RIA Novosti: US Can’t Compete With Russia to Meet European Energy Needs

The US energy exports to Europe are unlikely to have an impact on European demand for Russian oil and natural gas, Senior Democrat of the House Foreign Affairs Committee Brad Sherman told RIA Novosti.

The congressman said that the US competition with Russia for LNG exports to Europe was unrealistic, unless they were subsidized by the US taxpayer or Europeans paid up to 50 percent more for energy.

“Even if we were to export natural gas, Asia will pay us more for it than anyone in Europe, in part because Europeans can buy it from Russians. Russia will always have a very substantial practical advantage for the natural gas market in Europe, as opposed to the United States,” Sherman said following a hearing on Asian energy needs and US exports.

“No one is proposing an increase in the US income tax rate so we can afford to give US natural gas to Ukraine at a price less than what they are paying Russia today,” he said.

The dispute over Ukraine’s failure to pay for delivered Russian natural gas has led some lawmakers to suggest US natural gas imports to Ukraine. However, the projected costs of US exports are based on Asian rates, which average $15 per mmBtu, approximately twice the European market rate (NBP).

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Source: RIA Novosti, 2014

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