×

A U.S. Gas War With Russia?

The Realities of the Global Energy Market

Smoke billows from a controlled burn of spilled oil off the Louisiana coast in the Gulf of Mexico coast line, June 13, 2010. Sean Gardner / Reuters

On April 21, the first Europe-bound shipment of U.S. liquefied natural gas (LNG) left the Gulf of Mexico and crossed the Atlantic, a move that has been widely regarded as the first step in an impending gas war between the United States and Russia. As the theory goes, Russia has a grip on the European gas market, which it uses to bully its close neighbors and shush any major European states that push back on its geopolitical ambitions. U.S. LNG, it follows, will break Russia’s stranglehold. It is a cheaper and more reliable alternative. In turn, Russia will either lose market share or compete by lowering its prices. But either way, Europe wins, economically and geopolitically.

The economic argument is simplistic but not incorrect, although the geopolitical argument is dead wrong. It overstates the importance of U.S. LNG to Eurasian politics, and it reinforces the false impression

Loading, please wait...

Related Articles

This site uses cookies to improve your user experience. Click here to learn more.

Continue