Founder at Creative Capital | LinkedIn Top Voice - Finance I +230,000 Followers
Breaking: The U.S and EU have announced a MAJOR supply deal to cut dependence on Russian gas. The US will provide the EU with at least 15bn additional cubic metres of the liquified natural gas (LNG) - by the end of 2022. Russian currently supplies 40% of Europe’s natural gas, this deal will help neutralise that. The conflict is undoubtedly pushing Europe and the U.S closer together and Russia towards the East - the unforeseen consequences of this should be observed closely over the coming years. Coming in clutch. #europe #gas #naturalgas #finance #energy
There is not enough LNG, vessels & infrastructure. Its cost is many times higher and supplies will not be that smooth - disruptions will be on much higher levels that from pipelines from Russia In Europe people tend to go to streets for causing them discomfort even on much, much less scale. Expect unrests in EU in near future for much higher costs of leaving, energy supply disruptions & businesses failing... the only question is why EU leaders are so myopic & suicidal?
Given that the EU consumes 550bcm a year, a deal of 15bcm won’t help all that much.
Total joke. Neither liberal political camps will admit that a major cause of our problems are their own misguided, hyper accelerated “clean energy” pushes the last 5 years at the expense of reliable, economic, and abundant older fossil fuels. We don’t even ship fossil fuels domestically by boat becuase of the 100 year old archaic Jones act so natural gas costs 2-3x in the northeast versus the southwest? But hey let’s ship more of our own resources overseas to countries who made horrible economic decisions ( i get it, they are allies) but it sure seems liberal American politicians do little more than follow misguided European liberal socialist policies with a lag. Look in the mirror. There is a reason Europe is low and no growth. That path has proven misguided in every country of size throughout history.
one cannot just replace Russia. Or China, or the USA. and, by the way. there is a major bias in such way of thinking (that is presented by President Biden). The point is that Russian oil supply to the US is only 3%. But the value of such oil imports should NOT be considered by the cost of SUPPLY. Rather it should be considered in the cost of securing the SUBSTITUTE. How much will it cost the USA to subsititue Russian oil? How much will it cost the EU to substitute Russian gas (even if the LNG from the US will cost the same - which is not true). To switch from the pipe gas to the LNG - would cost a fortune. Who will pay? The European consumer...
Easy to see where the balance of power is gonna go from here Eddie Donmez Economics 101: domographics is key for economic growth. Russia could become the main energy supplier to the new economic center of the world: RCEP
15bcm annually is about the output of 13% of the current USA exports for LNG. It's good to send the gas to Europe, but it will not go to other people who need it.
Lets see if he signs off on the remaining 4 terminal permits. Already at near max capacity at 96% daily load rate. Just like "clean energy" the cart is before the horse. Infrastructure first, then supply.
There are no short term solution to replace Russian energy imports, it will take time and Europe doesn't have time!
who pays?
Founder at Creative Capital | LinkedIn Top Voice - Finance I +230,000 Followers
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