The EU Agrees to Buy More LNG From The United States
- Aug 1, 2018 10:58 pm GMT
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In what could be certainly considered great news for our energy industry, the European Union has agreed to import more LNG from the United States.
After meeting President Trump at the White House, Jean-Claude Juncker, the President of the European Commission, stated that the EU will strengthen its energy partnership with the US and increase the amount of LNG imports significantly in the coming years.
Though this is only logical and they did not have too much of a choice. They want American protection? They better stop giving billions to Russia!
Trump’s Diplomatic Victory
The announcement comes in the wake of Trump’s pointed criticism towards European countries, Germany in particular, for being dependent on Russia for their natural gas needs. He raised the issue of the Nord Stream 2 Pipeline, which bypasses Ukraine and connects Russia with Germany directly.
The pipeline gives Russia tremendous geopolitical leverage against Eastern European countries while maintaining its status as the chief energy supplier to the lucrative Western European market.
While many European countries are already buying natural gas from the United States, President Trump stated that he wants them to increase their imports so that they could reduce their dependence on Russia.
Trump’s offer to the EU makes sense as the United States is currently the largest producer of natural gas in the entire world and our capacity is only going to increase. We have perfected the technology of fracking, which allows us to extract more natural gas than what was considered possible earlier.
With our exports set to increase considerably in the coming years, it only makes sense to target the EU, which could potentially be a highly lucrative market for our natural gas companies.
EU’s Decision to Increase Natural Gas Imports from the United States
After meeting with Trump, Juncker said that the EU will further its partnership with the United States in terms of energy imports in the coming years. He also added that the EU is planning to build more terminals to import LNG (liquefied natural gas) from the US.
Juncker said that many countries in the EU already buy LNG from the US and their needs will increase considerably in the coming years as they move away from Russia and choose the US as their primary energy supplier.
Moreover, their LNG imports also have to keep up with their increasing rate of energy consumption. So, the EU is undoubtedly going to be a massive market for the US and the European Commission is looking to be make things easier in terms of regulations and trade deals to streamline the process of importing LNG from the US.
The US Marching Towards Energy Dominance
In the past couple of years, there has been a distinct change in the US energy policy as it moved away from the oft-stated ‘energy independence’ to a more assertive ‘energy dominance’. Despite the claims of environmentalists, natural gas remains the biggest and most reliable energy source not just for the United States, but for most other countries in the world.
With our rapidly increasing energy production capacity, we are on the verge of becoming the most dominant player in the international energy market. The new EU deal is yet another milestone that will help us achieve our goal of energy dominance in the very near future.
Good job Trump and Rick Perry.
A Frightening Scenario
If Hillary won, America would still be in a recession and still trying to force the issue with solar and wind which is absolutely ridiculous. America would have millions of less jobs, would be paying more for their electricity and gas for their cars, and Europe would still be hooked to Russian energy which is akin to enriching the bully or the threat living down the street from your house. Not ideal at all!