The EU avoided the trade war with Donald Trump, promising to buy US oil and gas worth $ 750 billion until the end of his term. However, achieving this goal is estimated to be not possible.
As Politico reports, Brussels has no plan on how the energy agreement can be implemented, but regardless of the details, achieving this goal is extremely difficult, among other things because of the limited supplies that the USAtechnical obstacles and unauthorized control over imports in the EU.
“Are completely unrealistic target‘, Laura Paige, the Kpler Company, says expert on natural gas issues. ‘Numbers are beyond any limit’notes.
The EU is increasingly buying a liquefied natural gas (LNG) from the US after Russia’s invasion of Ukraine, while Trump often mentions the US energy market as a lever for relaxing commercial tensions with the EU.
‘The market for US energy products will differentiate supply sources We will contribute to Europe’s energy security, “European Commission President Ursula von der Layen said on Sunday, noting that this move will also help the block in its current attempt to” replace Russian gas and oil with LNG “.
‘We are ready to move on to these markets’, The head of the EU Trade Department Maros Sefkovic reiterated Monday. ‘We believe that these numbers are feasible’, He stressed.
But not everyone believes that these numbers come out.
The EU spent 375 billion euros For energy imports last year, including 76 billion euros by the USAsays Page, which means that the block should essentially triple US imports him over the next three years. And along the way he should abandon other providers, such as Norway, which provides cheaper gas through pipeline.
Nor would the removal from Russian energy made a big difference: the EU has just spent 23 billion euros For imports of oil, gas and nuclear from Moscow last year.
Respectively, the USA They only sent $ 166 billion in oil and natural gas Abroad, Paige explained, which means that they should divert all their exports to the EU – and more.
This “will never happen,” the expert notes, explaining that exports of liquefied natural gas are not intended exclusively for a market.
And this is not the only technical difficulty. The EU today buys the 12% of oil and of their fuel her by USAaccording to Homaygun Falakassi, head of crude oil analysis in Kpler.
This percentage could risen to 14%, Since EU refineries can manage only limited quantities of the particular mixture of America’s oil. ‘It’s a fantasy (the EU plan)’ ‘notes the expert.
And a senior EU official also stated that the agreement would depend on specific “conditions“, Such as Europe’s infrastructure and US shipping capacity.
But the numbers they are not fictitious The official insisted. “They are based on analysis of our needs.”
Another challenge is the How do Brussels will facilitate these purchases, since The EU does not buy energy but companies.
“The EU is not a company, so will they force EU companies to buy gas and oil from the US?”the expert wonders. And notes that “If there is a commercial logic behind it, then the companies will agree, otherwise they are words of the air.”
Unclear is why the EU is committed to such ambitious goals Once he is aware of the challenges that exist, comments by Ann Sophie Corbo, a senior researcher and gas expert at the Center for Global Energy Policy. According to her, it seems to be«The EU was ready to agree on any number to avoid 30% duties”
Source: Skai
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