i m going to be discussing all of that with these two, there they are, dr ulrich hoppe, the director general of the german british chamber of industry and commerce. and helima croft, a member of america s national petroleum council, which advises the us energy secretary on strategy. also on the show, the big boss of the middle east s oldest privately held oil and gas company, crescent petroleum, joins me to talk about those skyrocketing prices, energy supply and the impact of the war in ukraine. wherever you rejoining me from around the world, once again, a big hello and a warm welcome to the show. you know, they war between russia and ukraine is about to enter its sixth month. the human suffering on the ground has been massive and the economic consequences of the war and the sanctions imposed on russia, are spreading around the world. nowhere is it as stark as the oil and gas industry. vladimir putin s invasion of ukraine is causing energy prices to skyrocket around the worl
an energy emergency? energy companies across the continent warn of higher prices. limited rationing is already under way in germany as the supply from russia starts to drop off. in america, they ve released more oil to the market but is it enough to keep us all going? with more sanctions and cold weather on the way, are we looking at a perfect storm for the energy market? i m going to be discussing all of that with these two, there they are, dr ulrich hoppe, the director general of the german british chamber of industry and commerce. and helima croft, a member of america s national petroleum council, which advises the us energy secretary on strategy. also on the show, the big boss of the middle east s oldest privately held oil and gas company, crescent petroleum, joins me to talk about those skyrocketing prices, energy supply and the impact of the war in ukraine. wherever you rejoining me from around the world once again a big hello and a warm welcome to the show. you know, t
even in europe. but you say supply is tight, but, correct me if i m wrong, opec could increase its supply, couldn t it? so there s actually currently very little supply capacity, spare capacity in the opec system. currently, opec members are struggling to produce even their target quotas as they are. there may be some, or there is likely some, in saudi arabia. but not very much. is it a million barrels, less than a million barrels? and perhaps some hundreds of thousands of barrels from places like the uae. but it s not much overall in the larger scheme of things. and the issue is it takes time and a lot of investment to add to that capacity. and also, you don t want to be losing all the spare capacity because it s kind of the balancer that leads to stability in prices. if all the spare capacity goes in the system, you end up with much more price
so i think we ve moved back into a world of the cold war scenario and i think the population in germany feels that danger and they know they have to have a price to be paid to have stability, security and so on. so that is my prediction but we don t know what s going to happen. but i think there s been no real criticism of the sanctions from the public. well, on that note, ulrich hoppe, thank you very much for your time. much appreciated and i ll talk to you soon. thanks for having me, bye bye. but, of course, the energy crisis, it s not limited to europe, farfrom it. in america, prices are also on the up, despite an unprecedented six months of the extra oil being released from its reserves. so i ve been speaking to one industry expert who sits on america s national petroleum council, which advises the country s scretary of energy. she s also head of commoditiy strategy rbc markets. helima croft, a real pleasure having you on my show. thanks for your time.
you know, the upstream price. we ve seen some stability there. it s been a big contributor to inflation over this past year. i don t think it will be as big a contributor to inflation next year because obviously inflation is relative, but these are quite high prices. i mean, even in the us, talking about $4 a gallon and higher and higher is politically significant, particularly now with the summer driving season. majid, do you think europe put too many of its eggs in one basket, in terms of energy? so in terms of a particular type of energy or.? oiland gas and relying on russia. so, actually, you know, every country in europe has a different mix. i think what we had seen here in this country, in the uk, of course they ve got north sea and they ve recognised more recently that they still need to be investing in that. other countries like germany,