iMetal

The gas supply crisis in Europe has set off a surge in demand for natural gas from countries other than Russia, drowning out the talk about a rapid transition away from hydrocarbons.
But that transition is still in progress, and the surging prices are a mixed blessing for oil producers.
A report from Enverus said because of oil price spikes and a slowing global economy, demand growth for crude this year will be half of what had been expected.
And a report from DNV predicts that despite the current focus on natural gas supplies, by 2030 renewable energy’s share of the European market will be higher than was expected before Russia invaded Ukraine, triggering sanctions that are changing the energy markets.
The reports offer a reminder that while the horrors of war offer a short-term economic upside for oil, gas, and coal producers outside of Russia, those high prices are not killing long-term plans of those pushing for a transition.
Enverus said oil growth demand is expected to rise by 1.5 million B/D this year, which coincides with the volume of Russian oil cargos cancelled in early March by European buyers worried about the “reputational damage” associated with those deals.
While the mass disruption will create enormous opportunities for those with LNG to sell and result in some record profit reports, Enverus predicted that it will slow global economic growth and further erode oil demand ahead.
For US gas exporters, the demand that matters at the moment is filling the huge supply gap created by Europe’s sudden urge to rapidly phase out imports from Russia, which are equal to about one third of its gas demand, which exceeds the volumes of LNG available from suppliers on short notice.