FT opinion article: “The energy crisis gives the US a chance to woo big European companies”. If cheap natural gas can’t come to Europe, Europe will have to go the cheap natural gas. Thread #markets #equities #bonds #energy #ESG ft.com/content/0a78d7…
1/According to the author European heavy industry has endured a grim few months. Although the fuel crisis appears to be easing and companies invest in green energy/efficiency some are also rethinking their geographic footprint.
2/The US now has an opportunity to woo European multinationals, with energy costs clearly playing a role in new investments. US has an advantage over Europe because natural gas supplies are local, reliable and consistently cheaper.
3/As companies cut their carbon footprints fossil fuel prices should become less important but the US is trying to retain the advantage via wind, solar and green hydrogen. But energy is not the only thing. European corporates also want stable politics and skilled labour.
4/US culture wars are painful for outsiders to navigate and there is risk over problems for EU companies that must comply with Brussels-driven climate change mandates. Russia has handed the US an opportunity for direct investment. Unless politicians blow it.
5/IMHO at least the article is honest. If there is a winner from the invasion of Ukraine (doubtful) it is the US. A significant part of European heavy industry was built on cheap Russian gas which is no longer an option.
6/If cheap natural gas cannot come to Europe, Europe will have to go to the cheap natural gas.
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