Steven R. Miles & Anna Mikulska write in Forbes about the reason why natural gas prices are rising in Europe.
- European politicians have begun to blame American greed for high natural gas costs when it is the market structure that inflates costs.
- Under current European laws, American producers lose ownership of their product once it is unboarded on to a tanker and have no say on where it gets delivered.
- Middlemen distributors and traders, the majority of which are European, then markup natural gas prices before unloading it to European markets.
- While it is hard for European consumers to see immediate energy relief, Europe’s governments can provide it in the long term by building LNG terminals and agreeing to purchasing agreements with American producers.
Read the full article here.