OilPrice Called "The Real Reason" Why Russia Doesn't Increase Gas Supplies To Europe


In the situation of the European energy crisis, many world experts accuse Russia of allegedly evading gas supplies for political reasons. Experts of the OilPrice resource present their point of view on Moscow's “unwillingness” to supply large volumes of “blue fuel” to European consumers.


The point is that Russia's ability to regulate natural gas markets appears to be very limited. According to an expert at the Center for Comprehensive European and International Studies of the National Research University "Higher School economics"Vitaly Ermakova, Gazprom is currently operating at full capacity, increasing gas production to maximum levels at all key fields. However, the Russian corporation is unable to allocate large volumes of gas for export to Europe for a number of real reasons.

First, very low gas prices in 2020 forced producers to withdraw large volumes of gas from storage in order to minimize transportation costs and reduce losses.

Second, the cumulative impact of high demand for gas fuels, extreme weather conditions and limited LNG supply in Europe has resulted in an extremely limited market and high prices. Gazprom has indeed succeeded in fulfilling all of its contractual obligations and increasing supplies to the EU, but could not solve the problem of the continent's energy security alone.

In the long term, Russia will be able to ensure large volumes of gas production and supply by signing new contracts. But so far the Russian Federation is not ready to spend billions of dollars only on maintaining free production capacity and meeting surges in demand in Europe and other countries. In addition, many Russian natural gas fields are in the development stage, which makes this task even more difficult.
  • Photos used: https://www.maxpixel.net/
1 comment
Information
Dear reader, to leave comments on the publication, you must sign in.
  1. gorenina91 Offline gorenina91
    gorenina91 (Irina) 17 November 2021 14: 52
    -7
    In the long term, Russia will be able to ensure large volumes of gas production and supply by signing new contracts. But so far the Russian Federation is not ready to spend billions of dollars only on maintaining free production capacities and meeting surges in demand in Europe and other countries.

    - Here ... here - exactly what - what I personally am here ... here ... here I am writing ...
    - Namely in the subject:

    Six months later, it begins to emerge what Putin and Biden agreed on in Geneva

    about this part of my comment:

    Damn ... - what, what "profit does not work SP-2" ???
    - Yes, it made it possible for speculators to inflate prices on the spot market and make fortunes ... - just out of thin air !!!
    - And what does Russia get from all this ??? - After all, Gazprom has not entered the spot market ... - but it has already received losses. SP-2 is already being serviced by specialists at idle, and Gazprom has already been imposed with new fines ...

    - And in the subject:

    Germany explained why the certification of Nord Stream 2 was stopped

    - again my comments:

    And what did Gazprom get ??? - only "funds for food - for its further existence" and in order to continue working for Europe ... - Gazprom was not even allowed to enter the spot market in order to trade its expensive Russian gas ...
    - and now Gazprom is humbly waiting for the SP-2 pipeline to be "certified" ... - Well, it's just laughing!
    - Damn, "strangers" sold expensive Russian gas - the same volume - "three times" - and Gazprom was paid for the same volume - only once, and even Gazprom had to pay fines (and will continue to pay fines) and continue to pay the cost and construction of the entire SP-2 pipe ... - from their "profit" ... - So who benefits from this orgy with Russian gas ??? - And who is the sad sucker ???

    - Okay - I won't ... - the format does not allow ...
    - The author of the article is clever ...
    - The author is my plus ...