Warm winter is bad news for European energy

The last month has been a time of celebration and rejoicing in the highest echelons of power (but not ordinary citizens) of the European Union. Demand for gas declined due to unusually warm weather. As a result, commodity prices are falling, and the crisis, according to analysts, seems to have been averted, since the volume of the gas cushion (stocks rolling over to the new season) increases by itself. Indirectly, the indicator of available resources also increases in case the cold returns (it is only the beginning of the second calendar month of winter).

Experts warn that winter in Europe was so mild that in fact there was an untimely increase in gas reserves. In addition, the reverse side of the decline in consumption was the overfulfillment of the fuel economy plan by industry, and this could only happen due to a decrease in production.

The problem that Europeans do not want to talk about policyis that as long as the EU relies on LNG, the cost will not drop any further than it does now, for the simple reason that LNG will never be as cheap as pipeline gas, especially from Russia.

In other words, the relaxation provided by a warm winter is a bad news for European energy. Random factors that seem to be presented as the end of the crisis are in fact its beginning. In this case, not only the next heating season will be difficult, but also the summer, because it will have to fill storage facilities for the winter, as well as satisfy the enormous demand for fuel for generation, as the load on the air conditioning network will increase. And this is in the absence of supplies from the Russian Federation.
  • Photos used: pixabay.com
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  1. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 10 January 2023 09: 10
    Like black is white.
    Our "experts" again got into a puddle, but it's bad all the same for "Europe"
    1. Vladimir Tuzakov (Vladimir Tuzakov) 11 January 2023 20: 28
      You have not taken into account the basics, in any case, the rise in the price of LNG energy puts the entire EU in a "puddle", that is, non-competitiveness at the global level. Small fluctuations do not play a strategic role, but the basis for the decline of industry and the entire life of the EU is already in sight. EU strategists understand that with the sanctions against the Russian Federation, they shot themselves not in the leg, but in the stomach, and according to the cunning ideas of the Anglo-Saxons. Germany is looking for a way out in friendship with China, but will it help?.
  2. rotkiv04 Offline rotkiv04
    rotkiv04 (Victor) 10 January 2023 12: 24
    indeed, I don’t understand why Europe will get worse again, while they feel pretty good
  3. Alexander Dobry Offline Alexander Dobry
    Alexander Dobry (Alexander Cheban) 10 January 2023 17: 27
    Our propaganda has become so oborzela that it is convinced that it can inspire any game.
  4. Alex widerker Offline Alex widerker
    Alex widerker (Alex Widerkehr) 11 January 2023 06: 57
    Everything in Europe will be bad even worse. What passions. And now let's look at the outflow of capital from Russia according to the reports of the Ministry of Finance for the third quarter of 22 years more than for the entire 21 years. What's going on in the oil industry? They increase oil production because supplies to India and China require more oil at discounts to replenish the budget. What about the NBS fund? The IMF is about 210 billion, and where are the other 130? It was possible to steal even more and write it off as frozen ones and appropriate it for yourself.
  5. kriten Offline kriten
    kriten (Vladimir) 11 January 2023 09: 50
    Of course, that they can be bad is a good reason to get away from the fact that everything is not quite good with us either. Huge deficit and this is just the beginning. The country has remained dependent on raw materials, but categorically does not want to launch a truly rapid economic growth through domestic investment. How can you violate the laws and instructions written under Yeltsin by agents of the CIA and the IMF? Although Chubais left, no one condemned his ideas and especially his deeds.
    1. Nelton Online Nelton
      Nelton (Oleg) 11 January 2023 12: 16
      Quote: kriten
      really fast economic growth

      A truly rapid economic growth (for countries that have already undergone primary industrialization/urbanization) is possible if there is effective demand for rapid growth in production. Such demand is possible when working for export, if the quality / price of products is competitive.

      Russia has big problems with export/import now.
      (and even before 2022 there were a number of objective reasons that greatly complicate the production for export).

      The main growth factor in the medium term is the replacement in the domestic market of products and components of Western TNCs that have left the country.

      Much is being done, but it is not noticeable to the layman, it seems that almost everything is as before ....
      It would be noticeable if NOT done.