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A rig contracted by Apache Corp drills a horizontal well in a search for oil and natural gas in the Wolfcamp shale located in the Permian Basin in West Texas October 29, 2013.
A rig contracted by Apache Corp drills a horizontal well in a search for oil and natural gas in the Wolfcamp shale located in the Permian Basin in West Texas October 29, 2013.
(Terry Wade/Reuters)

Don’t count on U.S. oil to solve Ukraine crisis

Republicans are urging U.S. President Barack Obama to use oil as a weapon in the West’s diplomatic struggle with Russia over the future of Ukraine. By issuing permits to export American oil and gas, they argue, he could reduce Europe’s dependence and hit Russia in the pocket. It is by no means certain, however, that America has the infrastructure to make a difference – and it is not only Russia that would suffer from a falling oil price. The Arab oil exporters of the Gulf are similarly burdened and the major U.S. and European oil companies are geared to expensive production.