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That is an excellent point, and very difficult to model. Maybe more importantly, the supply curve for natural gas is also very difficult to model. In Europe NG
by chris_va 8y ago
That is an excellent point, and very difficult to model.
Maybe more importantly, the supply curve for natural gas is also very difficult to model. In Europe NG is expensive, but as the demand drops the price will likely decline sharply (the infrastructure is mostly built, and the current costs are highly skewed towards amortizing investment capital). There are also geopolitical concerns which may play out very differently than expected.
- Scoundreller 8y agoI’m not sure that anyone in Europe is happy about their dependency on Russian NG.
- Proven 8y agoI am very happy, as long as it's cheaper than other energy
- int_19h 8y agoThere are other potential sources, most notably, Iran. That comes with its own geopolitical issues, such as US throwing a fit about it. But from a purely European perspective, it's probably better than Russia, since there are fewer conflicting interests.