Energy and Security

European nations still have a long energy transition ahead.

It seems to me that people often choose partners who have a completely different sense of temperature. One is usually too warm; the other, too cold. Wrestling over the thermostat is known to cause challenges for even the best relationships.

Europe has been wrestling with a thermostat challenge ever since the invasion of Ukraine two years ago. It hasn’t been easy, but Europe has managed through two winters without Russian natural gas. The approach of spring should bring seasonal relief, but Europe is still seeking energy and security.

When Western countries sanctioned Russia for its aggression, Russia retaliated by restricting the supply of natural gas to other European countries. At first, key pipelines were taken down for “maintenance;” shortly thereafter, they were closed. In September of 2022, the NordStream pipeline was destroyed in an explosion. This sequence of events initiated a jump in energy prices and a scramble to be ready for winter 2022-23.

European Natural Gas Prices