EU countries agree deal to cut use of gas this winter

[Naficopa]

I think that Russia is the worst sufferer in the medium and long term, as it does not have another gas supplier capable of meeting its needs, and at the same time, it does not have the necessary infrastructure to acquire liquefied gas, whose cost is very high compared to natural gas. On the other hand, he ruled out Russia's permanently cutting off gas from Europe because it is almost the last pressure card it has .

Russia is not suffering at all...If some of the buyers have left the trade there are many in line with them too.
My country also wanted to buy oil and gas from Russia but due to US and EU pressure  - they were unable to do it.

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[bestcoins1]

I am unable to understand why and how EU will reduce the oil and gas supply for consumption.
EU faces the intense weather and there is no way people would survive without oil and gas supply in these countries.

I also wonder how the EU deals with this in winter or when bad weather occurs in the EU area. But in an article on the kompas site I read that the German Network Agency Bundesnetzagentur, the regulatory authority for electricity, gas, telecommunications, postal and railways, also expressed optimism that German gas storage facilities would be able to supply gas in early winter. Even with the dwindling rate of gas shipments from Russia.

[Ozero]

I think that Russia is the worst sufferer in the medium and long term, as it does not have another gas supplier capable of meeting its needs, and at the same time, it does not have the necessary infrastructure to acquire liquefied gas, whose cost is very high compared to natural gas. On the other hand, he ruled out Russia's permanently cutting off gas from Europe because it is almost the last pressure card it has .

Russia is not suffering at all...If some of the buyers have left the trade there are many in line with them too.
My country also wanted to buy oil and gas from Russia but due to US and EU pressure  - they were unable to do it.

If your country wanted to buy oil and gas from Russia, but was unable to do so due to pressure from the US and the EU, these are the sanctions in action. Now they want to deprive Russia of the main source of income and financing of the war in Ukraine - the supply of energy resources to the world market and the receipt of currency for this. European countries are now trying as quickly as possible to reorient themselves to other markets, except for the Russian one. Oil and gas is not only in Russia. In addition, they have long adopted a program to phase out such energy carriers and replace them with alternative energy sources in order to reduce the effects of global climate change. As a result, Russia will lose a lot here in this confrontation.

[eaLiTy]

~
I am unable to understand why and how EU will reduce the oil and gas supply for consumption.
EU faces the intense weather and there is no way people would survive without oil and gas supply in these countries.

If you read the OP and the article provided you will understand the reason, it is obviously due to the ongoing war between Russia and Ukraine and Russia is the biggest oil supplier to European countries and once the war started the supply is reduced and they fear that Russia would halt the supply completely and hence they are forced to take measures to counter that.

[coupable]

I think that Russia is the worst sufferer in the medium and long term, as it does not have another gas supplier capable of meeting its needs, and at the same time, it does not have the necessary infrastructure to acquire liquefied gas, whose cost is very high compared to natural gas. On the other hand, he ruled out Russia's permanently cutting off gas from Europe because it is almost the last pressure card it has .

Russia is not suffering at all...If some of the buyers have left the trade there are many in line with them too.
My country also wanted to buy oil and gas from Russia but due to US and EU pressure  - they were unable to do it.

Russia cannot cut off its gas supplies to Europe because it imports a large part of its needs from the European market. Currently, there are those who did not comply with Western sanctions and kept importing Russian oil, for example, but for less than half its price. India and China are taking advantage of the crisis to boost their energy reserves, and Russia does not have alternatives because of the economic sanctions that have been imposed on it. Consequently, it threatens its economic strength, including cutting off Ukrainian wheat supplies to the whole world, not just Europe.

[STT]

They are blocked from importing directly from EU.    They have reserves to trade with other countries thats their plan.   Russia cannot even send their own assets towards remote sections like Kaliningrad as this too requires the assistance of NATO members who have sanctions against any Russian asset.

Do you think this will help solve the EU gas shortage for now

Its a mitigating move, this whole incident is a test of EU unity as most countries are not nearly as deeply entrenched into a gas shortage as Germany managed to do.     Its common mistakes, countries dont value their own production ability enough.   Germany required a stack of new projects as priority one far longer back then the last decade, they took the path of least resistance and leant on nations outside EU and NATO.   I hope history records this mistake will keep occurring if we dont avoid it.

[DrBeer]

I will have a good laugh if in situation, if China attacks Taiwan, countries will put sanctions against China, and business wont work with China again. Without China, every production in every country would stop. And gas problem would be less important problem among all others.

"Cut use of gas this winter" - yes please. I am fed up with that super heat from radiators. Even if I turn them off partly, I will open windows and heat the street, because +24+25C is unbearable.

...but on the other side:
- China's economy rests only on the EXPORT of its products, and sanctions will instantly kill domestic production.
- China still needs investments and Western technologies. And they won't either.

These 2 points will be enough for the Chinese economy to very quickly roll back 40 years ago, but hundreds of millions of Chinese who remember how to live in poverty, and how they live now, will clearly be against returning back to a totally poor past "

- China has no true and strong friends, and no one will help it in this situation.
- China is not idiots from the Kremlin, and they are very realistic about the situation.

And these two points indicate that, most likely, China, looking at a dying Russia, which is dying precisely because of Ukraine's international support, and pressure on Russia itself, will make a more logical decision. Which ? It's hard for me to say. Perhaps the broad autonomy of Taiwan, and for example the independence of the banking and political systems, but conditionally as part of China. Or some kind of confederation... But a stupid war is unlikely, which is guaranteed to throw China back 100 years ago!

[Naficopa]

And these two points indicate that, most likely, China, looking at a dying Russia, which is dying precisely because of Ukraine's international support, and pressure on Russia itself, will make a more logical decision. Which ? It's hard for me to say. Perhaps the broad autonomy of Taiwan, and for example the independence of the banking and political systems, but conditionally as part of China. Or some kind of confederation... But a stupid war is unlikely, which is guaranteed to throw China back 100 years ago!

I am not sure how the cold countries in EU are going to survive in winter without oil and gas supply..
The winter is going to be unique and tough this time.
In our country the temperature drops to only zero and we have gas and electricity shut down for years. And we know it is very hard to survive. What are the cold counties of EU going to do/?

[Gyfts]

Russia is not suffering at all...If some of the buyers have left the trade there are many in line with them too.

India and China are okay with continuing business with Russia for their oil despite the condemnation from the west. The problem is, the Russian economy isn't solely based on oil/gas. There's sanctions on most Russian exports from the west and India/China cannot pick up the remnants of the Russian economy on their own.

Russia is suffering, just not to the extent the west had hoped for because of the bone India and China has thrown them.

My country also wanted to buy oil and gas from Russia but due to US and EU pressure  - they were unable to do it.

Which is rather unfortunate because the west has no authority to become global arbitrators in economic affairs.

[DrBeer]

"Successes" of Russia in the oil and gas market today:
1. Gas production, only according to official data, reduced by 15%. This is an irreversible loss.
2. That part of the gas that Russia does not supply to Germany via Nord Stream 1 is simply burned. Losses of the order of 300 million dollars a month!
3. Part of the oil that Russia no longer supplies to the EU, it is forced to sell to China and India, on their terms, and this is a 40% discount to the market price, i.e. today about 50 dollars per barrel. Yes, and this is subject to more expensive transportation
4. In Europe, Russia has lost its status as the leader in gas supplies, now Norway is the leader in gas supplies, which is ready to further increase production in order to contain negative factors in the market.

[Naficopa]

"Successes" of Russia in the oil and gas market today:
1. Gas production, only according to official data, reduced by 15%. This is an irreversible loss.
2. That part of the gas that Russia does not supply to Germany via Nord Stream 1 is simply burned. Losses of the order of 300 million dollars a month!
3. Part of the oil that Russia no longer supplies to the EU, it is forced to sell to China and India, on their terms, and this is a 40% discount to the market price, i.e. today about 50 dollars per barrel. Yes, and this is subject to more expensive transportation
4. In Europe, Russia has lost its status as the leader in gas supplies, now Norway is the leader in gas supplies, which is ready to further increase production in order to contain negative factors in the market.

Where are we all heading towards?
Death - war - destruction - more destruction and killing. It's time for the world to hold the horses and let the peace grow!
Otherwise we all will suffer and there will be no end to it..

[$anounimus$]

Do you think this will help solve the EU gas shortage for now

The threat of shortages may still remain in the future, so these countries may want to minimize their dependence on Russian natural gas in the future and the EU States finally take decisive action to complete their current gas role, which could be a significant step toward ending the crisis. but we'll see how long this lasts.

My opinion This may only be a short-term solution, but it will at least help the situation for a while. Plus, prices are likely to go up soon, so maybe this will give the EU some time before the next round of price hikes.

[STT]

There isnt a solution possible in that short time frame but they can mitigate the worst effects.   So simply not heating housing separately but getting as many poor and/or elderly people to share a heated room, take part in activities together for 8 hours a day throughout winter.  Just that simple measure can greatly reduce the worst fallout of not having enough gas for heating available.
  It doesnt have to absolute miserable or negative, people coming together can feel alot like a positive so I say it will be a mix of effects.  Eventually Germany or other highly dependent countries will find their feet, people generally flip to extremes in their reaction and feat the absolute worst.  We do hope for a mild winter of course.

[LoyceV]

"Successes" of Russia in the oil and gas market today:
1. Gas production, only according to official data, reduced by 15%. This is an irreversible loss.

That's not a loss if the gas just stays in the ground.

2. That part of the gas that Russia does not supply to Germany via Nord Stream 1 is simply burned. Losses of the order of 300 million dollars a month!

I read they're flaring about 4 million m³ per day. That's a lot, but only 1% of the amount EU used to import from Russia.

3. Part of the oil that Russia no longer supplies to the EU, it is forced to sell to China and India, on their terms, and this is a 40% discount to the market price, i.e. today about 50 dollars per barrel. Yes, and this is subject to more expensive transportation

But Russia earns more from Europe than ever. Last month:

Since the invasion, Russia’s revenue from exporting oil and gas to Europe has doubled over the average from recent years, to $95 billion, the Paris-based IEA said.

The increase in Russia’s energy revenue in just the last five months is three times what it typically makes by exporting gas to Europe over an entire winter.

Why didn't EU set a price cap instead of bans? I would get it if they would have cut it off completely, but now we're literally paying more for less gas. It's the opposite of what the sanctions were supposed to accomplish. EU is basically sanctioning itself and paying more than ever to do so!

4. In Europe, Russia has lost its status as the leader in gas supplies, now Norway is the leader in gas supplies, which is ready to further increase production in order to contain negative factors in the market.

That won't last: Russia has 33 times higher gas reserves than Norway, which even at the current rate of production will only last 12 more years.

[coupable]

"Successes" of Russia in the oil and gas market today:
1. Gas production, only according to official data, reduced by 15%. This is an irreversible loss.
2. That part of the gas that Russia does not supply to Germany via Nord Stream 1 is simply burned. Losses of the order of 300 million dollars a month!
3. Part of the oil that Russia no longer supplies to the EU, it is forced to sell to China and India, on their terms, and this is a 40% discount to the market price, i.e. today about 50 dollars per barrel. Yes, and this is subject to more expensive transportation
4. In Europe, Russia has lost its status as the leader in gas supplies, now Norway is the leader in gas supplies, which is ready to further increase production in order to contain negative factors in the market.

1- I agree with you that a decline of 15 percent is a huge loss that may cause a short-term deficit.
2- These quantities can be converted to liquefied gas or simply reduce the daily production quantities, but they do not do this to maintain prices at the required level.
3- This is a cost that Russia must pay in order to be able to continue its policy of pressure through economic sanctions. India and China cannot buy these derivatives at their real price because it will cost them more than that by adding the cost of transportation and refining. Russia will surely find other buyers in the future and will sell it at its price. In addition, India and China are strategic allies.
4- Belgium cannot meet Europe's needs for Russian gas. Europe will enter into a real crisis with the advent of winter.

[Eden Loomis]

It's a short term solution but it cannot be used for a long time. In France, the government has published a law for using air condition while the door open to reduce the gas consumption. However, the significant problem is the supply, particularly the Russia-Ukrain war

[coupable]

"Successes" of Russia in the oil and gas market today:
1. Gas production, only according to official data, reduced by 15%. This is an irreversible loss.
2. That part of the gas that Russia does not supply to Germany via Nord Stream 1 is simply burned. Losses of the order of 300 million dollars a month!
3. Part of the oil that Russia no longer supplies to the EU, it is forced to sell to China and India, on their terms, and this is a 40% discount to the market price, i.e. today about 50 dollars per barrel. Yes, and this is subject to more expensive transportation
4. In Europe, Russia has lost its status as the leader in gas supplies, now Norway is the leader in gas supplies, which is ready to further increase production in order to contain negative factors in the market.

1- I agree with you that a decline of 15 percent is a huge loss that may cause a short-term deficit.
2- These quantities can be converted to liquefied gas or simply reduce the daily production quantities, but they do not do this to maintain prices at the required level.
3- This is a cost that Russia must pay in order to be able to continue its policy of pressure through economic sanctions. India and China cannot buy these derivatives at their real price because it will cost them more than that by adding the cost of transportation and refining. Russia will surely find other buyers in the future and will sell it at its price. In addition, India and China are strategic allies.
4- Belgium cannot meet Europe's needs for Russian gas. Europe will enter into a real crisis with the advent of winter.

And with this surface new ways of survival without the oil and gas.
just read in other forum about Germans testing the hydrogen train as they have not been able to get oil and gas from Russia - I believe smart and developed nations will find solution and the other countries will follow. Time for the world to cut the oil and gas supply

It is not as easy as some might imagine. All alternative options require huge resources to establish in addition to the time required to do so. The hydrogen-powered train is an old project, that is, before the Ukrainian war and the beginning of the crisis. If the world begins today to plan solutions capable of compensating for the excessive consumption of gas and oil, it is likely that work on them will be finished after ten years, as an average estimate.

[Scripture]

It's a short term solution but it cannot be used for a long time. In France, the government has published a law for using air condition while the door open to reduce the gas consumption. However, the significant problem is the supply, particularly the Russia-Ukrain war

The gas price continues to increase not just in EU but also in other countries, this kind of law is just temporary and seriously might not affect the gas consumption that much. If EU really concern about this, they should think for a long term solution because I can’t see any reconciliation with Russia to them, they should start looking for other supplier at a much lesser price.

[Sithara007]

The gas price continues to increase not just in EU but also in other countries, this kind of law is just temporary and seriously might not affect the gas consumption that much. If EU really concern about this, they should think for a long term solution because I can’t see any reconciliation with Russia to them, they should start looking for other supplier at a much lesser price.

From today (31st August) onwards, Nord Stream pipeline will be closed for gas transport. This will exacerbate the situation in Europe regarding the availability of natural gas. Now the only transport route for Russian gas to Europe at this point is the one through Ukraine. And if the supplies get disrupted there, then catastrophe awaits the Europeans. And the Europeans are getting really desperate. The French have now invaded Yemen in pursuit of natural gas (not sure whether it will be of any help for them).

[be.open]

The gas price continues to increase not just in EU but also in other countries, this kind of law is just temporary and seriously might not affect the gas consumption that much. If EU really concern about this, they should think for a long term solution because I can’t see any reconciliation with Russia to them, they should start looking for other supplier at a much lesser price.

From today (31st August) onwards, Nord Stream pipeline will be closed for gas transport. This will exacerbate the situation in Europe regarding the availability of natural gas. Now the only transport route for Russian gas to Europe at this point is the one through Ukraine. And if the supplies get disrupted there, then catastrophe awaits the Europeans. And the Europeans are getting really desperate. The French have now invaded Yemen in pursuit of natural gas (not sure whether it will be of any help for them).

Not quite so, there is also a Turkish stream from Russia to Turkey along the bottom of the Black Sea and further from Turkey to Europe (to Serbia, Hungary, etc.).