EU Consumers “can’t wait” for US Gas

US policy in Ukraine is consistent and sound. It may not be gentlemanly and it’s motivations and legality may well be questionable, but when the only thing you care about is your own bank-balance, then neo-nazis and jihadists can very quickly become an acceptable means to enhance and preserve it. The object of any US policy is to stimulate the US economy, in this case by selling the excess gas the US has obtained from fracking and shale extraction. Americans were totally opposed to fracking when Bush was president, and then they gave their wholehearted approval when Mr Hopey-Changey told them everything will be ok.

Everything Is Going to be OK

Everything is not ok though. In a few short years the US has become one of the largest producers of natural gas but they have nobody to sell it all to. The market was already saturated before they started. One way the US could sell it’s gas would be to offer it at a lower price, on the old supply-and-demand basis alleged to be a founding principle of American economic values. This sounds, on paper, quite a good plan since it allows the US to sell it’s gas gaining tax revenue for the treasury, coupled with the lower prices stimulating the economy.

Except, the trade rules America itself imposed on the world forbid energy-producers from unilaterally lowering prices. It would undermine Saudi Arabia, for example, which has great leverage over the US. Another problem with lowering the price is purely economic, shale gas is expensive and is only economically viable when the price is high – if the price goes down the US would lose money on the sale.

Patriotic Europeans Buy American

The solution, therefore, is not to increase the supply of gas on the market, but to remove existing sources of supply to make way for US sales. Thus, Russian gas is to be removed from the market either by sanctions against Russia for intervening in Ukraine, or, if Russia continues to show restraint, the instigation of a civil war in Ukraine that will make pipelines unusable.

Either way the EU is forced to buy US gas at permanently high prices. It’s a win-win situation for the US. And if anybody in the EU does not agree with this, they may be referred to Ms “Let Them Eat Cookies” Nuland, who in due course will be advising European consumers that if they insist on eating non-American, non-genetically-modified food, then they’ll be eating it cold.

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