EU countries agree deal to cut use of gas this winter

[DrBeer]

No matter how the Kremlin terrorists tried to economically terrorize a small part of the EU (Germany, France, Italy, Hungary) by shutting off the gas valve, irreversible processes of degradation have already begun in the Russian economy. They will no longer be saved by stopping the pumping of gas to these countries, moreover, it will lead to the destruction of the gas industry! Why ? Because Russia is a backward country, with a very primitive and inflexible gas infrastructure, and they will simply have nowhere to put such volumes of gas, which will make it necessary to preserve production. Well, or stupidly burn at a loss By the way, as is already being done with gas that is not supplied, in violation of the contract, to Germany.
We sit back, pour our favorite drink, and watch online how the supposedly "powerful economy of Russia" turns into dust, but the real fake and primitive economy of a third world country

[Xampeuu]

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).

and what is happening now with this policy is that the EU community is the victim. Until now inflation has occurred on a large scale, and of course this is like suffocating the people. quite miserable. and not only for the EU, of course the whole world will be affected, because many other countries need products from Europe to meet their daily needs. I hope that good diplomacy will take place soon, considering that so far there doesn't seem to be an agreement to relieve each other. I'm afraid that this kind of condition will have a bigger impact than the occurrence of war

[DrBeer]

How the Kremlin wants their fantasies to come true! Otherwise, their entire history, achievements and felicity, being 100% fake from birth, will collapse and bury under them all this formation that is morbid for the whole world, under the name of the Russian Federation.

So, what does the picture look like as of September 1 regarding the filling of European gas storages, according to the system of ensuring and guaranteeing the work of industry and providing households? After listening to the idiotic squeals from Russian terrorists, the first opinion is that Europe will definitely freeze this winter! This is how the situation is presented.

But there is a reality and it is like this:
% filling of gas storage facilities, from the standard, excluding 15% savings in 2022/2023 (!!!), as of September 01, 2022


Austria 67.54%
Belgium 89.64
Bulgaria 62.64
Croatia 78.48
Czech Republic 82.27
Denmark 94.4
France 92.4
Germany 85.02
Hungary 64.57
Italy 83.33
Latvia 49.8
Netherlands 78.76
Poland 98.98
Portugal 100
Romania 74.3
Slovakia 78.38
Spain 85
Sweden 90.8


PS most importantly - unlike Russian fake news, the above facts can be CHECKED

[LoyceV]

% filling of gas storage facilities, from the standard, excluding 15% savings in 2022/2023 (!!!), as of September 01, 2022

We won't freeze to death, but it's terrible for industry. Just recently, several large factories had to shut down because of high gas prices. That means less jobs and more importing, and none of that is good considering the current inflation and euro exchange rate.
Heating isn't the main reason for our high gas consumption.

[Sithara007]

% filling of gas storage facilities, from the standard, excluding 15% savings in 2022/2023 (!!!), as of September 01, 2022

We won't freeze to death, but it's terrible for industry. Just recently, several large factories had to shut down because of high gas prices. That means less jobs and more importing, and none of that is good considering the current inflation and euro exchange rate.
Heating isn't the main reason for our high gas consumption.

It is bad for the German heavy industries in particular. Compared to other countries such as China and South Korea, they have high labor costs. They were competitive just because of the cheap gas. Previously gas at East Asian hubs used to be much more expensive when compared to European hubs, but now the scenario is reversed. Japan is another country which has taken the suicide pill. They just went ballistic to prove their loyalty to the United States, and announced a total embargo on gas and oil from Russia many months ago.

[be.open]

% filling of gas storage facilities, from the standard, excluding 15% savings in 2022/2023 (!!!), as of September 01, 2022

We won't freeze to death, but it's terrible for industry. Just recently, several large factories had to shut down because of high gas prices. That means less jobs and more importing, and none of that is good considering the current inflation and euro exchange rate.
Heating isn't the main reason for our high gas consumption.

It is bad for the German heavy industries in particular. Compared to other countries such as China and South Korea, they have high labor costs. They were competitive just because of the cheap gas. Previously gas at East Asian hubs used to be much more expensive when compared to European hubs, but now the scenario is reversed. Japan is another country which has taken the suicide pill. They just went ballistic to prove their loyalty to the United States, and announced a total embargo on gas and oil from Russia many months ago.

Yep, it seems that the steelmakers were the first to go under the knife.

[Sithara007]

My Ukrainian friend posted somewhere here a few weeks ago that Saudi Arabia is planning to increase the crude oil production by 3 million barrels per day. I immediately refuted this claim. And now the news has come out that OPEC will actually reduce their production by 100,000 barrels per day, starting from October.

https://www.business-standard.com/article/markets/opec-to-cut-crude-oil-output-by-100k-barrels-per-day-from-october-122090501248_1.html

The Organization of the Petroleum Exporting Countries (Opec) and its partners, such as Russia, collectively termed Opec+, have decided to cut crude oil production by 100,000 barrels per day (bpd) from October onwards, at a meeting on Monday.

I am a bit perplexed. What was the purpose of Biden's visit to Saudi Arabia recently? After meeting with Mohammed bin Salman Al Saud, he was claiming that the Saudis will pump oil like there is no tomorrow.

[WatChe]

My Ukrainian friend posted somewhere here a few weeks ago that Saudi Arabia is planning to increase the crude oil production by 3 million barrels per day. I immediately refuted this claim. And now the news has come out that OPEC will actually reduce their production by 100,000 barrels per day, starting from October.

https://www.business-standard.com/article/markets/opec-to-cut-crude-oil-output-by-100k-barrels-per-day-from-october-122090501248_1.html

The Organization of the Petroleum Exporting Countries (Opec) and its partners, such as Russia, collectively termed Opec+, have decided to cut crude oil production by 100,000 barrels per day (bpd) from October onwards, at a meeting on Monday.

I am a bit perplexed. What was the purpose of Biden's visit to Saudi Arabia recently? After meeting with Mohammed bin Salman Al Saud, he was claiming that the Saudis will pump oil like there is no tomorrow.

The irony is that the conflict between ukarine and Russia has gone in the background and now more focus is on energy prices in Europe.
Nord Stream pipeline will not pump gas to EU because of some leakage problem. (Source). Its now very much clear that Russia don't wanna supply gas to Europe until EU lifts sanctions from Russia.

[Sithara007]

The irony is that the conflict between ukarine and Russia has gone in the background and now more focus is on energy prices in Europe.
Nord Stream pipeline will not pump gas to EU because of some leakage problem. (Source). Its now very much clear that Russia don't wanna supply gas to Europe until EU lifts sanctions from Russia.

Russia is still transporting gas to the EU through Ukraine. From what I heard, the Urengoy-Pomary-Uzhgorod is still transporting 35 to 40 million cubic meters of gas every day:

https://www.reuters.com/business/energy/russian-gas-flows-eu-via-ukraine-remain-stable-nord-stream-stays-shut-2022-09-06/

It is quite confusing. They can rather redirect this flow to the Nord Stream1. If they use the Ukrainian pipeline, then they need to pay transit fee to Ukraine. So I don't understand the point in refusing to use Nord Stream1, and at the same time relying on the Ukrainian pipeline to transport gas.

[amishmanish]

It's so strange, Europe bought 2 world wars for themselves and rest of the world, yet after 70  years. Once saviour in world war Russia and rest of the world is again seem to be standing up in arms against each other.. ah!  humanity never learn...Had not not really knocked Russian doors, there would not had be any reason of fight between Russia and Ukraine. Now we have set in a chain reaction and we need to stop it somewhere

[DrBeer]

We do not pay attention to people mentally affected by Russian propaganda, we just read facts from real life

- The EU plans to double the import of gas from Azerbaijan in 5 years. Brussels sees in Baku the most important partner in ensuring the security of gas supplies. According to the head of the European Commission von der Leyen, the EU intends to double the volume of gas imports from Azerbaijan within a few years.

- EU fills gas storage on schedule but pays exorbitant price - Reuters. Well, how did you want to be friends with a world terrorist and dream that this will pass unnoticed? No, it does not happen, this is a small "lesson" for the future ..

- Residents of Russia will be forced to pay a new fee for gas after the supply to Europe is cut off; D Well, how without a "terpily"? Someone should also be responsible for the idiotic antics of the old rubber asshole from the Kremlin!

- "Fraternal China for Russia" helps Russia with all its might! "China has taken hostage $100 billion of Russia's reserves." Having invested 17% of its gold and foreign exchange reserves in the yuan, the Russian authorities admitted that it was simply impossible to withdraw funds from Chinese assets.

- And "brotherly India" is also not far behind! India has sharply reduced purchases of Russian oil after the visit of US officials. Over the month, the flow of Russian oil to India shrank by 40%: at the end of July it was 960,000 barrels a day, in mid-August - 740,000 barrels, and last week - 570,000. China bought at the same time bought 810,000 barrels a day - 35% less than in early June.

- 78% of EU citizens support economic sanctions against Russia, almost 70% are in favor of continuing military supplies to Ukraine from EU countries - latest Eurobarometer poll

... I could continue for a long time about the "successes of Russia"

 

[tygeade]

It's so strange, Europe bought 2 world wars for themselves and rest of the world, yet after 70  years. Once saviour in world war Russia and rest of the world is again seem to be standing up in arms against each other.. ah!  humanity never learn...Had not not really knocked Russian doors, there would not had be any reason of fight between Russia and Ukraine. Now we have set in a chain reaction and we need to stop it somewhere

The problem is not "knocking on the doors of Russia", that is the problem. Propaganda by the Russians is that "they came all the way into our borders, we had no choice left!!" and the reality is that Ukraine is an independent nation that has the right to make decisions independently.

If Ukraine as a nation wants to join EU, they have the right to do that, saying that "they came to our borders!!!" means that Ukraine does not have the right to join EU just because Russia doesn't want them to, is that independence? Of course not. This is why there was absolutely no legit reason for Russia to attack, and they are just pure bad people for doing it, not Russians of course, all the Russians I met are lovely people, it is only Putin that is evil.

[be.open]

It's so strange, Europe bought 2 world wars for themselves and rest of the world, yet after 70  years. Once saviour in world war Russia and rest of the world is again seem to be standing up in arms against each other.. ah!  humanity never learn...Had not not really knocked Russian doors, there would not had be any reason of fight between Russia and Ukraine. Now we have set in a chain reaction and we need to stop it somewhere

The problem is not "knocking on the doors of Russia", that is the problem. Propaganda by the Russians is that "they came all the way into our borders, we had no choice left!!" and the reality is that Ukraine is an independent nation that has the right to make decisions independently.

If Ukraine as a nation wants to join EU, they have the right to do that, saying that "they came to our borders!!!" means that Ukraine does not have the right to join EU just because Russia doesn't want them to, is that independence? Of course not. This is why there was absolutely no legit reason for Russia to attack, and they are just pure bad people for doing it, not Russians of course, all the Russians I met are lovely people, it is only Putin that is evil.

The conflict between Russia and Ukraine has torn off many masks. The European Union has turned out to be a colossus with feet of clay, whose power is based on cheap resources and energy from Russia and cheap labor from Eastern Europe. NATO turned out to be an incompetent impotent and a pale shadow of AUKUS. Great Britain found itself without a Queen and with an unscrupulous opportunist prime minister. If Russia seriously turns to the east, Europe is fucked.

And if Russia does not turn its back on Europe and extends a helping hand to it, it will take control over Ukraine, Poland, the Baltic states and the Balkans in return. Therefore, the European Union is fucked up anyway.

Europe will have to learn to live with this in the next few years.

[be.open]

Meanwhile, European ministers have backed down on divisive proposals to cap Russian gas prices. The EU plan calls for governments to strip excess revenues from wind, nuclear and coal-fired power plants, which can currently sell their energy at record gas-driven prices, and use the money to rein in consumer bills. This is the funniest thing I've read this week.

[DrBeer]

The terrorists from the Kremlin, instead of pleading guilty, stopping the war and trying with a more or less adequate country, decided to continue terror, both military and economic, and spend huge amounts of money on "advertising the cold winter" through their manual media and propaganda peddlers .. .. But gas is getting cheaper and cheaper... Moreover, this is the price of futures, i.e. future prices. In a word, we are watching how the resource economy of Russia, a third world country, will fall apart after a military defeat

We look at the "bloody snot" of Russian gas here
https://ru.investing.com/commodities/natural-gas-streaming-chart

[LoyceV]

Meanwhile, European ministers have backed down on divisive proposals to cap Russian gas prices. The EU plan calls for governments to strip excess revenues from wind, nuclear and coal-fired power plants, which can currently sell their energy at record gas-driven prices, and use the money to rein in consumer bills. This is the funniest thing I've read this week.

The weird thing is how the electricity market in EU works: suppliers make their offers based on consumption predictions (for the next day). The cheapest are used first, but they all receive the same price as the highest offer that's needed for that day. And the most flexible (natural gas) is also the most expensive one. So coal, nuclear, wind and solar receive up to 10 or 20 times more for their energy than they used to, while their cost didn't go up.
It doesn't makes sense to pay a coal power plant for instance €800 per MWh, if they say they can provide it for €40 (numbers made up by me, but I believe this is what's happening now).

So it's market failure caused by market thinking combined with government involvement. Even after giving a permit to build a power plant, government decided to cancel it during it's construction. It feels like we have the worst of both world: market thinking doesn't lead to better prices if government restrictions don't allow new market entrants.

The fact that they're now trying to mitigate this fundamental problem by stripping revenues is indeed laughable.

[be.open]

Meanwhile, European ministers have backed down on divisive proposals to cap Russian gas prices. The EU plan calls for governments to strip excess revenues from wind, nuclear and coal-fired power plants, which can currently sell their energy at record gas-driven prices, and use the money to rein in consumer bills. This is the funniest thing I've read this week.

The weird thing is how the electricity market in EU works: suppliers make their offers based on consumption predictions (for the next day). The cheapest are used first, but they all receive the same price as the highest offer that's needed for that day. And the most flexible (natural gas) is also the most expensive one. So coal, nuclear, wind and solar receive up to 10 or 20 times more for their energy than they used to, while their cost didn't go up.
It doesn't makes sense to pay a coal power plant for instance €800 per MWh, if they say they can provide it for €40 (numbers made up by me, but I believe this is what's happening now).

So it's market failure caused by market thinking combined with government involvement. Even after giving a permit to build a power plant, government decided to cancel it during it's construction. It feels like we have the worst of both world: market thinking doesn't lead to better prices if government restrictions don't allow new market entrants.

The fact that they're now trying to mitigate this fundamental problem by stripping revenues is indeed laughable.

As I understand it, this is a response to an letter from the Eurometaux industry association (which brings together the 40 largest industrial enterprises in the European Union) asking for help from European industry in the face of a sharp increase in energy prices.

[DrBeer]

You can repeat the word halva many times, but it will not become sweet in your mouth. Rashism, as a primitive form of Nazism, has not learned the lessons of history, and continues to sing the mantra "without our gas, you will definitely freeze this winter." At this time, the EU, having understood what a bastard regime they have been working with for many years, took constructive and high-quality measures for a systematic complete departure from such dependence. As a result, the price on the market shows what reality looks like. Gas is becoming cheaper, and this process cannot be stopped. This is what the annual gas price chart looks like. Of course, you can continue to fight in hysterics "you will freeze without us," but no one pays attention to those who scream ... Another "unparalleled victory for the Kremlin." I am sure that the phrase "shoot yourself in the foot" will soon be replaced by a more demonstrative, in the sense of the idiocy of action - "do like Russia"

[zasad@]

https://twitter.com/RonStoeferle/status/1556967600747413504
Ronnie Stoeferle @RonStoeferle (C)
"the low inflation world stood on three pillars:
first, cheap immigrant labor keeping service sector wages stagnant in the U.S.; second, cheap goods from China raising living standards amid stagnant wages; third, cheap Russian gas powering German industry and the EU more broadly."

[Kgdktac]

The voluntary reduction of gas consumption by EU countries may help to alleviate the current gas shortage to some extent, but it is unlikely to completely solve the problem.

the reduction of gas consumption may have some negative economic impacts, particularly for industries that rely heavily on gas. It may also be difficult to sustain the reduction over the long term, as energy demands are likely to increase as time goes by.