201. US Needs to Play Larger Role as Swing Producer of Oil and Gas in the Current Crisis
- Author:
- Thomas J. Duesterberg
- Publication Date:
- 11-2022
- Content Type:
- Special Report
- Institution:
- Hudson Institute
- Abstract:
- In response to Russian aggression in Ukraine, European nations have drastically reduced imports of crude oil, refined petroleum products, and natural gas from Russia. The 2021 levels of these energy imports were around 2.2 million barrels per day (mbd) of crude oil, 1.2 mbd of refined products, and 155 billion cubic meters (bcm) of natural gas on an annual basis.In addition to extreme difficulties in obtaining new sources of natural gas and to a lesser extent oil, the price increases throughout Europe since the onset of the war have been of historic proportions. In the days following the invasion, natural gas prices shot up by 62 percent, and UK energy prices were up by 150 percent. The full impact of the war, along with the related need to rein in the highest inflation numbers in over 40 years, has pushed Europe into a recession that threatens households and small businesses as well as European manufacturers’ ability to remain competitive. As a result, if the region cannot quickly assemble alternative supplies, the European commitment to assist in containing Russian aggression may weaken.
- Topic:
- Economics, Oil, Gas, Crisis Management, Supply Chains, Energy, and Russia-Ukraine War
- Political Geography:
- Europe, North America, and United States of America