Whether it’s chemicals or steelmakers, demand for natural gas from Europe’s power-hungry industrial heartland was slammed hard by the energy crisis that unfolded after Russia’s invasion of Ukraine.
The largest consumers of the fuel still appear reluctant to run their businesses at full steam after the record surge in power and gas prices prompted them to curb production over the winter.
The sustained demand shortfall is one of the main reasons European gas prices have collapsed 60% this year alone.
Unless something fundamental changes in the short-term — perhaps record-high storage levels unexpectedly dropping due to extreme hot weather and an increase in demand for cooling — prices are set to remain under pressure.
And who can blame them.
Well, moving production to China is a plan: More companies setting ‘net-zero’ climate targets, but few have credible plans
Economics is a difficult subject for socialist/communist politicians, war or no war.
“prices are set to remain under pressure.”
They’re at their lowest point in 2 years, well before Putin invaded. Not much above historical average.
https://www.celsiusenergy.net/p/european-natural-gas-inventories.html?m=1
Storage levels are very high
Europe will likely meet their GH gas emissions target they signed on to several years ago.
I mean, isn’t this what it’s all about?
South Africa Beats Climate Goal as Blackouts Slash Emissions
https://financialpost.com/pmn/business-pmn/south-africa-beats-climate-goal-as-blackouts-slash-emissions
“Yay!!!! We did it!!!!”
And the race to the bottom continues.
“…demand for natural gas from Europe’s power-hungry industrial heartland was slammed hard by the energy crisis that unfolded after Russia’s invasion of Ukraine…”
“…demand for natural gas from Europe’s power-hungry industrial heartland was slammed hard by the energy crisis that unfolded after Joe Biden bombed Nordstream 1 & Nordstream 2…”
I fixed it for you. You’re welcome.
Read this.
https://www.reuters.com/business/energy/renewable-energys-share-german-power-use-tops-50-q1-2023-04-28/#:~:text=Within%20the%20output%20total%2C%20renewables,power%20production%20volumes%20dropped%204.3%25.