EU’s energy pledge to U.S. faces daunting challenges – NaturalNews.com

• The EU committed to purchasing $750 billion in U.S. energy over three years to avert trade tensions, but experts label the promise “almost impossible” due to supply, technical and legal hurdles.
• The U.S. exported only $166 billion in oil/gas last year, making it impractical to divert nearly all exports to Europe. EU refineries can only process 14 percent of U.S. oil, further limiting feasibility.
• The EU cannot guarantee the purchases, as imports depend on private companies and require expanded LNG infrastructure and shipping capacity – neither currently adequate.
• Despite aiming to reduce reliance on Russian energy, EU imports of Russian LNG rose to 17.5 percent of supply in 2024, while the U.S. provided 45.3 percent. Meeting the pledge would force the EU to shun cheaper suppliers like Norway.
• Critics argue the pledge lacks commercial rationale, with no incentives for companies to prioritize costly U.S. energy. The deal appears more political than practical, aimed at avoiding higher U.S. tariffs.

In a bid to avert a transatlantic trade war, the European Union has committed to purchasing a staggering $750 billion worth of American energy over the next three years.

The EU and the U.S. finalized a comprehensive trade agreement on Sunday, July 27. It included Brussels’ commitment to invest $600 billion in the U.S. economy alongside the massive energy purchase pledge. This move was seen as a critical step to de-escalate trade tensions and strengthen economic ties between the two regions. (Related: EU submits to 15% Trump tariffs in new U.S. trade deal.)

However, the feasibility of the energy pledge is being met with widespread skepticism. Experts and officials are calling this ambitious pledge “almost impossible” to achieve, citing a myriad of challenges ranging from limited United States supply to technical obstacles and legal hurdles.

Laura Page, a senior analyst at commodities firm Kpler, described the headline figure as “completely unrealistic.” Last year, the EU spent €76 billion ($87 billion) on U.S. energy. Tripling this amount would necessitate sidelining cheaper suppliers and diverting nearly all U.S. oil and gas exports to Europe, which Page insists “is just never going to happen.”

The EU’s reliance on U.S. energy is further complicated by the limited supply capacity of the United States. According to Page, the U.S. exported only $166 billion in oil and gas last year, making it impractical to allocate all exports to the EU.

Additionally, EU refineries have a limited capacity to process American oil, capped at around 14 percent, as highlighted by Homayoun Falakshahi, head of crude analysis at Kpler. The technical obstacles are compounded by the EU’s lack of control over import deals.

A senior European Commission (EC) official emphasized that the EU relies on private companies for these purchases, stating, “This is not something the EU can guarantee.” The official further pointed out that the deal is contingent upon having sufficient LNG infrastructure and U.S. shipping capacity, which are currently not in place.

Washington-Brussels energy agreement: A political deal?

EC President Ursula von der Leyen has argued that the plan would enhance energy security and reduce the EU’s dependence on Russian energy. However, the numbers tell a different story.

Despite sanctions and the sabotage of the Nord Stream pipeline, Russian liquefied natural gas LNG imports to the EU surged. LNG from Moscow accounted for 17.5 percent of the bloc’s supply last year, second only to the U.S. at 45.3 percent.

In 2024, the EU imported €23 billion ($26.34 billion) in oil, gas, and nuclear fuel from Russia, a figure that is insufficient to bridge the gap left by the ambitious U.S. energy pledge. The EU’s energy imports totaled €375 billion ($430 billion) last year, with only €76 billion ($87 billion) coming from the United States. To meet the pledge, the EU would need to essentially triple its American imports, a move that would require shunning other providers like Norway, which offers cheaper gas via pipeline.

The EU’s commitment to such high figures has left many questioning the economic rationale behind the decision. Anne-Sophie Corbeau, a senior researcher and gas expert at the Center on Global Energy Policy, noted, “It appears the EU was ready to agree on any number to avoid the 30 percent,” referring to Trump’s threat of imposing a far higher blanket tariff.

As things stand, the EU’s pledge seems more like a political maneuver than a practical plan. The lack of economic incentives for companies to engage in such transactions raises doubts about the feasibility of the commitment. As one gas specialist at a prominent energy trading house put it, “If there is a commercial rationale behind this, companies will do it — otherwise, it’s obviously only hot air.”

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Watch European Commission President Ursula Von der Leyen announcing EU counter-tariffs on the U.S. worth €26 billion ($29.77 billion) in this clip.

This video is from the Cynthia’s Pursuit of Truth channel on Brighteon.com.

More related stories:

Trump agrees to delay EU tariffs after call with von der Leyen, sets new deadline for trade deal.

Trump threatens 50% TARIFF on EU imports – but delays it after talks with Brussels.

Is the EU finally reconsidering its energy war with Russia?

Sources include:

RT.com

POLITICO.eu

TasnimNews.com

Brighteon.com