The EU will fail without Russian Gas - Here is why

Summary

The video discusses the European Union's heavy reliance on Russian gas, with some countries importing over 90% of their supply from Russia. It explores potential solutions if the EU were to stop Russian gas imports, such as increasing domestic energy production, importing from other countries, or reducing demand. The presenter highlights the complexities of managing a 1700 terawatt shortage, emphasizing the political and practical difficulties of each solution. The video concludes by asking viewers whether the EU should cut off Russian gas immediately or phase it out slowly to minimize the impact.

Takeaways

• 💶 The EU spends approximately 362 million euros daily on Russian oil and an unspecified amount on gas, heavily funding Russia's war efforts.
• ⚠️ Stopping the import of Russian gas could significantly slow down Russia's income, but it could also lead to energy shortages in Europe.
• 🔌 Gas represents around 22% of the EU’s primary energy consumption and 32% of household energy, with many countries highly dependent on Russian gas.
• 🌍 Finland and Latvia import over 90% of their gas from Russia, while major economies like Germany, Italy, and Poland also rely on Russia for more than 40% of their gas.
• 📉 In 2021, Russia supplied around 1700 terawatt-hours of natural gas to the EU, showcasing the scale of dependency.
• 🔧 There are three potential strategies to address gas shortages: increasing EU's energy supply, increasing imports from other countries, and reducing gas usage within the EU.
• ⚡ Domestic energy production in the EU could be increased by expanding gas production in places like Groningen, using oil in gas-fired plants, reviving coal power, accelerating solar energy, and delaying Germany’s nuclear phaseout.
• 🌐 Imports from non-Russian countries like Norway, North Africa, and Azerbaijan could potentially supply an additional 650 terawatt-hours, though this is optimistic and may not be feasible.
• ⛽ Liquefied natural gas (LNG) could be another source, but global supply is limited. The EU could theoretically add 1000 terawatt-hours, but realistically it might only secure 250 terawatt-hours due to market constraints.
• 🏭 Reducing gas demand is critical, especially for industries like steel and aluminum, which could face shutdowns. Households may also need to conserve energy by lowering heating, and rising prices will indirectly curb demand.

Q & A

What is the estimated daily cost of Russian oil and gas for the EU?

The EU spends an estimated 362 million euros on Russian oil and an unspecified amount on gas daily.

How dependent is the EU on natural gas for its energy consumption?

Natural gas represents about 22% of the EU's primary energy consumption and 32% of energy used in households.

Which EU countries rely most on Russian gas?

Finland and Latvia import over 90% of their gas from Russia, while Germany, Italy, and Poland get over 40% of their gas from Russia.

How much natural gas did Russia supply to the EU in 2021?

Russia supplied around 1,700 terawatts of natural gas to the EU in 2021.

What are the three main ways the EU could address a gas shortage if Russian imports stop?

The EU could: 1) Increase domestic energy production, 2) Increase energy imports from other countries, 3) Reduce gas usage within EU countries.

What are some potential domestic solutions for the EU to increase energy production?

Potential solutions include increasing gas production in the Netherlands, running gas-fired power plants on oil, reversing the decline of coal power, doubling solar panel deployment, and delaying the closure of nuclear power plants in Germany.

What are the potential sources of energy imports for the EU to replace Russian gas?

Potential sources include pipelines from Norway, North Africa, and Azerbaijan, which could supply up to 650 terawatts of energy, and importing liquefied natural gas (LNG).

How much additional liquefied natural gas (LNG) could the EU realistically import in the short term?

Theoretically, the EU could handle an additional 1,000 terawatts of LNG, but a more realistic estimate is around 250 terawatts due to limited global supply.

Can the EU fully replace Russian gas by increasing supply alone?

No, even with increased supply, the EU cannot fully replace Russian gas.