Bloomberg Article: Listening to European Electricity Traders Is Very, Very Scary

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Well, it's europe that threw the first energy punch, not russia.... but they one-upped europe every time though. I guess it's like poker, bluff your way out if your hand is likely too weak.
Very true.

A few items - Russia is sanctioned out of SWIFT and cannot receive payments in dollars. Or Euro. So they have offered an alternative method to get paid. Some countries have agreed, some haven't. The Europeans initially suggested that they would open a bank account for Russia in Europe and deposit the monies there but prohibited Russia from accessing that account because of the sanctions. Given that almost one trillion dollars worth of Russian state assets have been seized by Europe and the US, the Russians were suspicious of this arrangement.

There is a slight complication - Poland a few years back renegotiated their contract from fixed price to market price. Now that the market price is outrageous, they are trying to buy it cheaper from Germany who has a fixed price. But Germany canceled the NordStream 2 pipeline even though it's been completed. NordStream 1 is under maintenance and two turbines that are being refurbished by Siemens were in Canada. Because of the sanctions, Canada cannot give them back to Russia. Germany now has them and wants the Russians to take the turbines (under the table type of a deal) but without warranty, invoice or any other paperwork because of the sanctions. The Russians want a warranty and will not take possession without the proper paperwork. So it's a mess and the Germans don't have enough to give natural gas to Poland.

I suspect the Green Party in Germany are putting their country through this painful experience to then say "see, if we had green energy we wouldn't have been in this situation".
 
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finally online, but when you have a-holes as neighbors...


ah, more 💩storms incoming ???


EU leaders may soon be facing a modern revolution.”

Only after the people clean out all the liquor stores……….
 
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Very true.

A few items - Russia is sanctioned out of SWIFT and cannot receive payments in dollars. Or Euro. So they have offered an alternative method to get paid. Some countries have agreed, some haven't. The Europeans initially suggested that they would open a bank account for Russia in Europe and deposit the monies there but prohibited Russia from accessing that account because of the sanctions. Given that almost one trillion dollars worth of Russian state assets have been seized by Europe and the US, the Russians were suspicious of this arrangement.

There is a slight complication - Poland a few years back renegotiated their contract from fixed price to market price. Now that the market price is outrageous, they are trying to buy it cheaper from Germany who has a fixed price. But Germany canceled the NordStream 2 pipeline even though it's been completed. NordStream 1 is under maintenance and two turbines that are being refurbished by Siemens were in Canada. Because of the sanctions, Canada cannot give them back to Russia. Germany now has them and wants the Russians to take the turbines (under the table type of a deal) but without warranty, invoice or any other paperwork because of the sanctions. The Russians want a warranty and will not take possession without the proper paperwork. So it's a mess and the Germans don't have enough to give natural gas to Poland.

I suspect the Green Party in Germany are putting their country through this painful experience to then say "see, if we had green energy we wouldn't have been in this situation".
Back during the time of Nordstrom 1 there were conversations about being too reliant on Russian gas and whether it would make Germany susceptible to international blackmail. The prevailing thought was that it wouldn't happen because Russia would stand to lose too much in terms of trade. Of course there's the whole sleaziness of the involvement of Gerhard Schröderr with regards to the project in general.

For context Nord Stream 1 planning began in 1999 and construction started in 2010 completed in 2011. The decision to shut down nukes over a 10 year period was made in 2011 and they intended to make up for that loss of capacity with an energy mix of Coal, NatGas (Nord Stream 2) and renewables.

So Putin starts a war and assumes their people, who are used to suffering, have the capacity to "out-suffer" the West. Obviously excessive drought conditions are making the problem worse because it's disrupting the ability to generate power.

In the long-term the West can prevail because it has the capacity to adapt and overcome. It just has to have the will.
 
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Well, it's europe that threw the first energy punch, not russia.... but they one-upped europe every time though. I guess it's like poker, bluff your way out if your hand is likely too weak.
That's THE point, with Russia holding the energy card EU would have to suffer consequences if displeasing it.
Not very wise.
 
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No, THE point is that it's a self imposed energy crisis: Russia was willing to keep selling energy. It could have been handled entirely different, rather then 5 to 10 years of high energy prices we're facing now
 

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Back during the time of Nordstrom 1 there were conversations about being too reliant on Russian gas and whether it would make Germany susceptible to international blackmail. The prevailing thought was that it wouldn't happen because Russia would stand to lose too much in terms of trade. Of course there's the whole sleaziness of the involvement of Gerhard Schröderr with regards to the project in general.

For context Nord Stream 1 planning began in 1999 and construction started in 2010 completed in 2011. The decision to shut down nukes over a 10 year period was made in 2011 and they intended to make up for that loss of capacity with an energy mix of Coal, NatGas (Nord Stream 2) and renewables.

So Putin starts a war and assumes their people, who are used to suffering, have the capacity to "out-suffer" the West. Obviously excessive drought conditions are making the problem worse because it's disrupting the ability to generate power.

In the long-term the West can prevail because it has the capacity to adapt and overcome. It just has to have the will.
Yes, hence the Messmer Plan in France the last go-round. Ontario built 20 nuclear reactors in a short period of time as well because we were too reliant on coal. When you have competent stewardship that pushes to get things done rather than doing some Broadway show of virtuous antics; a veritable "cirque de politique" like certain grandstanding virtuosos whose vapid and insincere appeals of emotion to the plebs should be embarrassing, it's amazing how quickly action can be taken. Pickering units were shovel to breaker in 6 years and we were building multiple units and plants simultaneously. It CAN be done if the intrepid fools, stumbling around, mired in their own charades and grandstanding, would get out of the way.
 
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And here is the funny bit: China has increased imports of gas from Russia and is selling its surplus to Europe. This is how you get around the restrictions that are placed against importing it directly. One wonders if these LNG ships go to China at all or whether they are filled somewhere in Russia and then sail to Europe.

Who could have predicted?

 
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And here is the funny bit: China has increased imports of gas from Russia and is selling its surplus to Europe. This is how you get around the restrictions that are placed against importing it directly. One wonders if these LNG ships go to China at all or whether they are filled somewhere in Russia and then sail to Europe.

Who could have predicted?

China and India have been buying. Of course these entities have their own reasons why they may wish to invade another State (ex Taiwan) and would appreciate Moscow backstopping the operation.
 
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No, THE point is that it's a self imposed energy crisis: Russia was willing to keep selling energy. It could have been handled entirely different, rather then 5 to 10 years of high energy prices we're facing now
Russia would have cut off the energy exports even without the 'western embargo' given the levels of $$ and military aid being sent to Ukraine, Russia wouldn't want to provide energy power to western arms factories would it?
 
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