Donald Trump cuts off aid to Ukraine.
Confiscating the Russian assets poses severe risks to the euro currency and the broader stability of Europe’s finances, she warns.
Euroclear could also face legal challenges from Moscow to any moves to confiscate its foreign-held funds, a senior EU official told Reuters in March. Moscow could seize the €33 billion ($34.6 billion) of Euroclear money held in Russia and take legal action to sequester Euroclear assets in Hong Kong and Dubai, the official cautioned.
Sputnik pundit and French economist Jacques Sapir warned in October 2023 that the confiscation of Russia’s frozen assets would be theft – leading to legal action.
Urbain’s predecessor Lieve Mostrey warned the EU in February against seizing the frozen Russian money, adding that “the risk is a bit lower” if the EU appropriates the interest owed on the frozen sovereign assets.
But in October the European Commission moved to consider allowing Euroclear to take the frozen Russian assets, despite the risks. Euroclear complains that it faces “a significant number of legal proceedings ongoing, almost exclusively in Russian courts”.
Slovak MP Slams EU Leadership’s ‘Idiotic’ Russian Gas Sanctions
Sputnik – December 11, 2024
Reducing energy dependence on Russia became one of the European Union’s top priorities after the West unleashed its sanctions campaign against Moscow in 2022. The move has backfired on the continent, leaving Europe facing a crippling energy crisis, while Russia retained its position as the world’s largest gas exporter in 2023.
If the EU wants to drive its economy off a cliff, its self-destructive goal of halting Russian gas flows will get that result, Andrej Danko, deputy speaker of the National Council of the Slovak Republic, told Sputnik.
Ending imports of Russian gas will be a huge problem, he warned, adding that “whoever claims that this is not true is a fool.”
“Therefore, we need to talk about this problem, and a solution is needed,” Danko underscored.
The Slovak politician is set to visit Moscow in January to discuss prospects for Russian gas supplies in 2025.
He weighed in on EU Commission President Ursula von der Leyen’s crusade of totally banning both Russian piped gas and LNG, specifically, recent remarks about wanting to discuss with US President-elect Donald Trump an increase in purchases of liquefied natural gas (LNG) from the United States to replace Russian supplies.
The Slovak lawmaker admitted he was puzzled by her proposal.
“How much would US gas imports cost? What was the purpose then of Nord Stream 1, Nord Stream 2? What do they want to achieve? This will be a problem for Germany, where Ursula is from originally… If she wants to live in America later, then I get it. But if Ursula is going to live in the European Union, it’s impossible to understand her… It’s inconceivable for a person of her rank to say something like that,” Danko said.
Gas prices exceeded $500 per thousand cubic meters in Europe in November, with European gas futures reaching around €46 ($48.6) per MWh as Russia suspended fuel deliveries to Austria’s OMV. Furthermore, Ukraine is about to stop the transit of Russia’s gas through its territory by the end of the year, which could affect several European nations, including Austria and Slovakia.
Unless the EU changes its self-harming policy course, it won’t exist in 10 years’ time, Danko speculated. EU sanctions on Russian energy have generated a terrible situation, according to him, and people like Ursula von der Leyen are only driving the bloc’s economy into the ground.
He also voiced hope for dialogue between Moscow and Washington under incoming President Donald Trump. As for Ukraine’s Volodymyr Zelensky, he “does nothing for his people, he only creates problems,” Danko noted, likening the expired Kiev regime leader to a chattering “con artist.”
The EU’s energy problems are also linked to the Green Deal, Danko said, which “some jokers had come up with,” and foolhardy talk about scrapping nuclear energy.
He claimed the biggest problems were created by shutting down nuclear power plants under Germany’s then-Chancellor Angela Merkel.
Codified in a 2002 law, the nuclear phase-out in Germany was finalized after the 2011 Fukushima disaster in Japan. The country’s last trio of operating nuclear power plants, Emsland, Neckarwestheim 2, and Isar 2, were finally shuttered on April 15, 2023.
Berlin’s move to join the West’s energy sanctions against Russia and give up Moscow’s reliable and abundant energy supplies, along with the Nord Stream pipeline sabotage and the “green agenda” aimed at replacing fossil fuels and phasing out nuclear energy, have all contributed to Germany’s dismal economic data and looming deindustrialization.
Assessing the litany of mistakes made by the European Union, Danko speculated that if the continent hopes to achieve progress in energy and the economy, a fresh influx of “parties of the people” is needed to breathe new life into the EU.
US mulls ‘aggressive’ sanctions on Russian oil – Bloomberg
RT | December 11, 2024
US President Joe Biden’s administration is preparing harsher sanctions against Russian oil just weeks before Donald Trump returns to the White House, Bloomberg has reported.
The details of the new restrictions are yet to be finalized, but Washington is looking to target some Russian oil exports, the outlet said on Wednesday, citing people familiar with the matter.
While the US has already banned imports of Russian oil, Biden had long been reluctant to take a more aggressive action against the country’s crude due to fear of energy costs skyrocketing, especially during the run-up to the presidential election, the report said. However, with oil prices falling amid an expected surplus next year and uncertainty about Donald Trump’s commitment to further support for Kiev, the White House could resort to harsher measures, the outlet noted.
The call for new sanctions underscores the departing administration’s willingness to confront Russia before the end of Biden’s term, especially since despite attempts to cripple the Russian economy, Moscow’s GDP is projected to rise by 3.5% this year.
One of the methods that the US could reportedly use to sanction Russian oil exports is to target potential buyers. In this model, purchasers would face punishment by the US. However, such a move would carry significant risks, as major powers such as India and China are Russia’s top customers, the outlet warned, and such limits could also trigger a spike in global oil prices.
The sanctions will also be aimed at Russia’s oil tanker fleet, often described in the West as a ‘Shadow Fleet’, and could be unveiled in the coming weeks, the source told the outlet.
Western governments have introduced a price cap, along with an embargo on Russian seaborne oil, in an attempt to hurt the country’s economy, while at the same time keeping Russian crude flowing to global markets so as not to trigger price hikes.
The Ukraine conflict-related measures were imposed in December 2022, and were followed in February 2023 by similar restrictions on exports of Russian petroleum products. They ban Western companies from providing insurance and other services for shipments of Russian crude, unless the cargo is purchased at or below $60 per barrel.
In response, Moscow banned Russian enterprises from complying with the cap and rerouted most of its energy exports to Asia, particularly India and China.
Wind and Solar Are Fragile
By Steve Goreham | Master Resource | December 2, 2024
Wind and solar have been growing as a share of US electrical power generation over the last two decades. State and federal mandates and subsidies have driven the expansion of renewables because of their inherently dilute and intermittent nature. But it’s clear that renewable electricity sources have a third strike: they are fragile and prone to weather damage and destruction.

Twenty-three states now mandate Net Zero electricity by as early as 2035. Their aim is to replace coal- and gas-fired power plants with wind and solar generators. Wind and solar have grown from near zero in 2000 to 14.1% of US electricity generation in 2023 (10.2% wind and 3.9% solar).
Weather Risk
Wind and solar systems are located on ridge lines, on plains, and offshore, and are exposed to weather forces that usually don’t affect building-housed coal and gas generators. In addition, these systems require about 100 times the land area of traditional generators to deliver the same average electricity output, increasing the chances of storm damage. Damage incidents are rising as more and more systems are deployed.
In May 2019, a massive hailstorm in West Texas destroyed 400,000 solar modules of the Midway Solar Project, about 60% of the facility. The project was only one year old. The system was rebuilt, costing insurers more than $70 million.
On June 23, 2023, the Scottsbluff solar system was destroyed in western Nebraska. Baseball-sized hail falling at up to 150 miles per hour smashed most of the 14,000-panel system. The system had only been operating for four years of its 25-year lifetime and had to be completely rebuilt.
Solar loss insurance claims from hail damage now average about $58 million per claim. Hail damage claims have increased to account for about 54% of solar insurance loss claims. Analysis by Iowa State University shows that severe hail (greater than one inch in diameter) can occur for 20 to 30 days per year in Great Plains states, a wide area of the country stretching from North Dakota to Texas and Colorado to Indiana.
“Fighting Jays Solar” became operational in July of 2023, 40 miles northwest of Houston, Texas. Less than one year later, on March 15 of this year, hail destroyed much of the system, with repair costs estimated to be hundreds of millions of dollars. The system had not yet completed full construction.
Hail is not the only weather hazard facing solar installations. This fall, a tornado associated with Hurricane Milton destroyed much of the Lake Placid Solar Plant in Sylvian Shores, Florida. The facility had only been operating for about five years.
Insurance and Liability Ahead
As a result of hail and other weather damage, insurance premiums for solar facilities are skyrocketing, in some cases up by as much as 400%. In addition, policy coverage is being capped at as little as $10-15 million, requiring system developers to obtain multiple policies to try to cover their projects.
The federal government has been promoting the installation of wind systems off the US East Coast. Maryland, Massachusetts, New Jersey, New York, North Carolina, South Carolina, Rhode Island, and Virginia are constructing or planning offshore wind systems. But offshore wind must operate in one of the world’s harshest environments, buffeted by wind, waves, lightning, and salt spray that is very corrosive to man-made structures.
To date, most offshore wind systems have been deployed in China, Europe, and Vietnam. These systems are prone to weather damage. Turbines deployed in Asia coastal areas suffer typhoon wreckage. Eighty percent of the turbines installed in Europe’s North Sea have required repairs due to weather damage.
The London Array, east of England, the world’s largest offshore wind system, required extensive repairs after only five years of operation. Danish wind operator Ørsted needed to repair undersea cables to offshore wind systems in the North Sea at a cost that exceeded $100 million.
But turbines sited off the US East Coast must survive brutal weather, more severe than offshore turbines in Europe. Tropical storms, hurricanes, and nor’easters periodically traverse the coastal sites planned for new offshore wind systems.
For example, historical data from the National Oceanic and Atmospheric Administration shows that 26 hurricanes and 51 tropical storms passed through New Jersey coastal waters during the last 170 years, or almost five storms each decade. Wind installations will be vulnerable to these weather systems.

In 2018, Hurricane Maria passed over Puerto Rico, ripping blades from many turbine towers. East Coast wind systems will likely suffer the same fate.

Wind systems are designed to try to protect wind towers and blades in high winds. When winds exceed 55 MPH, a braking system brings the rotor to a standstill to try to avoid turbine damage. Tower blades are also “feathered” or oriented so that they no longer catch the wind.
But near the eye of a hurricane or tropical storm, violent winds can change direction instantaneously and powerfully, too fast for damage-prevention systems to react. The result will be destroyed blades and damaged towers.
Conclusion
In July, a 351-foot-long offshore wind blade splintered and washed up on the beaches in Nantucket, Massachusetts. Beaches were closed and clean-up crews collected six truckloads of fiberglass and plastic debris from the single destroyed blade. Wind operations were temporarily shut down.
Residents, beachgoers, fishermen, and local businesses posted signs, complained to the press, and spoke out at board hearings. But this was just one turbine blade. Image the outcry when a whole offshore system is destroyed by a hurricane, producing mountains of beach debris at Myrtle Beach, Virginia Beach, Atlantic City, or Long Island?
Media headlines claim that weather is becoming more extreme because of human-caused climate change. But to solve the problem, it’s proposed that we install more and more wind and solar systems, which are fragile and vulnerable to violent weather. Incidents of weather destruction of wind and solar installations will continue to rise.
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Steve Goreham is a speaker on energy, the environment, and public policy. His books include the bestselling Green Breakdown: The Coming Renewable Energy Failure.
Russian gas was ‘win-win’ – Merkel
RT | December 10, 2024
Buying natural gas from Russia was a good deal, former German Chancellor Angela Merkel has said, rejecting suggestions that it may have been a strategic mistake.
Merkel, who served as chancellor from 2005 to 2021, was in Paris this week to promote her memoir. She gave an exclusive interview to state TV channel France 2, in which she was asked about Germany’s energy relationship with Russia.
“The gas trade with Russia has a deep-rooted tradition. It began during the Cold War and continued throughout my time in office. I do not think it was a mistake, because we obtained Russian gas at a favorable price,” Merkel said in the interview, which aired on Monday evening.
“It was a win-win situation,” the former chancellor added.
Following the escalation of the Russia-Ukraine conflict, Germany had to source gas elsewhere because “prices exploded,” Merkel said, noting that this would have happened much earlier had Berlin stopped doing business with Moscow during her term.
“I believe it is reasonable to procure the most affordable gas,” she told France 2.
Earlier on her press tour, Merkel also defended the decision to build Nord Stream 2, noting that she had “no support from the business community to stop the gas trade with Russia” at the time. The project was launched in 2015 and the first pipes were laid in 2018.
While the government of Merkel’s successor, Olaf Scholz, has accused Moscow of “shutting off” gas to Germany, his coalition partner Robert Habeck had moved to end the energy trade long before the Ukraine conflict and EU sanctions on Russia provided the pretext. The Green Party leader presented giving up gas for “renewables” as an environmentally responsible policy choice.
Berlin thus refused to certify the newly finished Nord Stream 2 pipeline in January 2022. Nord Stream 1 was destroyed by a series of underwater explosions in September 2022. Investigations by Germany, Sweden, and Denmark have not pointed to a culprit yet, though German media reports have blamed a “rogue” group of Ukrainians.
One of the lines of Nord Stream 2 survived the bombing unharmed and could still deliver gas to Germany should Berlin change its policy and certify the pipeline.
The loss of Russian gas and reliance on the far more expensive US alternative has since pushed energy prices in Germany beyond what a lot of industrial enterprises could afford, triggering a wave of shutdowns and bankruptcies.
In a December 2022 interview, Merkel revealed that Germany and France considered the Minsk Agreements – a framework to peacefully resolve the dispute between Kiev and the two Donbass republics – as a play for time until the West could arm Ukraine for a confrontation with Russia. Former French President Francois Hollande has confirmed her claim.
Iran’s gas is the answer to world’s energy woes
Press TV – December 8, 2024
With the role of natural gas in future power generation being under debate by world countries amid a race to dramatically reduce carbon emissions, Iran is hosting a ministerial meeting of the Gas Exporting Countries Forum (GECF).
Organizers say the meeting is an opportunity to exchange views among the member and observer countries as well as experts and specialists in the gas industry about the mechanism of consensus-building and strengthening communication and coordination on supply policies and related affairs.
While the future role of gas in the energy mix is the source of much contention among countries, the global gas consumption grew unprecedentedly in 2023, GECF Secretary General Mohamed Hamel told the forum’s opening in Tehran on Sunday.
He touched on the resilience of gas to regional conflicts and geopolitical strains which have exposed significant fragilties in the post-pandemic global energy system. Since the formation of the GECF in Tehran in 2001, global demand for natural gas has grown 70 percent, Hamel said.
The race to rapidly decarbonize and digitize the global economy under the net zero energy initiative has been subsumed by geopolitics that remains anchored in realist power struggles. The Ukraine war has undermined interdependence and prompted unprecedented levels of economic statecraft.
The need to rapidly move away from fossil fuels and fossil raw materials has exposed countries to a myriad of compliance risks with dire financial repercussions, leading to deepening instability, injustice and energy poverty.
Even the most optimistic clean energy projections indicate that by 2050, at least half of the world’s energy needs will still come from oil and gas resources. Hence, the rush to eliminate fossil fuels from the global energy system is unrealistic, threatening the world’s energy security.
According to the Energy Studies Institute of the International Energy Agency, gas will continue to play a significant role as a clean and cost-effective fuel in the global energy mix, accounting for 28 percent of the total by 2050. Forecasts indicate that by 2050, natural gas production and consumption will increase to more than 5.9 trillion cubic meters per year.
Asia-Pacific has emerged as the world’s largest net importer of natural gas. In 2023, China was the largest consumer of natural gas in the region, with around 405 billion cubic meters. Japan was the second-largest, with a consumption of around 92.4 billion cubic meters. The region’s gas consumption is forecast to hit 1.6 trillion cubic meters by 2050.
Also, predictions show that the largest share of the increase in natural gas production in the world will be from Russia, Iran, Qatar, and Turkmenistan.
Hence, the role of the Gas Exporting Countries Forum as a leading platform for dialogue and cooperation in order to provide a level of stability beneficial to both exporters and consumers and supporting the gas industry which requires significant effort and financing is of particular importance.
Iran, as the second largest holder of gas reserves in the world, has an important role to play in the gas diplomacy and guarantee its national interests and the interests of the other members.
The GECF countries hold 70% of the world’s proven gas reserves and produce some 40% of the world’s gas.
Despite years of sanctions, Iran has made significant progress in expanding its gas sector. The country now produces 275 billion cubic meters of natural gas annually, and gas accounts for more than 70 percent of its energy consumption.
Iran’s overall proven natural gas reserves excluding shale gas deposits and huge hydrocarbon reserves in the Sea of Oman and possibly the Persian Gulf and Caspian Sea are put at 34 trillion cubic meters, or about 17.8% of world’s total.
Assuming that the current unbridled consumption of about 250 billion cubic meters per year continues and with the pessimistic assumption that no new gas fields are discovered in the coming years, the existing supplies are enough to meet Iran’s needs for the next 130 years.
With investment and production from unconventional shale reserves which the country has already discovered, Iran’s gas supply capacity can rise more than twofold in the coming decade.
Exploratory research in the Sea of Oman has indicated the existence of gas hydrate reserves in Iranian waters in larger quantities than the huge South Pars field.
Further development of more than 20 fields currently producing gas can add another 500 million cubic meters a day to the country’s gas production capacity.
This huge capacity can be tapped to supply gas to the world markets through building new pipeline networks to neighboring countries and sending LNG to the rest of the world.
Germany Deindustrialising & Subordinated
Sevim Dağdelen, Alexander Mercouris & Glenn Diesen
Glenn Diesen | Dec 2, 2024
I had the pleasure to speak with Sevim Dağdelen (member of parliament) and Alexander Mercouris about the changes within Germany and its role in the world. Germany has been the economic powerhouse pulling the EU forward and it represented a peaceful way to do politics. Yet, Germany changed fundamentally within a relatively short period of time as the German economic locomotive has gone off the rails. Germany is de-industrialising, it has subordinated itself to the US, and there is an absence of political leadership. It fuels the proxy war in Ukraine and supports genocide in Palestine. German is pursuing self-harm as it keeps buying Russian oil from India at a much higher cost, buying expensive American LNG after the Americans destroyed their energy infrastructure, and Germany gave Joe Biden a medal even as the US Inflation Reduction Act relocates German industries to the US. Sevim Dağdelen explains how Germany ended up pursuing these seemingly irrational policies, and she outlines alternatives to turn things around.
Watch at Odysee
