why does natural gas costs so much more in europe than it does in the united states? i'm christy i and you're watching the cost of everything where today will be taking a closer look at natural gas and breaking down the supply chain that is so crucial to our global economy. so why exactly is natural gas so much more expensive in europe then? basically everywhere else, while surprisingly the natural gas market is not as global as you might think. the european benchmark, known as dutch t t f is priced in euro's per megawatt hour, making a hard to see just how much more expensive it is in the us. natural gas is priced by henry hub in millions of thermal units. now after converting it to get apples to apples comparisons, europeans actually pay a staggering $9.00 fold higher cause for natural gas than americans. so what caused this huge increase? well, part of that actually stems from supply and demand, the e u and the u. k. liquefied natural gas import set an all time historical record, high in april of 2022, averaging 16500000000 cubic feet per day. europe had an unusually cold winter last year, and then russia started curtailing supplies through the pipeline. and then on top of that, you have the green agenda, push to reduce coal consumption, thereby lower, and greenhouse gas emissions pushing for even higher demand or natural gas to replace them. now let's bring in one ricardo ortega, president of bobo time energy group, who is at this very moment in germany, one of the places where natural gas is making headlines. so for us, the law is it wise for europe to continue to push this green agenda? so heavily when it is hurting so many citizens during the transition phase, as natural gas applies, are unable to plug up the shortfalls of other fossil fuel energy sources. you can clearly build, but they are bringing more picture into the as the transition process. they had already considered impersonal call. they are looking for sources. so liquefied gas . unfortunately, they level of the crisis is so large, they're talking about one 3rd or the world's supply of l n g. that would need to be china, doors, europe or the gravity, germany, that they are literally not much room for minority. they're talking about some of the largest economies on the world and some of the large consumers. so the bane version of these on a boy will not just come from the energy transition is is there the fact that they lost their main source of natural gas that this whole mess is out of control? and their thank was germany and the you eventually a forced to break away from the washington agenda and we focus is business and economic ties with russia. given that the e u is so reliant on russian gas, i doubt it deliver low to ration and disappointment on what has been going on is pushing. i know it agendas with significant resources and economic groups behind it, development of all sorts of energy, hydrogen in many forms, methanol, a, ammonia, they are going to be looking for new alternative use, and they are pushing that occasional t economy, one of their main goals. how that burden and that pain might be shared between the budgets of the corums and the citizens, i think is going to be the main discussion regarding shifting their policy a i see that as very unlikely. what you're going to see is a significant strain in the coming years. ready and international markets where the weakest economy, something weakest, countries are going to be the missouri. but the energy is gonna remain in again that when they reach powerful, gone through. so i'm going to continue finding a new. ready source where they are going to be getting what they need, much higher price. and i think everybody's getting used to a, assuming the cost of energy is going to increase in the country. the mean in the long term you alternate. these are brought to market. and now how high do you think natural gas price will go in euro by the end of the year? or the price is not going to be much higher. it's $356.00 it for me. and i'll be to use that. that's history. going to be prices that could be anywhere around $30.00 to $40.00 is going to be much higher. and i'm probably that's one. it is want to proceed it. they can help their transition put a new energy sources. and i think that many people are bidding on that, and this is what is going to make it economically feasible for companies to invest in all day infrastructure they need that would be mostly producing the same european country. so i don't think they mine that so much if they manage to keep the price for the public in their acceptable level. so the level of subsidies is going to be the main challenge. i'm probably going to find those deficits. yes. what is the situation with russia? they have reduce natural gas supplies to europe as a means to put pressure on them. but at the same time, it hurts rushes profitability as well to cut down on exports. so where is this still may going? and when does that end? this is going to continue on till you find the resolution to grad nancy ration. and i see that is going to be a lot of pain everywhere, not just between russia and euro or the us. but the countries that require natural gas in the international market, they don't want to be suffering because scarcity is going to affect everybody. or you can see that in the market, the viewer audrea and the same in food stops was countryside expansion. jason starts up to 2028 percent. so this is going to continue on, feel that he's a solution for video crime in country. and while russia be able to long term pivot, has asian partners for natural gas exports to shore up its markets and profits. and how long would that take? most likely, china is going to have it again advantage because they probably would be se one of the buyers under received in so that gas on maybe india, a lot of it will have to be defined by how the winters behave. if you have a mile winter nation in my winter in europe, this is going to be, i guess, if you have horrible winters in asia, europe, this is going to be a nightmare. so it is hard to tell it will be played out in the next months depending how nature chooses to bring this coming winter. when this push to a green economy, how long do you think human society will be using natural gas for and how long will be this transition? or do you think the push to green economy will eventually fizzle out? natural gas is going to be making stay doing the whole transition. no country can just get rid of guys right away and it will be a significant source of energy for the common decades. but that is going to be growing consumption of energy efficiency and song parallel market. so i want to develop it could be hydrogen that has significant challenges in the transport, but it could be ammonia is the new technologies for cracking it become cheaper and more efficient? be mental and some of them for sure, are going to become significant bayers in transport, mostly shipping, air fry, and drugs, frames, and airplanes. and those markets are gonna going to cheaper most likely to believe new sources better the, an industry. you can clearly see you're running now, companies looking at the production of steel based on hydrogen. i want to happen because of what these crisis brought to europe more likely quicker than later. so you can expect significant changes within the next 5 to 7 years. thank you. so much hon ricardo ortea for joining us today. now, compared to europe, the u. s. has plenty of natural gas resources to tap into. it is a net exporter of natural gas and exports quite a bit to europe. but now, there is a limit to how much us production can help is european allies. this quantity is limited because the high transportation process to ship natural gas overseas. now in our, to ship it, natural gas has to be liquified. and this is a very complex, inexpensive process, and the facilities that transform gas into liquid is a costly endeavor. and it's relatively new thing born out of the recent shell boom, that means most states die, producers are maxing out the available liquid occasion capacity. and most of our natural gas will be trapped in the us, unavailable for export, does break it down, estimated liquid vacation fees range from $2.00 to $3.00 per pillion thermal units, which is a 15 percent markup. then you have shipping where costs very by destination and market conditions. this can range anywhere between a 15 percent mark up to a 40 percent markup and prices before it reaches the destination where there are also duties and taxes levied. mm. so what is the cost of natural gas for countries are less with bath reserves of the fuel? we'll discuss more after the break. ah ah, ah. ah, ah . what we've got to do is identify the threats that we have. it's crazy confrontation, let it be an arms. race is often very dramatic, a development only personally, i'm going to resist. i don't see how that strategy will be successful. very political arm time to sit down and talk ah, welcome back. we are talking today about the cost of natural gas. so let's look at india where the share of natural gas consumption has increased to 6.7 percent as it aims to have 15 percent gas in its energy mix by 2030. currently, coal is the primary fuel source used for power generation. oil is used for the transport and industry and bio mass for residential heating and cooking. but as india has spaced is worst power crisis in over 6 years earlier and 2022. india is facing mounting pressure to become energy independent. now let's dive of it deeper with energy economist, the booty garg at this point. how is india balancing it's 2 priorities becoming energy independence versus cutting back on carbon emissions. right, so just to said the contacts, you know, they didn't find the me expanded out the read over 8.7 person in finance rating for you to i'm, we are expected to demonstrate strong growth in the coming years. and this revival of economic activities is for the leading to a surgeon and you can luncheon and energy tomorrow, which is expected to kind of go at $30.00 to $5.00 to $6.00 pleasant every year. the decent incidence is like, well with 90 bank of america, whether the russia greenville or have that money countries building india naturally done in and in july on more than ever leave them in the domestic market. so to address the issue of energy security and also protect against the price will be open border to the strategy basically to explore more domestic resources to meet energy demand for yes, even in that is looking at back to sleep. but while they're trying to increase domestic production by opening more mines for private production, but in order to meet the substantial and fees and demand in there also has been non for the billing deployment for the updated. and this isn't actually informative. you sion which has now kind of enhance and is committed to reducing admission and density by $45.00 and by 2030 compared to 2005 levels and also to achieve 50 percent of install capacity from long sources. so that's why the mission, but at the same time it's quite achievement. but given the kind of demand growth that the note is likely to witness, there's a lot of push model need to be lottery numbers and d, but also development across the values. and i think that's for the kind of trying to reduce and i'm pulling them both. so the amend has initiated or introduced seems like production. they've been doing pretty domestic manufacturing. analysts and reviews and board defendants on paradox for no. you deployment for the noun, energy gone, deletion china. and they didn't mean to me down the damping threshold for radius on for use and also kind of and now in carbon trading the booster and we'll energy deforming. so just just i met several measures, have undertaken per screen and you are to need this model near solutions to d, carbonite and make just say there was also being mobility and the fact of the to see men defining etc. and how does it make sense for india to transition to natural gas and l n. g? when it is so much more expensive than coal? and what in high gas subsidies does burden the economy? yes and yes, with traction for natural gas. what kind of boy named, right? again, the main few months back dated star, get natural gas share. and then you makes $215.00 plus then, you know, while the current year is about 6 plus and, and this should have, we just raise from 6 plus and in 2016 to about $6.00 wasn't today. so this is despite you, knowing that has gone ahead and expanded the gas grid and to the gas distribution network. guys have sky, how could it be for natural gas? and you know, as being 50 percent of its domestic, why men from both for the gas guy search since october 2021 has wilson and gas situation. the benchmark that in there use, which is the korea market. the j can, you know, has gone up and more than that, but between april 21 and 3. and for the, even the domestic gas prices have kind of more than doubled as bad as that and then do better than concern it more than. sure. so i think that's where it does hitting the use of gas quite substantially. the government is for the in fact, so on the boat was likely to announce another guy's your vision. you know, prices are expected to rise for the buy one and a half time. and yes, gas prices are goes up, it becomes difficult for the government because it means high, it's up to these. and given that the government cannot form these high cost, you can do more for such products that's up to be bought and has in fees. for example, in the case of for denies the subsidy which has been going around to be one trillion or most, which is equal to us dollars for the bill. then for 2 years is likely to go up to 2 trillion and then to be, which is 20, had been us dollars for this fiscal year due to the high gas prices. the government had stopped energy subsidies in the last few months, but is now planning to re introduce them because a 5 crisis and also for some sectors like city guys, distribution, the government has mandated that will be domestic as we. so as such, the push for gas, you does not boot ready for the bond to meet with current prices that we are missing. now, the minister of petroleum and natural gas hard, deep perry had recently said that the fuel price rise in india had been contained in comparison to the developed countries. and his side is that the indian government has taken several measures to minimize the volatility of global crude and gas prices. so the indian gasoline prices were down, 2 percent drain july and august. while the rest of the developed nations saw gas prices jumped to 40 percent. now, what exactly are those measures that they've put into place? and then boards 80 percent of it for so while the cost of petroleum diesel have is in the marketing dummies and did not increase the costs of petrol. and these are 2 or the finally got to do more. and they have been there in the last says on their books. so one option for that was to increase to lead the fee increase bank or on my diet. cos to the end can do mom without my child inflation, which the government did not allow. but there is found portion of losses that are sitting on the book and the loss of that kind of gone up substantially in the last few months with the rise and prices. so what the new government has done for the head, you know, some of this type guys rise has just got down some of the faxes which the mentors wine on both patrol in beads. and that's how they have tried to be the prices. so it didn't reach to maintain as for the ability which meant revenue loss. one of the men and some loss has be owned by the amc. like now would those guys is going down or, and he's had being able to recover some of those losses because the faces have not been reduced. why? lloyd prices the prices of bonds, but that's how it's one of the ways that the domain has ensured that the prices are in the more affordable range state. southern states wants to reduce our, the state backs, which is the why the bad rather than now on the actual india. so that was one aspect. and the other was in the side. it's called in for cheaper options. so it started by war from russian food. natalie, the object that the government said was only based on commercial reason and grunting and inflation. so these are the measures that they named and the government has taken many steps towards a glean alternative future. but do you say natural gas as more of a supplemental fuel or a true replacement, as i said, and does not have much of its domestic gas and has been bought, being 50 percent of its gas requirements. the softening of gas prices. i'm not inside global, you just indicate that the prices will remain a lot so and then g guy says i expected to remain above $25.00 for the rest of the year. and even the forecast says that it won't go down below us . and on this claim, and we do in 2027. so the gas one commission, you know, what the government needs to do has to be the new technology can see lap or in spanish, you guys, the non school mich. why? because in those adding more and more shifter independent energy to the grid be, can be used as a beginner ation resources. then the next that we're going to ration for, like not going back to the storage is becomes why, but for them and mushrooms then defy, you know, for foster adoption of mason technology such as b hydrogen, forsake those for the lies and also make bio gas for the transports. so what i recommend that any traditional use of gas should be limited, or to select with no competitive ortho native ore with gas or renewable energy update or hasn't been dealing with that. as i mentioned earlier, or as government should kind of renews, it's relying on using gas as the treat you regard. thank you so much for coming on today. it's easy to spot. the winners here on the natural gas playing field us russia. countries blessed with vast quantities of precious natural resources to power the nation. and one can argue that while europe is paying for the higher cost of natural gas in the interim, it is winning and the long term goal towards sustainability and becoming carbon neutral. but is that really the case? perhaps the greatest hypocrisy in europe to coupling from russian gas relates to the environment. the carbon footprint of american l. n. g shipped to france is twice that of conventional russian gas. so we are witnessing a vicious circle sanctions against russia has increased international demand for fossil fuel, renewables account for less than one 3rd of all electricity generated. but at the same time, governments are reluctant to fund major extraction projects because of their climate commitments. so the biggest winner here is actually going to be big oil, but rather than reinvesting profits into new production to help displace russian oil and gas, execs are rewarding shareholders. this sets us up for an even tighter energy market in the years ahead. and i'm thinking we go over $300.00 euros per megawatt hour on the dutch t t of gas uterus by year end as a keep up this current pace of things. thank you for watching. we'll see you next time right here on the cost of everything. ah ah ah november 22nd 2022 outraged orthodox christians confronted ukrainian security service officers entrances and exits the keys oldest monastery. they were looking for a russian spies among the monks. we mean dealer seaman. those are the reason for the free from crack down. one church is parishioners. it's on a song about oh, it's wrong being reason enough to condemn any old jokes, christian attack in prison and even kill them. why should i show up on the big grass when you love store and when you start to grow up later, i knew when you started a shoe, we used to miss a c and we will send you a bomb. i used to miss dog with ah, the claims of the king of the belgians leopold the 2nd to the congo were finally authorized by the leading european countries in 1885. in the very heart of the african continent. a state under the rule of the belgian monarch was declared since the beginning, the congo free state was total, may him for the local population and functioned as a universal concentration camp. the majority of the population, including women and children, were forced to work on the rubber plantations. those who failed to fulfill their quota were beaten and mutilated. to keep the congolese people under control, the king set up the so called for spook leak, which wear punitive detachments that cast terror on the captured country and its inhabitants. fearing that their subordinates would simply waste bullets hunting for wild animals, the officers demanded that the soldiers gave an answer for every bullet used. and as proof presented a chop hand of an african. it was not uncommon when trying to justify the use of the ammunition, the colonist amputated the hands of not only those who were dead, but also of those who were kept alive. the atrocious exploitation of the congo turned into a real genocide in only 20 years. the policy of the belgians led to the death of nearly 10000000 people alongside the holocaust. that genocide of the congo population is considered to be one of the grimmest pages in the history of mankind . in 1898, the island of puerto rico became a u. s colony, but still retained its own cultural identity. we can speak in favor of independence . we be thrown into prison out today. close to half its population in the residence of puerto rico. have new representation in congress and con, vote and u. s. presidential elections like okay, you're going to make you american citizens, which you didn't ask for, even if we were office citizenship with the head and we would prefer are wrong. we want to get a, was in his twenties, he chose to fight for his homelands independence. we felt that we could generate more of a spirit of resistance rather than of submissive accept reality that we felt was like shockingly unfair. my sorry, that i decided to fight for my country. no one could have done things differently. yes, absolutely. do i now think that violence is not the means to achieve anything? with that? sure. it is equipped with the latest dessert con hypersonic missile system, which has no analog. vladimir putin tens up for a gate armed with nuclear capable hypersonic missiles on combat duty to the atlantic and indian ocean. british intelligence is spying on russian forces on behalf. that's a 40 to secretly document published by news outlet raises. despite appeal to quincy gray rebels and ethiopia signed last november, the regents bigots, hospital pleads for help over medicine supply shortages and washington push
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