• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 22 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 10 hours Starvation, horror in Venezuela
  • 1 day Pakistan: "Heart" Of Terrorism and Global Threat
  • 17 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 18 hours Saudi Fund Wants to Take Tesla Private?
  • 2 days Venezuela set to raise gasoline prices to international levels.
  • 1 day Are Trump's steel tariffs working? Seems they are!
  • 3 hours Corporations Are Buying More Renewables Than Ever
  • 2 days WTI @ 69.33 headed for $70s - $80s end of August
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 10 hours China goes against US natural gas
  • 11 hours Why hydrogen economics does not work
Alt Text

The Newest Digital Trend In Oil & Gas

The AI market in oil…

Alt Text

Cracks In Global Economy Weigh On Oil Markets

Oil prices fell this week…

Alt Text

What Happens To Syrian Oil Post-Civil War?

After years of conflict in…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Trending Discussions

Eastern Europe has Nothing on Asian Energy Markets

Eastern Europe has Nothing on Asian Energy Markets

Economic development in the Eurozone is gaining ground, though any recovery there will be tepid. With North America relying less on foreign imports, energy investors should be following shifting demand dynamics to Asian economies.

U.S. and European policymakers have been focused on energy security in the Eurozone as Russian energy company Gazprom rattles its sabers at a Ukrainian government tilting strongly toward the European Union.

Russia in response to Ukraine's pivot raised the price of natural gas by more than 40 percent, prompting a slap down from U.S. State Department spokeswoman Jen Psaki, who said Washington was frustrated with the Kremlin's use of energy as a strategic weapon.

Related Article: China Drills Into the “Roof of the World” to Help Alleviate Foreign Dependence

"The United States is taking immediate steps to assist Ukraine, including the provision of emergency finance and technical assistance in the areas of energy security, energy efficiency, and energy sector reform," she said.

It's the private sector, not the federal government, however, that dictates to which markets actual energy supplies move.  Last month, the U.S. government authorized the shipment of liquefied natural gas from the Jordan Cove project in Oregon. Those exports would be sent to Asian, not European, markets.

Russian President Vladimir Putin warned European leaders that Ukraine's gas debt situation was putting the region's energy security at risk. With Russia delivering less than a quarter of its natural gas supplies to Europe through Ukraine, however, and the end of the heating season approaching, Putin's warning may have more political weight than anything.

Economic development in the Eurozone has been modest. Eurostat, the statistical arm of the European Union, said home prices are down 1.4 percent and an estimated 10 million part-time workers are still considered underemployed.  Recovery in the region is continuing, though it remains fragile.

Related Article: Ukraine Standoff Escalates, Could South Stream be in Doubt?

For Asia, while the Chinese economy is slowing down, its policymakers have maintained their commitments to growth and, in its latest monthly market report, OPEC gave relatively good marks to Japan despite warnings from the International Monetary Fund.

Despite the furor over Ukraine, Gazprom Chief Alexei Miller said last week progress was made on a pipeline that could eventually send Russian gas eastward to the Chinese market.  A $27 billion liquefied natural gas project in the Yamal peninsula, meanwhile, could anchor the Russian company firmly in the Far East economy. Asia has even taken over from the United States as the top destination for Venezuelan crude oil.

The Asian Development Bank says nearly 1 billion people still lack access to electricity in the region. Regional demand for energy products, meanwhile, is expected to double by 2030. While much of the political focus has been on energy security in Eastern Europe, the economic bread crumbs point to real investment security in Asia.

By Daniel J. Graeber of Oilprice.com




Back to homepage

Trending Discussions


Leave a comment
  • Arkadiy on April 14 2014 said:
    Usualy U.S. uses bombs to promote the "Western values" and democracy in Iraq, Afganistan, Serbia... It is much more effective then Russian "gas weapon"!
    Look, Western countries talk a lot about aid to Ukrain, but did nothing by this proper time! Russia supplies gas, helping to Ukrain. Still!
  • Anon on April 16 2014 said:
    When the Cascadia fault ruptures (and it will), Jordan Cove and Coos Bay will be not only badly shaken but inundated by a tsunami very similar to Japan's recent disaster. A large release of LNG is a very big bomb. But North Bend is a mile away and will probably be only lightly toasted.

    By the time the LNG plant is built, Chevron's Gorgon project in West Australia will most likely lower gas prices in Asia, anyway. Then there's Kitimat, BC, and the Alaska gas pipeline & plant.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News