Energy supply troubles show Europe vulnerable to imports


UK gas prices hit a five-year high due to Norwegian supply troubles on Monday and Italy was cut off from Libyan gas after militia fighting, showing European energy markets’ vulnerability to foreign imports.Oil and gas production in Europe’s main energy consuming nations has been declining, while demand is rising, making countries more and more dependent on foreign supplies.In Britain, an unplanned cut in gas imports from Norway, its main foreign gas supplier, lifted prices to their highest in five years and a hydrocarbon leak at a North Sea platform shut the pipeline exporting Brent crude, one of four North Sea oils setting the benchmark price.The shutdown forced Total to halt all oil and gas exports from its North Sea Alwyn Area, which comprises five fields: Alwyn North, Dunbar, Ellon, Grant and Nuggets.”The price surge highlights the UK’s fundamental issues with regards to energy security seeing that we have limited long-range storage capacity compared with most European countries, making it difficult to truly capture the benefits of the relatively cheaper gas prices as we can only store small amounts,” said Serge Mozadila, energy market analyst at LG Energy group.

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