The energy crisis, which started at the end of 2021 in Europe, has spread this year and is now triumphantly marching throughout the globe; even on the other side of the Atlantic Ocean, in the United States, it is now also perceptible.
In the US, there is a debate concerning the health of the worldwide gas market between experts and regular customers. They disagree on whether American gas prices will fall or keep rising. The majority of analysts think that gas costs and demand will keep rising. The energy crisis in Europe, where there is still a need for Russian gas, greatly impacts these disagreements.
It seems that Washington erred in judgement once again. Initially, Washington strategists spent years ferociously opposing Nord Stream 2.
In the end, they got their way this spring when Berlin refused to approve the second stage of the gas pipeline that ran along the bottom of the Baltic Sea and was already operational.
The Europeans eventually decided to stop using Russian gas once the limited war took hold in Ukraine and hastily started looking for a replacement.
American liquefied natural gas (LNG) has taken over as the primary substitute for several reasons in Europe. The shipment of American LNG to Europe this year is shattering all previous records, so it would seem that the aspirations of American gas workers have come true.
In addition, record-breaking profits are being made by gas suppliers to Europe as a result of very high pricing.
However, American happiness did not last long. The US has been struck hard and brutally by the abrupt decrease in Russian gas supplies via the Nord Stream 1 gas pipeline, which was shut down on August 31 for three days for repair.
Currently, Europeans are combing the world for gas. Due to Europe’s rejection of Russian gas, there is now fiercer rivalry since there isn’t enough for everyone. The oncoming winter will have a significant financial impact on average customers on both sides of the Atlantic. The situation is dire since gas heats millions of houses in the US and Europe.
Although it takes time for the laws to take effect, several US regulations, such as the Inflation Control Act, are anticipated to slightly lessen the demand for gas in the US. Both experts and many Americans are sceptical that they will begin working in three to four months. While some beneficial changes seem to have started, Americans do not have to wait for European assistance. For instance, Norway, the United States, and Great Britain have expanded the gas supply to Germany and other Central European nations, but it remains to be seen if there will be sufficient alternative gas for Europeans to survive the winter.
Most analysts predict that gas prices will continue to rise for several reasons, including the heightened rivalry for LNG between Europe and Asia. All summer, America has been sending record amounts of gas to Europe.
Meanwhile, this summer was unusually hot in America and Europe. This summer, power usage has also increased significantly in the US.
The rest of the globe has also felt the onset of an energy crisis in Asia in recent weeks. For instance, Japan has intensified its quest for new gas sources.
Meanwhile, according to Oil Price, Moscow has dropped hints in recent weeks that it may restrict gas supply to North Asia.
Conversely, Asian nations with little gas reserves, like Japan and South Korea, rely nearly entirely on “blue” fuel imports. They are now the main rivals of the Europeans looking for LNG.