Source: People's Daily
On October 18, the European Commission proposed new emergency measures such as joint natural gas purchases, the implementation of a price limit mechanism for European gas benchmark prices, and the coordination of energy supplies from EU member states to cope with high EU natural gas prices and ensure the security of energy supply this winter. The picture shows a vehicle passing through the European Commission headquarters building in Brussels, Belgium.
Photo by Xinhua News Agency reporter Zheng Huansong
According to Bloomberg, French President Emmanuel Macron recently "fired" at the United States again, accusing the United States of "double standards" in the sale of natural gas, saying that the price of US liquefied natural gas to Europe is "three to four times" that of the United States. This is not the first time Macron has expressed dissatisfaction on the issue. On October 6, Macron said that this practice of the United States "is not something that true friends should do and must stop."
After the outbreak of the Russian-Ukrainian conflict, the United States wooed European allies to sanction Russia and encouraged the European Union to carry out an energy embargo on Russia, and its counter-phagocy effect plunged Europe into an energy crisis. In the face of Europe's energy dilemma, instead of "pulling brothers along", the United States took the opportunity to "sit on the ground and raise prices" and grab huge profits, which caused strong dissatisfaction among European countries.
United States -
High prices for gas transmission to Europe, reaping huge profits
In June, the European Commission adopted new gas storage regulations, requiring member states to fill 80% of the capacity of storage facilities by November this year to strengthen EU gas supplies. In recent months, EU countries have stepped up their "stockpiling" to prepare for the coming winter.
According to data released by the European Natural Gas Pipeline Network Alliance, with the EU proposing eight rounds of sanctions against Russia from February to October this year, as of October 4, Russia's gas transmission to Europe has decreased by about 82% year-on-year. Meanwhile, across the Atlantic, U.S. liquefied natural gas (LNG) is being shipped to Europe in large quantities. Statistics from Refinitiv, a provider of financial market data, show that in September, the United States sent 87 ships for LNG exports, with a total load of 6.3 million tons, of which nearly 70% were destined for Europe, much higher than the 56% and 63% in the previous two months; From January to June this year, US LNG exports to Europe reached 39 billion cubic meters, more than in the whole of last year.
However, many European countries have found that the price of natural gas sent by the United States is not "friendly". The US financial media "Business Insider" quoted industry insiders as saying that the purchase of LNG from the United States to fill a ship at a price of about $60 million, and the selling price soared to $275 million after arriving in Europe, an increase of 358%. Excluding transportation costs, each LNG carrier earned more than $150 million. According to Agence France-Presse, the price of LNG imported from Europe from the United States exceeds the price of Russian gas pipeline supply by at least 3 times. The media also quoted data from the US Energy Information Administration as saying that the price of LNG exported by the United States reached $12.76 per thousand cubic feet in July, an increase of 76.5% year-on-year; The price in June was as high as $14.37, an increase of 119% year-on-year.
While European countries are eager to fill their gas reservoirs, American energy giants are making a lot of money. In the second quarter, Cheniere Energy, the largest U.S. LNG producer and exporter, reported a net profit of $741 million, compared with a loss of $329 million in the same period last year. At the same time, American energy giants ExxonMobil and Chevron have also made amazing gains. Cherny co-founder and former CEO, American energy tycoon Charif Sukee, even bluntly said: "As Europe faces the first of many 'miserable winters', the United States will be the biggest beneficiary." ”
"The starting point of the current round of energy crisis in Europe is the Russia-Ukraine conflict. For some time, the United States has continued to arch the conflict, trying to strengthen its strategic binding and control over Europe from energy, security, finance and other fields. Wang Shuo, a professor at the School of International Relations of Beijing Foreign Chinese University, analyzed in an interview with this reporter that the United States has three strategies: First, take advantage of the European energy crisis to sell LNG at high prices, and American energy giants grab high profits; The second is to provide a large amount of military assistance to Ukraine, vigorously exaggerate the Russian threat, aggravate the sense of insecurity in European countries, and urge them to increase their armaments, and the US military-industrial complex has taken the opportunity to make a lot of money; Third, the Fed's aggressive interest rate hikes have put pressure on the euro, European inflation remains high, the economy faces the risk of recession, and US financial giants have also received a piece of the pie.
Europe -
It's costly and risky
At present, the EU has achieved the goal of requiring member states to reach at least 80% of their gas storage capacity by this winter. According to the European Gas Infrastructure Association, many EU countries have good gas storage, and natural gas stocks in Germany, France, Spain and other countries have exceeded 90% of gas storage capacity. For this, European countries paid a high price. Statistics released by the German Federal Economic and Trade Agency show that in the first five months of this year, Germany's gas import bill increased to 26.3 billion euros, compared with only 10.1 billion euros last year; Imports fell 22.9 percent in the same period this year, while costs rose 160 percent. Industry insiders pointed out that Europe's natural gas spending this winter will reach 10 times that of previous years.
European natural gas prices have recently fallen due to a combination of factors such as sufficient stocks, insufficient receiving terminal facilities, falling demand and high temperatures. In this regard, Yan Jin, executive director of the Center for European Studies of Chinese Minmin University, analyzed to this reporter that the EU has basically completed the "gas storage" goal, which does not mean that the energy crisis has passed. The reasons for the current round of energy crisis in Europe include the severance of traditional energy links between Russia and Europe, and are also related to the previous overly aggressive new energy policies of European countries. At present, European energy prices are still much higher than the same period last year, and as the weather turns colder and the demand for energy increases, the possibility of the energy crisis continuing to worsen cannot be ruled out.
International Energy Agency Administrator Birol recently warned that as the northern hemisphere enters winter, continued high energy prices and supply shortages will be a constant risk for Europeans.
Ding Chun, director of the Center for European Studies of Fudan University, analyzed to this reporter that at present, although the natural gas storage rate of some European countries has basically been in place, if the Russian-Ukrainian conflict continues, the supply and demand of the European energy market is still facing huge uncertainty. Even if gas supply is barely guaranteed, European countries will bear a series of pressures brought about by high prices: the production costs of related enterprises will rise, prompting industrial migration and industrial restructuring; The cost of living for poor families has increased, and more government subsidies are needed; Exacerbate the accumulation of fiscal deficits and public debt, increase the risk of recession, etc. In addition, the United States engages in "double price standards" for natural gas, which objectively also prompts European industries to move to the United States.
For some time, due to the high energy prices, some energy-intensive enterprises in Europe have been forced to stop production or transfer production lines, and the United States is one of the investment destinations of many European manufacturing companies. According to the German Handelsblatt newspaper, Oklahoma alone has recently attracted more than 60 German companies to invest and expand their business. Dutch fertilizer company OCI has slashed ammonia production in Europe, investing hundreds of millions of dollars to expand its plant in Beaumont, Texas, USA.
Yan Jin pointed out that the United States sells natural gas to Europe at high prices, which aggravates the energy and economic burden of European countries. Discontent in Europe is rising in the face of multiple pressures including high energy prices, compressed energy use, rising inflation, and economic and employment difficulties.
U.S.-European Relations——
Exposing deep-seated contradictions, the two sides "look at each other"
In the past few days, European countries have criticized the United States for making "energy money." German Vice Chancellor and Minister of Economy and Climate Protection Robert Habeck recently said in an exclusive interview with the Munich Courier that some "friendly" countries supply natural gas to Germany at excessively high prices, taking advantage of the Russian-Ukrainian conflict to make "war money". Klaus Ernst, a member of the German Bundestag, also said that Germany is now increasing imports of expensive LNG from the United States, mainly because American companies are making profits.
French Economy and Finance Minister Le Maire criticized the US economic power in his speech to the National Assembly a few days ago. He said that French industry is directly affected by high energy prices, some companies are reducing production, and some companies are shifting production lines to areas with low energy prices, such as the United States and Canada, which threatens France's reindustrialization strategy. He also said that "France cannot allow the Ukraine crisis to cause the US economy to dominate the world and weaken the European economy" and needs to seek a more balanced economic relationship between the United States and the European continent in areas such as energy.
"The United States has engaged in 'double standards' in energy prices, showing the profit-seeking nature of capital." Ding Chun pointed out that in the short term, US energy companies have grabbed high profits, but they have further aggravated Europe's economic and livelihood difficulties. Europe realizes that it is unreliable to rely entirely on U.S. oil and gas supplies, and should seek diversified sources of energy imports to avoid being choked by U.S. suppliers. In the long run, as far as US-European relations are concerned, Europe has a greater understanding of the unreliability of the United States as an ally, which will prompt Europe to adhere to the road of strategic autonomy and pursue greater independence.
Yan Jin said that the United States "robbed Europe" in the energy field, and did not hesitate to sacrifice the interests of its allies in order to safeguard its own interests, which will further affect the strategic mutual trust between the United States and Europe. European countries are increasingly realizing that "the time has come to take their destiny into their own hands". In the face of the current multiple crises, European countries should enhance their strategic autonomy and avoid becoming "pawns" of the United States to maintain its hegemony.
In Wang Shuo's view, in the context of the ongoing Russian-Ukrainian conflict, Europe is unlikely to completely break away from the control of the United States, and can only be forced to sacrifice certain economic interests in exchange for security interests, which is a major blow to the process of European strategic autonomy. "In the future, the United States and Europe will still show 'solidarity' among their allies on the surface, but the discord between the two sides may further deepen."
People's Daily Overseas Edition ( November 03, 2022 Edition 06)