FT: US shale gas producers warn they won’t be able to ramp up supplies to EU
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Shale gas and oil producers in the United States will not be able to dramatically increase supplies this winter to European countries that are at risk of facing an energy crisis, transmits newspaper Financial Times.
“It doesn’t look like the US can pump more. There will be no help. Neither from the side of gas producers, nor from the side of oil producers,” said Wil Wen Lo, head of the investment company Quantum Energy Partners. Pioneer Natural Resources CEO Scott Sheffield agreed with him, noting that he does not notice the opening of new drilling rigs.
The publication emphasized that as a result of shale development in the past decade, the United States became the world’s largest oil producer: before the coronavirus pandemic, the country produced 13 million barrels per day, or more than 10% of global supplies. At the same time, against the background of the outbreak of COVID-19, production volumes noticeably sank to 12 million barrels per day.
After the start of the special operation in Ukraine, Western states imposed large-scale sanctions against Russia. Restrictions also affected energy. Due to the reduction in gas supplies, European countries faced a shortage of energy carriers, as a result of which gas prices in Europe began to rise.
Energy ministers of the European Union (EU) countries in Brussels during an emergency meeting of the EU Energy Council on September 9 were unable to agree on the introduction of a price ceiling for Russian gas. Bloomberg sources explained that the EU countries are in no hurry to limit prices only for Russian gas due to fears that the Russian Federation in response may completely stop its supplies.
The fact that Russia will not sell energy resources to the EU on unfavorable terms was said by Russian President Vladimir Putin on September 7 at the WEF-2022 in Vladivostok, calling the idea of an administrative way to limit gas prices from Russia “nonsense and nonsense.” “Will any decisions of a political nature be made that contradict the contracts? Yes, we simply will not fulfill them! And we won’t supply anything at all if it contradicts our interests,” Putin warned.
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