Nowhere near as much Russian gas is going to Europe as there was...

First 203129 Last

Share
Profile

Follow
AndyL2880

14,866 Posts.

41

14/02/24

22:42

Post #: 72411934
Share

Originally posted by szaba_the_hut: ↑

Gas price is tanking lately, Russian gas is still going to Europe and other countries often via 3rd parties to circumvent sanctions, natural gas price is tanking cause there is no supply shortage (russian gas is not effectively sanctioned from world markets). Russia and middle east make profit at lowest prices due to their very low cost of production.

Russian gas production costs are generally among the lowest in the world. Russia has invested heavily in gas extraction and transportation infrastructure over the years. Many of its gas fields are onshore and in relatively accessible locations compared to offshore fields.The sheer volume of production allows for economies of scale, reducing the cost per unit of gas produced. The Russian government has historically supported the gas industry through various subsidies and policies, which can effectively reduce production costs.

Like Russia, countries in the Middle East also enjoy low production costs due to abundant, easily accessible reserves. North America (U.S. and Canada): Production costs are generally higher than in Russia, especially for unconventional gas (like shale gas), which requires more expensive extraction techniques like hydraulic fracturing (fracking). Australia's LNGprojects often involve offshore extraction, which is more costly than Russia's predominantly onshore operations. Norway similarly has higher costs primarily due to its offshore operations in the North Sea.

Cheap gas makes US and Australia and Norway uneconomical producers at least for spot market.

Expand

Nowhere near as much Russian gas is going to Europe as there was prior to putin expanding his war on Ukraine. Putin lost out big time as his energy war, sorry attempted energy blackmail of Europe, failed. EU gas prices are returning to long term average prices.

Russian gas who?

Russia has not replaced those lost volumes, Norway, the US among others have increased output to cover it.

Putin is the loser here.
5 Upvote

Reply

Top Stories

RBA holds rates as ALP election campaigning kicks off – expect more political focus

FCG

Freedom Care Group reveals NDIS wants to ban it providing program services

BNZ

BENZ Mining jumps +17% as it snatches up WA gold projects from Spartan Res

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

There are more pages in this discussion • 42,753 more messages in this thread...

First 203129 Last

Nowhere near as much Russian gas is going to Europe as there was...

RBA holds rates as ALP election campaigning kicks off – expect more political focus

Freedom Care Group reveals NDIS wants to ban it providing program services

BENZ Mining jumps +17% as it snatches up WA gold projects from Spartan Res

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Featured News

Featured News

Nowhere near as much Russian gas is going to Europe as there was...

Top Stories

RBA holds rates as ALP election campaigning kicks off – expect more political focus

Freedom Care Group reveals NDIS wants to ban it providing program services

BENZ Mining jumps +17% as it snatches up WA gold projects from Spartan Res

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Featured News

Featured News