Alex Mills
By Alex Mills
International energy policy is playing a key role in the invasion of Ukraine by Russian forces. Russia sells natural gas to Europeans and it is not afraid to cut off supplies if European countries challenge Russia.
Russia has used its “gas weapon” in 2006, 2008 and 2009 against its customers to the west.
Gazprom, Russia’s largest gas producer, says it provides about 30% of the natural gas that powers electric generation plants, manufacturing facilities and heats homes.
How did the European Union – with member countries like German, France and Spain – become so dependent upon such a ruthless energy partner?
The answer is that the European Union (EU) bought the story of environmental groups that renewable energy (wind, solar, etc.) could provide their energy needs if given enough subsidies.
The concept of introducing a mandatory and comprehensive European energy policy was enacted on Oct. 27, 2005 and it was based upon cutting greenhouse gases, reducing the use of fossil fuels (coal, oil and natural gas), and improving energy efficiency. The EU even created a cap-and-trade program to trade carbon coupons.
Sounds familiar to the Obama energy plan, doesn’t it?
Well, how well has it worked?
Energy consumers in Europe face rising prices, that is, if Russia decides to sell them natural gas at all. Manufacturing plants are worried about being able to compete with other manufacturers around the world. Jobs are at risk.
There is no realistic prospect that renewable energy can provide the power the EU needs to be competitive market place.
Their cap-and-trade program has been a failure, too. In theory, cap-and-trad is a market-oriented program where buyers and sellers trade emission certificates and everyone would benefit. Carbon emissions would decline through the reduction in the use of fossil fuels, which would be replaced by wind and solar. In reality, it has become nothing more than another tax and an additional cost of doing business in Europe.
The result of this pie-in-the-sky energy policy has put millions of Europeans at the mercy of Russian President Vladimir Putin. Russia is dealing from a position of strength. Mr. Putin can use his “natural gas weapon” to dictate the actions, or in this case, inaction by European nations against the aggression of Russia in Ukraine.
The EU is dealing from a position of weakness, because it must have Russia’s natural gas. Wind and solar cannot provide the energy security that the EU needs.
Lawmakers in Washington need to learn from the mistakes made by the EU.
Increased production of crude oil and natural gas in the U.S. has strengthened our national security.
Alex Mills is President of the Texas Alliance of Energy Producers. The opinions expressed are solely of the author.
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