Skip to comments.Can Europe wean itself from Russian natural gas?
Posted on 03/29/2014 2:46:30 PM PDT by Mount Athos
On Thursday ENIs [Italian oil/gas] chief executive, Paolo Scaroni, was in Washington to meet with Obama administration officials at the State Department and National Security Council to discuss natural gas, Russia and Ukraine.
"What is relevant is that this dependency is going to go up and not down because domestic European production [including North Africa] is going down."
Scaroni takes a dim view of American LNG as a means to liberate Europe from Russian gas, in part because he says that transporting LNG from the United States to Europe is expensive, Russian gas production costs are very low and Russia could always decide to undercut American LNG prices.
Scaroni fears that European industries, such as the petrochemical industry, cannot compete with U.S. companies that have cheap natural gas at home. He predicts more European companies will move plants to the United States unless Europe starts to drill more aggressively for its own shale gas.
"I say embrace shale gas or embrace Russia. The Russian option is no longer an option, so we should pursue shale gas vigorously and then look at whether we should be shutting down nuclear plants in Germany."
ENI has political challenges elsewhere, too. It is the biggest oil company in Egypt, Scaroni says, and it has substantial operations in Venezuela, recently torn by riots and which many other oil companies have left after contract disputes with the leftist government.
"What about the political situation in Venezuela? I dont know, and we dont care because at the end of the day people will need oil and gas. If I could find oil in Switzerland I would be in Switzerland. But since its in Venezuela, what can I do?"
(Excerpt) Read more at washingtonpost.com ...
I think Europe should just do without, to help save Gaia.
The USA can’t afford to wait out Obama’s term to turn around its insane anti-energy policies.
(Shutting down coal industry, slow walking oil permits, banning drilling in vast new areas, too difficult to expand nuclear power, etc...)
Of course Russia could under cut American pricing. It’s still less profit for Russia. Besides, does Mr. Scaroni think Europe is the only potential customer?
Sure, they can roll environmentalists up in newspapers, and toss 'em on the hearth.
What did Europe do before there was Russian gas available to them?
Obama will talk them into windmills and solar panels. HAHA
Bingo. Maintaining a war machine costs big money.
(Pick At Least One)
If you try to pick Wind and Solar, you’re really picking Gas, because for every installed MW of renewables, you have to provide a MW of Gas powered turbines to kick on and pick up the load when the weather is not cooperating, which will be most of the time.
After the shortages in the 70s, the North Sea, the North Slope, and Cantarell in Mexico were developed but all three are now substantially depleted.
Looks like they may get an opportunity to try.
Well it will be interesting to see how things go. If the Ukraine fights .....
They will muzzle special energy interests—all of them—and try very hard to do so, or they will find out what life is like in a Russian satellite nation. Same here, in the U.S.A., for those of you cognizant of the recent propane price debacle here. Was it a trial for the near future—say, in a couple of years or so?
Or we could just freeze in the dark, which is where the Greens are taking us, if we let them.
Europe is paying 3x what we are for NG. Even doubling our price means Russia takes a 33% cut. I doubt we’ll need subsidies. I am curious why the Italian CEO of ENI wanted to talk if he felt American NG wasn’t a good fit for Europe. I’m wondering if the reason was really the opposite. Maybe American gas would harm his company. There’s no reason Europe couldn’t go to NG fueled cars and kill his gasoline sales plus be able to end Russian energy extortion.
Was the man trying to make sure the LNG genie doesn’t get out of the bottle?
“I say embrace shale gas or embrace Russia.”
Ding! Ding! Ding! We have a winner. Give Paolo Scaroni a cigar.
The dumb-ass Europeans are more concerned about bowing and scrapping to the global warming scam than keeping their grandparents and children warm.
For example, the UK is sitting on at least a 100 year supply of natural gas in the north of England. Friggin’ Duh!!
Europeans have been dumbed down by eco-fascists and the NWO bankers to such an extent that I’m no longer certain that they can save themselves from their elemental stupidity.
Burned coal -- now considered the energy equivalent of child molestation.
Yeah, guess so.
If explained this before that Asia is paying more for LNG than Europe.
If you grow apples and a European will pay $1 for your apple and an Asian will pay $1.80, who will you sell the apple to?
Coal gasification runs pretty clean. It also can make liquid fuels.
> Can Europe wean itself from Russian natural gas?
No fracking way.
We need something like this from BECKET.
King Henry is caught in a rain storm, goes to a hovel and demands fire and warmth.
Henry: “GIVE ME FIRE AND WARMTH!”
Becket: “You will find no fire here sire.”
Henry: “And why is that!”
Becket: “Every hovel is allowed two measures of wood a year. One stick more and they are hanged.”
Henry: “MY EDICT?”
Becket: “Your edict sire.”
Who blinks when we get past the cost of production ?
Two quick things about that. Propane is produced with other gases from oil wells, and separated and liquefied at gas processing plants, the same plants which strip other heavier molecules, water, and impurities from the Methane which we more commonly know as "Natural Gas".
The Administration is attacking the production of propane in two ways. First the Government Media attack on 'fracking', which enhances production and has been, in conjunction with horizontal drilling, the technology which has enabled oil and gas companies to tap huge resources previously unavailable with a reasonable ROI.
Second the dawning crusade against 'methane emissions' which could conceivably be used to hobble the oil and gas industry.
The latter is barking about how methane is a powerful greenhouse gas, yadda, yadda, yadda, but we just haven't noticed all that warming here in North Dakota, despite flaring gas (producing CO2) and 'methane emissions'. Flaring is on the decline as infrastructure catches up and multiwell pad drilling reduces the infrastructure needed for gathering systems, and as new gas plants are constructed.
But note the Obama administration is trying their damndest to come up with a way to make energy not only more expensive here, but prohibitively so for export.
Round that off with stalling pipeline permits and howling about the dangers of transporting crude oil and petroleum products by rail, and you'd better get a (new, EPA approved) woodstove...
Thank you for the education (sincerely). I can’t disagree with anything that you wrote. Natural gas and oil are great stuff. It appears from my unlearned perspective, that the main problem with fracking are the costs (regulatory included) and probable shorter durations of plays. While markets are up, it’s good for all of us.
I’ve seen conventional energy projects (uranium and gas) shut down in my own area after rants about “property values” and the “environment.” It’s even more of a shame in a majority Republican county (all about mythical property values and sponging off of tourists in that County on the CO Rockies...on that geological formation named after the vulgar cartoon). If gas distribution to dealerships (stations) in areas like this were more expensive, they’d probably have less fuel (money and time) to push against energy producers with. Company stations would probably be far better up here than dealerships (dealerships hooked on tourism, retirees, their animal worship and environmentalism). Dealers, along with their lefty comrades, fighting the companies that feed them. Ain’t that somethin’.
Regulations in all levels of government are hurting us all, including local regulations against energy, building and manufacturing (including small projects on small properties).
But it appears that much political speech and effort has devolved into local vs. federal spending. I’m not on either side of that. Subsidies aren’t helping, either, including subsidies for big alternative energy programs. We Americans, for most part, haven’t been saving enough.
I’m in favor of savings, technologies and competition for all. Competition is what once made our nation great. The problems for small alternative energy projects are laziness and regulations. Here’s a little about what works in alternative energy—most being problematic with regulations that favor large manufacturers and traveling career installers (IBC/IRC, IMC, ASTM, etc.).
* Solar radiant heating, especially in sunny areas, if it’s owner-installed. There are some drainback systems with less efficient (by about 3%), far less costly, homebuilt collectors and small, insulated concrete tanks full of pure water (more thermal mass than with steel heat exchangers and no pressure). Professionally installed, closed loop systems (see fly-by-night contractors with local passes) are vastly more expensive and won’t pay for themselves, but nearly all of the inspectors favor the more familiar closed loop systems over good open loop systems (no extra pressures, high temperatures or antifreeze).
* PV solar electricity for owner-installers or those who know an electrician. Component prices aren’t too bad now, even for those of us not taking tax credits, rebates, etc. Also won’t pay for itself if professionally installed or not properly planned (electric ranges, electric dryers, etc.).
Owner-installers should be knowledgeable in basic electrical/electronic work and conscientious in following the NEC—especially safety procedures. It’s not that hard and doesn’t cost much more.
Some rare electrical inspectors will refuse to answer questions about the few ambiguities affecting certain PV solar installations and claim to be unable to understand a word from anyone not in the local builders’ racket. In such cases, owner-installers should document and photograph all evidence or abandon their projects. The electrical inspector for my area is great and clear in communications, by the way—always motivated toward fixing any problems instead of indulging in them or stopping projects. Good and intelligent man.
* Mass heaters: rocket stove mass heaters, small masonry heaters, etc., if homebuilt by technically inclined people capable of following instructions. Reasoning human beings can learn masonry skills from books and practice. With castable refractories and instructions closely followed, no masonry experience is required—only study, ability to properly follow instructions and work.
Regulations for installing cost-effective, homebuilt mass heaters are worse than ambiguous and prohibitive in a political environment where many local inspectors—even in sparsely populated counties in the middle of nowhere—are denying all projects not very explicitly allowed in codes.