European energy crisis is global |

It was really just a matter of time. In the global arena, energy shortages cannot be sustained by regional control, especially in the context of damaged supply chains and fossil fuels. The power outage, which began earlier this month in Europe, is now likely to spread to the United States. For now, everything is fine with one of the world’s largest gas producers. Economic recovery has boosted demand for electricity, and U.S. gas exporters have enjoyed strong demand from Asia and Europe. As recently reported by the Financial Times Report, There is a real bidding process for US natural gas supplies between Asian and European rulers – and Asians are winning.

Coal exports are also on the rise, and political tensions have been mounting, especially after China’s withdrawal from Australia. But supply is shrinking, Argus Reported Earlier this month. According to a July report, US coconut exports fell 20.3 percent since June. According to the report, supply was limited due to limited access to producers and labor shortages created by many industries during the epidemic.

All of this must be good news for American producers of fossil fuels. But as winter approaches, it can easily be bad news. The Wall Street Journal Jinju Lee Wrote Earlier this week, high energy prices could be the next hot imports for the United States. Lee mentioned Data Gas stocks were running below average this season, and gas storage at the beginning of September was 7.4 percent below the five-year average.

Related: Goldman Sachs – Here’s how oil prices reach $ 90 this summer Coal reserves are also declining sharply, with more than three times the cost of heating for a year. According to WSJ reports, coal stocks in the United States may fall by less than half a year. Last year, the epidemic was plagued by energy shortages. This year, the US economy is once again firing on all cylinders.

Not surprisingly, electricity prices have already risen.

In some ways, events in Europe can be seen as a drag on what can happen in the United States. It shows all the worst because it is a trailer. The United States has more free will than the United Kingdom, and that’s a big plus. However, exports generate revenue, and government intervention requires gas producers to cut exports.

Surprisingly, such an intervention was requested last week by the manufacturing industry team. A company representing US industrial energy consumers, chemicals, food and materials manufacturers has called on the Department of Energy to impose restrictions on natural gas exports to avoid high prices and gas shortages during the winter. Reported On Friday.

Opinions vary as to whether LNG exports are actually hurting American consumers. The fact is, gas prices are twice as high as they were a year ago. According to IECA, they are not enough to stimulate natural gas production. Therefore, in order to store enough gas for the winter, the US government must reduce exports.

The LNG industry certainly opposes this. The executive director of the Liquid Natural Gas Center told Reuters that most of the LNG. Exports are measured under short-term gas contracts and unrelated to long-term contracts. However, some goods are sold in the local market.

IECA President Paul Cecio told Reuters: “LNG, which competes with US consumers for natural gas, American manufacturers cannot compete with them in terms of prices.

Related – Raw materials in Cushing have dropped by 42% so far this year

Traders are already upset, and this may contribute to price instability. No matter how basic the situation develops. Again, Europe is in the throes of a recession – or rather the certainty that prices will rise. But now China is worried about gas supply and capacity shortages.

For now, China’s biggest problem seems to be coal rather than gas. Recently Bloomberg Report Chinese coal miners are struggling to buy enough coal to run their factory, and some have been forced to shut down their heaters due to inadequate supply. But this could lead to a strong demand for gas to ensure adequate electricity and heating for the winter. This further exacerbates the gap between global demand and supply.

Europe’s energy crisis is spreading to other regions. From years of investment in the local gas production to the approval of Nord Stream 2 in Germany, a game of guilt has begun. For now, according to WSJ’s Lee, it is still unclear how much the price gap is due to the gap between demand and supply and how much the market nerves. This question is less important than the other, but it is scary –

How bad can things be this winter?

By Irina Slav for

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