Am hearing that gas shipments from Russia to Europe have dropped dramatically- and in some cases the gas flow is now reverse. I noticed that the price of natural gas in Europe is trading at the equivalent of $340 per barrel of oil. ABMD - any observations?
Europe's energy crisis got even worse on Tuesday as a shortage of natural gas, nuclear outages, declining wind power output, and cold weather boosted prices
oilprice.com
Europe Faces Full Blown Energy Crisis As Gas Prices Smash All Records
Dependency on known bad actors makes for a suboptimal energy policy.
I'll just post
this here. The US could play a MAJOR part in supporting our allies energy needs without them having to rely on Russia if we could only get Washington to get onboard. Simply put, we need to stop attacking oil and gas companies domestically and allow them to continue to grow and market our natural resources to the world (in the form of LNG). Getting rid of coal burning power plants in places like India and China will have a faster impact to carbon emissions than giving people a tax credit to buy an electric vehicle.
I listened, for 3 HOURS!, to a energy market professional this past week talk about Hydrogen as a replacement for natural gas since it doesn't contain carbon. However, the cost, especially for "green" hydrogen, is like 20x natural gas and since it doesn't have the same energy content as an equivalent about of natural gas it takes considerably MORE hydrogen to get the same energy output. I was not convinced it is a viable alternative to natural gas and neither were several of my colleagues also in the meeting.
I said it earlier, in 2021 the US saw a dramatic increase in NG futures and in Europe is was worse. However, the US has seen a significant retraction in gas prices, futures are about 40% below where they were just a few months ago. Producers, especially in the Marcellus, have ramped up production to take advantage of prices and a warm start to winter all helped contribute to downward pressure on prices. The weather forecast has a lot to do with prices, and Nov-Dec have been well below normal for most of the country (especially the Mid-Atlantic and East Coast). January is supposed to see a double digit increase in demand relative to Jan 2020, but the market isn't pricing that in at the moment.