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BASF to Downsize ‘Permanently’ in Europe

9 points by Ambolia 4y ago

Ambolia 4y ago
https://archive.ph/tOxHg https://archive.ph/tOxHg
emsign 4y ago
They are going to China and betting on Xi to keep the country in control. Good riddance, BASF.
- PaulHoule 4y ago
  China is not a low-cost producer of natural gas and doesn't import low-cost natural gas https://about.bnef.com/blog/rising-gas-prices-threaten-chinas-gas-power-ambitions/ https://about.bnef.com/blog/rising-gas-prices-threaten-china... North America, on the other hand, leads the world. Europe has fading production in the North Sea and had a crisis at the Groningen gas field that is further limiting production. https://www.reuters.com/business/energy/dutch-limit-groningen-gas-production-28-bcm-20222023-2022-09-26/ https://www.reuters.com/business/energy/dutch-limit-groninge... For better or worse, Europe is not pursuing fracking. In the long term the world is going to have to green up its chemical industry and BASF could use this as an opportunity to be early to get into the next thing.
  - runnerup 4y ago
    Groningen field reduction (your last link) is equivalent to 0.5% of europe's natural gas consumption.
hunglee2 4y ago
Unfortunately, de-industrialisation will pick up pace in Europe - the input costs from high and volatile energy prices will make it untenable to maintain much of the manufacturing base there. This war is a disaster for Ukraine, disaster for Russia, disaster for Europe
- twelve40 4y ago
  yeah, in other words, Europe's industry has profited awesomely from 40+ years (many decades) of steady, super-reliable, cheap (wholesale pipeline prices) Russian gas, and now, 40 years into it, after attempting to crush ruble into rubble (good friend+ally Biden quote) something went unexpectedly wrong. Maybe all that cheap-gas-based industry was not very competitive in the first place?
  - yrro 4y ago
    I hope you don't mean to imply that "Europe" unilaterally decided to "crush ruble into rubble" for shits and giggles?
    - Vibgyor5 4y ago
      No, it just decided to follow into its Atlantic ally's footsteps without having the clout to weather the economic damage
      - giggles_01 4y ago
        Surely the better way was to wait silently for tanks first in Moldova, then later in Baltic states and Poland, then Berlin (it was in DDR after all) + huge wave of refugees + more death and torture first on your doorsteps and then in your house. Russia is such a peaceful nation after all, it is all those NATO warmongers who made it rape children in Ukraine.

9 points by Ambolia 4y ago

Ambolia 4y ago

https://archive.ph/tOxHg https://archive.ph/tOxHg

emsign 4y ago

They are going to China and betting on Xi to keep the country in control. Good riddance, BASF.

PaulHoule 4y ago
China is not a low-cost producer of natural gas and doesn't import low-cost natural gas https://about.bnef.com/blog/rising-gas-prices-threaten-chinas-gas-power-ambitions/ https://about.bnef.com/blog/rising-gas-prices-threaten-china... North America, on the other hand, leads the world. Europe has fading production in the North Sea and had a crisis at the Groningen gas field that is further limiting production. https://www.reuters.com/business/energy/dutch-limit-groningen-gas-production-28-bcm-20222023-2022-09-26/ https://www.reuters.com/business/energy/dutch-limit-groninge... For better or worse, Europe is not pursuing fracking. In the long term the world is going to have to green up its chemical industry and BASF could use this as an opportunity to be early to get into the next thing.
- runnerup 4y ago
  Groningen field reduction (your last link) is equivalent to 0.5% of europe's natural gas consumption.

hunglee2 4y ago

Unfortunately, de-industrialisation will pick up pace in Europe - the input costs from high and volatile energy prices will make it untenable to maintain much of the manufacturing base there. This war is a disaster for Ukraine, disaster for Russia, disaster for Europe

twelve40 4y ago
yeah, in other words, Europe's industry has profited awesomely from 40+ years (many decades) of steady, super-reliable, cheap (wholesale pipeline prices) Russian gas, and now, 40 years into it, after attempting to crush ruble into rubble (good friend+ally Biden quote) something went unexpectedly wrong. Maybe all that cheap-gas-based industry was not very competitive in the first place?
- yrro 4y ago
  I hope you don't mean to imply that "Europe" unilaterally decided to "crush ruble into rubble" for shits and giggles?
  - Vibgyor5 4y ago
    No, it just decided to follow into its Atlantic ally's footsteps without having the clout to weather the economic damage
    - giggles_01 4y ago
      Surely the better way was to wait silently for tanks first in Moldova, then later in Baltic states and Poland, then Berlin (it was in DDR after all) + huge wave of refugees + more death and torture first on your doorsteps and then in your house. Russia is such a peaceful nation after all, it is all those NATO warmongers who made it rape children in Ukraine.