A perfect, natural hedge for the US, Middle East and China? Either Europe will need to purchase their fuels, including Gas to compete with China, while China strives to become less dependent on Energy imports, or the industries will relocate to the US, the Middle East and China, and leave Europe as an industrial museum, that failed on its own hybris and denial of the changed Status Quo? Europe Is Gaslighting Itself About Its Energy Woes As gas prices rise, politicians are in denial about the challenges a cold winter may pose. The challenge is encapsulated by two prices. First is the cost of gas in Europe, measured by the so-called Title Transfer Facility benchmark. On Wednesday, it was about $14 per million British thermal units. The second is the cost of the same gas, but in the US, measured by the Henry Hub benchmark. On Wednesday, it was at $3 per mBtu. Now, put yourself in the shoes of the board of directors of a global energy-intensive manufacturing company. How long would it take you to decide that Europe isn’t a good location for future investment?
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Euro area annual inflation was 2.0% in October 2024, up from 1.7% in September 2024. Looking at the main components of euro area inflation, services had the highest annual rate in October (4.0%, compared with 3.9% in September), followed by food, alcohol & tobacco (2.9%, compared with 2.4% in September), non-energy industrial goods (0.5%, compared with 0.4% in September), and energy (-4.6%, compared with -6.1% in September). Source: https://lnkd.in/dhmyTrAS 📈A surge in energy prices will directly impact inflation. The current low energy prices are not sustainable.
COLUMN: Since Russia’s invasion of Ukraine triggered a European energy crisis, the bloc hasn’t been completely honest about its dire situation. It misinterpreted what was pure luck with the weather for strategic success, for example. Now, it’s worse: European policymakers are gaslighting themselves about the outlook. "The result is another winter of high prices, not just for gas but also for electricity, further darkening the future for energy-intensive companies in the region. Rarely a week goes by without a major manufacturing sector announcing plant closures, job losses and write-downs worth billions of euros. Households, too, will feel the hit; retail gas and electricity prices will climb, boosting inflation and posing another headache for the European Central Bank and the Bank of England." Bloomberg Opinion #naturalgas #LNG #renewables
Europe Is Gaslighting Itself About Its Energy Woes
bloomberg.com
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This Bloomberg article by Javier Blas, along with the Draghi Report, is worth a read to better understand some of the EU and UK Govt policy choices which are driving up consumer and industrial energy prices, and in turn putting immense pressure on the local economy. The unintended consequence is reduced energy security, higher energy prices and higher emissions.
COLUMN: Since Russia’s invasion of Ukraine triggered a European energy crisis, the bloc hasn’t been completely honest about its dire situation. It misinterpreted what was pure luck with the weather for strategic success, for example. Now, it’s worse: European policymakers are gaslighting themselves about the outlook. "The result is another winter of high prices, not just for gas but also for electricity, further darkening the future for energy-intensive companies in the region. Rarely a week goes by without a major manufacturing sector announcing plant closures, job losses and write-downs worth billions of euros. Households, too, will feel the hit; retail gas and electricity prices will climb, boosting inflation and posing another headache for the European Central Bank and the Bank of England." Bloomberg Opinion #naturalgas #LNG #renewables
Europe Is Gaslighting Itself About Its Energy Woes
bloomberg.com
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COLUMN: Since Russia’s invasion of Ukraine triggered a European energy crisis, the bloc hasn’t been completely honest about its dire situation. It misinterpreted what was pure luck with the weather for strategic success, for example. Now, it’s worse: European policymakers are gaslighting themselves about the outlook. "The result is another winter of high prices, not just for gas but also for electricity, further darkening the future for energy-intensive companies in the region. Rarely a week goes by without a major manufacturing sector announcing plant closures, job losses and write-downs worth billions of euros. Households, too, will feel the hit; retail gas and electricity prices will climb, boosting inflation and posing another headache for the European Central Bank and the Bank of England." Bloomberg Opinion #naturalgas #LNG #renewables
Europe Is Gaslighting Itself About Its Energy Woes
bloomberg.com
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Europe's Energy Woes: When Poor (Lack of) Decisions Lead to Adverse Results #energy #power #gas #lng #Europe #EuropeanUnion #eu #policy #politics
COLUMN: Since Russia’s invasion of Ukraine triggered a European energy crisis, the bloc hasn’t been completely honest about its dire situation. It misinterpreted what was pure luck with the weather for strategic success, for example. Now, it’s worse: European policymakers are gaslighting themselves about the outlook. "The result is another winter of high prices, not just for gas but also for electricity, further darkening the future for energy-intensive companies in the region. Rarely a week goes by without a major manufacturing sector announcing plant closures, job losses and write-downs worth billions of euros. Households, too, will feel the hit; retail gas and electricity prices will climb, boosting inflation and posing another headache for the European Central Bank and the Bank of England." Bloomberg Opinion #naturalgas #LNG #renewables
Europe Is Gaslighting Itself About Its Energy Woes
bloomberg.com
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Sharing a thought-provoking piece on the EU’s energy supply conundrum, by Javier Blas at Bloomberg. The EU continues to buy Russian gas while it pushes intermittent green energy deployment well ahead of the grid’s ability to balance, never mind grow. This article might not have been written if there had also been an EU nuclear deployment policy with the requisite enablers. It’s never too late …
COLUMN: Since Russia’s invasion of Ukraine triggered a European energy crisis, the bloc hasn’t been completely honest about its dire situation. It misinterpreted what was pure luck with the weather for strategic success, for example. Now, it’s worse: European policymakers are gaslighting themselves about the outlook. "The result is another winter of high prices, not just for gas but also for electricity, further darkening the future for energy-intensive companies in the region. Rarely a week goes by without a major manufacturing sector announcing plant closures, job losses and write-downs worth billions of euros. Households, too, will feel the hit; retail gas and electricity prices will climb, boosting inflation and posing another headache for the European Central Bank and the Bank of England." Bloomberg Opinion #naturalgas #LNG #renewables
Europe Is Gaslighting Itself About Its Energy Woes
bloomberg.com
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Looking at the recent surge in energy prices across Europe, we're prompted to ask a critical question about the trade-offs between embracing renewable energy and ensuring national security. Before the Ukraine conflict, Europe was firmly on the path to renewable energy. This shift made them increasingly reliant on imports of fossil fuels from countries like Russia to maintain their standard of living. Putin was acutely aware of this reliance. He understood that any sanctions imposed on Russia by Europe in response to aggression would hurt Europe's economy as much as Russia's. This mutual vulnerability likely strengthened Putin's resolve to invade Ukraine, betting that Western economies would eventually weaken under the burden of rising energy costs. This scenario is currently playing out on the world stage. A recent article in The Economist points out that Europe is grappling with various challenges, from a surge in electric vehicle imports from China to escalating energy bills, all of which are punching holes in European government budgets. After reading Europe's case-study, the question that stands out to me is: How can a country successfully shift towards a greener economy while managing the national security risk of being overly dependent on imports of critical resources from abroad? Link to The Economist article: https://lnkd.in/ggSpiFs2
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A while ago I read a great booked called: The Rare Metals War..” which partially explained the process of de-industrialisation, experienced over the 70/80 with the closure of a good amount of mines and other production facilities in Europe. Politicians, at that time, missed to understand that with a proper Plan B, Europe would have become completely dependant from China on some metals and productions. Fast forward some decades and the European polititicians, are making the same mistake again on a different topic. As Javier Blas rightly points out, if you are a global manufacturing company (energy intensive) and you need to decide where your next production facility should be built, why would you build it in Europe, where gas prices are multiple times more expensive than the USA, for example ? We can’t think and assume that imposing tariff, will resolve our deficiencies and lack of understanding of the real problems.
Europe Is Gaslighting Itself About Its Energy Woes
bloomberg.com
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⚡The EU's reliance on oil and gas exposes us to economic vulnerabilities and security risks. Dependence on volatile #fossilfuel markets and geopolitical uncertainties disrupt energy supply and undermine our economic stability. Both households and industries are affected. The EU imported gas for €400 billion in 2022. Energy prices are twice as high compared to China and the US. Shifting to renewables and electrifying the economy are vital for EU's security & prosperity, offering a shield against market and geopolitical uncertainties. bit.ly/3VuA1nF Industry and households benefit from low energy prices. The next policy cycle can focus on electrification and decarbonising power by 2037. ➡ Stay tuned for our report that shows what this means for electricity bills. #StrategicEU
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China has just built over 4,000 kilometers of new oil and gas pipelines. China has just built over 4,000 kilometers of new oil and gas pipelines this year in the name of “energy security.” Let that sink in. While the rest of the world debates net-zero targets, carbon credits, and phasing out fossil fuels, China is doubling down on infrastructure for the very thing we’re supposed to be leaving behind. And here’s where it gets even more uncomfortable: as China ramps up its reliance on oil and gas, we’re proposing to shut down our own oil supplies. That’s right—while they secure their energy future, we’re effectively outsourcing ours to countries with far less regard for environmental standards. What’s the plan here? To bankrupt our own industries while pretending it’s for the planet? This isn’t just about China—it’s about the global hypocrisy of a green transition built on fossil fuel infrastructure. Do we blame China for addressing its energy needs, or do we confront the fact that our own energy policies might be leaving us vulnerable and dependent? If you’re frustrated by this contradiction, good—you should be. But frustration isn’t enough. What’s your solution? Should we cut off our supplies and hand over global dominance to others, or rethink how we balance sustainability with energy security? Let’s hear your take
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