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Rationing of energy would happen if Russia completely cuts off gas supplies to Europe. Prices would essentially become meaningless, says this report. Supplies coming through Ukraine are limited to 18% with the rest of the 38% Russia supplies to European Union coming through other countries or new pipelines. LNG supplies from the US are increasing but not enough infrastructure has been built for this. This may explain also why Russia is acting now on NATO enlargement that it sees as its concern. Increasing shift to LNG and other supplies would make EU less dependent on Russia. NATO countries are also not spending enough on defense with Germany not yet at 2% and Scholz only going up to 1.5%. Russia has modernized its defense capabilities by comparison, the US mired too much in localized wars in Afghanistan and Iraq.  Russia was never "a regional power" as Mr. Obama had said with a vague understanding of European history, even while America's resources were wasted in two wars in Afghanistan and Iraq where American interests were not involved. Today the realization is that European Union and American leadership had failed under leadership of Merkel, Macron and in the Bush and Obama years. ...

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Questions about how large oil companies could be slowing down the action needed to meet climate change targets set by the US and the EU. The Ukraine war disrupted oil and gas supplies leading to the realization that a transition period would include some oil and gas. The Greens and Energy Minister Habeck in Germany secured emergency oil and gas supplies from Norway and Qatar to get through the winter. Yet the basic goals of meeting climate change targets set by the EU and the US and other countries remain intact and require serious action. How will this be done and who will set the climate change action plan? The large oil companies have too much invested in fossil fuels to prepare for the future with renewable energy. 

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Angela Merkel of Germany and other EU leaders decided to back "global supply chains" and declined to support the EU Commission in Brussels at a virtual summit attended by 27 leaders of the EU states. It was also attended briefly by Joe Biden. Ursula von Leyen said 21 million doses of vaccine had been shipped from EU to Britain, of which 1 million were from Astra Zeneca and the rest from Pfizer and other makers of vaccines. A total of 77 million doses made in the EU wer shipped to 33 countries since 1 December 2020. Governments of Netherlands, Ireland, Belgium and Sweden were not in favor of blocking shipments from the UK because of the effect on supply chains. Pfizer is strongly opposed to the move to block shipments. Merkel emphasized the need to respect the global supply chains while making efforts to ensure EU countries get a fair share of vaccine supplies. The problems of UK vs Britain on vaccine supplies comes from the yield problems at a Belgium plant of Astra Zeneca and the company's refusal to divert supplies from the UK. Of the 120 million promised only 30 million could be delivered to EU. The UK's contract with Astra Zeneca states that supplies from its plants in Oxford and Staffordshire must be delivered to Britain first. The UK is facing an acute shortage of second doses even though it has given 31 million jabs. At this time 45 out of 100 people in the UK have jabs, compared with 13 out of 100 in the EU.   ...

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EU Commission president Leyen announces Pfizer will supply EU with 1.8 billion doses of Pfizer vaccine to 2023. The increased supplies will include booster shorts to increase immunity. Another change is the new date for 70% of European Union population to be vaccinated, which is now advanced to end of July instead of end of September. With new waves of the coronavirus affecting Europe, and criticism of the EU's earlier effort in securing vaccine supplies, more urgency has gone into the new effort in 2021. Leyen told Pfizer CEO Albert Bouria- "If I may say so, engineer the mRNA in a way that it can adapt to potential escape vaccines," at a joint press conference. Leyen thanked Pfizer for its enormous effort in boosting vaccine manufacture and delivery. This will help accelerate the vaccination effort in Europe after the slow start in March and April of 2021. Bringing much needed optimism and new hope of a lasting recovery both in economic activity, health and in the mood in Europe, which can then spread from the US and Europe to the rest of the world. ...

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Safety concerns at Europe's largest onshore gas field at Groningen, Netherlands. There are tremors and earthquakes in the area linked to effects of gas production. This report in The Guardian says 150,000 Groningen residents have suffered earthquake damage over the last decade. This limits production with increasing need for natural gas in the EU after the cutoff of Russian supplies.

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The BBC looks at Germany's scramble for energy in 2022. Germany is now doing everything for a winter without Russian gas- that means coal, LNG, new supplies from Qatar and the US. EU wants 15% cut in consumption, more efficient use and less use of energy. And boosting investments in renewable energy.

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Taiwan computer and iphone maker Foxconn is setting up a new EV business with $600 million investment. GM, Toyota, Stellantis and other auto companies are making their own EV's and accumulating expertise in the manufacture of EV vehicles which have fewer parts and use software. Foxconn has operated as a supplier to Apple. It hopes to become a supplier of EV's with initial progress in Asian countries. 

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After a good start the vaccination drive is slowing both in India and the US. Vaccine supplies need to be boosted in India and the government has given approval to the Pfizer, Moderna and J&J vaccines to boost supplies. The Sputnik vaccine from Russia has also gained approval with new supplies of that vaccine expected in India. Vaccine skepticism is a problem in the US and Europe. Supplies of the Pfizer vaccine will be boosted in Europe with the EU contract for 1.8 billion doses signed recently. This should give the slow vaccination drives in France and Germany a boost.

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A Berlin based think tank, German Institute for Economic Research, says Germany could end its dependence on energy imports by winter of 2022. That is much sooner than mid-2024 as Economy Minister Habeck has stated.The issue has serious urgency as the war continues in April in Ukraine entering a new and more dangerous phase in the east. And every day oil and gas imports by European Union gives Russia $16 million for coal, $434 million for natural gas, and $489 million for oil, a total of close to $1 billion every day.  With new missile attacks on civilian buildings this is one way for European Union to shoulder some of the burden that it has not done so far. DIW think tank says this could be done with decreased industry and household consumption that could generate about 18-26% savings of the demand for Russian natural gas, suggesting that households turn down thermostats and use less warm water, and industry turn to alternative fuels such as coal and biomass. Another saving is from increased supplies from Norway and the Netherlands of liquefied natural gas (LNG). Increased supplies from Norway alone says DIW could cover 20% of current annual imports of gas from Russia. Instead of waiting to build new infrastructure, the new LNG terminals on the coast which face long construction times and eventually falling demand for natural gas which make them financially untenable, the best approach is to use existing infrastructure in LNG terminals in the Netherlands, Belgium and France to increase volume in EU pipelines. Such action would cover 25% of demand for Russian natural gas. Other action is get more efficient use of the European pipeline system to increase German gas imports from Algeria, Libya and other North African nations vis southern EU nations. ...

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This report in the WSJ says the increase in Saudi production announced on June 2 will do more for Saudi Arabia diplomatically as it improves relations with the Bdien administration, and much less for oil markets. The increase of 648,000 barrels a day for both July and August is seen as a drop in the bucket. Only Saudis and UAE have spare capacity- estimated to be at 3 million barrels a day of spare capacity. The Russian oil production has already dropped by 1 million barrels a day since the start of the war in Ukraine and will drop further after the European Union oil embargo on 90% of oil supplied by Russia to the EU. Russia may even withhold supplies from the market to keep oil prices high as it is selling oil at a large discount. Russia evades western oil sanctions by selling oil using transfers out at sea and in other ways that do not reveal the source of the oil. Saudis and UAE are seeking better relations with the US to gain security guarantees after drone and other attacks by Yemeni rebels and Iran. Earlier president Biden had distanced himself from Saudi Arabia following human rights situations that led to deteriorating relations. The EU oil embargo, high oil prices that are hurting poorer countries all over the world, and the commitments by the US and other European partners to reduce fossil oil fuels production and increase renewable energy production are now added factors that the US is including in its relations with the Middle East as it seeks to balance different factors. Saudis see an opening for improved relations.   ...

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The $369 billion Biden climate change and tax bill moves forward with renewable energy but also keeps incentives in place for oil and gas drilling for the transition period now that there is an embargo on Russian fossil fuels. US now exports LNG to Europe with the cutoff of gas supplies from Russia and gas rationing in the EU. In this new situation Senator Schumer has come up with a new approach and is preparing to take this through the US Congress. It puts president Biden within reach of his climate goals for 2030 for 50% reduction of carbon emissions by 2030. This bill could accomplish 40% of that reduction.

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European Union countries reopen for travel this summer. A new travel pass or digital Covid certificate is approved to promote freedom of travel as more people get vaccinated. About a third of people are vaccinated for first shot in France and about 40% in Germany, which means in coming weeks they will have the second shot and enough antibodies to make a return to normal life possible. The EU has negotiated this time with Pfizer for 1.8 billion doses and is building enough vaccine supplies. For the first time governments are stepping up with plans and resources allocated - in India the government now has plans to create supplies of 2 billion doses by the end of the year. This means there is new hope if the vaccination is accompanied by efforts to build booster shot supplies this time planning ahead. Managing the risk of those who are vaccine skeptical remains a problem to be tackled. Masks and other essential precautions also need to be followed in crowded spaces as this was neglected where there was a second or third wave. Public education for this is essential to better manage the pandemic. ...

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Russian seaborne crude shipments are up 18% as of June 11 over the prior year, Iran's shipments up even more by 45%. The result is increased supplies even though the Saudis tried to increase oil prices by limiting production. China's economy is slowing and faces headwinds that will not go away anytime soon of debt close to 290% of GDP higher than US or Europe. And lower imports by the US and EU as they correct the mistakes of overconcentration in China. The European Union faces high inflation and a mild recession. This is cutting demand as supplies increase. It will help the Biden administration as it seeks to give all Americans a fair chance to improve their standard of living, by reducing the cost of living and investing in the economic potential of the country in a way no other adminstration has done in the last 40 years.

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US House Speaker Nancy Pelosi will spend Tuesday night August 2 in Taipei, Taiwan. China has threatened severe consequences and Taiwanese forces are on alert. Yet with over $1 trillion in China's exports to US and EU in 2021 the response will have to take this into account as also the US and EU to redesign its supply chains. This is the first trip of a senior US official to Taiwan as Speaker Pelosi comes next to the Vice President to succeed the presidency. The US response to the Russian attack on Ukraine was made in Biden's word as a deterrent to China in its role in the Indo-Pacific region. The Pelosi trip may be a reflection of this policy that seeks to maintain the US position that Indo-Pacific is international waters, that US policy will continue as before undeterred by actions such as the Russian attack on Ukraine with the support of China. And that US will engage fully with allies in the Indo-Pacific- Indonesia, Singapore, Malaysia and Taiwan. And that is doing this with the cooperation of its allies in the region- Australia, Japan and India. US and EU imports from China are $541 and $522 billion over $1 trillion for 2022. Loss of even a significant portion of these exports from major tensions in the region would have a severe impact on Chinese economic growth. The US and EU are already engage in redesigning the supply chain and would also face problems in a transition similar to the gas rationing in Germany after cutoff of Russian supplies. The trade is too big a factor at this time. ...

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A wind farm out at sea to start in 3 years, small renovation projects across France and Germany, a couple of billion dollars from the French government for home renovations- this kind of approach is considered completely unrealistic say EU legislators. One Danish legislator asks what is more unrealistic? Setting serious targets for conversion to renewable energy or depending on Putin's gas and oil?  These EU legislators are calling for aggressive action now. The European Commission set a 9% goal for energy savings by 2030, this has now been moved up to 13%. EU legislators are calling for 23% in savings by 2030. And even this may not be enough to meet the goals for climate change to prevent the disaster from climate change with fires and floods and heat waves that hurt agriculture and food supplies. A savings target of 19% is about the gas that runs 40% of the cars and trucks on American roads in 2021 or 214 million metric tons of oil. The French government has set aside 3 billion euros for comprehensive renovations of homes to save energy with a target of 300,000 homes in 2022. This is completely inadequate as it will cost 23 billion euros say experts on the Paris city council. Renovations are only running at 60,000 a year. A big part of the conversion in Europe is converting from gas heating to electric heating. France is boosting subsidies for new electric heat pump installations.   ...

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  US reaches agreement that would restore oil supplies and bring down oil prices. The supply chains may have to be reconstituted for replacing much of the 20% of the oil that flows through Hormuz if the US, Europe,China and India, Japan, rest of the world are to gain from this experience. The only way to understand the change of mind of the DJT US government and the Saudis/UAE/Qatar for bringing an end to the war without immediately fulfilling required nuclear conditions is from the Saudi point of view it has sought to avoid damage to its oil facilities from Iranian drone and missile attacks. From the US point of view it may see that the US + ramped up Venezuelan production by 2027-2028 with increased push for supplies in other parts of the world with better security than Hormuz, could make up for most of the loss in supply from Hormuz. For the remainder acceleration of the renewal energy in Europe and in China, India could reduce dependence on oil from Saudis/Iran.  US Energy Information Administration forecast is for oil prices currently $103 for Brent crude oil to stabilize at $89 at the end of 2026 and $79 in 2027. The year started in 2026 at $60 per barrel. The UAE oil agency ADNOC says it would take 4 months to get 80% of production back on stream and full flows by 1st quarter 2027. Rystad Energy estimates repair and restoration at oil facilities to cost $58 billion. The MAGA base which opposed wars by Bush and Obama in the region would then look at it this way. The billions that Obama poured into Iran for Iran to rebuild its nuclear program would not happen again, as the US would continue its sanctions till all nuclear materials are removed from Iran. Iran would stall in negotiations that are now put off with only a Memorandum to show for commitment of Iran- though an agreement would only be a piece of paper that Iran may not implement as the failed Obama agreement showed- but yet not have the billions of dollars to support its nuclear program. It would give the US, Israel, and the world 10-15 years in which to respond to another nuclear program by Iran. Iran will need $270 billion to repair the damage to industrial facilities, which shows the cost of the war for the Iranian people just to get a nuclear weapon is prohibitive, considering that the Iranian economy was already in trouble before the war. Inflation and the overall economy will be in difficult shape for many years. Public sentiment in Iran may change the future course of Iran away from the course currently pursued. The entire Middle East  region has not benefitted from its dependence on oil. For the rest of the world finding alternative sources of supply is the best way and EU, China, India should accelerate renewable technologies and goals for energy independence shortening the transition from fossil fuels. ...

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Afghanistan plunges into a dire economic crisis and socio economic collapse with the collapse of basic services such as health care, banks, food supplies, financial systems. The EU promises humanitarian aid of $1.16 billion to be delivered directly by aid organizations. A virtual group of 20 summit leads to discussion of how to prevent famine and collapse In October 2021.

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The EU moves to support Egypt's precarious economy with 7.4 billion in euros of aid and help for its economy. This comes at a crucial time for a country with 106 million people facing economic difficulties. 5 billion euros of concessional loans, 1.8 billion euros of investment, 600 million euros of grants including 200 million euros to manage migration. This is a positive proactive step taken by Leyen and EU. Leyen visited Cairo. Lessons have been learned. Joining Leyen in Cairo were leaders of Austria, Belgium, Greece and Italy in a new strategic partnership of European Union nations with Egypt. Pandemic and war in Ukraine affecting food supplies, higher energy costs, have hit Egypt hardest . No matter which government was running Egypt the problems simply were too big for a fragile economy in a difficult region. For the first time the EU has learned from the migration crisis and its own eurozone crisis, to work and cooperate with regions outside to ensure a better future for all. And not to be deflected with wars and other crises in making the right decisions ahead of time not reacting to crises but staying ahead of them. How many years have been lost- because the ideas for better lives of all was what president Kennedy's New Frontier was all about when he talked about it in the years 1956-1963. EU needs a new vision for Africa and Arab North Africa. ...

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European Union plans are for cutting by two thirds current imports of oil and gas from Russia in 2022. The EU's plan is to take down the imports of Russian natural gas from 155 billion cubic meters which represent 40% dependence on natural gas from Russia, the import figure for 2021, down to 100 billion cubic meters. James Henderson, chairman of the gas program and the energy transition research initiative at Oxford Insititute for Energy Studies, looks at how the EU will get this done.  The European Commission's plan is to get 50 billion cubic meters of liquefied natural gas. New projects for LNG and return to market for supplies that were disrupted earlier would generate 40 billion cubic meters of LNG. Of this 30 billion cubic meters could go to Europe. Another 10 billion cubic meters is expected from Norway, Algeria and Azerbaijan. Some of this by delaying maintenance. Conservation and reduced consumption could deliver savings of 38 billion cubic meters of gas. Of this 20 billion cubic meters would come from new solar and wind energy. Roof top solar and installing new wind energy can save about 4 billion cubic meters of natural gas. This does not include energy saving from industry, particularly Germany, which makes up a significant part of the use of oil and gas. Increased temporary use of coal may be considered and nuclear energy is an option in some countries. These are first step, additional action will be needed to reduce dependence on Russia from the current EU plan of one third reduction in 2022 to two third reduction by the end of the year to demonstrate the EU's resolve in the war in Ukraine. ...

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The European Union was faced with a baseline tariff of 10% which after slow progress on negotiations is up now to 15%. EU frustration is evident in this story in the WSJ. But this could also be just a negotiating tactic of the EU. Bottom line the EU needs the US as Germany faces an assertive Russia. Germany is aware that France and Britain are further away than Germany from Eastern Europe and Russia.  Under chancellor Merz there is  much more rapport with the US than ever existed under the Merkel government or the Scholz government. Merz has disagreed with the sale of stake to COSCO in Hamburg port and many decisions from the Merkel period on immigration, being more aligned with the US in spirit. This was evident in the visit and meeting of DJT with Merz at the White House. DJT says even of Starmer of Labour that "I like him a lot." This could easily be said about the relationship between DJT and Merz. The decision by DJT on Patriots to replenish German supplies and by Merz to finance this and shift Patriots in Germany to Ukraine is a clear example of the path chosen by the two leaders for cooperation. German decisions will be driven by Merz in the direction of economic cooperation with the US with none of the condescending attitude that Merkel and even Scholz showed towards the US out of a lack of grasp of what is happening both inside Germany and the US, the need to rebuild the US and Europe after the trade disasters and lack of investment in the home base of 30 years. ...

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US president Biden says efforts are being made to provide emergency assistance to India for vaccine making supplies, as well as therapeutics, ventilators and other equipment. The White House says "The United States has identified sources of specific raw material urgently required for Indian manufacture of the Covishield vaccine that will be immediately be made available for India." Joe Biden said that "Just as India sent assistance to the United States as our hospitals were strained early in the pandemic, we are determined to help India in its time of need." This assistance is now being coordinated at the highest levels and being done round the clock. Chancellor Merkel of Germany - "The fight against the pandemic is our common fight. Germany stands in solidarity with India and is urgently preparing a mission of support."  The European Union's von der Leyen said "The EU is pooling resources to respond rapidly to India's request for assistance via the EU Civil Protection Mechanism. We stand in full solidarity with the Indian people."   ...

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Iran Ceasefire shaky May 11 2026 with no willingness on the part of IRGC Iran (Iran Revolutionary Guard Corps) to send all nuclear materials out of the country. Past experience has shaken American confidence in IRGC Iran's willingness to give up nuclear weapons development. Under president Obama some nuclear materials were sent to Russia, some left inside Iran which were after an agreement used by IRGC Iran to develop weapons grade enriched uranium, putting the situation back to where America started before the agreement. This is behind the DJT Republican administration's effort to get all nuclear materials out of Iran. This has wasted another decade for Iran, diverting resources needed for improving standards of living and cost of living to the weapons programs. The result is internal protests that were widespread in Iran including the middle class, not just students. So that today Iranian people are divided on the issue whether Iran should against all prevailing Middle Eastern and World opinion go for a nuclear weapon. The situation of clandestine development in North Korea and Pakistan of nuclear weapons is not existent today as the US is monitoring it constantly. Israel sees these weapons programs in Iran as a threat to its existence close to its borders in Lebanon and Iraq, which makes it unlikely that clandestine development is possible for nuclear weapons development anywhere in the Middle East. The UAE has also shifted its stance in favor of the US, Saudis want assurances, and India, Pakistan Egypt are in different ways seeking a denuclearized Middle East. This means the American DJT administration is NOT ALONE on this issue as the media in the US and Europe are presenting. Germany's Wadephul and Merz are closer to US thinking on this issue than the media says. Macron and Starmer are at popularity of less than 20% in France and the UK and do not reflect the opinion in France and Britain, and in Europe on this issue. In this sense the US is doing this for a safer world, for China, India, Brazil and EU, all the nations in the poorest parts of the world in Africa, Asia. These poorest nations which are bearing the brunt of this obsession with nuclear weapons development by IRGC Iran in a Middle East torn by 5 decades of wars from Kabul to Damascus, Baghdad to Tehran, by IRGC Iran (Revolutionary Guard Corps), as these poor nations confront lack of oil and fertilizer supplies. It does not come at a good time for even the largest nations about 3 billion people in China, India and Indonesia, Egypt which are suffering from the effects of oil shortages and fertilizer shortages when possibly at most about 40 of 90 million people in Iran support weapons programs, all others in Iran seeking a way out for better standards of living and living at peace with neighbors and the world. In that peacetime Middle East the Palestinian people could find solutions like the Irish people with the goodwill of all neighbors. ...

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The European Union's trade relations with China, and the trade and industry relationship between Germany and China built during the Merkel years is a part of the overall trade setup of the Free World that is likely to be questioned by Habeck, Baerbock of the Greens and chancellor Scholz after Mr. Biden's launch of the IPEF economic alliance for Asia. During her period in office Merkel also built the German trade relationship with Russia leading to Germany being dependent on Russia for 51% of its oil and natural gas supplies. The German dependence on Russia for energy is now being reversed by the efforts of Economy Minister Habeck of the Greens party in the Scholz coalition. The supply chain renewal and redesign by president Biden is likely to be followed by Germany and France and the EU. With it more investments will be shifted back to the US and the EU and allies in Asia such as India that offer a large pool of well trained workers similar to China's. In this sense the IPEF arrangement will be repeated in European Union's new relationships with Asia under the Greens SPD German coalition's leadership. ...

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The US and Saudi Arabia are working on a partnership in which the Saudi Public Investment Fund will invest $15 billion to secure mining stakes for metals such as cobalt needed in electric car batteries. The US would buy the supplies from the Saudi owned companies. US is a copartner with India on a new economic corridor infrastructure project that will connect India with the European Union and the US through Saudi Arabia. Saudis will invest $20 billion said MBS, Prince Salman of Saudi Arabia, at the meeting of the G20 in New Delhi alongside Modi, Biden, Scholz, Macron and the heads of the EU. This is a major new project for which the seeds are being put in for future generations.

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About 600 US and European company brands are leaving Russia. This report in the WSJ shows how ordinary Russians are coping with jobs in limbo. Many of these companies are continuing to pay employees but jobs remain uncertain. This includes companies like Sweden's IKEA that are popular in Russia. As western sanctions make operating difficult companies future is uncertain. This is creating anti-Western sentiment particularly in the rural areas which use mostly Russian made products and which are Putin's main source of support. Even Russians who question the attacks on Ukraine are skeptical how the withdrawal of these companies helps find a solution for Ukraine. This is happening even as the errors made by 4 term German chancellor of increasing the dependence of Germany on Russian energy supplies from 36% during Putin's annexation of Crimea to 55% today are becoming abundantly clear.That makes an energy embargo on Russia difficult for Europe, with German business saying this would be "catastrophic" because it is unprepared even though this alone provides about $1 billion a day to Putin's Russia. Meanwhile EU and other western leaders call attention to India's drawing 1-2% of its energy supplies from Russia even though one month of Indian imports is equal to just one afternoon of European oil and gas imports from Russia. India has done more than Merkel's Germany to meet the need for humanitarian vaccine assistance for the poor countries of Asia and Africa, Middle East, and is now engaged in meeting the needs of the world for foodgrains after the fallout from an Ukraine crisis that is a result of emboldening of Russia from Merkel's policies.  ...