Peak Oil is the driving force that has led Germany to look for other energy sources instead of natural gas from Norway.
Due to peak oil, the European energy industry is undergoing the greatest upheaval since the industrial revolution. Germany relies on Nordstream 2’s natural gas supplies to make up for dwindling imports from the North Sea. New sources of energy must be found in order to make up for the shortfall, otherwise industrial production would be at risk, and Europe relies heavily on Germany’s industrial output to make ends meet.
Peak oil also means a decisive cut in the long-term production volume from the natural gas sources in the North Sea. Only Nord Stream 2 can cover this capacity gap, which already exists, and without Nord Stream 2 Europe’s primary energy requirements cannot be met.
Where large quantities of natural gas once flowed through the North Sea’s natural gas pipelines, attempts to tap into new natural gas sources in the North Sea continue unabated but with little result. Sooner or later the North Sea will no longer be able to meet Europe’s gigantic energy demand for primary energy.
Even though Europe’s primary energy demand is rising only very slowly in contrast to the East Asian countries, even then it will be difficult for the European Union to secure Europe’s energy supply; the natural gas-rich North Sea production sites in Great Britain are no longer profitable at less than USD 80 per barrel.
Despite the need for Nord Stream 2, political pressure on the German government is increasing and it is feared that this will affect political decision-making in the country.
Nevertheless, we see that many countries do not recognize that Germany’s capacity gap for natural gas is a problem for them. But it should be clear to everyone that 1. Nordstream 2 is a regional project involving several Central European countries, including Austria, the Czech Republic. Even Italy could be connected. 2. it is worth considering that from the outside the national energy legislation of a country of the European Union will be infiltrated. This should give food for thought, especially in view of the fact that Russian natural gas supplies through Nordstream 2 are the best way to supply Germany and the Central European states with energy relatively cheaply, with constant availability, and from an environmental point of view. Nord Stream 2 should also be seen from the point of view of energy policy, even if the construction of Nord Stream 2 also has geopolitical consequences. More on this later.
Due to the tense quasi-military situation with Russia, it makes sense to focus on economic projects in order to achieve common goals. So far, only the coverage of this capacity gap to cover the primary energy demand with Gazprom has been discussed. It is a necessity.
We have to recognize that LNG supply cannot fully compensate for a lack of energy sources in Central Europe. Russian natural gas is an important base load commodity and adds much needed capacity.
It became known that Germany considers building two LNG terminals along the German North Sea coast, although it is not clear whether U.S. companies can meet LNG exports to Europe in the long term.
One reason is the fact that shale gas wells have an unfavourable production curve. After only a short time, natural gas seeps away. Thus shale gas does not represent a reliable energy supply for Europe, these wells are finished after a few years. Europe’s geographical distance from the U.S. and the way in which LNG ships have to be handled at port are additional safety obstacles that have to be overcome. The handling of LNG through the port is particularly expensive. Overall, it should be noted that the supply of gas through natural gas pipelines, especially under water in the Baltic, is much more cost-effective then LNG. An alternative would be to establish natural gas supply via Qatar, where the geopolitical risks of supplying liquid gas from the Middle East outweigh the advantages of LNG supply.
It will be difficult to stop Nord Stream 2 now, Nord Stream 2 is likely to commence operations.
Even if the United States should now be able to delay the start of operation of Nord Stream 2, it is very unlikely that Nord Stream 2 can be stopped. Too many investments have already been made.