The Oil Drum: Europe

Doesn't this graph just chill you?

Let's try to have a broader look on the Natural Gas supply challenge that both Europe and North America face these days, with the help of Jean Laherrère.

It may seem strange, in a week where traders were actually paying folk to buy their natural gas, but I am still a little disquieted about our medium term natural gas situation. (I was going to say long-term but 2010 isn't that far away any longer).

The feeling was regenerated when a reader directed us to Robert Amsterdam's site. Currently he is posting about the story in today's NYT dealing with the construction of the new LNG port at Sabine Pass, LA.. The port is one of several that is being built to bring foreign natural gas to help with the coming shortage in the US. To quote CERA, as the article does:

Liquefied natural gas represents only a 3 percent share of total American natural gas consumption, which is mostly used for industrial purposes and home heating. Cambridge Energy Research Associates estimates that imported liquefied natural gas will account for 10 percent of American use by 2010, and potentially as much as 25 percent by 2020.

Bob Amsterdam believes that by 2010 this 10% will largely come from Russia in general, and our friends in Gazprom in particular, with the projected source of supply likely being Shtokman.