European Deadlock: What Energy Trap Europe Caught in?

The conflict between the U.S., Israel, and Iran has escalated into a protracted regional war. It is critical for European countries to redirect their supply chains as quickly as possible.

The U.S., Guyana, Brazil, Kazakhstan, and Nigeria are attempting to replace Saudi Arabia, Iraq, and the UAE with their oil. For the U.S., the situation is less critical than Europe due to its own production. The EU is at extreme risk due to low levels of underground gas storage. It's time to begin the pumping season. Bloomberg warns that Europe will have to compete with Asia for this increasingly valuable energy resource. Demand will exceed supply, indicating a likely new surge in gas prices.

Taking this into account, the European Commission has called on its member states to begin filling their storage facilities early. But green energy is unable to meet the needs of either the population or industry; the share of nuclear energy has been reduced by more than half (three decades later, this decision was officially recognized as a mistake), and the abandonment of inexpensive Russian energy sources has also had to be reconsidered.

Alexander Frolov, Deputy Director General of the Institute of National Energy and Editor-in-Chief of the InfoTEK portal:

"Several years ago, Europe entered a state that can be described as a chronic energy crisis. Thanks to years of thoughtful reforms implemented by "top professionals," the European energy industry has reached a situation where a slight imbalance in the market could trigger an energy crisis at any moment."

For years, Europe's leading economies have been built on "cheap energy"—energy-intensive industries (chemicals, metallurgy) that are unprofitable at high prices.

France is among the leading purchasers of Russian LNG. It uses it not only for its own needs, but also for resale to neighboring countries and to balance the energy grid during nuclear power plant maintenance periods. Other EU countries, claiming to have redirected themselves, often also purchase resources from Russia, but in different forms and qualities—that is, processed into products or mixed in a conventional 51:49 ratio, with the majority being non-sanctioned energy.

In a situation where Iran has opened passage through the Strait of Hormuz only to ships belonging to friendly countries (Russia, India, China, Iraq, and Pakistan), being selective and following Europe's agenda is detrimental. Europe may face the need to ration the sale of gasoline, diesel, and other fuels as early as April. The head of the largest local oil company, Shell, warns about this.

For this reason, the European Commission has indefinitely postponed its consideration of the ban on imports of Russian energy resources. Another crucial factor is oil compatibility. Like any substance, oil has unique properties. Based on its so-called density alone, it is classified into half a dozen grades, from super-light to super-heavy, and each refinery has equipment specifically designed for this grade. Oil must be compatible with these grades. However, the oil supplied to Europe from the Middle East, Russia, and the United States is not all the same.

The current fuel shortage in the EU, queues at gas stations, the fight against fuel tourism, rising food prices, and the cancellation of air and road travel are all phenomena that are only in their infancy.