The US cannot meet Europe's fuel needs - claims a British Daily -

Washington/Brussels: There are indications that the fuel crisis has been intensifying more in Europe, which had planned to shake Russia by imposing restrictions on the import of Russian fuel. European leaders and experts had claimed that Russian fuel could be substituted with the support of US, Gulf and African countries. However, the Gulf and African countries refused Europe’s pressure saying it would take many years. Therefore, while Europe relies on the US, American fuel producers have shown their inability to meet Europe’s needs. The UK’s leading daily, The Financial Times, reported about this.

Russia is known as Europe’s largest fuel exporter. Russia meets more than 30% of the total European fuel needs. According to current data, European countries import 3.5 million barrels of crude oil and petroleum products from Russia per day. Besides, in 2021, Russia exported more than 150 billion cubic meters of natural gas to European countries. Russia is one of the leading producers in the world fuel market, and its share in this market is more than 10%.

In the wake of the Russia-Ukraine conflict, European countries supporting Ukraine had decided to reduce fuel imports from Russia. Accordingly, Russian fuel imports will be reduced by 80% by the end of the year. However, European countries have failed to find a competent alternative to Russian fuel after it stopped. European countries had started discussions with the countries of the Gulf and African continent to increase the import of crude oil and natural gas. But these countries have taken a clear stand that they cannot give an alternative to Russia. So Europe is dependent on US exports.

Since last year many US companies have signed agreements with European countries for fuel export. US vessels have entered European ports in large numbers. More than 70% of the US fuel gas production is exported to Europe. Moreover, Europe has imported more than 21 million barrels of crude oil from the US in the first five months of 2022. Fuel exports from the US to Europe have more than doubled this year compared to last year.

However, according to companies and analysts in the US, fuel production has not increased to the extent of increased export. Entrepreneurs investing in the ‘shale’ fuel sector have criticised the industry for not getting exceptional support from the government. A US investor, Wil VanLoh, warned that there is no possibility of a significant increase in what is currently being produced in the US. He further said that European countries should not think the US will save them in crude oil or fuel gas.

Meanwhile, Germany announced the seizing of three enterprises of the Russian fuel company Rosneft to overcome the energy crisis. The German government clarified that the government’s Federal Network Agency will now own these companies, and the original Russian company will not be able to issue any orders.