Russia’s invasion of Ukraine didn’t create the world’s energy problems. It made them much worse. Crude prices jumped past $105 a barrel within days of the attack. Even Russian energy exports that avoid formal sanctions will shrink, since companies tend to overcomply rather than risk US retribution or reputational damage.
The market was already tight before the war. US oil production hadn’t recovered from the pandemic, spare capacity was thin, and years of underinvestment left little room to absorb a shock. Europe made things worse on its own by ending long-term gas contracts and cutting storage requirements, handing Russia more pricing power in the process.
The fixes aren’t complicated. Ramp up US and Canadian production, build new pipelines, restore long-term contracts, mandate higher storage, and stop ruling out nuclear power.
