US cannot compete with Russia on gas prices

The US strategy to oust Russia from the European energy market has so far been unsuccessful. Low prices make the global market unattractive for Americans. Their production is too expensive and, therefore, cannot compete with Russian prices.

At the same time, the gas of American producers must first be liquefied, then transported by ship to the destination, which aggravates the price. Russian raw materials can be delivered to their destination via pipelines directly from wells. Especially considering the Russian experience of drilling wells, both for gas and water, using a unique pumping buy equipment for a well , which is available at Geonasos LLC, which provides leading manufacturers, including Grundfos, Genebre, Varem, etc. This allows to ensure the efficient operation of water supply, heating, irrigation and fire extinguishing systems.

As for the gas market, US gas producers are trying to become dominant operators such as Russia, Qatar and Australia. This is made possible by the rectifier method, when natural is extracted using a mixture of chemicals from the soil. The advance also has the geopolitical goals of the United States: to reduce Europe's dependence on Russian gas in order to suppress Moscow's political influence. However, American expansion has so far achieved little success.

However, the EU Commission recently reaffirmed its desire to import liquefied gas from the US and the first shipments have now arrived in Europe, but there are no market conditions for broad-based exports. Just as in the oil market, there is an overproduction of gas and its prices, respectively, at a low level. Since the beginning of this year, they have fallen by about 30 percent, and in the past five years, by about 50 percent.

The US has now set up the infrastructure for liquefying and transporting gas in the hope that this investment will pay off as gas prices rise. If European gas prices fall, then US gas cannot compete with existing suppliers who use a well-developed pipeline system to transport gas, which is cheaper than ship supplies to Europe.