in berlin, welcome to the program. energy industry leaders are gathering in texas with their sector in crisis. russia's invasion of ukraine has delivered a shock to oil and gas markets and energy firms are under pressure to take a stand against moscow. governments are also planning to turn up the heat. international sanctions against russia have so far excluded the country's energy sector. but that's about to change. the u. s. in europe are exploring a ban on imports of russian oil and gas. attendees of sarah week and annual energy conference in houston are discussing how to replace russian supply. now i see that the u. s. is, is looking to venezuela is considering getting increased production from venezuela . well those barrels could have come from canada. could have come from alberta. canada says it has spare pipeline and rail capacity and can move more oil to the united states. washington would be in dire need as its own. rigs are currently

operating at 25 percent below pre pandemic levels and can't make up for the shortfall. opec plus producers have also fallen short of their target at supply increases as of late a ban on russian resources, however, would not only impact energy supplies. i'm in the mining business in russia is one of the world's largest suppliers of nickel and palladium. most of them are heavily used in the automobile industry and in the auto catalysts industry is a large supplier of potash. and it's a large fire, obviously of oil and gas rush us war in ukraine hits the energy sector at a crucial time as it was already reorganizing to slowly move away from fossil fuels . for now, it's unclear if that transition will be accelerated. i will sanity believes in more sustainable and reliable solutions them out and avoiding improving sustainability

was supposed to be the main theme of sara week. for now, the energy transition yields to a more urgent problem. while news that the us and europe are discussing banning in ports of russian crude oil has driven the cost of a barrel to 14 year highs. but more crucially for european nations like germany, natural gas prices are at record levels. as the supply from russia seems ever less secure. now, russia exported under net 98000000000 cubic meters of natural gas back in 2020. and as you can see here, more than a quarter of that went to germany, which is by far moscow's biggest e u. customer, but even other member states like italy and the netherlands are much bigger importers of russian natural gas than for example, china. you can see here was just for as for how important it is to their overall economies. you can see that russian natural gas made up more than half of germany's

overall imports in 2020. that is a key reason why europe would struggle to live without russian gas. it now seems so long ago. russian president vladimir putin meeting with royal dutch shell, c e o. in 2014, the 2 sides pledged to build on a 25 year relationship that would lead to the development of a liquefied natural gas project. i russia as jacqueline island, 8 years later, shell, another oil companies are turning their back on to 10 after his war against ukraine . the i'm and is the, the economy in the oil and gas industry, which is the backbone of the russian economy is going to suffer because of those companies. we're bringing advanced technologies, a lot of tests, know how oh, to russia and without their commitment to russian products. i don't think that the

russian production of oil and gas can a go ahead and continue. but germany is still dependent on russian oil and gas. it relies on russia for 30 percent of its oil and half of its gas supply. germany could break its dependence, but no one in the energy sector believes the transition will be easy. then there was some kind of, maybe, if russia stops delivering gas, we could get through the next winter without letting people freeze without our industrial production, shutting down and without blackouts, but with or without russian gas. the power grid still has the capacity to fail on this on. oh, it was a discuss cocoalsky energy experts argue the european union needs to expand its green energy sector in order to survive. but coal, atomic power will still have to play a role. let's discuss further yours reliance on russian energy in particular, russian natural gas. i asked leon is vicki from research consultants and he aspects

whether countries like germany had a problem on their hands. this is really european problem rather than individual countries. specific problem, if germany would be struggling with a supply of natural gas, it would automatically pull supplies away from other parts of europe. so that ultimately, again, this becomes a european problem when it comes to answering the question whether we could do without rough, natural gas in the short term. if there was, for example, computer stops to rush in close to europe. the short answer is yes, but this would obviously entail significant incisions in today tonight where we'd be talking about measures that include industrial demand destructions, for example, nor to make sure that we can put adequate gas into storage for next winter. so we're to him out having to handle rising gas prices, rising energy prices for, for your opinions. is that what we're talking about here?

yes, precisely. i think in the short term again, if we're talking about a complete sub to russian flaws, you would obviously see gas prices skyrocketing even more than they have been now. so even today in the morning gas prices grew by around 40 to 50 percent purity on worries of adequate supply. so you'd see the price of skyrocketing and this is really the market trying to reduce gas demand from other sectors of the economy, such as, for example, from industry in order to make sure that there is sufficient gas in the system. so that we can put that into storage. so if we are going to see a complete disruption to rational flaws, this will just further intensify. you will need to see significant demand reductions in order for the market to balance. and presumably, that would mean having to source natural gas or something similar to it from elsewhere. what, what are the options that europe has then the options are not,

are not many. you're obviously looking at n g supplies, but the, your do you global energy market is already quite tied. and europe so far has not been very successful in trying to out price, particularly ne agent buyers off gas. so that you're looking at a, at a very tight market overall. i think the short term answer is if we need to bridge a general supply disruption from, from russia are going to be particularly focused on domestic supplies. so we would need to be starting to ask questions with respect to groaning and, and whether we're going to increase production there in the short term. but also with respect to, for example, domestic european production of coal. and whether we're going to start up, pull, fired, or again. so given all of this complexity that comes with trying to work without russian natural gas, is it really realistic that the you would impose a ban on it?

well, i think when it comes to the, to the possibility of it. absolutely, and i mean it's, it's still not being rejected by some member states, but i think policymakers need to be aware of the consequences of such a decision. and from the way the market is looking right now, as i said, there is no real way to source an adequate supply of natural gas from other from other countries or from the global energy market. which means that the only way that the european markets can actually balance is to demand destruction. so you would need to see policy makers intervening and domestic market in order to force industrials to actually shut down the economic repercussions of this would obviously be quite significant. so this is a trade off that european policymakers just need to be aware of in terms of what it means for natural gas prices. and in terms of what it means for the aggregate economy in europe. ok, leonor speaking from energy aspects,

thank you so much for bringing your insights. fil is not just the flow of natural gas from russia to europe, that is proving itself to be problematic. moscow also has control over some european storage facilities for the communities around these sites. it's becoming a source of unease. mayor hands, peter haskin, looks out his office window at one of the largest gas storage facilities in europe . it's operated by a gas prom subsidiary and yes'm. gam in northern germany, gas exports are a key source of income for the kremlin. and it's war deutsch, desert, desert creek of with thousands of people are dying right now in this war. and that means ultimately we here in germany and in this community are paying for it. so i don't think anyone here still stands behind this company mind in knowing for the

modem, stayed the natural gas is piped in from russia and is stored in salt dome's deep under ground. what especially a noise the mayor is that the volunteer fire brigade is responsible for ensuring the security of the gas from plant that cost the town around $250000.00 euros a year is online. if i'm ballgame, dusty, there ought to be an agreement that the operators of the gas storage cover our costs. it would help pay for the work that the fire department does. we've performed an analysis and found out that about 70 percent of their costs are related to the facilities fallen put, and c, r to caesar and long dashed in the mayor has been negotiating with gas from german subsidiary, asked dora for years so far without success. an opaque network with ass, dora when gas gas, cade and other gas from own companies, operates the largest gas storage facilities in germany. it owns important pipelines

and it trades in russian natural gas. lawmakers say this causes communities to lose out on tax revenue, gap astray. i know she's still in the past, these companies would suddenly change their name and that wouldn't be a single cent of tax income left. and thought was that there's no way of contacting the people in charge. eyes of the following. our experience with gas from here in this region has not been good so far, gas from has been able to operate freely on the german market. even building its own pipelines like here in eastern germany. but now the ukraine war is forcing germans to re think. many of them say the government must have more control the clothes attack fuel pump fuel. the crisis shows we need much more transparency than we currently have. at the moment it's almost impossible to say who is actually involved with whom in which business and which gas is really flowing through which

pipe. spacious goth mayor hands peter haskin is hoping for more support from the german government as the war rages in ukraine. people here worry about how much control the russian state has over their lives. that's all from the business team here in berlin from already had it to our website either way, dot com slash business. you can also find us on the data, we'd use youtube channel and on facebook as d w. w till next time. ah, [000:00:00;00]

with ah euro to do without russian gas shears over gas and oil supplies are soaring as prices he to record ties. how can europe and it's dependent on russia? can the continent suddenly turn off the tab of business special in 30 minutes on d, w. and not just another day. so much is happening all at once. we take time to understand this is the day in depth look at current news, events analyzed by experts and critical thinkers. not just another news show.

this is the weekdays on d, w. they've had no peace for, for decades. the people of iraq our country is devastated and there's no way, oh, how did it come to this? teen i witnesses revealed president story. they were the u. s. they knew what the consequences these sanctions are and they've lied to the world about it behaved exactly like germany. and the poison spread, bear with

the great documentary series destruction of the nation. this week on d w. ah ah, this is did every news live from berlin cor doors called by to craig rejects rush us proposal for civilian escape. routes leading to russia. embellish thousands, attempting to flee, are hoping for humanitarian corridors to safety. while those frampton russian controlled areas displayed their defiant mess with bullying,

while bombs falling ukraine says 8 people were killed by a russian attack during