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Russia’s Gazprom doubled oil and gas revenue this year despite volume dropping in half
This year Gazprom may increase its sales by 85 percent
September 12, 2022
This year, Gazprom supplied 43 percent less gas to Europe than last year, which raised prices three times on average. This translated to the company’s European export revenue increasing from $53 billion dollars to $100 billion dollars, wrote Olivér Hortay, head of the energy and climate policy research at Hungarian think tank Századvég Konjunktúrakutató, in his Facebook post in response to an article published in the Financial Times. According to the paper, the higher gas prices will help the Russian natural gas extraction company Gazprom offset the decrease in supply.
In an article published on Friday, the Financial Times reported that the company Gazprom is keeping its revenues from gas sales stable, as rising prices have compensated for its decision to reduce deliveries to Europe.
Energy Trading Stressed by Margin Calls of $1.5 Trillion
(Bloomberg) -- European energy trading is being strained by margin calls of at least $1.5 trillion, putting pressure on governments to provide more liquidity buffers, according to Norway’s Equinor ASA.
Aside from fanning inflation, the biggest energy crisis in decades is sucking up capital to guarantee trades amid wild price swings. That’s pushing European Union officials to intervene to prevent energy markets from stalling, while governments across the region are stepping in to backstop struggling utilities. Finland has warned of a “Lehman Brothers” moment, with power companies facing sudden cash shortages.
“Liquidity support is going to be needed,” Helge Haugane, Equinor’s senior vice president for gas and power, said in an interview. The issue is focused on derivatives trading, while the physical market is functioning, he said, adding that the energy company’s estimate for $1.5 trillion to prop up so-called paper trading is “conservative.”
Negative gas prices and tanker congestion off Europe's coasts - pure chaos reigns when it comes to Europe's gas supply
26. Oct. 2022
Source: Finviz
Anyone who wanted to sell some gas within an hour on the Dutch energy exchange ICE-Endex on Monday afternoon had to pay the buyers money for it. For the first time in history, the gas price was in negative territory . Speculators meet at Europe's energy exchanges and cheerfully drive the price up or down. At the same time, no less than 60 LNG tankers are anchored off Europe's coasts and cannot or do not want to unload their cargo. Commenting on this in a chat group, one energy analyst said: "EU governments were panicking buying gas like it was toilet paper during a pandemic". We have a chaotic winter ahead of us. By Jens Berger .
To visualize how dependent our modern economic system is on gas and oil transported by sea, here are two graph. Each red symbol represents a tanker - the bloodstream of our economic system.
Source: MarineTraffic
Now if you want to read the whole article, here we go. As the link is a translation from the whole page in German into English through "Google translate", it will take a little moment until you see it in English:
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Yes gas prices in Europe went negative yesterday for a few hours. In West Texas (Waha & Permian) prices yesterday (25th) for flow today (26th) were minus $2.
The Europe situation is primarily due to the fact that storage near the discharge ports is almost full, so there is no where for this gas to go. Storage is at high levels due to both the high level of LNG imports but also unseasonably warm weather (and hence lower demand) across much of Europe. The US situation I believe was due to pipeline maintenance/constraints which reduced take away capacity.
Don't take this to mean the worst is over and that Europe is now okay. Once it gets cold demand will exceed supply and storage will start going down. Question is how much.
