With the prices of energy resources set to further spike amid the ongoing Russia-Ukraine war, hiking inflation rates, and Moscow’s supply route standoff with Kazakhstan, primary gas state consumers are looking for ways to alleviate the rising local prices.
For its part, Germany is planning to restart its coal-fired power plants to conserve its natural gas supplies.
This follows after Russia finally turned off its energy tap on its major European clients, including Italy and France. Moscow also recently limited the oil resources flowing to the European Union states from Kazakhstan by putting a stronger route chokehold on the port that holds the shipment to the west.
The Netherlands is following suit, running its coal plants at full capacity again as the supply from Russia continues to dwindle following the sanctions imposed on it due to the ongoing war in Eastern Europe.
Germany, Russia’s biggest EU gas customer, has been finding ways how to replace the huge supply deficit coming from halting Russian gas imports. Deutsche Bank CEO Christian Sewing earlier forecasted that the country would potentially head for a recession “if imports or supplies of Russian oil and natural gas were to be halted.”
Earlier this year, Berlin shunned calls to revive its nuclear energy industry and stop decommissioning plants. Economy Minister Robert Habeck said that the country instead should focus on building an LNG terminal.
The move also comes on the heels of the inked tripartite agreement among EU, Israel, and Egypt, opening Tel Aviv’s oil exports to the European states for the first time.
Further west, US President Joe Biden is said to have been reopening the possibility of distributing gas rebate cards to alleviate the increasing prices. Treasury Secretary Janet Yellen herself that the idea is “certainly worth considering.”
“If Congress will work with [Biden] to enact some of the administration’s programs, we can bring down other costs that are burdening households,” Yellen said.
The rebate card idea has been met with some criticisms on its possible implementation mechanics, saying the chip shortage would cause card production concerns while others are wary that some Americans might not use the rebates for their intended purpose.
Earlier this month, Biden demanded American oil producers inject more output into the local market as part of their “patriotic duty.” Aside from US Energy Information Administration records showing that local production is on a steady rise, oil firms have pushed the argument back to the White House and its discouraging policies on building oil refineries.
Information for this briefing was found via The New York Times, Aljazeera, and Newsweek. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.