Europe could run out of gas for heating this winter amid low inventories and reduced supplies from Russia, according to Amos Hochstein, a senior adviser for energy security at the US State Department. Hochstein, some parts of Europe might not have enough gas if the temperature fell below average during the winter. He added that some countries might have to purchase gas at hefty prices, while others might be forced to ration the fuel.
Europe is facing an energy crisis due to a gas supply crunch and slow wind in the North Sea. As a result, power prices skyrocketed to record high, forcing some factories to suspend production. Policymakers are intervening by capping electricity prices as they fear it could hurt households and companies. However, this sparked concerns that could discourage the longer-term investment required to propel the region’s energy transition plans.
Russia has been limiting gas flows to Europe as it builds its own inventories. However, Hochstein said Russian is using the supply curb to strengthen its case for the Nord Stream 2 gas pipeline project. He added that the US is trying to ensure enough fuel supplies for the world and asking other producers such as Saudi Arabia to provide reliable oil supply at “affordable rates.”
