The vice chairman of S&P Global said that Russia is threatening the fuel supply of the US and European governments.
Russian President Vladimir Putin is creating an energy war in Europe by reducing supply to the region, and it is pushing them to realize their energy security is at huge risk, according to CNBC.
According to an energy historian, one thing that has been noticed about Putin is that he knows what he's doing. He said that he was reducing, managing supplies and driving up prices.
Europe has been on edge after Russia cut its gas supply to the region. Germany and France drew up emergency plans to deal with any supply shortfalls after Russia resumed the flow of natural gas last week.
Russia blamed sanctions for delaying the delivery of a piece of equipment from Canada, which led to a cut in natural gas supplies to Europe. After the repaired turbine is installed, it will be supplied in volumes which are technologically possible, according to the Kremlin.
Europe, which is heavily dependent on Russia for its energy, is nowhere near out of the woods as supply for the winter is under threat. Europe could face a power crunch earlier than expected, and the region will be unprepared for chaos in the energy markets this winter, according to major industry voices.
Natural gas prices in Europe have increased by almost 140% so far this year, while crude oil prices have increased by 30%.
"Governments are now realizing the stakes are very high given their heavy dependence on Russia", said Yergin.
Financing issues with US refineries are limiting supply in the market. There is some additional refinery capacity coming from the United States, but we have had a lot of plant closings and converting them to bio-energy refineries.
There is a big problem about refining.
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