When Russia invaded Ukraine, one of the many actions European Countries decided was not to use Russian oil and gas. This was not an easy thing to actually do, it was actually easier to say than do. The reason was Europe is beside Russia and over the years Europe was dependent on Russian oil and gas. Germany and Italy had up to 60% of their oil and gas coming from Russia and if the second pipeline which was in progress to be built went into operations the number likely would be higher. When the sanctions of Russia went agreed to, Germany and Italy were hoping for the war to end quickly. The war continues, which means Europe has moved to other sources.

In an article by Lisa Friedman of The New York Times News Service, in less than 6 months the European Union will end the last of its LNG (Liquefied natural gas) imports, a major step to keep Russia from using its resources dollars to fund the war efforts.

The alternative which has been shifted to is the US. The US producers now supply about 2/3’s of European LNG and that could rise to 80% by the end of decade.

Under normal circumstances the shift from Russia to the US is not a problem, however President Trump has isolated the US and thrown his periodic demands to control Greenland, imposing tariffs, lessening co-operation with Europe’s institutions, and becoming less of a partner and asset to Europe.

Once Russian cargoes stop flowing, much of the gap will be filled with by American LNG. The US currently supplies about 2/3’s of Europe LNG, compared with about a quarter of it in 2021. Nigeria and Qatar supply most of the rest. For natural gas delivered by pipeline, Europe relies on supplies Norway and Algeria.

However, while it is easier for LNG to flow back and forth to Europe, the European Union imposed a methane regulation which Energy Secretary Wright believes the regulations need to be relaxed or supplies could go elsewhere.

Linking to dividend paying stocks, in all business there are alternatives, some alternatives need many government regulations to become viable but there are alternatives. When there are alternatives, eventually consumers will use them to some degree, particularly if the existing companies are not solving problems. Alternatives start when there is a problem. For your investments, always ask what are the alternatives and how are they doing?

There are more questions than answers, till the next time – to raising questions.