EU GAS STORAGE SITES COULD BE DEPLETED BY SPRING 2023

Europes Gas Problem

E1vis.Eth

1/17/20231 min read

This year, milder than usual temperatures and efforts to decrease natural gas usage have both been significant in managing Europe's energy crisis before winter arrives.

However, the region's dependence on Russia has been in development for decades and replacing it will not be easy.

It is anticipated that the EU's natural gas storage facilities will be depleted by spring 2023. Without pipeline gas from Russia, Europe will have limited import capacity, making it difficult to refill gas storage for the following winter.

In an effort to address the crisis, European countries, including the UK, have committed over $700 billion to reduce energy costs for households and to meet the financial needs of power companies. Along with lower consumer demand due to high natural gas prices, this will help mitigate the crisis in the short term.

However, if natural gas prices remain high in 2023 and 2024, it is likely that industrial production will decline as producers try to cut costs. Along with low consumer confidence and high inflation, a decrease in industrial output could potentially worsen a potential recession.