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Russia Nears Gas Shutdown in Europe

by Carl Steward
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Carmakers and the Super BowlRussia Nears Gas Shutdown in Europe

Russia’s energy behemoth has threatened to deliver less gas to Europe. Still, Germany, one of the country’s largest importers, has rejected the proposal.

The government owns the majority of the company. Gazprom announced Monday that it could not meet gas commitments in Europe owing to unanticipated circumstances.

Force majeure is a legal word that describes when unanticipated circumstances prevent one party from completing its contractual obligations, hence exempting them from penalties.

Officials in Germany and elsewhere in Europe have grown more concerned about the likelihood of a total cutoff of Russian gas supplies.

These concerns were heightened when Nord Stream 1, a crucial gas pipeline between Russia and Germany, was blocked earlier this month for repair, with some questioning that it would be fully restored once the work was completed on July 21.

Before Russia attacked Ukraine, European countries got over 40% of their gas supplies from Russia. European politicians have been scrambling to reduce this reliance, but it is a costly process that will take time.

The European Commission, the EU’s executive arm, has announced new gas arrangements with the United States and Azerbaijan, for example, as it seeks new fossil fuel sources.

As a result of fewer Russian flows, European gas prices have risen. However, the higher prices mean that Russia can export less gas to Europe. Meanwhile, it will still make the same — or perhaps more — money. Schroeder referred to this as the “offsetting impact.”

The front-month gas price at the Dutch TTF hub, a European standard for natural gas trading, was around 1% higher Tuesday morning, at 159 euros ($1.02) per megawatt-hour. Prices have increased by more than 600% in the last year.


Support Slips for Phase-out Of Gas-Powered Cars

According to a recent report, an increasing proportion of Americans oppose the phase-out of gas-powered automobiles. They say stronger environmental regulations are not worth the economic cost.

The Pew Research Center recently polled 10,282 U.S. adults about climate change policies. 55 percent of Americans oppose the idea of eliminating the manufacture of trucks and vehicles using internal combustion engines by 2035. It is a tiny increase from last year when 51% of Americans opposed the idea.

A slim majority, 53 percent, of Americans say tighter environmental restrictions are worth the cost of lost jobs or other economic impacts, but a growing number believe the opposite. In 2019, 45% of survey respondents believed tighter restrictions would not be worth the economic cost, up from 33% in 2019.

The increase is bipartisan, but it is more pronounced among Republicans. Stricter environmental laws and regulations are too costly for the economy, according to 75% of GOP respondents, up from 55% in 2019. Meanwhile, Democrats agreed at a rate of 21%, up from 14% in 2019.

crude oil coming out from a can with oil pump jacks on the background

Russia’s Gazprom Signs Major Deal in Iran Worth Billions

Gazprom has signed a large agreement in Iran, despite stating that it cannot guarantee European gas supplies. The agreement will be worth billions of dollars and will take place despite Russian and Iranian sanctions.

The corporation has declared force majeure, allowing it to reduce deliveries amid harsh weather conditions. It indicates that, while Gazprom is embroiled in a European scandal, it is a striking business in Iran.

According to Iran’s pro-government Tasnim news, the CEO of Iran’s National Oil Company assured reporters that an MOU with Gazprom would be signed, and photographs from the ceremony appeared on Tuesday.

Iran has requested $140 billion in investments in its oil and gas sector. It has relied on Russia and China for assistance. According to previous statistics, Iran exports approximately 800,000 barrels of oil each day. According to reports from November 2021, Iran has stated that it is ready to produce 700 million cm/d of natural gas from 37 offshore platforms in the South Pars area.

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