The global energy crisis is weighing on households and businesses around the world. The US is more insulated from the high prices because it's a net exporter of energy, and American producers have boosted shipments of liquefied natural gas (LNG) to Europe. But energy and finance analyst Clark Williams-Derry says the ongoing supply issues could change the balance.
"The US is exporting more LNG, more of our gas, and we're importing higher prices as a result. (…) I can expect we're going to see more political pressure possibly to restrict exports from the US, sort of save some of the gas for the US market and try to keep our prices in check," Williams-Derry explains.
Any efforts to increase production will also take years to have an impact, he adds. "There is only so much LNG in the world, and only so much LNG that the US can produce right now. And it takes years, literally years, to bring a new project online. So even if the US were to start new projects right now, it probably would mean there wouldn’t be new LNG getting into the market for another three to four years."
Also in the show:
- Our correspondents Anne Mailliet and Nick Spicer visit a new LNG terminal which has been fast-tracked in Germany.
- Yuka Royer looks at the knock-on effect on emerging economies, some of which are being left in the dark.
