LONDON: Escalating tensions between the West and Russia over Ukraine have raised concerns about vital Russian oil and gas flows to Europe, prompting the United States to offer reassurances that it will help its European allies find alternative supplies.
European states have built or expanded terminals to receive liquefied natural gas shipments from the Middle East, the United States or elsewhere. Gas also comes to Europe via pipelines from North African producers. Yet that's only part of the story. The recipe for tight markets has been brewing for a while. The green transition has discouraged producers, particularly major Western firms, from investing so heavily in fossil fuels. Several majors have started to shift focus towards renewable energy projects. The problem is that the fossil fuel crunch is being felt now, while the renewable energy benefit will take years to kick in.
The US government has held talks with international energy firms about supplying more gas to Europe, US officials said this month. But industry sources said the companies responded by pointing out just how tight the market was.US energy firms, which rely on costly hydraulic fracturing technology, or fracking, have transformed the United States into a major energy exporter. But they were hammered harder than most by the 2020 price plunge.
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