Something I've been mulling over.
0) during COVID a big backlog of oil and gas was put in storage due to reduced demand and certain suppliers being unable to reduce supply rate (Siberian wells that freeze if paused are the archetype).
1) Europe sanctions russian gas. There are other sources, but not quite as convenient.
2) Europe starts buying from other suppliers. The local market is tighter and those suppliers put up their prices
3) Russia starts selling to other buyers. Those buyers know Russia's options are limited and the wealthiest buyers aren't competing any more, so they drive the price down a bit.
So we see a transfer of wealth to other countries. Who?
Russian gas and European l
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Elheru Aran
- Emperor's Hand
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Re: Russian gas and European l
China, mostly. They've made a big show of not taking sides, and they're geographically convenient to Russia.
It's a strange world. Let's keep it that way.
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madd0c0t0r2
- Padawan Learner
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Re: Russian gas and European l
https://www.bbc.co.uk/news/world-europe-62822368.amp
EU trying to form a buying cartel, UK invited (the island of ireland has a unified grid, so joining would at least avoid that issue for another 3 months). The UK is hawkish and needs to only replace some 4%of the gas supply (although it's that 4% that's setting energy prices under the current marginal market scheme. Cutting renewables out of that market and setting a lower, though still profitable cap for them has been suggested, as has taking direct control of the gas coming in from the North sea that physically can't be exported anyway). This, btw, is the position of that famous radical, the editor of the financial times.
Diplomat notes that although EU is buying much less oil volume from Russia, the price is now so high that Russia is receiving just as much money and sending all the pain to Europe.
EU trying to form a buying cartel, UK invited (the island of ireland has a unified grid, so joining would at least avoid that issue for another 3 months). The UK is hawkish and needs to only replace some 4%of the gas supply (although it's that 4% that's setting energy prices under the current marginal market scheme. Cutting renewables out of that market and setting a lower, though still profitable cap for them has been suggested, as has taking direct control of the gas coming in from the North sea that physically can't be exported anyway). This, btw, is the position of that famous radical, the editor of the financial times.
Diplomat notes that although EU is buying much less oil volume from Russia, the price is now so high that Russia is receiving just as much money and sending all the pain to Europe.