![]() fossil fuel exports, particularly liquefied natural gas, played a huge role in keeping the European alliance together over the past year, said Daniel Yergin, vice chairman of S&P Global and author of “The New Map,” a book examining the geopolitics of energy. “It’s astonishing what’s happened,” Assistant Energy Secretary Andrew Light said at the same hearing. Lisa Murkowski (R-Alaska) said last week at an Energy and Natural Resources Committee hearing on the invasion’s aftermath. The rapid reshuffling in oil and overseas gas shipments began after the February 2022 invasion and continued through the imposition of price caps on Russian shipments imposed late last year and earlier this month - shifts that will be felt for years. These were felt most acutely on the continent, where electricity and natural gas prices surged as much as 15-fold, prompting governments to spend more than $800 billion to ease consumers’ financial burdens. One result is the United States and European energy policy are going to be more closely intertwined.”Įurope’s reaction against its largest energy supplier’s attempt to remake the map has sent shockwaves through global markets. “We’re seeing a permanent change as far as how Europe gets its energy in the future. “Europe’s energy divorce from Russia is nearly complete,” said Andrew Lipow, president of oil industry and market consulting firm Lipow Oil Associates. At the same time, the EU and the Biden administration are working more closely together to develop the next generation of clean energy - one that doesn’t include Russia - a transition that will lean heavily on U.S. The turnabout has put a new spotlight on the United States’ role as the world’s biggest energy producer, whose foothold in Asia has also strengthened in the past year. Global oil and gas trade routes have been redrawn and renewable energy development has received a massive financial and political shot in the arm. Russian oil and gas shipments to the continent have shriveled by half, beset by boycotts, sanctions and an EU price cap. companies provided 50 percent of Europe’s liquefied natural gas supplies in 2022, along with 12 percent of its oil. That 1m figure was on top of existing plans to continue cutting 2m barrels a day – originally agreed in November – until the end of 2023.U.S. Oil prices surged in April after Opec+ announced a surprise cut in production, saying its members would reduce output by about 1m barrels a day, the equivalent of about 3.7% of global demand. The United Arab Emirates was seeking a higher baseline to reflect its growing production capacity, reports said. The group came to a deal after delaying the start of formal talks by more than six hours because of members’ discussions on production baselines.Īccording to a Bloomberg report, the delay centred on a dispute between the group’s most powerful members and African countries over how their cuts are measured, which led to side meetings as ministers discussed the details.Ī group led by Saudi Arabia were reportedly trying to persuade under-producing countries such as Nigeria and Angola to have more realistic output targets. Opec+, which groups the Organisation of the Petroleum Exporting Countries and allies led by Russia, produces about 40% of the world’s crude, meaning its policy decisions can have a significant impact on oil prices. Saudi Arabia has agreed to make a voluntary reduction of 500,000 barrels a day in its output, although it is not clear when the cuts will begin. Opec+ sources told Reuters that the group was likely to agree a “policy rollover” for 2023 and make additional reductions in output in 2024 if new production baselines, from which cuts and quotas are calculated, for members were agreed.
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