Europe grapples with energy shortages, it is ironically ceding its energy needs to an increasingly emboldened China, which welcomes the influx of Russian gas with open arms. Gas, Gold, Silver Giddyup
Interestingly, this dynamic is also likely to make gas more expensive in the future for US consumers. Today the cost of gas in the US is about 20% of what it costs in the EU. Export restrictions, denial of export permits, unfinished export terminals, and over production have led to a domestic supply glut.
However, the EU wants and needs US gas. Once the restrictions are lifted and the permits granted and construction brings 4 new export terminals online over the next 24 months, the supply glut will disappear. The EU will see prices drop, US producers will see profits rise, and US consumers will see higher prices.
Interestingly, this dynamic is also likely to make gas more expensive in the future for US consumers. Today the cost of gas in the US is about 20% of what it costs in the EU. Export restrictions, denial of export permits, unfinished export terminals, and over production have led to a domestic supply glut.
However, the EU wants and needs US gas. Once the restrictions are lifted and the permits granted and construction brings 4 new export terminals online over the next 24 months, the supply glut will disappear. The EU will see prices drop, US producers will see profits rise, and US consumers will see higher prices.