• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 2 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 6 hours Hong Kong protesters appeal to Trump for support.
  • 16 hours Europe: The Cracks Are Beginning To Show
  • 4 hours Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 18 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 4 hours Millennials: A boil on the butt of the work ethic
  • 5 hours A little something for all you Offshore swabbies
  • 13 hours Ban Fracking? What in the World Are Democrats Thinking?
  • 32 mins LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 20 mins When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 3 hours Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 3 hours Shale profitability
  • 6 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 1 day Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 13 hours Let's shut down dissent like The Conversation in Australia
Alt Text

U.S. And Russia Battle It Out Over This Huge Iraqi Gas Field

The geopolitically strategic gas field…

Alt Text

US To Supply More Than Half Of Global Gas By 2035

The United States is expected…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Two International Natural Gas Opportunities

The European Union is taking a serious look at natural gas.

Last week, the EU ratified a "gas solidarity" bill for Europe. The measure is aimed at ensuring steady and adequate natural gas supplies for all member nations.

For the EU, the biggest concern is Russia. Gazprom has showed its willingness over the last few years to use gas as a political lever, cutting off supplies in order to put pressure on Russia's neighbors. Remember January 2006, when Gazprom squeezed the Ukraine, with knock-on reductions in gas supply for several other EU nations.

No one in Europe wants to see this happen again. So last week's bill is calling for a number of important counter-measures.

Under the legislation, EU nations will have to create a plan to deal with a 30 day disruption of normal gas supplies.

This could be accomplished in a couple of ways. Firstly, securing alternative supplies. A good incentive for EU nations to support domestic gas drilling. After all, no supply is more reliable than gas flowing within your own borders.

The other way of dealing with supply disruptions would be building gas storage. By creating underground storage facilities, EU nations could build up strategic reserves as a buffer against any drop in imports.

Both drilling and storage could provide some interesting investment opportunities.

A third way of profiting could be from inter-EU gas trade. Under last week's bill, EU authorities are proposing to legalize the trade of Gazprom-imported gas between EU nations. Something Gazprom has always opposed.

If trading of such gas across Europe becomes widespread it will open up arbitrage opportunities for nimble traders who know these markets. Such trading has been a profitable enterprise for some investors in the U.S., spurred by the development of several new pipelines over the last five years.

The new bill is still early-stage, but it's an interesting start. We'll keep watching to see what concrete measures governments come up with to support the gas industry.

By. Dave Forest of Notela Resources




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play