The EU Just Guaranteed Your Portfolio 2 Years' Worth of Energy Profits

If you don’t buy energy at this point, I can’t save you.

How many times have we warned investors that the EU is steaming toward one helluva train wreck this winter? Five? Ten? Twenty?

No, it’s definitely more. 

I remember back in November of last year, when we saw an energy crisis brewing in Europe due to its dependence on Russian natural gas. The threat of Putin weaponizing his natural gas industry was just that at the time — a threat. 

Look, we knew Putin was always willing to cut the taps off… He's done it before. 

Russia-Ukraine gas disputes go back decades, with Gazprom stymieing the flow of natural gas into Ukraine in 2006 after the two sides couldn’t reach an agreement on price. 

The problem is that this time around will be much, much worse. 

And after the EU’s latest actions last week, there’s nothing to save it from a hard winter. 

Fortunately, it might have a solution in mind. 

I have a confession for you.

Deep down, I never thought the EU would go through with its latest plan to avert the worst of its energy crisis. 

Last week, the European Commission came out with five immediate actions to get things under control. 

Right at the top of the list is setting up a price cap on Russian natural gas. 

Although the other actions — such as a cap on “enormous revenues” from energy companies, mandatory reductions in electricity consumption during peak hours, and even the solidarity tax on fossil fuel companies — come with their own consequences, the price cap on Russian energy will have one significant impact right off the bat.

You see, alongside this cap on Russian gas, the G7 came out with its own plan to impose a price cap on Russian oil and petroleum products. 

And make no mistake, Vladimir Putin is immediately calling their bluff. 

A few days ago, word out of the Kremlin was that Russia would cut energy supplies to Europe indefinitely… or at least until the continent rescinds sanctions against Russia. 

Putin announced yesterday that German and Western sanctions are the direct reason why the gas flows were shut down, even though he also maintained his charade of a turbine needing repair. 

The end result is the same: Winter gas supplies are about to get even tighter unless the EU blinks first.

Don’t worry, there IS a potential happy ending to this nightmare. 

The sole good news in Europe is that countries have already hit 80% capacity for their natural gas storage, and this goal was achieved ahead of their self-imposed November 1 deadline. 

Now, the goal is to hit 95% by November. 

I’d give you three guesses as to how they’ve managed to scrape by so far, but I know my readers only need one.

U.S. LNG.

During the first half of 2022, the U.S. exported an average of 11.2 Bcf/d of LNG, beating out powerhouse LNG exporters like Qatar and Australia.  

And the United States only did so by radically boosting its exports to Europe, which gobbled up 68% of our total LNG exports through June — which comes out to about 39 billion cubic meters of natural gas. 

That reliance on U.S. LNG is going to grow rapidly if Putin keeps the taps off too. 

Mark my words, the European gas crisis is still a ticking time bomb. 

And it’s putting a premium on major U.S. exporters like Cheniere. 

Until next time,

Keith Kohl

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A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

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