If the West and EU hold their lines on Russian energy, the oil and gas crunch now being experienced around the world probably isn’t a temporary phenomenon. |OPINION by theage senior business columnist Stephen Bartholomeusz russia
Russia’s invasion of Ukraine, coming just as the world was emerging from the worst of the pandemic, is permanently reshaping the global energy markets.
With some OPEC members struggling to meet their commitments – it’s easier to turn the oil pumps off than on and investment had been reduced in response to the outbreaks of COVID – the increased supply was still only barely matching demand.for July and August but that barely dented oil prices that are now above $US120 a barrel.
Oil will on top of the agenda when Joe Biden meets Saudi Arabia’s Crown Prince Mohammed bin Salman later this month.The Biden administration has been trying to encourage its own oil and gas companies to lift production but the volatility in energy prices and in the economic environment appear to be limiting the response, as it has been doing elsewhere. The US producers are milking their existing investments for cash and shareholder returns rather than investing in expanding their output.
The impact of the invasion of the market for gas is proving even more profound and structural, even though it is logistically far more difficult for the EU toEurope doesn’t have the infrastructure to easily shift to importing gas, although it is scrambling to buy floating LNG storage and regasification terminals and build and re-open its own LNG receiving infrastructure and the pipelines needed to distribute the gas.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Russian forces strike Kyiv for first time in weeks as Vladimir Putin warns West on armsVladimir Putin has warned that Moscow will hit new targets if the West supplies Ukraine with long-range missiles, hours after several explosions rocked the Ukrainian capital Kyiv:
Read more »
Putin issues new attack warning to the West over supplying Ukraine aidThe Russian President has issued a new warning to the West as Ukraine's capital came under attack again after Moscow forces turned their attention to the eastern region.
Read more »
Live: NSW Now: Police target 'who's who' of south-west Sydney crime in raidsMORNING BRIEFING: NSW police put new Firearm Prohibition Orders to use in week-long raid operation targeting alleged organised crime figures.
Read more »
Russia hits Kyiv with missiles as Putin issues warning to WestExplosions have rocked Kyiv overnight, after Russia attacked the city for the first time in a month. 9News
Read more »
West Gate billboard destruction sparks $8m compensation fightAdvertising giant oOh!media is demanding $8.7 million for the loss of its billboard in Spotswood, in a dispute that has landed in the Victorian Supreme Court.
Read more »
Ukraine slams Macron's warning to the West over 'humiliating' RussiaThe French President has made a suggestion to Western nations if it wanted to see the end of the Ukrainian war that has lasted more than 100 days as Russian forces reportedly retreat from a key strategic city.
Read more »