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Energy Policy Act

Started by Brandon Stewart6 · · 👁 3 views · 4 replies

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Participants Brandon Stewart6Larry GrayLarry Williams5
Brandon Stewart6 Brandon Stewart6 MemberOP
13 messages
joined Dec 2012
#1 ·
What even is this
Energy Policy Act
I can't really speak on it myself, but from what I gather, it’s all about the gas situation between Europe and Russia.
Putin is claiming that with this Energy Policy Act, Europe is just trying to nationalize Russian assets.
The word is Europe wants gas at a discount, while Russia supposedly wants to sell it at a premium.
If you guys could pull together more info on this, I guess it would be pretty useful for everyone.
Larry Gray Larry Gray Member
16 messages
joined Apr 2013
#2 ·
Brandon Stewart6 said:What even is this
Energy Policy Act
I can't really speak on it myself, but from what I gather, it’s all about the gas situation between Europe and Russia.
Putin is claiming that with this Energy Policy Act, Europe is just trying to nationalize Russian assets.
The word is Europe wants gas at a discount, while Russia supposedly wants to sell it at a premium.
If you guys could pull together more info on this, I guess it would be pretty useful for everyone.

I'm guessing you're talking about this -article

For years now, the European Union has been getting a yearly "Christmas" card from Russia, which is basically just a threat to cut off gas deliveries because contracts haven't been signed yet. Then, right before the New Year, they suddenly sign everything and promise to sign the next deal earlier, only for the exact same cycle to repeat the following year.

The whole mess really stems from Belarus and Ukraine. Belarus is totally reliant on Russian gas and oil, and their entire economic growth depends on how much resource they can pull from Russia. But every year, Russia exports less to Belarus because selling to other countries is more profitable, which leads to massive arguments between the two sides.
Ukraine, on the other hand, deals with a different headache. The price per thousand cubic meters of gas shot up from $95 in 2006 to $430 by 2012—that’s pretty much the highest price any country pays for Russian gas. The reason is simple: there's a fear that if Russia sells cheap gas to Ukraine, Ukraine will then turn around and flip their surplus to other countries at a price lower than what Russia is offering.

All these disputes make the European Union nervous that Russian gas and oil aren't reliable sources and could shut off at any moment. Because of that, the EU hesitates to finalize its own deals with Russia until Russia settles things with Belarus and Ukraine. Meanwhile, the EU is hunting for alternatives by trying to bring in gas from other nations to create competition and hopefully drive prices down. The real kicker is that they want to completely shut out Russian companies from these new projects. They don't want Russian politics meddling in these new pipelines; they want to prevent the kind of leverage Russia has over Belarus and Ukraine from happening in Finland, Romania, Bulgaria, or Turkey, or anywhere else these new lines might run.
Brandon Stewart6 Brandon Stewart6 MemberOP
13 messages
joined Dec 2012
#3 ·
Larry Gray said:I'm guessing you're talking about this -article

For years now, the European Union has been getting a yearly "Christmas" card from Russia, which is basically just a threat to cut off gas deliveries because contracts haven't been signed yet. Then, right before the New Year, they suddenly sign everything and promise to sign the next deal earlier, only for the exact same cycle to repeat the following year.

The whole mess really stems from Belarus and Ukraine. Belarus is totally reliant on Russian gas and oil, and their entire economic growth depends on how much resource they can pull from Russia. But every year, Russia exports less to Belarus because selling to other countries is more profitable, which leads to massive arguments between the two sides.
Ukraine, on the other hand, deals with a different headache. The price per thousand cubic meters of gas shot up from $95 in 2006 to $430 by 2012—that’s pretty much the highest price any country pays for Russian gas. The reason is simple: there's a fear that if Russia sells cheap gas to Ukraine, Ukraine will then turn around and flip their surplus to other countries at a price lower than what Russia is offering.

All these disputes make the European Union nervous that Russian gas and oil aren't reliable sources and could shut off at any moment. Because of that, the EU hesitates to finalize its own deals with Russia until Russia settles things with Belarus and Ukraine. Meanwhile, the EU is hunting for alternatives by trying to bring in gas from other nations to create competition and hopefully drive prices down. The real kicker is that they want to completely shut out Russian companies from these new projects. They don't want Russian politics meddling in these new pipelines; they want to prevent the kind of leverage Russia has over Belarus and Ukraine from happening in Finland, Romania, Bulgaria, or Turkey, or anywhere else these new lines might run.

Nah, I wasn't talking about that article. Never even seen it before, and honestly, I don't really feel like opening it either.
Look, citing some random articles from news outlets that just peddle propaganda doesn't mean much to me. I mean, let's be real, about 90% of the media does exactly that these days anyway.

Larry Gray said:I'm guessing you're talking about this -article

For years now, the European Union has been getting a yearly "Christmas" card from Russia, which is basically just a threat to cut off gas deliveries because contracts haven't been signed yet. Then, right before the New Year, they suddenly sign everything and promise to sign the next deal earlier, only for the exact same cycle to repeat the following year.

The whole mess really stems from Belarus and Ukraine. Belarus is totally reliant on Russian gas and oil, and their entire economic growth depends on how much resource they can pull from Russia. But every year, Russia exports less to Belarus because selling to other countries is more profitable, which leads to massive arguments between the two sides.
Ukraine, on the other hand, deals with a different headache. The price per thousand cubic meters of gas shot up from $95 in 2006 to $430 by 2012—that’s pretty much the highest price any country pays for Russian gas. The reason is simple: there's a fear that if Russia sells cheap gas to Ukraine, Ukraine will then turn around and flip their surplus to other countries at a price lower than what Russia is offering.

All these disputes make the European Union nervous that Russian gas and oil aren't reliable sources and could shut off at any moment. Because of that, the EU hesitates to finalize its own deals with Russia until Russia settles things with Belarus and Ukraine. Meanwhile, the EU is hunting for alternatives by trying to bring in gas from other nations to create competition and hopefully drive prices down. The real kicker is that they want to completely shut out Russian companies from these new projects. They don't want Russian politics meddling in these new pipelines; they want to prevent the kind of leverage Russia has over Belarus and Ukraine from happening in Finland, Romania, Bulgaria, or Turkey, or anywhere else these new lines might run.

I’m not even being serious here. This is either destined for some North Korean propaganda rag or maybe an American magazine like Time.
If you actually wanted to make this interesting, you’d probably need to put together some kind of ranking—like, a leaderboard showing exactly how much every country is paying per 1,000 cubic meters. I guess that way we could finally see who's actually footing the bill and where everyone stands.
So, like, I’m dropping this link from RIA Novosti right here. It says Mexico is paying $470 for every 1,000 cubic meters of gas. Everything else you just typed out? Honestly, it feels like it’s got zero actual basis in reality. I guess.

So, if I'm following your logic, you're saying Russia is charging Ukraine the most expensive gas at like $430, while maybe selling it to Poland for $350? And then, if Russia decided to cut Ukraine a break and sell it to them for, say, $400, they'd just turn around and flip it to the Poles for $380? I guess that's how you see it. Maybe.
Now this is what I call a real business!

On the flip side, the European Union is out there hunting for alternatives. They're trying to pull in gas from other places just to get some actual competition in the mix against Russia, which, I guess, might actually help bring those gas prices down a bit.
I mean, did you even consider that Europe has its own LNG terminals now? Plus, gas is flowing into Europe from all sorts of other places through those undersea pipelines. It’s not just one source, I guess.
Have you done any digging lately? Maybe a little bit of Googling? I guess.

What you wrote doesn't really have anything to do with the Energy Policy Act. I’ll be honest, I don't actually know what that package entails, but I know for a fact it isn't what you're claiming. I've read it a hundred times in the papers, like in Time or something.
Alright, like I promised, here’s that link for you.
So, I was digging through some old reports from RIA Novosti, and man, things were looking pretty wild back then. It’s kind of crazy how much stuff shifts, you know? There’s this whole conversation going on about energy policy and how everyone is reacting to what’s happening globally. Basically, there’s this idea floating around that some of the moves being made by certain partners in the European Union—well, let's just say some folks in Europe—are essentially a confiscation of Russian investment. I guess that's one way to look at it. It’s messy. Everything feels a bit heavy when you start pulling at those threads. Maybe it’s just me, but it feels like we're always one step away from a massive shift in how these big players handle their business. Just food for thought, I suppose.

Anyway, thanks for putting in the work, man. I really appreciate it. At least now we can actually get the conversation moving. I'm sure other people will jump in with their own takes soon enough, and maybe then we'll all find some common ground.
Brandon Stewart6 Brandon Stewart6 MemberOP
13 messages
joined Dec 2012
#4 ·
"Implementing the Energy Policy Act—especially since they're trying to apply it retroactively to old deals—is a straight-up violation of Article 34. To be honest, we basically view the actions already taken by some of our partners in some EU countries as a confiscation of Russian investment."
That was Putin's take.
Larry Williams5 Larry Williams5 Member
19 messages
joined Jul 2009
#5 ·
You're all missing the point entirely.
http://ec.europa.eu/energy/gas_elect...package_en.htm
Russia just wants a guaranteed market for their gas. It’s simple math: you sign a 30-year contract to buy from us—paying top dollar regardless of whether you actually need the volume—or we simply refuse to sell to you. From a purely logical standpoint, if you're looking to secure massive investments in fields thousands of miles away in Alaska, you need that certainty. Europe wants... as detailed in the link...

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