The EU's Energy Situation Remains Unsettled

By Carl Tannnenbaum

After several mild seasons in a row, we're experiencing a more typical winter here in Chicago. Our hardiness has been tested by bone-chilling cold and heavy snowfall. And our budgets have been tested by stratospheric heating bills.

Climatically, Europe has been fortunate: its winter has been moderate so far. But Europe's need for fuel remains substantial, and the cooling of relations between the U.S. and the European Union (EU) may make it more difficult to keep EU homes and the EU economy warm.

The Russian invasion of Ukraine in 2022 led Europe to disconnect itself from the Gazprom pipelines that supplied the lion's share of the continent's natural gas; pipeline sabotage sped the transition. This was a major step: according to the European Commission, roughly a third of households in the EU rely on that fuel for heating. And while Europe has advanced the use of alternative fuels for generating electricity, natural gas-fired plants provide about 16% of the continent's power.