In this podcast published by BBC Arabic, Dr Carole Nakhle, CEO of Crystol Energy, discusses the dynamics of the European energy crisis.
- While Russia is benefiting from high oil and gas prices and, therefore, earning notable revenues, it is actually losing a key market, Europe, as well as jeopardising its reputation as a reliable supplier.
- Russia’s Energy Strategy till 2035, which was released before the war in Ukraine, acknowledged that Europe would remain a key market for Russian gas despite the increase in the Asian market.
- Russia is trying to score political and economic gains in the short term by betting on a cold winter and people’s frustration with high energy bills.
- The importance of natural gas in the world’s energy mix started to increase during the first oil shock in the 1970s as energy consumers saw gas as a cheaper alternative. Currently gas is viewed as a bridge towards a lower-carbon energy mix.
- Unlike oil, the gas market is more regional and has traditionally relied on pipeline for trade; though, Liquefied Natural Gas (LNG) is gradually changing that reality. This in turn prerequisites a long-term bilateral relationship between the buyer and seller that is hard to replace overnight.
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