Europe’s energy crisis sharpens antagonisms with Russia

The resulting supply shortages throughout the continent served to underline Europe’s dependence upon Russian gas supplies, which flow through Ukraine.

Russian exports of natural gas currently account for a quarter of the entire western European market. Russia holds the world’s largest sources of gas reserves and is the largest producer and exporter. Gazprom retains a monopoly over Russian gas exports through its control of the Russian integrated pipeline network.

The European Union is largely dependent upon external sources for its energy supplies, particularly Russia, but also Norway and Algeria. That dependency is set to accelerate substantially in the coming period.

In a 25-member EU, energy demand is expected to grow by 15 percent between now and 2030. Natural gas demand is expected to increase by 70 percent, and electricity consumption is expected to increase by 45 percent.

EU natural gas production represents around 12 percent of world production and is declining, forecast to fall from 238 billion cubic metres in the year 2000 to 98 billion cubic metres in 2030. EU oil production currently represents less than 5 percent of the world total, and is relatively costly to extract.

The EU is currently dependent upon external sources for approximately 50 percent of its energy needs. This is anticipated to rise to 70 percent by 2030.

The European bourgeoisie is acutely aware of the increase in global competition for energy supplies, particularly coal, natural gas and oil—hence the publication of its Green Paper on March 8 on the issue. The language used in the paper, however, reflects its growing sense of alarm:

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