Europe Needs A New Source of Oil and Gas, Fast 

Summer is over and many Europeans may have to keep warm this coming winter by thinking about their summer holidays while wrapped in blankets, praying for a short winter or for the world to come to its senses. It both cases, they may well be disappointed.

The never-ending conflicts in the Middle East, mayhem in Libya, uncertainty in the Gulf and a war in Ukraine are all going to take a toll on the energy supplies this winter.

Russia sold 86 billion cubic meters of gas last year, all of which passed through Ukraine. Given what’s happening there now, it is highly unlikely that the Russians would allow their gas to transit a country they are (unofficially) at war with. Just as it is unlikely that Ukrainians would allow Russian gas access through its territory.

Result? Many cold Europeans, many angry Europeans and many very pissed off Europeans. Many Europeans will have to make do without enough gas to heat homes, offices and factories.

And what does history tell us about cold, angry, pissed-off Europeans? Well, whenever two opposing camps got cold, angry and pissed off enough at each other in the past, they typically went to war.

What Europe desperately needs is a source of energy that with not be interrupted by conflict or politics, that can be delivered via pipeline or by sea, but will not need to transit through sea lanes in areas of conflict.

And although EU Energy Commissioner Guenther Oettinger said last week that he is not worried about gas supplies from Russia via Ukraine, that show of confidence did not stop him from going to Moscow to plead Europe’s case with the Russians.

Source: oilpricecom

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