Russia to further slash gas deliveries to Germany via Nord Stream pipeline

Russia's Gazprom said it would again reduce gas deliveries through Nord Stream 1 by 20% for 'repairs,' cutting the current flow in half. The new blow to supply comes as Europe scrambles to store gas for winter.
https://www.dw.com/en/russia-to-fur...o-germany-via-nord-stream-pipeline/a-62588620

Not a lot of attention on the forum, regarding the predicament Europe is in. As Americans, we do tend to focus inward and debate whether or not we are or will be in a recession. The old adage "if the U.S. has the sniffles, the rest of the world catches cold", is no longer true and we may catch a cold right along with Europe.
 

https://www.dw.com/en/russia-to-fur...o-germany-via-nord-stream-pipeline/a-62588620

Not a lot of attention on the forum, regarding the predicament Europe is in. As Americans, we do tend to focus inward and debate whether or not we are or will be in a recession. The old adage "if the U.S. has the sniffles, the rest of the world catches cold", is no longer true and we may catch a cold right along with Europe.
Continuing on with natural gas, Both the UKG (U.K.) and TTF(Dutch) futures have risen 20% and 25% this week, while the U.S. market has risen 7%.

For some perspective, the U.S. was $3.66 in July of last year, while both the UKG and TTF was in the $12.50 range. Currently, the U.S. is at $8.88, the TTF is almost $60 and UKG is just above $45. However, while the market indicates some upward movement for U.S. NG and TTF, the UKG continues to rise sharply into December at 508.360 pence per therm, or in American terms... $61.15. (American terms means MBTU.)

Those numbers scream rough times across the Atlantic and we will not be immune, in my humble opinion.
 
That old saying is playing out: "what is good for the goose ..." So, Europe sanctioned Russia on many things making life unpleasant for people living in Russia. Now, Russia is slowing applying the same principle. Europeans will just have to wear extra socks and winter coats during the upcoming winter. What a nightmare but that's what happens when pandering takes center stage instead of considering the possible consequences!
 

That old saying is playing out: "what is good for the goose ..." So, Europe sanctioned Russia on many things making life unpleasant for people living in Russia. Now, Russia is slowing applying the same principle. Europeans will just have to wear extra socks and winter coats during the upcoming winter. What a nightmare but that's what happens when pandering takes center stage instead of considering the possible consequences!
I am afraid you are right, the impact of the sanctions on the sanctioneers doesn't seem to have been considered.

Big picture it would be best if Germany and Europe could figure out how to do without Russian gas, but that will not be easy, or quick.
 
That old saying is playing out: "what is good for the goose ..." So, Europe sanctioned Russia on many things making life unpleasant for people living in Russia. Now, Russia is slowing applying the same principle. Europeans will just have to wear extra socks and winter coats during the upcoming winter. What a nightmare but that's what happens when pandering takes center stage instead of considering the possible consequences!
Germany's place at the head of the EU table will be in jeopardy, as its own citizens will likely be marching to stay warm. The illusion of a suddenly reunified N.A.T.O. will likely be exposed. No one cares about the devil or what he/she does, until he/she comes knocking at your own door. Then it becomes "we must stand together". Except "we" doesn't exist.
 
Europe really needs to be independent of Russian petroleum, and if this is what it takes so be it. We all need to be free of fossil fuels for are continued existence, but that will probably require the complete rethinking of capitalism to achieve. I can't say I like are chances.

I am afraid you are right, the impact of the sanctions on the sanctioneers doesn't seem to have been considered.

Big picture it would be best if Germany and Europe could figure out how to do without Russian gas, but that will not be easy, or quick.
 
Europe really needs to be independent of Russian petroleum, and if this is what it takes so be it. We all need to be free of fossil fuels for are continued existence, but that will probably require the complete rethinking of capitalism to achieve. I can't say I like are chances.
I think they will achieve the petroleum aspect, but natural gas is a very uphill battle. In June, the EU set a floor on NG storage, which is likely why the recent cut in natural gas flows. Some of the EU countries will make it, but Germany is in the crosshairs. They are years away from weaning themselves from Russian natural gas.
 
Will not only be a cold winter but also expensive for the everyday European. Germany is going to get the brunt of it being the industrial arm of the EU. When I read about the Marshall Plan, West Germany was pivotal for Europe to get moving again after the devastation of WWII.

Strangely enough, the West and EU put in place sanctions to damaged the Russian economy. They publicly stated that cutting strategic services and preventing goods from going to Russia would weaken it. On the other hand, they expect Russia to continue to supply gas and other things to keep Europe's economy humming and to warm residential homes. Bizarre! Surreal !!!
 
From the U.K. Daily Mail - Power bill for just one month could soar to £500 in January after Russia cuts back Europe's gas supplies...
https://www.dailymail.co.uk/news/ar...500-January-Russia-cuts-Europes-supplies.html

The current price cap on energy tariffs is due to rise from just under the equivalent of £2,000 a year – based on typical use – in October and again in January.

Initial estimates suggested it would reach around £3,400 in the New Year.

However, analysis by energy industry experts at consultants BFY suggests the new increase in wholesale prices could see the figure hit the equivalent of £3,420 in October and £3,850 in January.
To put that all into perspective, it was about £1,000 per year, this time last year. Jumped to around £1,200 per year, in October and then to that £2,000 per year, in March.

A similar situation is evolving across mainland Europe. A major crisis is brewing and we will feel the impacts.
 
Yuge profits reported today! While the consumer faces high prices and things may look bleak for Europe in the coming months, oil companies are raking it in. Hand over fist or swimming in it.

"The two largest US oil companies, Exxon Mobil and Chevron, posted record revenue and profits on Friday, bolstered by surging crude oil and natural gas prices.

Exxon outpaced its rivals with second-quarter net income of $17.9 billion, several billion dollars ahead of its previous record in 2012 and tantamount to profits of $2,270 every second of every day."

https://www.dailymail.co.uk/news/ar...owout-earnings-bolstered-high-oil-prices.html

https://apnews.com/article/sports-swimming-e71ce380df372fa2ba257a3175ff0f49

https://www.cnn.com/2022/07/29/energy/exxonmobil-chevron-earnings/index.html
 
EU states are desperately trying to find ways to cut their energy use before winter arrives, after Russia began throttling gas supplies to the continent.

Germany has already begun turning off street lights in Berlin while Hanover will shut off hot water in public buildings. Oktoberfest and Christmas markets also face being scrapped, politicians have admitted, and breweries could be closed.

In Austria, the city of Linz has stopped lighting historic landmarks at night while Salzburg is drawing up plans to follow suit.

Europe is facing an acute energy crisis as Putin weaponises energy supplies in apparent retaliation for leaders defying him over Ukraine.

The continent typically gets around 40 per cent of the gas it uses from Russia, but is now facing the reality of a winter without it or with very restricted supplies.

Germany will be the worst-hit because it is overly-reliant on Russia - getting more than half of the supplies it used in a typical year piped in direct from Moscow.

And, unlike other EU countries, it does not have ports capable of getting gas shipped in from elsewhere. It is building two, but they won't be ready until the New Year.

In order to avert shortages, it is restarting mothballed coal-fired plants and is looking to extend the life-spans of its three remaining nuclear plants which were due to be taken out of service at the end of the year.

Similar moves are underway in Belgium, where talks are ongoing between the government at a French contractor which runs two nuclear plants to extend their lifetimes by another ten years.

However, the firm has said the plants cannot come back online until 2026 at the earliest - far too late to help in the coming crisis.

In France itself, which has one of the biggest and most-advanced collections of nuclear power plants anywhere in the world, there are also problems.

Half its reactors are currently offline because of an unexpected problem with their cooling systems, and there is no set date for them to be powered back up.

In the meantime, EDF - the firm which runs them - is being forced to run up huge debts buying energy from elsewhere in Europe to bridge the gap.
The situation has become so severe that Emmanuel Macron's government is floating the idea of nationalising the company in order to get the plants operational again.

Countries are also trying to stockpile as much gas as possible before winter arrives, which has driven up prices to near-record levels.

Households in both the UK - which buys gas from Europe - and Germany have been warned bills could triple, while Germans also facing paying an additional 'gas surcharge' to stop supplies going bust.

The exact amount has yet to be announced, but economy minister Robert Habeck has warned it will definitely be in the 'hundreds' of euros while some experts have calculated it could be as much as £1,000 extra per year.
https://www.dailymail.co.uk/news/ar...ain-tells-workers-not-wear-ties-cool-off.html
 
EU states are desperately trying to find ways to cut their energy use before winter arrives, after Russia began throttling gas supplies to the continent.

Germany has already begun turning off street lights in Berlin while Hanover will shut off hot water in public buildings. Oktoberfest and Christmas markets also face being scrapped, politicians have admitted, and breweries could be closed.

In Austria, the city of Linz has stopped lighting historic landmarks at night while Salzburg is drawing up plans to follow suit.

Europe is facing an acute energy crisis as Putin weaponises energy supplies in apparent retaliation for leaders defying him over Ukraine.

The continent typically gets around 40 per cent of the gas it uses from Russia, but is now facing the reality of a winter without it or with very restricted supplies.

Germany will be the worst-hit because it is overly-reliant on Russia - getting more than half of the supplies it used in a typical year piped in direct from Moscow.

And, unlike other EU countries, it does not have ports capable of getting gas shipped in from elsewhere. It is building two, but they won't be ready until the New Year.

In order to avert shortages, it is restarting mothballed coal-fired plants and is looking to extend the life-spans of its three remaining nuclear plants which were due to be taken out of service at the end of the year.

Similar moves are underway in Belgium, where talks are ongoing between the government at a French contractor which runs two nuclear plants to extend their lifetimes by another ten years.

However, the firm has said the plants cannot come back online until 2026 at the earliest - far too late to help in the coming crisis.

In France itself, which has one of the biggest and most-advanced collections of nuclear power plants anywhere in the world, there are also problems.

Half its reactors are currently offline because of an unexpected problem with their cooling systems, and there is no set date for them to be powered back up.

In the meantime, EDF - the firm which runs them - is being forced to run up huge debts buying energy from elsewhere in Europe to bridge the gap.
The situation has become so severe that Emmanuel Macron's government is floating the idea of nationalising the company in order to get the plants operational again.

Countries are also trying to stockpile as much gas as possible before winter arrives, which has driven up prices to near-record levels.

Households in both the UK - which buys gas from Europe - and Germany have been warned bills could triple, while Germans also facing paying an additional 'gas surcharge' to stop supplies going bust.

The exact amount has yet to be announced, but economy minister Robert Habeck has warned it will definitely be in the 'hundreds' of euros while some experts have calculated it could be as much as £1,000 extra per year.
https://www.dailymail.co.uk/news/ar...ain-tells-workers-not-wear-ties-cool-off.html
As I understand it, the UK is currently processing all imported LNG and shipping the gas to Europe. U.K. storage facilities are full, but those facilities cannot store enough to last UK through the winter, if there is any supply disruptions. Then there is the electricity matter.
 
As I understand it, the UK is currently processing all imported LNG and shipping the gas to Europe. U.K. storage facilities are full, but those facilities cannot store enough to last UK through the winter, if there is any supply disruptions. Then there is the electricity matter.
we're in deep dirt now at the cost of our utilities.. they went up in price on the 1st of April by 54%... on an already expensive price... and they're going up again in October.. they're now talking of our utility bills costing £1000 per quarter... no-one can cope with that price.. .it's a massive concern
 
we're in deep dirt now at the cost of our utilities.. they went up in price on the 1st of April by 54%... on an already expensive price... and they're going up again in October.. they're now talking of our utility bills costing £1000 per quarter... no-one can cope with that price.. .it's a massive concern
I've been trying to get a handle on UK consumer costs. The current market today was 361p per therm, which roughly translates to £2,929 annual if tied to today's price. Which is currently cheaper than the EU. The problem is the futures market is indicating 483p @ therm in December, or £3,494. That 483p, is down from 509p, a few days back. You can hope it continues to slide.

I should mention a liquefaction facility in the U.S. that processes 16% of LNG (almost all destined for UK) went down a month ago and should be up again in December. If it were back up to 100%, it cannot offset Russian dependence.

NG futures.jpg
 
I've been trying to get a handle on UK consumer costs. The current market today was 361p per therm, which roughly translates to £2,929 annual if tied to today's price. Which is currently cheaper than the EU. The problem is the futures market is indicating 483p @ therm in December, or £3,494. That 483p, is down from 509p, a few days back. You can hope it continues to slide.

I should mention a liquefaction facility in the U.S. that processes 16% of LNG (almost all destined for UK) went down a month ago and should be up again in December. If it were back up to 100%, it cannot offset Russian dependence.

View attachment 231822
That's great info harry... but I won't hold my breath, I'm sure , just like our extortionate rise in fuel, and it remaining up there when every other country has reduced their prices.. that our utilities will still be risen exponentially come Autumn
 
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Until realistic alternatives to oil and gas are found, it would seem best to exploit the reserves that still exist under the north sea. Of course, the tree hugging so called "Green" eco terrorists want to stop this, preferring, one supposes, that we should all die of cold and poverty rather than use another drop of oil.
Unless Germany makes peace with Putin, Germany will be cold come this winter.
I'm not in favour of making peace with war criminals who invade neighbouring countries, shell hospitals, murder civilians, steal crops etc .
 
That's great info harry... but I won't hold my breath, I'm sure , just like our extortionate rise in fuel, and it remaining up there when every other country has reduced their prices.. that our utilities will still be risen exponentially come Autumn
I see the inevitable rise of 80% is now in place. Frankly, I would have thought higher, as it appears to be priced on 480p per therm ($56.33@MMBtu), when the futures ended today with 640.36p/therm ($75.15/MMBtu) for September. It gets much much worse from there, as in 875p+ per therm (USD$102.74@MMBtu) in December.

We Americans will be screaming when our natural gas is 1/11 of that (USD$9.34@MMbtu) and the winter heating and electric bills shoot up by 20%~40%, depending on location. We might all need to be quilting, to prepare for this winter.
 


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