The events of 9/11 made Americans more aware of the dangers of being too dependent on foreign oil. While domestic oil producers like Triple Diamond Energy Corp helps the US offset it’s need for foreign oil, much of our oil is still imported. However, other countries also face the same struggles with foreign oil. Fewer stories paint a clearer picture of this dependence that that of the catastrophe with Russia’s Druzbha Pipeline.

The Druzbha Pipeline

In many countries that make up the European Union including the Ukraine and Germany, the majority of petroleum needs are met by importing fuel from other countries.  While these countries do have access to a small amount of petroleum, they do not rely on producing this resource for their internal needs.  For nearly thirty percent of countries that make up the European Union, the transportation of fuel begins in Russia.  Half of the oil being imported is run through the Druzhba Pipeline that crosses through the country of Belarus.

In the early 1960’s the Druzbha Pipeline began pumping oil.  In those days the territory that the pipeline covered included part of the former Soviet Union.  When the Soviet Union dissolved in the 1990s, Russia and the Republic of Belarus formed an agreement that allowed Russia to continue using the line.  In return for allowing Russia to use the vital line, the Republic of Belarus received crude oil for free.  Since the Republic received the oil for free they were then able to refine the oil themselves and sell it around the globe making huge profits.

The Not So Friendly ‘Friendship’ Pipeline

Initially the Republic shared the profits earned with Russia. But as the Republic of Belarus grew stronger, the profit sharing rapidly ended.  When the Republic “forgot” its alliance, Russia had no choice but to raise the price of oil that was exported to Belarus.  While the word Druzba means “friendship” all friendly feelings were quickly being forgotten.  By January 2007 the pipeline was completely shutdown in an effort to prevent the Republic from illegally siphoning crude gas in order to get around the raised gas prices.

The siphoning was only a suspicion on the Russian’s part and they had little evidence to prove the claim.  But considering the situation, many not believe the idea was far fetched.  The Russians had begun to impose a $180.00 per ton duty tax on all oil sold to the Republic of Belarus.  In response, the Republic began charging Russia a $45.00 per ton transit fee for the continued use of the pipeline.  When Russia did not pay this fee it is believed that the Republic began siphoning the oil to cover the unpaid transit fees.

With the rapid halt of oil transportation the European Union found themselves at a serious disadvantage.  They were directly, and negatively, affected by the disagreement between Russia and the Republic of Belarus. The situation quickly became an international catastrophe.   In order to make up for oil shortages, the countries in the European Union were forced to use their own very limited supplies of oil. 

Fortunately for those in the United States, the dispute did little to interrupt oil shipments and reserves.  Domestic oil producers like Triple Diamond Energy Corp exist to make sure that the United States isn’t entirely dependent on foreign oil. To further reduce this dependence, Triple Diamond Energy Corp. believes that America must also find new fuel alternatives.