Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
In the article it shows the wide distribution of Russian gas to the European continent. Russia wants to get paid in Rubles instead of Euro in order to keep their banks running.
Europe has few choices to replace Russian natural gas when they are heavily depend on them. Recently Germany started up several coal powered plants. Also they are exploring options using liquified gas but at added cost from transporting it. Canada and US may be their suppliers.
Yes, the sanction has pointed out the vulnerabilities of globalizing the world economy.
One of our very first goals was to own our home so that we would never be at the mercy of a landlord. Another of our very first rules was never to buy anything on credit, other than the home mortgage. NEVER be in a position where others can make your economic fate subservient to their own interests.
Evidently many European countries, especially Germany, didn't see things that way.
It is a real mess especially when Germany is the manufacturing powerhouse in Europe. Solar and wind power account for 40% of electricity. Industrial production needs a lot more and there are few viable options. Natural gas required to be shipped in liquified form in ships.
News reports are mentioning Russian natural gas deliveries calculated as "MWh". In electrical energy transmission, one MWh is simply the power of one million watts for one hour.
I can't seem to find any information which describes how or why natural gas would be measured in MWh. If natural gas is used to generate electricity, the amount of electricity generated by a specified amount of natural gas would vary considerable depending on the efficiency of the conversion. That being so, it seems unlikely that one MWh of gas could be translated directly to one MWh of electric power. So what the heck is one MWh of natural gas, exactly?
Comments
https://bbc.com/news/world-europe-62249015
In the article it shows the wide distribution of Russian gas to the European continent. Russia wants to get paid in Rubles instead of Euro in order to keep their banks running.
Yes, the sanction has pointed out the vulnerabilities of globalizing the world economy.
Evidently many European countries, especially Germany, didn't see things that way.
https://nytimes.com/2022/04/23/world/europe/schroder-germany-russia-gas-ukraine-war-energy.html
It is a real mess especially when Germany is the manufacturing powerhouse in Europe. Solar and wind power account for 40% of electricity. Industrial production needs a lot more and there are few viable options. Natural gas required to be shipped in liquified form in ships.
I can't seem to find any information which describes how or why natural gas would be measured in MWh. If natural gas is used to generate electricity, the amount of electricity generated by a specified amount of natural gas would vary considerable depending on the efficiency of the conversion. That being so, it seems unlikely that one MWh of gas could be translated directly to one MWh of electric power. So what the heck is one MWh of natural gas, exactly?
1 MWh = 3.412 MMBTU
Natural gas futures trade in 10,000 MMBTU units, https://www.cmegroup.com/markets/energy/natural-gas/natural-gas.contractSpecs.html
Mini futures trade in 2,500 MMBTU units, https://www.cmegroup.com/markets/energy/natural-gas/emini-natural-gas.contractSpecs.html
Conversion table https://thermal-engineering.org/wp-content/uploads/2019/05/conversion-joule-calorie-kilowatthour-energy-units.png