Topic: EU countries agree deal to cut use of gas this winter - page 3. (Read 1231 times)

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.

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.

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.

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.

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 .

The way things are in India is that the government says that the price are not controlled by them and that is the narrative they said when crude oil prices were trading well below $40 and no one got the benefit as the common people were still paying higher prices due to exorbitant taxation imposed upon them and now you think that government is absorbing the price and the common people are yet to feel the full impact, what a joke.

Wait for the Gujrat elections to get over and it will be back to normal with price rising on a daily basis .

@OP EU countries agreeing to cut the use of gas this winter, which means industries will be hit hard and household will be as well which will be really bad.

The attempt by the United States, Great Britain, Australia, Japan and the European Union to isolate Russia with sanctions, disconnect it from the world trade and financial system and turn it into a pariah country has failed mediocrely. Russia has been preparing for this for a long time and has successfully passed the test of sovereignty and stability. The idea that Russia will immediately go bankrupt if the dollar is banned is naive and absurd, only an idiot could believe it. Russia is the largest, richest and most influential country in the world, just look at the geographic globe of the Earth and it will become self-evident.

Keep dreaming about Russia going bankrupt. That will never happen. The deal between Russia and Saudi Arabia, signed back in 2016 is the game changer. It meant that oil prices will never fall below a certain level. And in Russia, the production cost is around $20 per barrel for Urals crude and they will profit from their crude oil if the market prices remain above that. For natural gas, apart from the pipelines to Europe, they have separate pipelines to China and Turkey. And an additional pipeline is being constructed towards China. And new LNG projects in the Arctic are nearing completion.

They can't make it work this year, building a pipeline there to carry the gas will not be quick, it may not even be good enough for next year but it may get there, it’s a coin toss if it will be enough time for 2023 December for example. However, in the long term it’s still a good decision because in 2024 you will have it, and in 2025 you will be used to it.

Maybe slightly more money, but Russia will go bankrupt by that time and learn their lessons and will not attack anywhere anymore since the finances will be in terrible condition when they fail to sell anything to anyone. They are doing fine now thanks to gas and oil prices going up, but what if they fail to sell it to anyone in the future?

Well, what can I tell you? The example of Germany shows and proves that having a connection with terrorists and criminals not only makes you an accomplice of a criminal (to a greater or lesser extent), but is also guaranteed to make you a victim of your criminal friend! Instead of understanding back in 2008/2014 that Russia is a world terrorist country and taking measures to reduce dependence on the resource that the terrorist trades, the German political elite continued to play the role of the Kremlin's "girl for money." Now, yes, they will have to live for about 2-3 years with a reduced social program, higher taxes and rising unemployment. But it happens - if you drink water from a puddle and eat shit - it's stupid to expect a normal state of health - sooner or later you will have problems, and such a fool will have to wallow in the hospital, receive painful injections, lose weight, and get a bad appearance. BUT ! But such an object will receive an unforgettable experience that will teach him for life not to do idiotic things. But nothing - Germany will survive this crisis and recover, and I hope this "vaccination" will have an effect forever.

Germany imports around 90 billion cubic meters of natural gas every year. Two years ago, in 2020 it cost them somewhere in the vicinity of $10 billion. If the current prices are going to stay at these levels, then their annual bill just for the gas imports will amount to $180 billion. I am not saying that Germans will be left without gas. But their trade deficit and budget deficit is going to go up like crazy, and even if they drastically reduce the imports the burden on the German tax payer is going to be huge.

I don't think it's voluntary, if there is a reduction in gas, what will the businesses do, what will their economy do if there is insufficient supply, won't this lead to a recession, the standard of living will be greatly reduced.

Winter is not easy in EU - how are they going to. survive? in our country temperature fall only one to 4 degree below zero and we have gas supply cut down during winter - you can not imagine the pain of cold and no gas. It is horrible.
I wish EU finds some solution and finds it real quick

Of course Germany will solve this issue one way or another. But whether after that Germany will remain the locomotive and donor of the European Union - that is the question. And the answer is rather negative. For years, Germany enjoyed an abundance of cheap resources from Russia, and now it's over. It is no longer possible to resell excess gas to neighboring countries, earning more on the virtual reverse than Gazprom on gas supplies to Europe. There will be no more German industrial giants whose profits fed the poor countries of the European Union (such as the Baltics, Poland or Greece). Germany will survive, but the EU is fucked up.

But that also means that they could have a good deal made from other places in order to cover the differences for the next few months. If not, they will have a terrible winter where they are very cold, and they limit the usage, make sure that everyone gets "enough" and not a lot, and people will definitely be cold a bit there is no denying that, but until the winter after that, there are like 1.5 years left and that is how they could arrange something much better by that time.

Russia trying to strong-arm all the competition will not be helpful for them, maybe they managed to bring money in from all the sanctioned Russians, but that will not be a good long term solution.

It will be very difficult - the countries in EU are cold countries and they cannot reduce their oil reduction during winter. So they should get their supply handy rather than suffering

What we need to realize is that if you give an inch, they will take a mile. Russia is doing something horrible right now, if Europe doesn't cut ties with Russia all together then we are going to see Russia attacking another nation next.

Look at what happened with Finland and other nations, they were basically given a good amount of chance to join Nato thanks to this Ukraine war, they made a point of doing it during the war itself, because that was "let's see you attack us as well if you have the balls" and Russia didn't had any, they were already in a war and couldn't afford to be in another one. They found Ukraine small enough to attack, and even there they are getting their ass beaten, if Europe doesn't go on and start using gas, then it will hurt the war efforts.

The Russian gas company Gazprom has recently reduced gas supplies via the Nord Stream 1 gas pipeline from 40% to 20% of its capacity. Russia is openly putting pressure on EU countries to force them to buy oil and gas on their own terms.

But how bad is gas in Germany?
The German economy is extremely stable and will withstand the reduction in Russian gas supplies, Christian Scheuing, Chief Executive Officer of Germany's largest bank Deutsche Bank AG, said in an interview with the Frankfurter Allgemeine Zeitung newspaper.

Even if a complete halt to imports triggers a recession, the German economy will be able to cope with the consequences "no matter how bad they are," he said.

Now gas storage facilities in Germany are 69% full. This was stated by the head of the Federal Network Agency Klaus Müller on Tuesday, writes Evropeyskaya Pravda with reference to Spiegel.
At present, 0.4 percentage points are added to the volume of gas in storage every day.
Under the new regulation, gas storage facilities in Germany must be at least 75% full by September 1st. They should be 85% full on October 1st and 95% on November 1st. According to Müller, three-quarters of all gas storage facilities in Germany are already more than 80% full, and in some cases even more than 85%.
Therefore, Germany will not remain without gas.

The numbers look good except for Germany. Germany's demand for gas is huge, and its gas storage facilities are just a buffer to smooth out the fluctuations in gas consumption in winter and summer. Even if Germany fills its storage facilities by 100% by November (which will be extremely difficult to do with 20% pressure in the Nord Stream), this will be enough for her for a month and a half of a moderately cold winter.

Gas storage occupancy in Europe at the beginning of August 2022:
Germany - 70%,
Spain - 78%,
Czech Republic - 79%,
France - 81%,
Sweden - 91%,
Poland - 99%,
Britain - 100%.

That's all there is to know about Putin's screeching propaganda that Europe will freeze without Russian gas