Europe to feel impact of turning away from cheap, plentiful Russian energy

10/13/2022 / By Arsenio Toledo

Moscow has warned that the European Union’s (EU) decision to turn away from Russian energy will lead to “very deplorable consequences” that will be felt for decades.

Speaking to Russia-1, Kremlin Press Secretary Dmitry Peskov warned that Europe attempting to reduce its reliance on Russian energy imports could lead to their deindustrialization for up to 20 years. (Related: Europe now feeling the effects of Russian energy supply cutbacks as winter approaches.)

Peskov added that Europeans are now paying more for energy, “thereby depriving their economy of competitiveness.”

“Production is collapsing. Deindustrialization is coming. All this will have very, very deplorable consequences for the European continent over probably, at least, the next 10 to 20 years,” said Peskov.

The press secretary noted that the EU had a good relationship with Russia before the energy crisis. But the EU started developing the idea that it had to rid itself of its dependency on Russian energy, which is what led to the continent’s current energy crisis.

America benefiting from Europe’s energy crisis

Peskov noted that the only country benefiting from the EU’s mistaken belief that it needs to reduce its reliance on Russian energy exports is the United States, which is making “crazy money” by selling natural gas to Europe at exorbitant prices that the continent’s nations are more than willing to pay.

He noted that America’s prices are “three or even four” times higher than what it costs to purchase the same amount of Russian natural gas, adding that “the Europeans are making their economy less competitive as they pay.”

Data from financial analysis firm Refinitiv Eikon show that American producers of liquefied natural gas (LNG) boosted their exports to Europe in September.

Preliminary tanker tracking data from Refinitiv Eikon stated that a total of 87 cargo ships departed from U.S. ports last month, carrying 6.3 million metric tons (6.94 million tons) of LNG. This is slightly higher than August’s 6.25 million metric tons (6.89 million tons).

But Refinitiv Eikon noted that the U.S. exported around seven million metric tons of LNG per month to Europe earlier this year. The decrease can be attributed to production constraints caused by plant outages, including an explosion at the Freeport LNG plant, America’s second-largest LNG plant and exporter, which has put America’s output far below full processing capacity despite increased demand and prices.

Freeport is expected to partially reopen its facilities in November, with a goal of reaching full capacity by March 2023.

Almost 70 percent of the cargo ships containing LNG, or 4.37 million metric tons (4.82 million tons), went to Europe. In July and August, 56 percent and 63 percent of America’s LNG exports went to Europe, respectively.

Spot prices for U.S. natural gas at the Henry Hub, a distribution hub in Louisiana and a benchmark for LNG spot and future prices, rose to $7.88 per million British thermal units (mmBtu), the highest spot price recorded since 2008, as soaring global prices are keeping demand for American LNG strong.

In Europe, meanwhile, spot prices for natural gas averaged at a much higher rate of $57.90 per mmBtu, with a sharp surge seen following the sabotage of the Nord Stream 1 and 2 pipelines.

Learn more about Europe’s energy crisis at NewEnergyReport.com.

Watch this episode of the “Health Ranger Report” as Mike Adams, the Health Ranger, talks to Michael Yon about how Europe’s “green” energy policy is responsible for its own destruction.

This video is from the Health Ranger Report channel on Brighteon.com.